Value of mortgage portfolio nears $3 billion
AHFC’s Mortgage department purchased 1,445 loans in the fiscal year with an average purchase price of $356,490, compared to 1,772 loans with an average purchase price of $301,489 in FY16. The value of AHFC’s portfolio that includes 14,642 loans increased to $2.9 billion in FY17 from $2.8 billion in FY16.
Well defined underwriting standards, extensive homebuyer education and customer oriented servicing have made it possible for AHFC to continue to keep AHFC’s delinquency rate at historic low. At the end of the fiscal year 3.87 percent of AHFC mortgages were 30-days or more past due, compared to 3.7 percent in FY16. This number is well below the national average of 4.24 percent. AHFC’s FY17 foreclosure rate of 0.33 percent is also significantly lower than the national average of 1.29 percent.
|Loan Purchase Activity||Loans in FY16||Loans in FY17||Total Purchases FY16||Total Purchases FY17|
|Tax-Exempt First Time Homebuyer||394||380||$71,374,764||$73,034,864|
|Taxable First Time Homebuyer||330||230||$83,164,539||$62,372,968|
|Multi-Family / Special Needs||55||37||$46,001,152||$106,497,060*|
|Total Mortgage Portfolio||# Loans as of FY16||# Loans as of FY17||Value of Portfolio FY16||Value of Portfolio FY17|
|Tax-Exempt First Time Homebuyer||5,667||5,448||$718,674,763.05||$694,672,653.68|
|Taxable First Time Homebuyer||2,035||2,076||$413,458,152.23||$427,957,670.90|
|Multi-Family / Special Needs||438||440||$351,086,080.84||$425,514,523.03*|
*Includes a 46 million dollar loan for military housing at Fort Wainwright.
Persistency takes Joan from homelessness to homeownership
Joan Sison had lost everything - her job, her family and her home. She was working to get her life back but struggling with multiple jobs to supplement the loss of a steady income and cover rent.
She discovered AHFC’s Jumpstart program and her life started to turn around. Jumpstart is part of Step that is designed to support families receiving rental assistance and who wish to increase their employment and financial opportunities.
Jumpstart, in its third year had 497 participating families at the end of FY17 and is open for all families enrolled in the Step program. Jumpstart matches participants with a case manager who is assigned to help the tenant achieve short- and long-term goals. Tools support career advancement, family mentoring, financial incentives that encourage employment and education goals, and even a savings match that can assist participants as they prepare for the end of the program.
“I used this opportunity to move forward, to let go of the negative influences in my life and to focus on building my financial security. It was really a struggle for me but I didn’t stop,” says Joan.
With the help of her Jumpstart caseworker and due to her own perseverance, Joan set goals and worked hard. She now supervises 10 employees at a local grocery store and is financially stable.
“Thanks to Jumpstart I was able to move forward with my dream of homeownership. I took AHFC’s HomeChoice™ (homebuyer education class) to qualify for a loan, moved out of subsidized housing and purchased my first home last spring.”
Another strong year for renovation loans
AHFC’s renovation options, Purchase Renovation, Second Mortgage for Renovation and Refinance Renovation continued to deliver substantial loan activity in FY17.
Together they passed the $14 million mark in loan activity, down $4 million from FY16 but considerably more than the historical average.
AHFC’s success stems from the relevancy of the loan product needed in the marketplace where many homes were built during the construction boom of the 1970s and are in need of repair and cosmetic rehab. Additionally, marketing supported by the mortgage department has called attention to the availability of the products at five home shows in spring 2017.
Closing Cost Program
Down payment assistance reaches new high
AHFC’s Closing Cost Program continued its positive trend in FY17 reaching 30 loans representing $8.4 million in value, an increase of $2.5 million over FY16. The program is especially useful for first-time homebuyers who have a hard time coming up with enough money for a down payment on a home.
A teacher’s moment
AHFC’s homebuyer class, HomeChoice™, celebrated its 23rd anniversary in FY17. More than 60,000 Alaskans have participated in the class statewide since its inception 1994. To celebrate the anniversary, past and present instructors who have traveled across the state to help Alaskans become smarter homebuyers and realize what homeownership is all about gathered at AHFC’s headquarters during a monthly employee town hall meeting, June 16, 2017.
From left to right in the photo: Maude Morse, Debbie Andrys, Betty Hall, Jim McCall, Michelle Graves, Melanie Smith, Tammie Robertson and Maria Celli. Maude and Maria teach today. Here are some facts about their impact in FY17:
|Number of Classes||71|
|Number of Communities||11|
|Average Attendance Per Class||15.6|
|Average Number of Classes Per Month||5.9|
Hosting communities: Anchorage, Utqiagvik, Eagle River, Fairbanks, Homer, Juneau, Kenai, Ketchikan, Mat-Su, Sitka and Soldotna.
Grass Creek North
Mixed income housing revitalizes East Anchorage
Grass Creek North in East Anchorage opened its doors in FY17. The 52 unit Cook Inlet Housing Authority property is a mixed income development with units ranging from one-bedroom apartments at 533 square feet to four-bedroom apartments totaling 1,355 square feet.
The cost for Grass Creek North is $16.3 million with financial backing from AHFC, including $10 million in Low Income Housing Tax Credits; $1.6 million in Supplemental Housing Development Grants, and a $2.3 million term loan. Grass Creek North is also supported by a $400,000 grant from Rasmuson Foundation.
Alternative energy solutions are used at Grass Creek North with 51 solar thermal panels and 282 solar photo-voltaic panels affixed to the building that combined aim to reduce natural gas and electricity consumption by 10 percent.