Hilde's Mortgage Blog

We were just made aware that effective immediately USDA-RD no longer requires the PUR101 and PUR102 forms.

That makes 100% financing available for properties built after 1/1/91 which didn't have the AHFC ICBO building inspections and energy efficiency documentation recorded.

Of cores the borrower still needs to meet the qualifying and eligibility requirements and all other underwriting guidelines need to be met.

Please note, that this only applies to USDA-RD. If AHFC's programs are used in conjunction, then the PUR101 and PUR102 would still be needed based on AHFC's guidelines.

The HUD184 loans came on the scene around 1995 and mainly focused on lending on Native Trust Land. Since all of Alaska is covered by Indian Housing Authorities, all of Alaska qualifies for these loans. They work very well in Alaska. For the most part they follow FHA guidelines.

Several aspects make them superior to FHA financing. For one the loan limits for a one unit single family home is $544,185. The up front mortgage insurance premium is only 1% of the loan amount and like FHA loans can be added to the loan amount. These loans do NOT have monthly mortgage insurance, translating in a sizable monthly savings for the borrower. The debt to income ratio shouldn't exceed 41% of the qualifying income, but there is some room for flexibility. The required down payment is only 2.25%. The funds for the down payment can be from the borrower's savings or a gift from acceptable sources.

The loans are eligible for AHFC programs and their respective interest rates in addition to other available investors.

Amongst other typical borrower qualifying requirements the borrower has to be Alaska Native or American Indian. In the case of multiple borrowers, only one has to meet that criteria.

Call me for a full description of the HUD 184 program.

The temporary increase in FHA loan limits is coming to an end. Loans approved on or after Januray 2009 have the following maximum limits per area and number of units:

Alaska geographical area	One unit	duplex	triplex	fourplex
Aleutians West Census Area	$349,600	$447,550	$540,950	$672,300
Anchorage Municipality	$290,950	$372,450	$450,200	$559,500
Juneau City and Borough	$349,600	$447,550	$540,950	$672,300
Ketchikan Gateway Borough	$322,000	$412,200	$498,250	$619,250
Kodiak Island Borough	$317,400	$406,300	$491,150	$610,400
Matanuska-Susitna Borough	$290,950	$372,450	$450,200	$559,500
North Slope Borough	$301,300	$385,700	$466,250	$579,400
Sitka City and Borough	$340,400	$435,750	$526,750	$654,600
Wrangell-Petersburg Census Area	$301,300	$385,700	$466,250	$579,400
Yakutat City and Borough	$381,800	$488,750	$590,800	$734,250
All other areas	$271,050	$347,000	$419,400	$521,250

Conventional loans, the most versatile mainstay of home financing and still available today.

Be it purchase or refinancing; be it owner occupied, second home or investment property; conventional loans are still available. True, if your mid credit score is less then 740 points you may end up paying some additional fees. The amount of those fees depends on the loan purpose and your actual credit score. It could be very little to actually prohibitive.

Financing can be as much as 95% of purchase price. For owner occupied purchase transactions the seller is allowed to pay up to a 3% sales concession. In plain english, the seller can pay up to 3% of the sales price in typical buyer closing cost and prepaids. That usually is enough to cover all of the buyer funds needed to close aside of the 5% down payment. The down payment will have to come from the buyer's own funds.

For more details give me a call.