Interest Rate Reduction for Low-Income Borrowers (IRRLIB)

What is Interest Rate Reduction for Low-Income Borrowers (IRRLIB)?

Interest Rate Reduction for Low-Income Borrowers (IRRLIB) is down payment assistance for homebuyers in Statewide, Alaska, administered by Alaska Housing Finance Corporation (AHFC).

• IRRLIB is an AHFC loan option offering subsidized interest rates (0.5% or 1.0% reduction) to low-income borrowers, depending on family income and size. The reduction applies to the first $180,000 of the loan. Qualified borrowers cannot have owned a primary residence in the last three years and cannot own other residential property within 50 miles.
• Subsidized interest rate (0.5%-1.0% reduction on first $180,000) lowering monthly payments for income-qualified buyers.
• Funding comes from AHFC.

Do you have to pay it back?

Interest Rate Reduction for Low-Income Borrowers (IRRLIB) is down payment assistance and is repaid under the terms set by Alaska Housing Finance Corporation (AHFC).

• The assistance is recorded in First position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Interest Rate Reduction for Low-Income Borrowers (IRRLIB) is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Interest Rate Reduction for Low-Income Borrowers (IRRLIB) sets its income limit as follows: Family income within AHFC IRRLIB area limits; reduction amount (0.5% vs 1%) depends on income and family size.

• 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?

Interest Rate Reduction for Low-Income Borrowers (IRRLIB) can be used for Single Family, Condo, Common Interest Community unit, and Manufactured (Type I).

• Manufactured homes are eligible.

Where does it apply?

Interest Rate Reduction for Low-Income Borrowers (IRRLIB) serves buyers purchasing in Statewide, Alaska.

How do you apply?

Applications for Interest Rate Reduction for Low-Income Borrowers (IRRLIB) go through Alaska Housing Finance Corporation (AHFC), 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-approved homebuyer education class.

2. 2

   Contact Alaska Housing Finance Corporation (AHFC) to reserve funds

   Funds are reserved with the provider 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.