Cook Inlet Down Payment Assistance Program

Cook Inlet Down Payment Assistance Program was designed to help individuals afford the hefty down payments that are associated with the mortgage transaction. The program saves homebuyers money when combined with a first mortgage. This allows them to avoid monthly mortgage insurance, lowering their overall housing payment.

Available Assistance
The program provides eligible applicants in the Cook Inlet Region area up to 20% of the purchase price, with a maximum of $60,000, in the form of a second mortgage. This is a 30-year loan offered with a 4% fixed interest rate (APR of 4.083%). *Interest rates are subject to change.

Eligibility Requirements
In order to be eligible for the Cook Inlet Down Payment Assistance Program, all borrowers must meet certain requirements. Applicants must have an annual household at or below 120% of the area median income (limits shown below). They must also have a credit score of at least 640, a first mortgage debt-to-income ratio no higher than 30%, and a total debt-to-income ratio not exceeding 40%. All borrowers are required to show evidence of two months of “reserves” after closing, calculated by multiplying two months of principal, interest, taxes, and insurance (PITI) for the housing payment. This reserve amount may come in the form of checking, savings, and investment or retirement accounts. Any applicants who have had a foreclosure or bankruptcy in the past six years are not eligible for the program.

Property Guidelines
Properties bought with the DPA program funds must serve as the applicant’s primary residence. The program covers single-family homes purchased in the Anchorage Borough, Kenai Peninsula Borough or the Matanuska-Susitna Borough.

Income Limits
Household income is defined as all income received by household members (18 years or older) who will be living in the home, even if they are not on the mortgage.

1 person household: $71,400
2 person household: $81,600
3 person household: $91,800
4 person household: $102,000
5 person household: $110,175
6 person household: $118,350
7 person household: $126,525
8 person household: $134,700

(Note: These figures were accurate at the time of publication and may no longer be current - visit the program website for updated information.)

Down payment assistance programs and/or grants were researched by the team at FHA.com. Please note that all programs listed on this website may involve a second mortgage with payments that are forgiven, deferred, or subsidized in some manner until resale of the mortgaged property.

FHA.com's compilation is not a complete list, but it can serve as a starting point in your search for the down payment assistance program or grant for your situation. It is up to the consumer to contact these entities and find out the specifics of each program.