AHFC Lowers Interest Rates

First-Time Home Buyers and Veterans Will Benefit

Anchorage, AK – May 12, 2009 – (RealEstateRama) — First-time home buyers and veterans may now qualify for lower interest rates through Alaska Housing Finance Corporation. AHFC announced the lower rates for purchases using its Tax-Exempt First Time Homebuyer, Veterans Tax-Exempt, and Veterans Mortgage Programs. The interest rate, which is calculated daily, was 5% and 5.25% for a 30-year loan for these programs at the time of this announcement. However, depending on income and availability of natural gas, the rate could be further reduced when combined with AHFC’s reductions for low-income borrowers and energy-efficient properties.

For the past several months, AHFC has been unable to compete with Fannie Mae and Freddy Mac’s federally subsidized interest rates. “Now we’ve lowered our rates with proceeds from other bond programs,” said CEO/Executive Director Dan Fauske. “This is a win-win for everyone, since the first-time home buyers and veterans will have access to low rates, while the loan remains in Alaska.”

The interest rates posted on AHFC’s Web site at www.ahfc.us reflect the reduced rates, which are even lower for a 15-year loan. Since the pool of money used to lower the rates is limited, AHFC plans to closely monitor loan activity and adjust the rates when necessary to prolong the availability of funds.

AHFC is a self-supporting public corporation with offices in 16 communities statewide. It provides statewide financing for multi-family complexes, congregate facilities, and single-family homes, with special loan options for low-and moderate-income borrowers, veterans, teachers, health care professionals, and those living in rural areas of the state.

AHFC also provides energy and weatherization programs, low-income rental assistance in 17 communities, and special programs for the homeless and those seeking to become self-sufficient. AHFC contributes more than $100 million annually to Alaska’s state budget revenues through cash transfers, capital projects and debt-service payments.

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For more information, contact: Sherrie Simmonds, Corporate Communications Officer, 907-330-8447, ssimmond (at) ahfc.state.ak (dot) us

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