Home Loan Programs In Alaska

Alaska is the seventh-largest subnational division in the world and the largest state in the United States in terms of land area. It has more land area than the three largest states, Texas, California, and Montana. It is the third-least populated and most sparsely populated U.S. state, but as of 2020, it will have the most people living north of the 60th parallel, with a population of 736,081. More than four times as many people live together in Northern Canada and Greenland. Juneau, the capital of Alaska, is the second-largest city in the United States by area. Sitka, which used to be the capital of Alaska, is the largest city in the United States by area. About half of the people in Alaska live in the Anchorage metropolitan area.

If you’re thinking about making Alaska your permanent home, you’re looking into different mortgage programs to find one that allows you to buy the house of your dreams. The good news is there are a lot of home loan programs in Alaska.

Types of Alaska Home Loans

Various home loan programs are available to finance a home’s purchase, with conventional conforming loans being the most popular among homebuyers. However, different reasons wouldn’t qualify every borrower for a conventional loan. From government-insured and guaranteed mortgage loans to Non-Conforming mortgage loans, there’s a home loan program that fits every borrower’s preferences.

• Conventional – Conforming Home Loans

Conventional loans and conforming loans are considered by many to be the same type of loan because there is an overlap between both. All conforming loans are conventional loans, but not all conventional loans are conforming loans. Conventional loans are characterized by the sort of lender who makes them available.

Both Fannie Mae and Freddie Mac, the two major mortgage buyers in the United States, require that loans conform to their rules before they purchase them. Contrarily, non-conforming loans do not adhere to the standards mentioned above and cannot be sold to Fannie Mae or Freddie Mac.

• FHA Home Loan

A Federal Housing Administration (FHA) loan is a mortgage insured by the federal government and issued by an agency-approved bank or other lenders. It is intended to help families with low to moderate incomes become homes. They are especially well-liked among first-time homebuyers.

• VA Home Loan

A VA loan is a mortgage offered by a private lender such as a bank, credit union, or mortgage company and guaranteed by the U.S. Department of Veterans Affairs. Typically, a VA loan does not require a down payment, making it easier to purchase a home. VA loans are restricted to qualified U.S. veterans, active-duty military personnel, and their surviving spouses.

The VA’s guarantee means that if the borrower defaults on the loan, the government will pay back a portion of the loan to the lender. This reduces the risk for lenders, which means they can offer better terms and not require a down payment.

• USDA Guaranteed Home Loan

The Section 502 USDA Guaranteed Loan Program helps approved lenders offer low- and moderate-income households in eligible rural areas the chance to own good, modest, decent, safe, and clean homes. Applicants who qualify can get 100% financing to buy, build, fix up, improve, or move a home in a rural area that qualifies. The program gives approved lenders a 90% loan note guarantee to reduce the risk of providing 100% loans to eligible rural homebuyers. This means those who qualify can buy a home with no down payment.

• Jumbo Loans

Jumbo loans are mortgages used to fund properties that are too costly for conforming loans. The Federal Housing Finance Agency determined the maximum conforming loan amount for each state and or county.  A jumbo loan is required for properties that exceed the local conforming loan limit.

Jumbo loans, also known as non-conforming conventional mortgages, are riskier for lenders because Fannie Mae and Freddie Mac cannot guarantee them, meaning the lender is not covered against default losses. Typically, jumbo loans are offered with either a fixed or variable interest rate and a choice of terms.

• Non-Qualified Mortgage 

A non-qualified mortgage, or non-QM, is a mortgage loan not required to meet the Consumer Financial Protection Bureau’s (CFPB) agency-standard documentation and verification requirements. They are designed to help home buyers who cannot meet the strict criteria of a “qualified mortgage.”

Non-qualified mortgages are not insured or guaranteed by government agencies such as the FHA, VA, Fannie Mae, or Freddie Mac.

Apply For A Home Loan With Capital Home Mortgage

Capital Home Mortgage is a direct mortgage lender and servicer in Alaska, providing consumers with a wide range of mortgage choices. Whether you were born in Alaska or are a newcomer to the state, Capital Home Mortgage can identify the financing option that best fits your needs and budget. We are here to assist you if you need a mortgage to buy, refinance, or consolidate your loans.

Call our Home Loan Specialists at (907) 531-5048 and get started on home ownership!