Kodiak Island Housing Authority originates and services both Alaska Housing Finance Corporation  (AHFC) Rural Loans and Fannie Mae Loans.  A variety of loans and add-on options are available to suit your needs.

Karenia Hackett, our Mortgage Loan Specialist, will walk you through the loan process step by step, to make sure you understand all your options.

FANNIE MAE (FNMA) LOAN PROGRAM

KIHA originates and services FannieMae loans on Kodiak Island.  First mortgage home loans are available for the purchase or refinance of a home.

USDA RURAL DEVELOPMENT LOAN GUARANTEE PROGRAM

USDA guarantees loans for single family homes for individuals or families who meet their income limitations.  The Guarantee may allow financing up to 102% of the purchase price.

AHFC RURAL LOAN PROGRAMS

AHFC loans are available for properties located outside Kodiak city limits.

Rural Owner Occupied Loan: This loan can be used to construct a new home, purchase an existing home or purchase and renovate an existing home and must be owner occupied.  Commercial use is only allowed on single-family homes and is limited to 25% of the gross floor area. 

The Rural Program interest rate applies to the first $250,000 of the loan amount.  Loans over $250,000 receive a blended interest rate; the excess over $250,000 is calculated at the Rural Program rate plus one percent (1%).

Mortgage insurance is required if the down payment is less than 10%.

Rural Non-Owner Occupied Loan Program:  Borrowers may be Alaska residents, businesses, local government entitities or regional education attendance areas.  The properties must be duplexes, triplexes or fourplexes.  Commercial use is not allowed.  Units must have a minimum of 600 square feet.

The Rural Program interest rate applies to the first $250,000 of the loan amount.  Loans over $250,000 receive a blended interest rate; the excess over $250,000 is calculated at the Rural Program rate plus one percent (1%).

Refinance Program or Home Improvement/Renovation Program:  Regardless of whether or not the borrower’s property is currently financed by AHFC, the program allows borrowers to improve the terms of their existing loan and/or obtain funds for renovations or home improvements.  (Some restrictions apply).  The original loan may be a first or second lien.  If there are two liens, they may be consolidated. 

Second Mortgage Program:  Borrowers may obtain a second mortgage under the Rural Owner Occupied loan program and may use the funds to finance home improvements.  Type II mobile homes, vacation properties or seasonal use properties are not eligible. 

The maximum loan amount is $312,750, with a minimum loan term of 5 years to a maximum loan term of 15 years, depending on the loan amount. 

Small Building Material Loan:  Borrowers with residential properties may apply directly to AHFC for funds to renovate or complete their property.  The project may include repair or renovations that improve the livability of the home, energy efficient upgrades or the addition of living space.

The maximum loan amount is $45,000.  Loan funds may be used to purchase building materials (exclusive of luxury items such as hot tubs), pay for freight and third party labor costs.  Borrowers must complete renovations within six months of loan closing.  Any construction/renovation must meet current building codes. Loan term will not exceed 15 years.

GENERAL REQUIREMENTS

Borrowers 

All borrowers must be credit qualified and current on any child support payments.  The borrowers must owner-occupy the purchased property within 60 days of loan closing.  Borrowers are eligible for only one AHFC loan for owner-occupied properties.

Down Payment Requirements 

Different properties require different minimum down payments.

Owner Occupied

• Single Family – 5%, with Mortgage Insurance; 10% without Mortgage Insurance
• Duplex – 10%

Non-Owner Occupied

• Duplex, Triplex or Fourplex – 20%

Requirements for federally insured or guaranteed loans are determined by the insurer or guarantor.

Loan Term

Loans carry fixed interest rates for a period of 5 to 30 years, depending on the program.    AHFC loans do not carry a prepayment penalty.  See the specific program for details.

Current AHFC interest rates can be found at www.ahfc.state.ak.us/loans/interest_rates.cfm.

Assumptions

Qualified borrowers may assume AHFC single-family loans; however, the assumptions are subject to individual program guidelines.

Current AHFC interest rates can be found at www.ahfc.state.ak.us/loans/interest_rates.cfm. 

American Indian/Alaska Native preference does not apply to these programs.

Susan Eoff and Karenia Hackett from the Mortgage Loan Department are available to help you with the process.

Pre-qualifications or Application Process

Download the Mortgage Loan Application by right-clicking on the link and choosing "save to disk". Print the application and complete the applications as fully as you
can. FAX the completed application to (907) 486-4432 begin_of_the_skype_highlighting              (907) 486-4432      end_of_the_skype_highlighting begin_of_the_skype_highlighting              (907) 486-4432      end_of_the_skype_highlighting or deliver it to our office at 3137 Mill Bay Road.  Once an application is received, it will be reviewed and Loan Specialist Karenia Hackett will contact you. 

Contact Karenia Hackett - License# AK280607 at (907) 486-8111 or by e-mail at kareniah@kiha.org if you have any questions.