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Home Equity Line of Credit
Loan Program Information - Alaska Only

LOAN TYPE:  First or Second Deed of Trust on the member's primary residence.

PROPERTY CRITERIA:  Owner occupied detached single-family, duplex, zero-lot-line, three- or four-unit properties in Alaska that meet the standards of the secondary market for qualifying home loans. Condominiums are ineligible.

CREDIT LIMITS: Up to 90% of the propertys value (less any outstanding mortgage balance). Minimum credit limit of $10,000, maximum of $500,000, depending upon equity.  Zero-lot-line and three- and four-unit 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: The interest rate is variable, adjusts monthly, and will be equal to the Wall Street Journal Prime Lending Rate. The current rate is available on the Real Estate Loan Rates page. For loans where more than 80% of the property's value is financed, a rate of Prime plus 1.5% will apply. Monthly payments will be the greater of $25 or 1.5% of the outstanding loan balance for the life of the loan.

DRAWS: There is no minimum draw amount, and the maximum is determined by the established credit limit. Draws can be taken for a period of 7 years and can be obtained through a variety of means made available by the credit union, including: via telephone transfer, ATM withdrawal or transfer, Ultrabranch PC and SST transfer, through teller line withdrawal and via automatic overdraft protection transfer, if selected.

CLOSING COSTS: $99 Loan Processing Fee. Appraisal fee (approximately $300 to $500) if required to determine property valuation. Title insurance may be required in some cases. This cost varies depending upon loan amount.

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

BORROWER QUALIFICATIONS:  To qualify, borrowers should have generally 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 borrowers level of income. Every borrowers situation is unique and is reviewed accordingly. Initial credit approvals will be provided very quickly but will generally be subject to receipt of confirmation of income, value of the home and balance of the first mortgage.

INFORMATION TO PROVIDE:  To expedite processing your request, please provide a copy of your home's most recent tax assessment (if you intend to use that for determining its value), a copy of a document that contains the full legal description of your home (i.e., deed of trust, warranty deed, title insurance policy) and copies of your most recent pay stubs showing your year-to-date income(s). If you are self-employed or have other than wage income, please provide copies of your tax returns for the most recent 2 years.

Upon receipt of your application, you will be mailed an information booklet on HELOC loans and additional disclosure materials. 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. If you have any questions about this program or wish to submit an application telephonically, please call the Real Estate Telephone Loan Center. In Anchorage, please call 786-2800. In all other locations, please call 1-888-425-9813. 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 3/19/2008