HELOC Loan Program Information - Alaska

Loan type

First or Second Deed of Trust on the member's primary residence.

Property criteria

Owner occupied detached single-family, zero-lot-line, two to four-unit properties in Alaska that meet the standards of the secondary market for qualifying home loans. Condominiums are ineligible.

Credit limits

Up to 60% of the property value (less any outstanding mortgage balance). Minimum credit limit of $10,000, maximum of $500,000, depending upon equity.

Property valuation

An appraisal report no more than 90 days old, and 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

The interest rate is variable, adjusts monthly, and will be equal to the greater of four percent (4%) or the Wall Street Journal Prime Lending Rate. The current rate is available on the Real Estate Loan Rates page. Monthly payments will be the greater of $25 or 1½ % of the outstanding loan balance for the life of the loan.

Draws

There is no minimum draw amount, and the maximum is determined by the established credit limit. Draws can be taken for a period of 7 years and can be obtained through a variety of means made available by the credit union, including: via telephone transfer, ATM withdrawal or transfer, UltraBranch^® transfer, through teller line withdrawal and via automatic overdraft protection transfer, if selected.

Closing costs

$99 Loan Processing Fee. Appraisal fee (approximately $400 to $600). 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 generally 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. Initial credit approvals will be provided very quickly but will generally be subject to receipt of confirmation of income, value of the home and balance of the first mortgage.

Information to provide

To expedite processing your request, please provide a copy of a document that contains the full legal description of your home (i.e., deed of trust, warranty deed, title insurance policy) and copies of your most recent pay stubs showing your year-to-date income(s). If you are self-employed or have other than wage income, please provide copies of your tax returns for the most recent 2 years.

Upon receipt of your application, you will be mailed an information booklet on HELOC loans and additional disclosure materials. 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. If you have any questions about this program or wish to submit an application telephonically, please call the Real Estate Telephone Loan Center. In Anchorage, please call 786-2800. In all other locations, please call (888) 425-9813. 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 2/03/2009