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One Per Cent Off the First $50,000 — and Widows and Widowers Can Claim It

AHFC discounts the interest rate by one percentage point on the first $50,000 of a loan; above that the rate blends and rounds up to the next 0.125%. It asks for an honorable discharge and 90 days of active duty — five years of service for Alaska Guard and Reserve members — and currently serving members are excluded. The widow or widower of a qualified veteran may also be eligible. It cannot be combined with the Veterans Mortgage Program.

Verified August 27, 2026

What this benefit is

AHFC discounts the interest rate by one percentage point on the first $50,000 of a loan; above that the rate blends and rounds up to the next 0.125%. It asks for an honorable discharge and 90 days of active duty — five years of service for Alaska Guard and Reserve members — and currently serving members are excluded. The widow or widower of a qualified veteran may also be eligible. It cannot be combined with the Veterans Mortgage Program.

What it's worth: One percentage point off the rate on the first $50,000 of the loan

  • The 1% reduction applies to the first $50,000 only. Above that the rate blends and is rounded up to the next 0.125%, so the benefit shrinks as a proportion of a larger loan.
  • Qualifying service is the armed forces, the reserves, the Alaska Army or Air National Guard, or the Public Health Service. Alaska Guard and Reserve members need FIVE YEARS of service rather than 90 days.
  • Currently active-duty members are NOT eligible for this one, which is the opposite of the Veterans Mortgage Program.
  • The widow or widower of a qualified veteran may be eligible.
  • Where co-borrowers are unmarried, both must be qualified veterans.
  • Family income must be within the State Veteran income limits.
  • It cannot be combined with the Veterans Mortgage Program. On a large loan the mortgage programme is usually worth more; on a small one this may be.

Who is entitled to it

  • You are the veteran, or the widow or widower of one.
  • You have at least 90 days of active duty.
  • You were discharged honorably.
  • The property is in Alaska.

Not sure whether that describes you?

Answer a few questions about this benefit specifically — we only ask what this one actually depends on, and we stop as soon as we know.

How to claim it

  1. 1Ask your AHFC-approved lender to quote this AND the Veterans Mortgage Program. They cannot be combined and the better one depends on your loan size.
  2. 2Check the income limits before going far — family income must be within the State Veteran limits.
  3. 3If you are the widow or widower of a qualified veteran, say so. You may be eligible in your own right and the programme is not framed that way in most guides.
  4. 4Alaska Guard and Reserve members: the test is five years of service, not 90 days of active duty.
  5. 5If you are still serving, this one is not open to you — ask about the Veterans Mortgage Program instead.
Form
AHFC State Veterans Interest Rate Preference request
File with
An AHFC-approved lender
Documents you will need
dd214
No renewal
Once granted it does not need renewing.

Sources

This finder provides an informational match, not a government eligibility determination. The responsible agency decides your application.