Text Only Site Map
Home Contact Information Feedback Web Search   Home
Consumer Services Business Services About Alaska USA Resource Center Whats New

Residential Equity
Loan Program Information - Alaska Only

LOAN TYPE: First or second Deed of Trust on member's primary residence, second home, or non-owner occupied residential properties.

PROPERTY CRITERIA: Detached single-family, zero-lot-line, or two- to four-unit properties in Alaska that meet the standards of the secondary market for qualifying home loans. Condominiums are ineligible.

AVAILABLE LOAN AMOUNT: Up to 90% of the property's value (less any outstanding mortgage balance). Second home, zero-lot-line, two- to four-unit, and non-owner occupied properties are limited to 80% of the property's value.

PROPERTY VALUATION:

  • Tax Assessment - Generally, the tax-assessed valuation supported by a physical inspection of the property by a credit union representative will be acceptable if the amount of the loan will not exceed $100,000. (Loans in excess of $100,000 may require an appraisal.)
  • Automated Valuation Model (AVM) - The credit union can request an AVM to establish a property's value when an appraisal is necessary and the loan amount is $250,000 or less. (Loans in excess of $250,000 require an appraisal.) If an acceptable AVM is available, an appraisal will not be required.
  • Appraisal - An appraisal report from an appraiser approved by the credit union will be acceptable. Typically, appraisals must be ordered by the credit union. Exceptions may be approved by the credit union.

In all cases, no evidence may indicate that environmental contamination exists on or near the property.

LOAN TERMS: Current fixed-interest rates and terms are as follows:

Fixed Rates (APR) 1

Maximum Term 2

7.25% (7.0416% APR)

60 months (5 years)

7.25% (7.0223% APR)

120 months (10 years)

7.75% (7.5131% APR)

240 months (20 years)

7.75% (7.5120% APR)

360 months (30 years) amortization with 180-month balloon payment

1 Rates will be 1.5% higher on loans in excess of 80% and up to 90% of the property's value.
2 Maximum term of 144 months (12 years) on second homes and non-owner occupied residential properties. Second homes destined to become member's retirement home have a maximum term of 240 months (20 years).

CLOSING COSTS: $99 Loan Processing Fee for all initial loans. A 1% Origination Fee is charged only if the loan is being made to refinance an existing AKUSA real estate loan. Appraisal fee (approximately $300 to $500) if required to determine property valuation. Title insurance may be required in some cases. This cost varies depending upon loan amount.

INSURANCE REQUIREMENTS: Hazard insurance, and flood insurance if required, with the credit union as additional loss payee.

BORROWER QUALIFICATIONS: To qualify, borrowers should have good credit histories. If there were past credit problems, there should be no ongoing problems or negative items in the credit record during the past 2 years other than minor entries. Total monthly obligations, including the proposed loan payment, should not exceed a reasonable percentage of gross monthly income. Acceptable percentages range from 30% to 60% depending upon a borrower's level of income. Every borrower's situation is unique and is reviewed accordingly.

If you have any questions about this program or wish to submit an application telephonically, please call 786-2800 in Anchorage, or (888) 425-9813 outside of Anchorage. Completed applications may be submitted at any branch office, faxed to (907) 786-2177, or mailed to Alaska USA's Real Estate Telephone Loan Center at P.O. Box 196613, Anchorage, AK 99519-6613. Please be aware that once the loan has been closed, there is a mandatory delay of 3 business days before any loan funds can be disbursed as required by federal regulation.

Last Updated: 11/24/2006