Alaska USA's Home Equity Line of Credit (HELOC) allows you to use the equity that has built up in your personal residence to secure a line of credit that can be used over and over again.

It combines many of the features of the credit union's Residential Equity Loan with the best features of the very popular Credit Line Loan, but with a superior interest rate and terms.

For many members, the interest paid on the HELOC may be tax deductible depending upon their individual circumstances. (This must be determined by your personal tax advisor.)

Note: The Alaska USA Home Equity Line of Credit is currently available only in Alaska and Washington.

Home Equity Line of Credit Loan Guideline

1. Maximum Amount:

Normally, 80% of appraised value or 80% of tax assessed value supported by a credit union inspection, less the current balance of the underlying loan, if any.  Up to 90% of value is available at higher rates of interest.

2. Term:

a. Monthly Payment Amount:
$25 or 1 and ½ percent of the outstanding balance, whichever is greater.

b. Draw Period:
Draws available for seven years from date of note.  Based upon current credit qualifications and collateral value, the balance may be renewed under this program or paid out under existing terms.

c. Credit Review:
Credit bureau monitored.

3. Type of Lien:

First or Second Deed of Trust.

4. Annual Percentage Rate:

Periodically established by the Board of Directors.  Variable rate loan with monthly adjustment based on the Wall Street Journal published prime lending rate plus a margin.  Higher margins will apply to higher LTV loans.  No limit on maximum adjustment.  The maximum interest rate will be the legal interest rate limit established by NCUA at the time of the loan.

5. Fees:

a. Originations Fees:
None.

b. Closing Costs:
Generally, paid by member unless a fixed processing fee has been established.

c. Advance Fee:
None.

d. Service Fee:
Periodically established by the Board of Directors.  (Initially, no annual fee will be charged, but the right to assess an annual fee will be established in the loan documents.)

6. Miscellaneous:

Title insurance (or alternatively a second mortgage protection policy), flood-hazard determination, hazard insurance and appraisal or current tax assessment are required.  Appraisals on loans over $100,000 may be required consistent with the Real Estate Loan Property Appraisal Policy.

7. Amount Restrictions:

a. Minimum Credit Limit:
$10,000.

b. Maximum Credit Limit:
$500,000.

c. Minimum Advance Amount:
None.

8. Collateral Restrictions:

Secondary-market qualifying primary residences limited to detached single-family, two-to-four unit and zero-lot-line properties (including such properties in qualifying PUDs).  Zero-lot-line, three-to-four unit properties and second homes may not exceed 80% LTV.  Different LTVs and property types periodically established by the Board of Directors by geographic area.

This guideline is approved by the Board of Directors and is effective on June 24, 2005.

More Information (Alaska)

More Information (Washington)