Closing Cost Assistance Program (Baranof Island Housing Authority)

What is Closing Cost Assistance Program (Baranof Island Housing Authority)?

Closing Cost Assistance Program (Baranof Island Housing Authority) is a forgivable loan for homebuyers in Sitka, Alaska, administered by Baranof Island Housing Authority (BIHA).

• BIHA's Closing Cost Assistance offers Sitka-area Alaska Native/American Indian first-time homebuyers under 100% MFI up to $5,000 for closing costs, secured by a second/third deed of trust that converts to a forgiven grant after five years of occupancy. Applicants contribute at least $1,500 of their own funds and complete an AHFC Home Choice course.
• Up to $5,000 toward closing costs.
• Forgiven after 5 years.
• 0% interest.
• Sitka-area AIAN families.
• This is a federal program, so it is available beyond a single state or city.
• Funding comes from NAHASDA / federal funds (BIHA is TDHE for Sitka Tribe of Alaska).

How much assistance does it provide?

Closing Cost Assistance Program (Baranof Island Housing Authority) offers up to $5,000 in assistance.

• Buyer contribution: Minimum $1,500 out of pocket (earnest money and/or lender-required improvements).
• Amounts are the program's published maximums, not an offer — Baranof Island Housing Authority (BIHA) determines any individual award.

Do you have to pay it back?

Closing Cost Assistance Program (Baranof Island Housing Authority) is forgiven after 5 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Transfer of property before the fifth year of ownership triggers recapture from sale/transfer proceeds.
• The assistance is recorded in Second or third mortgage (Deed of Trust) position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Closing Cost Assistance Program (Baranof Island Housing Authority) is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Closing Cost Assistance Program (Baranof Island Housing Authority) limits household income to 100% of the area median income, which varies by county and household size.

• Less than 100% of Area Median Family Income (HUD).
• The limit applies to total household income, not only the borrower’s.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

Is there eligibility for specific groups?

Closing Cost Assistance Program (Baranof Island Housing Authority) names American Indian and Alaska Native buyers among the groups it serves.

• Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Where does it apply?

Closing Cost Assistance Program (Baranof Island Housing Authority) is a federal program, so it is not limited to Alaska.

How do you apply?

Applications for Closing Cost Assistance Program (Baranof Island Housing Authority) go through Baranof Island Housing Authority (BIHA), which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through AHFC Home Choice first-time homebuyer education course.

2. 2

   Contact Baranof Island Housing Authority (BIHA) to reserve funds

   Funds are reserved through First come, first serve once approved and a good faith estimate is issued, and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.