Loan Programs - Advantage Mortgage

FHA loans have been helping people become homeowners since 1934. How do we do it? The Federal Housing Administration (FHA) – which is part of HUD – insures the loan, so your lender can offer you a better deal.

FHA might be just what you need. Your down payment can be as low as 3% of the purchase price, and most of your closing costs and fees can be included in the loan. Available on 1-4 unit properties.

FHA has a loan that allows you to buy a home, fix it up, and include all the costs in one loan. Or, if you own a home that you want to re-model or repair, you can refinance what you owe and add the cost of repairs - all in one loan.

Are you 62 or older? Do you live in your home? Do you own it outright or have a low loan balance? If you can answer "yes" to all of these questions, then the FHA Reverse Mortgage might be right for you. It lets you convert a portion of your equity into cash.

You can include the costs of energy improvements into an FHA Energy-Efficient Mortgage.

The main purpose of the VA home loan program is to help veterans finance the purchase of homes with favorable loan terms and at a rate of interest which is competitive with the rate charged on other type of mortgage loans. For VA housing loan purposes, the term "veteran" includes certain members of the Selected Reserve, active duty service personnel and certain categories of spouses.
This pamphlet should help you to understand what VA can and cannot do for the home purchaser. However, it is not a legal document and should not be interpreted as one Nothing should be taken as a change of law or regulations. The pamphlet does not attempt to go into detail or into unusual problems. Information about VA loans is given in a narrative format followed by questions and answers in those areas of the greatest concern.
It is suggested that the pamphlet be read in its entirety. Please pay particular attention to the information about:

Any questions you have which are not answered here should be referred to the Loan Guaranty Division at the nearest VA regional office, or to your lender who will take them up with VA if necessary. A list of VA offices may be found in the Help section.

Conventional loans are secured by government sponsored entities or GSEs such as Fannie Mae and Freddie Mac. Conventional loans can be made to purchase or refinance homes with first and second mortgages on single family to four family homes.
In general, Fannie Mae and Freddie Mac's single family, first mortgage loan limit is $417,000 in 2006. This limit is reviewed annually and, if needed, changed to reflect changes in the national average price for single family homes. The current loan limit applies to all conventional mortgages delivered after January 1, 2006.

Loans which are larger than the limits set by Fannie Mae and Freddie Mac are called jumbo loans. Because jumbo loans are not funded by these government sponsored entities, they usually carry a higher interest rate and some additional underwriting requirements. A strategy to lower your overall interest payments if your purchase or refinance balance is above $417,000 is to use a combination of both first and second trust money, referred to as an 80/10/10, 80/15/5 or 80/20. Every situation is different, but it is one more option to consider.
In addition to common loan structures such as fixed rate, adjustable rate and balloon loans, Fannie Mae and Freddie Mac also have loan programs for low to no down payments, community lending and affordable housing initiatives, construction to permanent, home improvement and reverse mortgages.

The purpose of this program is to make homeownership possible for low- and moderate-income Anchorage families. Funds the gap between what you can afford and the cost of housing.

Maximum Purchase Price	Minimum Down Payment
Single family property: $228,950	2% of Sales price
Maximum purchase price limit and income limits change periodically.

Who is Eligible?

Purchasers do not have to be first-time homebuyers.
Purchasers generally may not own other residential real estate.
Purchasers' liquid assets must not exceed $45,000.
Maximum income limits apply. Call for income limit details.

Eligible Property Types

Single family properties (detached homes, condos, townhouses, PUDs) located in the Municipality of Anchorage (excluding Girdwood).
Purchaser must occupy the property as their primary residence.
Mobile homes are not eligible for purchase through this program.

Loan Details

For purchase of single family homes throughout the Municipality of Anchorage (excluding Girdwood).
These are second mortgages with no more than 20% down payment assistance.
Purchasers must generally make a minimum 2% down payment from their own resources.
First mortgages provided by ANHS or by participating local lenders. Call for a list of participating lenders.

Rates and terms may vary depending on funding availability.

The goal of the program resides with raising the standard of living for low- to moderate- income families by assisting them with home ownership. Often, a low-wage family has the income stability and credit worthiness to own a home, but cannot save enough funds for the down payment and closing costs and still have enough residual funds for home maintenance and furnishings.
The AnCHOR program assists Anchorage's low-wage families by funding a portion of the down payment and closing costs. The down payment assistance funds are used to lower the first mortgage and make the monthly payments more affordable. These families are ready for home ownership in a home, and can service affordable monthly first mortgage payments on a regular basis.
This program provides down payment assistance in the form of a second mortgage, secured by the real property. The assistance will make up the difference between the borrower's affordable first mortgage and the sales price, including eligible closing costs.
Borrowers will choose from a list of approved lenders to secure their first-mortgage loan. The lenders will forward the AnCHOR applications with documentation to Anchorage Neighborhood Housing Services, Inc., which administers the program for the Municipality of Anchorage.
Maximum Loan Amount
Loans range from $1,000 to $30,000
Who is Eligible?
Low- to moderate-income home buyers purchasing in the Municipality of Anchorage. Income and asset limits apply. Call for further details.
Loan Details
There are no monthly payments or interest associated with this loan. Five percent of the AnCHOR loan amount will be forgiven at the end of each year (e.g., on the first anniversary of the closing date 5% of the original AnCHOR loan amount will be forgiven, then on the second anniversary another 5% of the original AnCHOR loan amount will be forgiven, etc.). There is no proration of the amount forgiven during the year. If the property is sold at any time during the year, the amount due and payable will be the amount due on the previous anniversary date. The property must remain the borrowers' primary residence throughout the forgiveness period. If the property ceases to be the borrower's primary residence, the balance of the loan (original balance minus amount forgiven) will become immediately due and payable.
Subject to funding availability and program amendments.

The purpose of this program is to fill the gap between what you can afford and the cost of housing. Encourages homeownership in the target neighborhoods of Fairview, Government Hill, Mountain View, Muldoon, and Spenard.

Maximum Purchase Price	Minimum Down Payment
1-Unit: $228,950 2-Unit: $257,850 3-Unit: $313,300 4-Unit: $316,500	2% of Sales price
Maximum purchase price limit and income limits change periodically.

Who is Eligible?

Purchasers do not have to be first-time homebuyers.
Purchasers generally may not own other residential real estate.
Purchasers' liquid assets must not exceed $45,000.
Homebuyer counseling and post-purchase counseling are required for all purchasers.
Maximum income limits apply. Call for income limit details.

Eligible Property Types

One- to four-unit properties in the targeted neighborhoods.
Purchaser must occupy the property as their primary residence.
Mobile homes are not eligible for purchase through this program.

Loan Details

For purchase of homes in the five target neighborhoods.
One- to four-unit properties are eligible.
These are second mortgages with no more than 20% down payment assistance.
Purchasers must generally make a minimum 2% down payment from their own resources.
First mortgages provided by ANHS or by participating local lenders. Call for a list of participating lenders.

Rates and terms may vary depending on funding availability.

The Tax-Exempt Program (TEP) offers lower interest rates to eligible first-time homebuyers. First-time homebuyers are borrowers who have not owned a primary residence in the last three years.

This first-time homebuyer program offers a reduced interest rate to eligible borrowers without the income limits, acquisition cost limits, or recapture provisions of the TEP.

Qualified veterans may obtain financing at lower interest rates. (Veterans must have entered active duty prior to January 1, 1977 and may not be discharged more than 30 years prior to application date.)

Financing to purchase, construct, or renovate owner occupied housing in small communities.

Financing to purchase, construct, or renovate rental housing in small communities.

The Taxable Program is available statewide for applicants or properties not meeting the particular requirements of other AHFC programs.

The Refinance Program allows applicants to obtain new financing to improve the terms on their existing loan and/or finance renovations (improvements) whether or not the property is currently financed by AHFC.

Borrowers with property currently financed by AHFC may obtain new financing without income, credit, or appraisal qualifications.

Financing for manufactured housing located in a mobile home park or on land, not attached to a permanent foundation.

This program is available for certain properties for which financing may not be obtained through private, state or federal mortgage programs.

The Second Mortgage Program provides financing to renovate existing dwellings or for dwelling purchases in conjunction with the assumption of an existing AHFC mortgage loan.

Borrowers with an existing AHFC mortgage whose property needs immediate health and/or safety repairs may obtain funds through this program.

AHFC direct financing for the renovation or completion of residential properties located in "small communities." Properties may be owner occupied or non-owner occupied.

AHFC participates with approved lenders to provide financing for housing consisting of buildings with at least five units and designed principally for residential use.

AHFC participates with approved lenders to provide financing for the purpose of acquisition, rehabilitation, and refinance of multi-family housing. Primarily used to finance existing properties with individuals or for-profits as borrowers.

Promotes affordable housing for persons of lower to moderate-income for the purpose of development, acquisition, rehabilitation, and refinance.

The Senior Housing Loan program offers financing for the purchase, construction, or rehabilitation of properties that meet the special needs of persons 60 years of age or older.

A loan program for housing that is occupied by a live-in care provider, who provides assistance in activities of daily living for individuals with either a physical or mental disability (the "Occupants"). The loan may be for the acquisition, acquisition with rehabilitation and/or improvement of an existing property, or long-term financing of a construction loan for new housing with at least two occupants residing in the housing. The interest rate is adjusted based on the number of occupants residing in the housing.

Cook Inlet Housing Authority’s (CIHA’s) Home Buyer Loan Program provides assistance to eligible applicants as they finance a home in the Cook Inlet Region area. Homeownership counseling is also provided as the applicant progresses from being an applicant to a homebuyer. The program is designed for Alaska Natives or American Indians whose annual household income does not exceed 80% of the area median income.
CIHA expects that the first mortgage will be funded by a conventional Alaska Housing Finance Corporation (AHFC) loan program. When the applicant qualifies for a home mortgage loan, CIHA will assist them with some of the costs associated with closing the loan. The lending institution is responsible for approving or denying the first mortgage loan.

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