Alaska Mortgage and Refinance Rates
As of Thursday, July 29, 2021, current rates in Alaska are 3.56% for a 30-year fixed, and 2.37% for a 15-year fixed.
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Alaska mortgage overview
As of August 2020, home shoppers in Alaska can expect to find a median list price of about $282,900, which is on par with the national average, according to Zillow.
In 2020, the conforming mortgage loan limit in the state, which is the maximum amount Fannie Mae or Freddie Mac will guarantee, is $765,600. That’s far higher than in most states, where the limit stands at $510,400. Likewise, limits for Federal Housing Administration (FHA) loans in the state, which typically serve low- to moderate-income buyers, vary significantly by county in 2020, from $331,760 to as high as $486,450.
First-time homebuyer programs in Alaska
The Alaska Housing Finance Corporation (AHFC, or Alaska Housing) offers programs that can be helpful to first-time homebuyers, including the First Home and First Home Limited mortgages and down payment assistance. In order to qualify as a first-time homebuyer, applicants must not have owned a primary residence in the past three years.
The First Home mortgage program is aimed at first-time buyers with higher incomes and offers reduced interest rates. To apply, borrowers must furnish federal income tax returns from the past three years.
First Home Limited
Similar to First Home, the First Home Limited mortgage program provides lower interest rates to first-time buyers, but the buyer must meet income limits and purchase price limits. The first-time buyer requirement can be waived if the purchase property is located in a targeted area, which are locations that have higher income and purchase price limits.
Closing Cost Assistance
While not expressly limited to first-time homebuyers, closing cost assistance through the AHFC can be helpful for those who are having trouble coming up with the funds for the upfront costs associated with a home purchase. The assistance is packaged with a 30-year fixed-interest loan, with homebuyers receiving as much as 4 percent of the loan principal for a down payment or closing costs in addition to the loan. In order to qualify, applicants must have a minimum credit score of 640. There are no income or purchase price limits.
Alaska mortgage refinancing
When it comes time to refinance your mortgage in Alaska, remember you’re not required to work with the same lender who provided the initial loan. In fact, it’s important to take the time to shop around and do your research to make sure you’re getting the best rates and loan terms possible. There are many private lenders and mortgage companies that provide refinancing options.
In addition, the Alaska Housing Finance Corporation offers its own refinancing programs. You do not have to have an existing loan with the agency to be eligible.
- The Streamline Refinance for existing Alaska Housing borrowers does not require going through an appraisal or (in most cases) credit screening. It also does not require occupying the home as the owner. However, the original loan must have been made to an owner occupant.
- There’s also a refinance option for those who did not purchase their home with an Alaska Housing program. This program can be used to obtain better loan terms or to provide the cash needed for renovations or home improvements.