Mortgage Choices

AHFC Tax-Exempt First-Time Homebuyer Program

The Tax-Exempt Program (TEP) offers lower interest rates to eligible first-time homebuyers. First-time homebuyers are borrowers who have not owned a primary residence in the last three years.


AHFC Taxable First-Time Homebuyer Program

This first-time homebuyer program offers a reduced interest rate to eligible borrowers without the income limits, acquisition cost limits or recapture provisions of the TEP.


AHFC Veteran’s Mortgage Program

Qualified veterans may obtain financing at lower interest rates. (Veterans may not have been discharged from active duty service more than 25 years prior to application date.)


AHFC Rural Owner-Occupied Program

Financing to purchase or renovate owner-occupied housing in small communities. Long-term financing is also available for the owner-built, newly constructed home.


AHFC Rural Non-Owner-Occupied Program

Financing to purchase or renovate rental housing in small communities. Long-term financing is also available for owner-built, newly constructed rental housing.


AHFC Taxable Program

The Taxable Program is available statewide for applicants or properties not meeting the particular requirements of other AHFC programs.


AHFC Non-Conforming Program

This program is available for certain properties for which financing may not be obtained through private, state or federal mortgage programs.


Thirty-Year Fixed Rate Mortgage

The traditional 30-year fixed-rate mortgage has a constant interest rate and monthly payments that never change. This may be a good choice if you plan to stay in your home for seven years or longer. If you plan to move within seven years, then adjustable-rate loans are usually cheaper. When interest rates are low, fixed-rate loans are generally not that much more expensive than adjustable-rate mortgages and may be a better deal in the long run, because you can lock in the rate for the life of your loan.


Fifteen-Year Fixed Rate Mortgage

This loan is fully amortized over a 15-year period and features constant monthly payments. It offers all the advantages of the 30-year loan, plus a lower interest rate—and you’ll own your home twice as fast. The disadvantage is that, with a 15-year loan, you commit to a higher monthly payment. Many borrowers opt for a 30-year fixed-rate loan and voluntarily make larger payments that will pay off their loan in 15 years. This approach is often safer than committing to a higher monthly payment, since the difference in interest rates isn’t that significant.


Hybrid ARM (3/1 ARM, 5/1 ARM, 7/1 ARM)

These increasingly popular ARMS—also called 3/1, 5/1 or 7/1—can offer the best of both worlds: lower interest rates (like ARMs) and a fixed payment for a longer period of time than most adjustable rate loans. For example, a “5/1 loan” has a fixed monthly payment and interest for the first five years and then turns into a traditional adjustable-rate loan, based on then-current rates for the remaining 25 years. It’s a good choice for people who expect to move (or refinance) before or shortly after the adjustment occurs.


Adjustable Rate Mortgages (ARM)

When it comes to ARMs there’s a basic rule to remember…the longer you ask the lender to charge you a specific rate, the more expensive the loan.



Designed for a borrower with minimal down payment and allows lower credit scores than that required for Conforming loans; also offers a ‘streamline refinance’ of an existing FHA loan with minimal documentation requirements.



Specifically reserved for our citizens who served in the military, offers a purchase transaction without a down payment; also offers an Interest Rate Reduction Refinance of an existing VA loan with minimal documentation requirements.



For loan amounts that exceed programs available through FNMA/FHLMC.



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