Alaska Mortgage Guide ? What You Should Know
Considering an Alaska mortgage?? It is always a good idea to educate yourself prior to getting a mortgage, by doing so; you can make the task of finding a home loan that works for you much easier.? Maybe you?re buying your first home in Alaska, or perhaps relocating there.? Even if you?re a long time resident looking to refinance or take out a home equity loan for home improvements, knowing your options and how mortgages are regulated in Alaska will save you time and money.
Home Prices in Alaska
Homes in Alaska have recently appreciated at rates well above the national average with the median price of a home being $211,500.? And in the popular area of Anchorage, the median home value is higher.? Income levels in many parts of Alaska are too low for purchasing an average median priced home with a conventional loan.? Even though average interest mortgage rates in Alaska are below the national average, Alaska has one of the lowest levels of home affordability in the country.
Alaska Programs That Can Help
If you?re buying a home in Alaska there are programs that can help.? When buying a home, you qualify for both federal and state FHA, USDA and VA loans.? If this will be your first home, a first time home buyer qualifies for Alaska FHA loans that have below market interest rates, and depending on your eligibility, you may qualify for a loan to cover the down payment and/or closing costs.? And, in addition to FHA loan programs, the state of Alaska offers similar programs to people with disabilities or people who live with and/or care for individuals with disabilities.? Teachers and other professionals who work in the educational field may also qualify for Alaska?s Extra Credit Teacher Home Purchase Program, which is a down payment assistance loan with forgivable interest.? Also offered, is a ?no down payment? Alaska mortgage to people with very low income, veterans, firefighters, law enforcement officers, nurses (including individuals with disabilities and nurses as mentioned above).? Qualifications for these home mortgage loans will vary depending on the county in which you are buying a home.
How Alaska Helps Protect Home Buyers
In order to protect homebuyers seeking an Alaska mortgage from predatory lenders, Alaska law enacted a set of anti-predatory lending laws.? These laws provisions prohibit:? lenders from charging in excess of 6% of the total principal financed amount for points and fees on a home loan; any mortgage company issuing a loan to a borrower in an amount that the borrower cannot reasonably afford to repay; and prohibits the financing of single premium credit insurance.? These are just a few among others.? Alaska?s Civil Code Provision of the Real Estate Act regulates how variable interest rates for the purchase of real estate are issued.? This protects borrowers who are issued large mortgage amounts by guaranteeing it to be a fixed mortgage rate.? Alaska also does not allow the lender to charge interest more than one day prior to the recording of the Alaska mortgage, even if the borrower received the loan prior to that time period.
Finding a great home mortgage just got a whole lot easier.? At mortgage.org that?s all we do, let us help you find an Alaska mortgage to suit your needs.? Contact us today!
