ALASKA HOUSING FINANCE CORP. AGREES TO EXPAND LOAN PROGRAMS THAT PURCHASE HUD SECTION 184 MORTGAGES
Alaska Home Buyers to Benefit

ANCHORAGE - At its November board meeting, Alaska Housing Finance Corporation's board of directors agreed to expand the purchase of HUD Section 184 loan guarantees to all AHFC residential loan programs. This agreement
means that eligible applicants in urban, as well as rural, areas now have access to AHFC mortgage loans that carry the Section 184 guarantee, and will give these borrowers access to AHFC's lower interest rates as well as to the Section 184 low loan costs. Prospective borrowers can access the benefits of these programs by working with any AHFC-approved lender.

"This partnership between AHFC and HUD brings together clients we both serve, and allows those clients access to AHFC loans for urban areas of the state," said Wayne Mundy, administrator for the Alaska Office of Native American Programs at HUD.

"AHFC's goal is to offer homeownership opportunities to all Alaskans. For nearly 10 years, eligible borrowers in rural areas have used HUD's 184 loan guarantee, along with AHFC's programs, to achieve that goal. By expanding the guarantee to urban areas, even more Alaskans can now afford to become homeowners or fix up their existing home," said Dan Fauske, executive director and chief executive office of AHFC.

Eligible borrowers under the Section 184 loan guarantee program are Alaska Native village corporations and regional corporations, Native American/Alaska Native families, tribes and tribal housing entities. The program provides a 100 percent guarantee for mortgages, which encourages private sector lenders to make mortgage loans to eligible borrowers. The program can be used to rehabilitate existing homes, build new homes, finance rental housing, and refinance higher interest rate loans. To date, HUD has guaranteed 375 loans throughout Alaska, and AHFC has purchased 164 of those loans under the rural program.

The Section 184 program offers borrowers reduced loan costs, including a low down-payment and no monthly mortgage insurance payment. By combining the low loan costs offered by the Section 184 program with the low interest rates offered by AHFC, eligible borrowers have new housing opportunities. The cost reduction accomplished by combining these programs will make homeownership available to some families for the first time.

HUD's Section 184 Loan Guarantee program, created in 1992, was established to ensure better access to private mortgage markets and to expand the opportunity for Native American/Alaska Native families to purchase their own homes. Since 1995, when HUD guaranteed its first loan, there have been nearly 2,000 loans guaranteed nationwide with a dollar value of approximately $196 million. The volume of loans has more than doubled within the last year.

HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development as well as enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet and espanol.hud.gov.

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