Home Opportunity Program (HOP)

What is Home Opportunity Program (HOP)?

Home Opportunity Program (HOP) is a forgivable loan for homebuyers in Fairbanks North Star Borough; Southeast Fairbanks Census Area; Matanuska-Susitna Borough; Kenai Peninsula Borough; Copper River Basin (Glennallen, Valdez, Cordova); City and Borough of Juneau; Haines Borough; Ketchikan Gateway Borough; Petersburg Borough; Wrangell Borough; Sitka Borough; Kodiak Island Borough; and other Alaska areas outside the Municipality of Anchorage County, Alaska.

• The Home Opportunity Program (HOP) promotes homeownership for low-income households in Alaska. Operated by Alaska Community Development Corporation as the AHFC-designated HOP intermediary serving all of Alaska EXCEPT the Municipality of Anchorage. HOP provides zero-interest loans of $1,250 up to $30,000 to assist eligible low-income, first-time homebuyers with down payment, up to $3,000 of closing costs, and/or a buy-down of the first mortgage to achieve affordability. The first $10,000 is conditionally forgivable over a 5-year period; any remainder is a deferred 0% loan secured by a Note and Deed of Trust, due upon sale, transfer, or refinance. Funds flow from the federal HOME Investment Partnerships Program through AHFC.
• Up to $30,000 in total assistance, including: down payment assistance (if required by primary lender), up to $3,000 in closing cost assistance, and a buy-down of the first mortgage if necessary to achieve affordability. Zero-interest loan.
• the first $10,000 of HOP assistance is conditionally forgivable over a 5-year affordability period. Any portion above $10,000 (up to the $30,000 cap) is a 0% deferred-payment loan secured by a Note and Deed of Trust, due upon sale, transfer, or refinance. Statewide reach (except Municipality of Anchorage). Multiple participating lender partners.
• Funding comes from Federal HOME Investment Partnerships Program (HUD), passed through Alaska Housing Finance Corporation (AHFC) to Alaska CDC as HOP intermediary.

Do you have to pay it back?

Home Opportunity Program (HOP) is forgiven after 5 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Sale, transfer of title, refinance (without subordination), or failure to occupy as primary residence during the period of affordability. The first $10,000 of HOP assistance is forgiven pro rata over 5 years and the balance above $10,000 (if any) is due in full upon sale, transfer, or refinance.
• The assistance is recorded in 2nd (subordinate to primary mortgage); secured by Note and 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?

Home Opportunity Program (HOP) is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Home Opportunity Program (HOP) limits household income to 80% of the area median income, which varies by county and household size.

• Household income must be at or below 80% of HUD median income, regionally adjusted by HUD/AHFC, with limits varying by community. Per ACDC HOP income table effective 6/1/2025, the income range across Alaska communities and household sizes 1-8 spans approximately $56,750 (1-person, lowest community) to $129,100 (8-person, highest community). 4-person 80% AMI for the Anchorage MSA (which is most representative for Alaska CDC's largest service areas, e.g., Mat-Su Borough) is $91,440 in HUD FY2025. Limits vary by region (Mat-Su, Kenai, Fairbanks, Juneau, Ketchikan, Sitka, Kodiak, etc.). Refer to ACDC HOP income table at https://www.alaskacdc.org/uploads/3/1/5/5/31559769/80__hop_-_sheet1.pdf for the full schedule by community.
• The limit applies to total household income, not only the borrower’s.
• The program lists a maximum household size of 8.
• 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?

Home Opportunity Program (HOP) caps the purchase price as follows: No explicit maximum purchase price; property must be of non-luxury nature and must meet HOME property standards. Effective ceiling is set by the borrower's primary mortgage qualification plus up to $30,000 of HOP assistance.

• Eligible property types include Single-family detached homes, condominiums, townhomes (must meet HUD/HOME property standards and be non-luxury). Manufactured homes permitted if meeting HOME property standards.
• New construction is eligible.
• Manufactured homes are eligible.

Where does it apply?

Home Opportunity Program (HOP) serves buyers purchasing in Fairbanks North Star Borough; Southeast Fairbanks Census Area; Matanuska-Susitna Borough; Kenai Peninsula Borough; Copper River Basin (Glennallen, Valdez, Cordova); City and Borough of Juneau; Haines Borough; Ketchikan Gateway Borough; Petersburg Borough; Wrangell Borough; Sitka Borough; Kodiak Island Borough; and other Alaska areas outside the Municipality of Anchorage County, Alaska.

• The program targets specific areas: Statewide except the Municipality of Anchorage. Service area covers Fairbanks North Star Borough, Southeast Fairbanks Census Area, Mat-Su Borough, Kenai Peninsula Borough, Copper River Basin, City and Borough of Juneau, Haines Borough, Ketchikan Gateway Borough, Petersburg Borough, City and Borough of Wrangell, City and Borough of Sitka, and Kodiak Island Borough. Anchorage residents must use the AHFC HOP product administered by other partners.

How do you apply?

Applications for Home Opportunity Program (HOP) go through the administering agency, 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 HUD-approved housing counseling agency (homebuyer education class required prior to closing).

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through First-come, first-served through Alaska CDC office in Palmer or through participating lenders. No online reservation portal; lender submits HOP application packet on behalf of qualified buyer., 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.