Veterans Mortgage Program (Veterans Tax-Exempt)

What is Veterans Mortgage Program (Veterans Tax-Exempt)?

Veterans Mortgage Program (Veterans Tax-Exempt) is a first mortgage for homebuyers in Statewide, Alaska, administered by Alaska Housing Finance Corporation (AHFC).

• AHFC's Veterans Mortgage Program offers qualified Alaska veterans a reduced-rate first mortgage funded through tax-exempt mortgage revenue bonds. Qualified veterans may purchase owner-occupied single-family residences and, with restrictions, a duplex/triplex/fourplex; long-term financing is also available for owner-built newly constructed homes. Unlike First Home Limited, qualified veterans do not have to be first-time homebuyers. A federal recapture tax may apply on sale within nine years.
• Below-market first-mortgage rate via tax-exempt bonds.
• First-time-homebuyer requirement waived for qualified veterans.
• Available on conventional, VA, or FHA/HUD/RD financing.
• Owner-built new construction financing available.
• Funding comes from Tax-exempt Qualified Mortgage Revenue Bonds (QMRB) issued by AHFC.

Do you have to pay it back?

Veterans Mortgage Program (Veterans Tax-Exempt) 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?

Veterans Mortgage Program (Veterans Tax-Exempt) is open to buyers who will live in the home as their primary residence.

What are the income limits?

Veterans Mortgage Program (Veterans Tax-Exempt) sets its income limit as follows: No income limit on the Veterans Mortgage Program itself. (A separate State Veterans Interest Rate Preference option has its own income limits by area/household size, eff. 06/01/2026, e.g. Anchorage 4-person $106,800 - not part of this program and not combinable with it.).

• 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?

Veterans Mortgage Program (Veterans Tax-Exempt) caps the purchase price as follows: No acquisition-cost limit on the Veterans Mortgage Program.

• Eligible property types include Single Family, Condo, Common Interest Community Unit, Duplex, 2-4 Unit, and Manufactured.
• New construction is eligible.
• Manufactured homes are eligible.

Is there eligibility for specific groups?

Veterans Mortgage Program (Veterans Tax-Exempt) 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?

Veterans Mortgage Program (Veterans Tax-Exempt) serves buyers purchasing in Statewide, Alaska.

How do you apply?

Applications for Veterans Mortgage Program (Veterans Tax-Exempt) 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 Daily rate posting/reservation via AHFC approved lenders, 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.