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Public Health Initiatives & Partnerships

AnCHOR Program

Anchorage Communities Home Ownership Resource

Program Administered By:

Anchorage Neighborhood Housing Services, Inc.
480 West Tudor Rd.  
Anchorage, AK 99503
Email:info@akanhs.org

Program Goals

The goal of the program resides with raising the standard of living for low- to moderate-income families by assisting them with home ownership, and with the stabilization of targeted neighborhoods by promoting home ownership. Often, a low-wage family has the income stability and creditworthiness to own a home, but cannot save enough funds for the down payment and closing costs and still have enough residual funds for home maintenance and furnishings. 

  • Program Goals
  • Program Description
  • Income Eligibility
  • Maximum/Minimum Dollar Ammount
  • Loan Structure
  • Interest Rate
  • Asset Limitation
  • Homeownership and Occupancy
  • Eligible Properties
  • Property Standards
  • Homeowner Education
  • Lead-Based Paint
  • Relocation and Acquisition
  • Assumability of the Loans
  • Subordination of the Loans

    Program Goals

    The goal of the program resides with raising the standard of living for low- to moderate-income families by assisting them with home ownership, and with the stabilization of targeted neighborhoods by promoting home ownership. Often, a low-wage family has the income stability and creditworthiness to own a home, but cannot save enough funds for the down payment and closing costs and still have enough residual funds for home maintenance and furnishings.  (Top)

    Program Description

    The AnCHOR program assists Anchorage’s low-income families, who are first-time homebuyers, by funding a portion of the down payment and closing costs. The down payment assistance funds are used to lower the first mortgage and make the monthly payments more affordable.

    Down-payment assistance is in the form of a second mortgage, secured by the real property. The assistance will make up the difference between the borrower’s affordable first mortgage and the sales price, including eligible closing costs.

    Borrowers will choose from a list of approved lenders to secure their first-mortgage loan. The lenders will transfer the appropriate documentation to Anchorage Neighborhood Housing Services, Inc. (ANHS).

    Income Eligibility

    A borrower’s total household income may not exceed U.S. Department of Housing and Urban Development’s (HUD)established low-income limits (Click the link and look for "Low/Moderate Income 80%" heading), according to family size.

    Household income will be determined as the adjusted gross income as defined for reporting on IRS Form 1040 for individual federal annual income tax purposes.

    “Household” will include all people occupying the property as their permanent residence, whether related or not. College age children, who reside at a college, can be included if counted as a dependent on the federal tax returns of the homeowner. Household will also equate to the HUD definition of “Family”. (Top)

    Maximum/Minimum Dollar Amount

    The maximum amount of assistance will be $30,000 for single-family homes inside the Municipality of Anchorage. The minimum amount of assistance is $1,000.

    Loan Structure

    There are no monthly payments associated with this loan.

    Fifty percent of the loan is forgiven over 10 years at a rate of 5% a year.  The remaining 50% is due and payable upon sale or transfer of the deed or title.

    There is no proration of the amount forgiven during the year (i.e., if the property is sold at any time during the year, the amount due and payable will be the amount due on the previous anniversary date).

    The property must remain the borrowers’ primary residence throughout the forgiveness period. If the property ceases to be the primary residence for any reason, the forgiveness provision will end and the full amount of the assistance due at that time will become immediately due and payable. To maintain this policy, Anchorage may, at its discretion, require home owners utilizing AnCHOR funds to certify their occupancy

    For the purposes of the AnCHOR program, a property qualifies as the borrower’s primary residence if the following conditions are satisfied.

    The property will be occupied by the borrower(s) for more than six (6) months of the year.

    The property is located relatively convenient to the place of employment of the borrower(s). If the property is not located relatively convenient to the borrower’s place of employment, the provision may be satisfied if:

    The borrower(s) will always return to the property immediately upon completion AnCHOR of employment shifts; or

    The dependent members of the borrower’s family will occupy the property as their primary residence.

    The property will become the borrower’s address of record for reporting federal income tax; voter registration; hunting, fishing, and driver’s licenses; motor vehicle registration; occupational licenses; employment, unemployment, military service, or educational purposes; and similar functions. (Top)

    Interest Rate

    No interest will be charged on the loan.

    Asset Limitation

    Total liquid assets of the household cannot exceed $10,000 after the borrower’s portion of the down payment and closing costs have been deducted.

    Liquid assets include savings and checking accounts, certificates of deposit, trust accounts, notes receivable, etc.

    Assets not counted for eligibility include personal and household goods, vehicles (including RV's, ATV's, campers, snow machines, etc.), retirement accounts (IRAs, 401Ks and similar instruments), or grant/loans/scholarships for college education. The applicant may not currently, or will not at the time of AnCHOR loan closing, own any other residential property, including income-producing property, mobile homes on private lots, and undeveloped/unimproved land. This requirement does not include a recreational cabin owned by the homebuyer. Generally, a property owned by homebuyer is not a recreational cabin if it is located in a community (generally accepted city or village boundaries), or where it has a history of being a rental property. Native properties received through inheritance or allotments (BIA or ANCSA) that are not income producing, nor have been the applicants’ primary residence for the last three years, are excluded from this policy. Finally, mobile homes inside parks are also excluded from this policy. (Top)

    Homeownership and Occupancy Eligibility

    The borrower must be a first time homebuyer and must occupy the property as their primary residence throughout the forgiveness period of the assistance loan.

    Eligible Properties

    Properties must reside within the Municipality of Anchorage.

    The property must be a single-family residence (including condominiums and townhouses), new or existing.  Mobile homes, whether in a rental park or on private land, are not eligible.

    The property value (the sales price or appraised value, whichever is less) may not exceed the maximum value for the size of the household, as established by HUD.

    Properties must also adhere to the policy stated in the upcoming Uniform Relocation Act and Lead-Based Paint provisions. (Top)

    Property Standards

    Borrowers must have the property inspected by a certified home inspector as required by ANHS.  The inspection is for health and safety concerns and for compliance with Anchorage Municipal Charter, Code, and Regulation Title 23 Building Code.

    The Inspectors will examine the entire roof, attic, sub-basement, mechanical and electrical, plumbing, exterior and interior surfaces, stair, porches, decks, balconies, walks, grounds, and driveways; regardless of maintenance responsibility or ownership.

    The borrower will submit a copy of the home inspector's report upon completion.  In most circumstances, the borrower must correct all health and safety issues or major property deficiencies as listed in the report, and have the property re-inspected and the modifications approved by the inspector prior to the Municipality's environmental review.  (Top)

    Homeowner Education

    Prior to Loan Closing:

    All eligible borrowers will attend an AHFC recognized homebuyer preparation program prior to closing the down payment assistance loan. In addition, borrowers will attend the one-on-one counseling provided by the Sub-recipient. The Sub-recipient will charge no fee for this counseling, whether to the borrower or to Anchorage.

    Post Purchase:

    Borrowers must attend ANHS's post purchase homebuyer’s counseling program within a year of purchase.

    Lead-Based Paint

    On all properties built prior to 1978, and where evidence of any interior and/or exterior paint defects (peeling, cracking, blistering, or chipping) is noted in the Home Inspection, the Municipality, or its contracted representative, will determine the level of contamination and require the appropriate remedies as demanded by HUD regulations. The borrower (or if negotiated by the borrower, the seller or other entity) will assume financial responsibility for all testing, inspecting, and remediation of lead-based paint issues. In addition, ANHS will ensure that all applicants will receive HUD’s Notification – “Protect Your Family from Lead in Your Home”.

    This policy will defer to the Municipality’s lead-based paint policies and to 24 CFR Part 35. The Municipality and the ANHS will coordinate lead-based paint procedures as policies evolve. (Top)

    Uniform Relocation Assistance

    The Uniform Relocation Assistance and Real Property Acquisition Policies

    The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, and the implementing regulations at 49 CFR Part 24; HOME policies for relocation assistance (24 CFR part 92.535): To prevent conflicts with the above Act, AnCHOR funds may not be provided to a home buyer purchasing a property which is currently occupied, or has been occupied within the ninety (90) days prior to the date of the sales agreement, by anyone other than the legal owner of the property being purchased. Additionally, not withstanding this ninety day provision, AnCHOR funds may not be provided to a home buyer purchasing a property which will result in the displacement of the occupant of the property being purchased (other than the legal owner of the property being purchased).

    Assumability of the Loans

    AnCHOR loans are not assumable and are due and payable if the property ceases to be the borrower’s primary residence, or upon sale of the property or transfer of the property title.(Top)

    Subordination of the Loans

    AnCHOR loans may be subordinated after closing only if the first mortgage is being refinanced to lower the borrowers’ interest rate or monthly payment, and the borrowers are not extracting cash from the transaction. In addition, borrowers must re-qualify for the AnCHOR program in regards to income and asset limits at the time of subordination request. Furthermore, the Municipality’s lien position must not change as a result of the refinancing. The Municipality approves subordination requests on a case-by-case basis.

    The Municipality of Anchorage retains the ability to revise the AnCHOR Program’s policies at its sole discretion. (Top)

    • Public Health Initiatives & Partnerships
    • Division Manager: Britteny Matero
    • 825 L Street, Room 506, Anchorage, AK 99501
    • 907 343-6513