A state loan program is currently being offered to qualified residents of Alaska, by the Alaska Housing Finance Corporation, or AHFC. This incentive will be given to those who borrow a certain amount of money to purchase an existing home. This is also applicable to those who finance or upgrade a household which can be proven to be utilizing energy-efficient methods of operation.
To follow through with this process, borrowers should complete and sign a “Notification of Potential Energy Efficiency Interest Rate Reduction Form.” The interest rate reduction can be availed by any property owner who has a comprehensive or whole building eligibility, in accordance with the AHFC standards.
The maximum amount of the first loan, which can qualify for a rate reduction, is $200,000. Amounts exceeding $200,000 will be subject to a blended interest rate of .125%.
Other amounts of rate reduction are based on the condition of the property. For newly constructed buildings or properties, the loan program can be availed of once candidates pass the minimum Alaska Building Energy Efficiency Standard or BEES. This means that properties which are built on or after April 1, 2007, should be eligible for the program.
The property’s access to natural gas is another factor. Homes which are rated 5-Star and 5-Star Plus will be eligible for .250% and .375% respectively. Those with no access to natural gas will be eligible for .375% and .500% respectively.
Another category is existing energy-efficient properties. This encompasses buildings or homes that have existed and been operating for more than a year. The rate reductions available for those with natural gas access and 5 Star ratings are .125%, and .250% for 5 Star Plus rated properties. For existing properties without access to natural gas, the rates applied to newly constructed properties are basically the same.
The last category is for existing properties which aim to upgrade or improve their energy-efficient installations. A qualified lender is tasked to give notifications to AHFC regarding the application of a homeowner who applies for this program. Within a year duration of the loan, the applicant must get an initial energy rating, present improvement completion; present a final rating, and present the necessary documents to the lender. Upon compliance of requirements, AHFC will then provide the interest rates for this category.
Disclaimer: This article does not constitute a source of an official legal or financial advice. While we attempt to represent all data as accurately as possible, we advise you to refer to official government websites, for the most accurate and up-to-date information.