Alaska House passes bill aimed at reducing down payment requirements for state-backed home mortgages

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Alaska House passes bill aimed at reducing down payment requirements for state-backed home mortgages
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The Alaska Housing Finance Corporation said the change would allow its board to reduce the minimum required down payment from 5% to 3%.

The Alaska House of Representatives passed a bill Wednesday that would allow the state’s mortgage lender to reduce the down payments necessary to qualify for state-backed loans.from making loans worth more than 95% of the value of a single-family home. The bill, proposed by Gov. Mike Dunleavy, would remove that restriction. The corporationthe change would allow its board to reduce the required down payment from 5% to 3%.

“Homeownership is the first big step towards financial security and long-term financial health for Americans and Alaskans,” Saddler said. “Inflation has made that first step a doozy.” Rep. Genevieve Mina, R-Anchorage, said she hoped the bill would make homeownership more realistic for younger Alaskans.

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