HOME Opportunity Program (HOP)

Down Payment and Closing Costs Assistance

• Download the PDF HOP Application, Uniform Residential Loan Application and Attachments here.

Funded by HOME Investment Partnership Act, U.S. Department of Housing and Urban Development
Managed by Alaska Housing Finance Corporation
Administered by the City and Borough of Sitka, Office for Affordable Housing

PROGRAM SUMMARY

The HOME Opportunity Program (HOP) provides income-qualified families with down payment and closing costs assistance for the purchase of a home. All Sitkans may apply to receive a zero-percent interest rate and conditionally-forgivable HOP loan. Applications will be evaluated on a first-come, first-serve basis.

HOUSEHOLD ELIGIBILITY

• Borrower must not own any other residential property.
  
  Gross annual household income (before taxes) must not exceed 80% of the Sitka median income as determined by HUD, shown in the table below:

• 1-person	2-person	3-person	4-person	5-person	6-person	7-person	8-person
  $43,050	$49,200	$55,350	$61,500	$66,400	$71,350	$76,250	$81,200

• Total household assets, including land but not retirement accounts, may not exceed $50,000
  
• Borrower must contribute a minimum of $1,000 toward the purchase
• One household member must complete at least 8 hours of approved housing counseling
• Borrower must not be delinquent on any child support obligation

PROPERTY ELIGIBILITY

• Sales price must not exceed $327,750
• Property must be the primary residence of the homebuyer and be owner-occupied
• Property must meet minimum property standards, meet all applicable current State and local codes, conform to the Lead-Based Paint Poisoning Prevention Act, and meet the Alaska Building Energy Efficiency Standards (BEES, if constructed after 1991)
• The residence must not be occupied within 90 days prior to closing by anyone other than the original legal owner of property

LOAN TERMS

• Up to $3,000 in closing cost assistance
• 2% of purchase price, up to $3,800, in down payment assistance
• If necessary, additional funds to buy down the first mortgage, up to $30,000 total including down payment and closing cost assistance and eligible soft costs
• 0% interest rate
• The first $10,000 may be forgiven over a 5-year period, at 20% a year
• Outstanding loan due upon resale or when borrower no longer occupies the home.