First Home Limited (Tax-Exempt Program / TEP)

First Home Limited (Tax-Exempt Program / TEP) is a first mortgage for homebuyers in Statewide, Alaska, administered by Alaska Housing Finance Corporation (AHFC). First Home Limited is AHFC's tax-exempt bond-financed first mortgage offering below-market fixed interest rates to eligible first-time homebuyers who meet maximum income and acquisition-cost (purchase-price) limits. Financed through Qualified Mortgage Revenue Bonds, it delivers a rate lower than AHFC's standard First Home product. AHFC does not lend directly; loans are originated through AHFC-approved lenders. A federal recapture tax may apply on sale within nine years. Below-market fixed interest rate. Statewide availability. Stackable rate reductions (low-income, energy efficiency, state veterans preference, AHELP). Veterans and targeted-area buyers exempt from first-time-buyer requirement. Funding comes from Tax-exempt Qualified Mortgage Revenue Bonds (QMRB) issued by AHFC.

First Home Limited (Tax-Exempt Program / TEP) is a first mortgage and is repaid under the terms set by Alaska Housing Finance Corporation (AHFC). Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

First Home Limited (Tax-Exempt Program / TEP) is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: Waived for (1) homes in HUD-designated targeted census tracts and (2) qualified veterans (no prior First Home Limited or Veterans Mortgage loan; separation other than dishonorable; DD-214 + COE/Title 38 letter). Current 30-yr rate 5.625% per AHFC rate sheet valid 06/08/2026. Not confirmed (left blank): min_credit_score, max_dti, max_first_mortgage_amount, rate_lock_period, provider_email. This is a rate product with no separate DPA dollar component.

First Home Limited (Tax-Exempt Program / TEP) limits household income to $114,300. 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.

First Home Limited (Tax-Exempt Program / TEP) caps the purchase price at $544,232. Eligible property types include Single Family, Condo, Common Interest Community Unit, Duplex, and Manufactured. New construction is eligible. Manufactured homes are eligible.

First Home Limited (Tax-Exempt Program / TEP) names veterans, active-duty service members, and reservists and National Guard members 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.

First Home Limited (Tax-Exempt Program / TEP) serves homebuyers purchasing in Statewide, Alaska. The program targets specific areas: HUD-designated targeted census tracts (e.g., Anchorage 6.01/6.02/9.01/11.01; Bethel; Dillingham; Kenai Peninsula; Kusilvak; Mat-Su 1.01; Nome; Northwest Arctic; Southeast Fairbanks; Yukon-Koyukuk). Higher income/acquisition limits and waiver of first-time-buyer requirement.

Applications for First Home Limited (Tax-Exempt Program / TEP) go through Alaska Housing Finance Corporation (AHFC), which publishes the current terms and the application steps on its own site. Funds are reserved through Approved lender reserves rate via AHFC daily rate system. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.