First Home Limited (Tax-Exempt Program / TEP)

What is 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.

Do you have to pay it back?

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.

Who qualifies?

First Home Limited (Tax-Exempt Program / TEP) is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

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.

What kind of home can it be used for?

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.

Is there eligibility for specific groups?

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.

Where does it apply?

First Home Limited (Tax-Exempt Program / TEP) serves buyers 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.

How do you apply?

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.

1. 1

   Contact Alaska Housing Finance Corporation (AHFC) to reserve funds

   Funds are reserved through Approved lender reserves rate via AHFC daily rate system, and are subject to availability.

2. 2

   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.