Alaska FHA Loan
There are many people who would like to settle down in Alaska post-retirement to get a little bit closer to nature or closer to the rugged and beautiful landscape that Alaska is so famous for. There can be all kinds of different reasons why you would want to buy a home in Alaska! Now, there are a lot of different types of loans available out there with various requirements, but the best of all of them is probably the FHA loan offered by an Alaska FHA mortgage lender.
FHA stands for the Federal Housing Administration, which is a government agency that falls under the administration of HUD. The FHA primarily insures home loans that are underwritten by various mortgage lenders around the country, including HUD approved Alaska mortgage lenders. If a borrower defaults on an Alaska FHA loan, then the FHA will reimburse the mortgage lender for losses incurred on the loan. FHA has a loss mitigation policy in place that instructs mortgage lenders on handling FHA borrowers who are behind on loan payments or who face foreclosure; this is one more notable reason to opt for an FHA mortgage.
FHA offers five different options for a homeowner who is facing foreclosure. Three of them come under reinstatement options; they're able to be taken advantage of by talking to the Alaska mortgage company who provided the loan in the first place. This is useful for any borrower who is in default on an Alaska FHA loan. The FHA reinstatement options include special forbearance, through which the mortgage lender can work out a repayment plan or modify the existing loan payment plan to accommodate the borrower's needs. The modification can also include the refinance of the mortgage and even provide an extension on the existing term of the loan.
There are two other options, commonly known as the disposition options. These are designed to assist a borrower to move into lower cost housing. The disposition option comes with a pre-foreclosure sale and deed-in-lieu of foreclosure. These are just a few of the many advantages and benefits that you can appreciate by taking an AK FHA loan -- tremendous protections and options that a home buyer would simply not receive through traditional home loans.
There are different types of FHA loans available through Alaska FHA mortgage lender -- for example, there's the 203(b) loan. The 203(b) is the most common FHA program, offering a low down payment, flexible guidelines for qualifying, limited lender fees, and a maximum loan amount that will vary from county to county in Alaska. If you go for the 203(b) loan, it will enable you to finance the purchase using a single mortgage.
Another AK FHA loan is the energy efficient mortgage, which will allow a home buyer to save future money to pay utility bills. This can be done by financing the cost of adding energy-efficient features to your new or existing home as part of the FHA insured home buying process. The EEM loan can be used with the 203(b), as well as the 203(k) loans. The basic guidelines for an EEM loan are as follows:
- The cost of the improvements made in your home has to be determined using a Home Energy Rating System or by using the services of an energy consultant. This cost has to be lesser than the savings expected through the improvements.
- Only one and two unit homes are eligible. Condos are not eligible under this program.
- The improvements to be financed can be 5% of property value or $4,000, whichever is greater. The total, however, should be within the FHA loan limits.
The third type of FHA loan is the Title 1 loan, which is provided by a lender and insured by the FHA. This Alaska FHA mortgage can be used for making renovations and repairs to your home that are non-luxurious in nature. These loans have a limited amount that lies between $5,000 and $20,000.