The Alaska Housing Finance Corporation has been awarded $1.7 million in additional funding from the U.S. Department of Housing and Urban Development (HUD). The money has been tagged for use by the HOME Opportunity Program (HOP) which helps eligible homebuyers with principal buy-down, down payments and closing costs. The additional money is helping HOP move into 10 Alaskan communities, including Kodiak.
AHFC’s Mark Romick is the director of planning and program development. He says maximum assistance is limited to $30,000 and is awarded based on need and income.
To be eligible for the program, the homebuyer’s annual household income cannot exceed 80 percent of the area median income. That means a family in Kodiak making more than $58,000 annually would not qualify. For homebuyers that are eligible for the program, Romick says they have to first be approved for a mortgage.
With current interest rates hovering over 4 percent, a family with no debt can afford a $216,000 mortgage. Of the 21 homes listed for sale in the Kodiak region, seven of them are priced at $250,000 and lower. Three of those homes are in Kodiak, the others are off the road system in Pt. Lions or Karluk. Most homes run in the $300,000 to $400,000 range, unaffordable for anyone who might be eligible for the HOP money.