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Home Equity
Loan Program Information - Washington State

LOAN TYPE: First or second Deed of Trust on member's primary residence, second home, or non-owner occupied residential properties.

PROPERTY CRITERIA: One- to four-unit residential properties in Washington that meet the standards of the secondary market for qualifying home loans. Condominium projects must be on the VA or FHA approved project list.

AVAILABLE LOAN AMOUNT: Up to 90% of the property's value (less any outstanding mortgage balance). Condominium, zero-lot-line, three- or four-unit, second home and non-owner occupied properties are limited to 80% of the property's value.

PROPERTY VALUATION:

  • Tax Assessment - Generally, the tax-assessed valuation supported by a physical inspection of the property by a credit union representative will be acceptable if the amount of the loan will not exceed $100,000. (Loans in excess of $100,000 may require an appraisal.)
  • Automated Valuation Model (AVM) - The credit union can request an AVM to establish a property's value when an appraisal is necessary and the loan amount is $250,000 or less. (Loans in excess of $250,000 require an appraisal.) If an acceptable AVM is available, an appraisal will not be required.
  • Appraisal - An appraisal report 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: Current fixed-interest rates and terms are as follows:

Fixed Rates (APR) 1

Maximum Term 2

7.25%

60 months (5 years)

7.25%

120 months (10 years)

7.75%

240 months (20 years)

7.75%

360 months (30 years) amortization with 180-month balloon payment

1 Rates will be 1.5% higher on loans in excess of 80% and up to 90% of the property's value.
2 Maximum term of 144 months (12 years) on second homes and non-owner occupied residential properties. Second homes destined to become member's retirement home have a maximum term of 240 months (20 years).

CLOSING COSTS: Loan Processing Fee - $99 (currently waived). Appraisal fee (approximately $375) if required to determine property valuation. Various costs will apply on any subsequent refinances.

INSURANCE REQUIREMENTS: Hazard insurance, and flood insurance if required, with the credit union as additional loss payee.

BORROWER QUALIFICATIONS: To qualify, borrowers should have 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 borrowers situation is unique and is reviewed accordingly.

If you have any questions about this program, or wish to submit an application telephonically, please call (888) 425-9813. 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. 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 1/19/2007