Eligibility Guidelines

LTS Eligibility Guidelines

Applicant Requirements:

• U.S Resident or Permanent Resident Alien residing in the State of Alaska.
• The applicant must intend to occupy the property as primary residence.
• Total household annual income may not exceed 120% of the area-median income, adjusted by family size, as established by the U.S. Department of Housing and Urban Development (HUD). These limits can be viewed here.
• The applicant must not be delinquent on any child support obligation.
• All collections and judgments on credit report must be paid prior to closing.
• Applicants must contribute a minimum of 1% of the purchase price towards the transaction. This can be with Earnest Money, an Engineer's Inspection fee, or a combination of both.
• Applicants must complete an approved homebuyer education course, and provide a copy of the certificate prior to closing.
• Applicant may not exceed these ratios, as calculated by their primary Mortgage lender:  Housing Payment / Income - 35%; total debt-to-income ratio may not exceed 43%.

Property Requirements:

• • Single-family residence in the Fairbanks North Star Borough.
  • Condos and Townhomes must be on the AHFC Approved Condo List.
  • Homes must be AHFC Approved:
    • Homes built on or after July 1, 1992 must have a PUR-102 or Certificate of Occupancy.
    • Homes built between December 31, 1991 and December 31, 1994 must have a 4 star energy rating or higher. Homes built after December 31, 1994 must have a 4 star plus rating or higher.  PUR-101/BEES may be used to verify this. If the home does not have documentation showing an energy rating, an energy inspection will be required.
  • If the home was built before January 1, 1978, a visual assessment by FNHS must be conducted due to the Lead-Based Paint Poisoning Prevention Act.

Program / Other

• The maximum loan amount is 20% of the purchase price, and the minimum loan amount is $5,000.