Alaska Mortgage Overview
Alaska's nickname is the 'Last Frontier'
because it was the last state to join the union. It's also unique because it has
one of the highest conforming loan limits in the United States, with a limit of
$822,375 in 2021 and FHA loan limits from $356,362 to $545,100 depending on the
county.
The median household income in Alaska is
$77,000 and the average family has 2.8 members.
If you're buying a home in Alaska, there
are many loan options to help you:
Alaska FHA loans
As we said above, the FHA
loan limits are much higher in Alaska than most other states. Borrowers can get
flexible underwriting guidelines and only need a 580 credit score and a 3.5
percent down payment. It's a great program for first-time homebuyers or subsequent
homebuyers who don't have a lot of money to put down.
Alaska VA loans
If you served our country for
at least 90 days during wartime or 181 days during peacetime, the VA loan is a
good option for you. Borrowers don't need a down payment (but you can make one)
and you don't need perfect credit. You can get by with a 620 credit score and
debt-to-income ratio as high as 50 percent and get financing.
Alaska USDA loans
If you don't mind living in
less populated areas and you make less than 115% of the average income for your
area, the USDA loan may be a good fit. The program is for borrowers who don't qualify
for any other financing and will use the home as their primary residence. You
don't need a down payment for the USDA loan.
Alaska conventional loans
Borrowers with good
credit (660+) and 3 percent to put down may get a conventional loan. These
loans have the most attractive features and often save borrowers the most money
if they qualify.
First-Time Homebuyer Programs in
Alaska
First Home Limited
The First Home Limited program is a low
interest loan program for first-time homebuyers. Anyone who hasn't owned a home
in three years and meets the income requirements (not make too much) may
qualify for the low-interest loan program.
First Home
Borrowers who make too much money for First
Home Limited or who want to buy a house that exceeds the First Home Limited
program may apply for First Home, which also offers lower than average interest
rates for first-time homebuyers.
Closing Cost Assistance
The Alaska Housing Finance Corp also offers
a Closing Cost Assistance Loan. You must have at least a 640 credit score and
may receive up to 4 percent of the loan balance to use toward your down payment
and/or closing costs.
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