For new families, expanding families or "empty-nesters," a Home Improvement Loan could be the perfect solution.

Save money! You'll pay no fees for an appraisal, credit report, title insurance or loan origination. Up to 100% of the cost of the improvement can be financed, eliminating out-of-pocket expenses.  And, the interest may be tax-deductible, lowering your yearly income-tax bill.

It's so easy!  No appraisal or equity is required and Alaska USA's fast loan approval lets you get started with your project right away.

Terms:

Home Improvement Loans are available for properties located in Alaska and Washington.

The proposed improvements must be used to enhance the basic livability or utility of the home.  Items FHA considers luxuries cannot be included.

Financing is available for the improvement of member-owned, one- to four-family properties. Finance up to $25,000 for a single-family property.  Higher amounts are available for three- to four-family homes.  Financing up to $5,000 is also available for owner-occupied mobile homes.

Home Improvement Loan Guideline

1. Maximum Amount:

The actual cost of the qualifying improvement not to exceed $25,000.*

2. Maximum Term:

• 48 months for loan amounts up to $2,500
• 84 months for loan amounts of $2,501 - $7,500
• 120 months for loan amounts of $7,501 - $12,500
• 180 months for loan amounts of $12,501 - $17,500
• 240 months for loan amounts of $17,501 - $25,000 (1)

3. Type of Lien:

First, second or third (2) deed of trust, as allowed by the FHA Title I regulations.  UCC filing if a manufactured (mobile) home is involved.

4. Annual Percentage Rate:

Periodically established by the Board of Directors based upon current money market conditions.

5.Fees:

Periodically established by the Board of Directors. The FHA insurance fee will be paid by the borrower.  (See Fees.)

6. Inclusion:

Member-owned, one-to-four family properties located in the states of Alaska and Washington.  Condominium units must be in an insurer, guarantor or investor approved project.  Mobile homes must be owner occupied (3).

7. Miscellaneous:

Title review to confirm ownership and lien status is required.

8. Restrictions:

All aspects of the loan including the property securing the loan and the intended improvements to that property must meet all FHA Title I program requirements.

1) Duplexes are limited to $24,000, with higher limits available for triplex and four-plex properties, $36,000 and $48,000, respectively.  Additional conditions and restrictions apply.

2) Third deeds of trust are allowed when:  a) the loan amount is equal to or less than $7,500; b) the first and second mortgages were made at the same time for the purchase of the home, i.e., the second mortgage was used to eliminate private mortgage insurance on a conventional mortgage (HELOCs do not meet this requirement); or c) a state or local government agency provided funds for a down payment assistance program, resulting in a second mortgage.

3) Mobile home improvement loans are limited to a total of $5,000, and also have additional restrictions.

This guideline is approved by the Board of Directors and is effective on May 26, 2004.

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