Your Application

Can I apply for a loan before I find a property to purchase?

Yes, applying for a mortgage loan before you find a home may be the best thing you could do! If you apply for your mortgage now, we'll issue an approval subject to you finding the perfect home. We'll issue a pre-qualification letter online instantly. You can use the pre-qualification letter to assure real estate agents and sellers that you are a qualified buyer. Having a pre-qualification for a mortgage may give more weight to any offer to purchase that you make.

When you find the perfect home, you'll simply call your Loan Originator to complete your application. You'll have an opportunity to discuss your loan program and interest rate options at that time.

What is a credit score and how will my credit score affect my application?

A credit score is one of the pieces of information that we'll use to evaluate your application. Financial institutions have been using credit scores to evaluate credit card and auto applications for many years, but only recently have mortgage lenders begun to use credit scoring to assist with their loan decisions.

Credit scores are based on information collected by credit bureaus and information reported each month by your creditors about the balances you owe and the timing of your payments. A credit score is a compilation of all this information converted into a number that helps a lender to determine the likelihood that you will repay the loan on schedule. The credit score is calculated by the credit bureau, not by the lender. Credit scores are calculated by comparing your credit history with millions of other consumers. They have proven to be a very effective way of determining credit worthiness.

Some of the things that affect your credit score include your payment history, your outstanding obligations, the length of time you have had outstanding credit, the types of credit you use, and the number of inquiries that have been made about your credit history in the recent past.

Credit scores used for mortgage loan decisions range from approximately 300 to 850. Generally, the higher your credit score, the lower the risk that your payments won't be paid as agreed.

Using credit scores to evaluate your credit history allows us to quickly and objectively evaluate your credit history when reviewing your loan application. However, there are many other factors when making a loan decision and we never evaluate an application without looking at the total financial picture of a customer.

Will the inquiry about my credit affect my credit score?
An abundance of credit inquiries can sometimes affect your credit scores since it may indicate that your use of credit is increasing.

But don't overreact! The data used to calculate your credit score doesn't include any mortgage or auto loan credit inquiries that are made within the 30 days prior to the score being calculated. In addition, all mortgage inquiries made in any 14-day period are always considered one inquiry. Don't limit your mortgage shopping for fear of the effect on your credit score.
Is Alaska USA the right lender for me?
Whether you're purchasing or refinancing, we're certain you'll find our service amazing!

If you'll be purchasing but haven't found the perfect home yet, complete our application and we'll issue an approval for a mortgage loan now with no obligation!
Can I really borrow funds to use towards my down payment?

Yes, you can borrow funds to use as your down payment! Some loan programs allow second deeds of trust for down payments and closing costs, while others offer up to 103% financing without additional financing. In any event, loans secured by an asset you own are always acceptable. If you are planning on obtaining a loan, make sure to include the details of this loan in the Expenses section of the application. This will prompt your Loan Originator to request documentation such as the settlement statement or note to verify the new debt.

How do you decide what you need from me to process my loan?

We take full advantage of an automated underwriting system that allows us to request as little information as possible to verify the data you provided during your loan application. Gone are the days when it was necessary to verify every piece of data collected during the application. The automated underwriting system compares your financial situation with statistical data from millions of other homeowners and uses that comparison to determine the level of verification needed. In many cases, a single W-2 or pay stub can be used to verify your income or a single bank statement can be used to verify the assets needed to close your loan. If your credit history and financial situation is too complex for the automated underwriting system, the loan must be manually underwritten. Additional documentation is required for manually underwritten loans.

I'm self-employed. How will you verify my income?
Generally, the income of self-employed borrowers is verified by obtaining copies of personal (and business, if applicable) federal tax returns for the most recent two-year period. However, based on your entire financial situation, we may not need full copies of your tax returns.

We'll review and average the net income from self-employment that's reported on your tax returns to determine the income that can be used to qualify. We won't be able to consider any income that hasn't been reported as such on your tax returns. Typically, we'll need at least one, and sometimes a full two-year history of self-employment to verify that your self-employment income is stable.
Will my overtime, commission, or bonus income be considered when evaluating my application?

In order for bonus, overtime, or commission income to be considered, you must have a history of receiving it and it must be likely to continue. We'll usually need to obtain copies of W-2 statements for the previous two years and a recent pay stub to verify this type of income. If a major part of your income is commission earnings, we may need to obtain copies of recent tax returns to verify the amount of business-related expenses, if any. We'll average the amounts you have received over the past two years to calculate the amount that can be considered as a regular part of your income.

If you haven't been receiving bonus, overtime, or commission income for at least one year, it probably can't be given full value when your loan is reviewed for approval. Every situation is unique though, and a visit with an Alaska USA Loan Originator will help you identify all your financing options.

I am retired and my income is from pension or social security. What will I need to provide?
We will ask for copies of your recent pension check stubs, or bank statement if your pension or retirement income is deposited directly in your bank account. Sometimes it will also be necessary to verify that this income will continue for at least three years since some pension or retirement plans do not provide income for life. This can usually be verified with a copy of your award letter. If you don't have an award letter, we can contact the source of this income directly for verification.

If you're receiving tax-free income, such as social security earnings in some cases, we'll consider the fact that taxes will not be deducted from this income when reviewing your request.
If I have income that's not reported on my tax return, can it be considered?

Generally, only income that is reported on your tax return can be considered when applying for a mortgage. Unless, of course, the income is legally tax-free and isn't required to be reported.

Additionally, we offer a stated income program which allows you to be qualified for a loan based on the income you state rather than that which can be verified.

Will my second job income be considered?
Typically, income from a second job will be considered if a one-year history of secondary employment can be verified.
Will I be charged any fees if I authorize my credit information to be accessed?

There is no charge for the credit information we'll access with your permission to evaluate your application online.

How will rental income be verified?
If you own rental properties, we'll generally ask for the most recent year's federal tax return to verify your rental income. We'll review the Schedule E of the tax return to verify your rental income, after all expenses except depreciation. Since depreciation is only a paper loss, it won't be counted against your rental income.

If you haven't owned the rental property for a complete tax year, we'll ask for a copy of any leases you've executed and we'll estimate the expenses of ownership.
Do I have to provide information about my child support, alimony or separate maintenance income?
Information about child support, alimony, or separate maintenance income does not need to be provided unless you wish to have it considered for repaying this mortgage loan.
I've had a few employers in the last few years. Will that affect my ability to get a new mortgage?

Having changed employers frequently is typically not a hindrance to obtaining a new mortgage loan. This is particularly true if you made employment changes without having periods of time in between with no employment. We'll also look at your income advancements as you have changed employment.

If you're paid on a commission basis, a recent job change may be an issue since we'll have a more difficult time of predicting your earnings without a history with your new employer. However, if your new position is in the same general line of work we can usually establish a stable income amount.

I was in school before obtaining my current job. How do I complete the application?
If you were in school before your current job, enter the name of the school you attended and the length of time you were in school in the "length of employment" fields. You can enter a position of "student" and income of "0."
If my property's appraised value is more than the purchase price can I use the difference towards my down payment?

Unfortunately, if you are purchasing a home, we'll have to use the lower of the appraised value or the sales price to determine your down payment requirement.

It's still a great benefit for your financial situation if you are able to purchase a home for less than the appraised value, but our investors don't allow us to use this "instant equity" when making our loan decision. If you are short on funds for your downpayment or closing costs, however, be sure to consider one of our 100% financing programs.

I'm getting a gift from someone else. Is this an acceptable source of my down payment?

Gifts are an acceptable source of down payment, if the gift giver is related to you or your co-borrower. We'll ask you for the name, address, and phone number of the gift giver, as well as the donor's relationship to you.

Generally, if your loan request is for more than 80% of the purchase price, we'll need to verify that you have at least 5% of the property's value in your own assets. A few of our programs, however, allow 100% of your downpayment to be a gift; ask your Loan Originator for details.

Prior to closing, we'll verify that the gift funds have been transferred to you by obtaining a copy of your bank receipt or deposit slip to verify that you have deposited the gift funds into your account.

I am selling my current home to purchase this home. What type of documentation will be required?
If you're selling your current home to purchase your new home, we'll ask you to provide a copy of the settlement or closing statement you'll receive at the closing to verify that your current mortgage has been paid in full and that you'll have sufficient funds for our closing. Often the closing of your current home is scheduled for the same day as the closing of your new home. If that's the case, we'll just ask you to bring your settlement statement with you to your new mortgage closing.
I am relocating because I have accepted a new job that I haven't started yet. How should I complete the application?
Congratulations on your new job! If you will be working for the same employer, complete the application as such but enter the income you anticipate you'll be receiving at your new location.

If your employment is with a new employer, complete the application as if this were your current employer and indicate that you have been there for one month. The information about the employment you'll be leaving should be entered as a previous employer. We'll sort out the details after you submit your loan for approval.
I've co-signed a loan for another person. Should I include that debt here?

Generally, a co-signed debt is considered when determining your qualifications for a mortgage. If the co-signed debt doesn't affect your ability to obtain a new mortgage we'll leave it at that. However, if it does make a difference, we can ignore the monthly payment of the co-signed debt if you can provide verification that the other person responsible for the debt has made the required payments, by obtaining copies of their cancelled checks for the last twelve months.

I have student loans that aren't in repayment yet. Should I show them as installment debts?

Most Investors require that any student loan be included in the application, whether in deferral or not. There are a few programs though, like FHA and AKUSA’s portfolio ARM, that allow deferred loans to be disregarded if the deferral will continue for at least twelve months. For now, go ahead and show all your loans. Your Loan Originator will help you determine if additional documentation is needed later.

How will a past bankruptcy or foreclosure affect my ability to obtain a new mortgage?
If you've had a bankruptcy or foreclosure in the past, it may affect your ability to get a new mortgage. Unless the bankruptcy or foreclosure was caused by situations beyond your control, we will generally require that two to four years have passed since the bankruptcy or foreclosure. It is also important that you've re-established an acceptable credit history with new loans or credit cards.
What, exactly, is an installment debt?

An installment debt is a loan that you make regular, scheduled payments on, such as an auto loan, a student loan or a debt consolidation loan. Do not include payments for other living expenses, such as insurance costs or medical bill payments.

What is a revolving debt and what kind of payment should I use when disclosing a revolving debt on my application?

A revolving debt is a loan that you make irregular payments on, such as a credit card. When disclosing the payment information on the application, enter the minimum payment required as is shown on your account statement.

How do I get a copy of my credit report?

The Fair Credit Reporting Act (FCRA) requires each of the nationwide consumer reporting companies – Equifax, Experian, and TransUnion – to provide you with a free copy of your credit report, at your request, once every 12 months. To order, click on annualcreditreport.com. In additional to providing you with your current credit information, obtaining a credit report periodically will also help to prevent you from becoming a victim of identity theft.

Can I apply for a mortgage loan if I know I have had credit difficulties in the past?

Yes, you can apply for a mortgage loan if you know you have had credit difficulties in the past. Our knowledgeable loan Originators will work to find a mortgage loan program to fit your needs, whether your credit is perfect or less than perfect. Additionally, our Originators can make suggestions to help you “clean up” any credit issues that may prevent you from obtaining the best possible mortgage.

Ready to get started? Apply now.

Are there mortgage programs available to me as a first time home buyer?

Yes, there are several first time home buyer programs available. Each program has different benefits, although some will be similar, including low down payment, reduced interest rates, and flexible lending guidelines. Flexible lending may allow for a higher percentage of your monthly income going to debt, or allow you a chance to be approved for a mortgage loan even if you have little or no credit. Qualification for most will be based on your household income, family size, credit history, and purchase location.

Additionally, several programs are available offering additional lending flexibility, special help funding a down payment and qualifying for an affordable interest rate. Special financing is available if you are employed as a teacher, firefighter, law enforcement officer, nurse or healthcare worker. If you are an Alaskan Native or American Indian there are programs specifically designed for you.

With your help, our originators can identify programs that best fit your financing needs. Apply online now or contact an originator.

Are there mortgage programs available that allow me to put little or no down payment on the purchase of a home?

Yes, there are several mortgage programs available that allow for little or no down payment when purchasing a home, as well as programs that allow you to finance more than the purchase price. Most low and no down payment programs also offer reduced interest rates and flexible approval guidelines. Flexible approval guidelines may allow for a higher percentage of your monthly income going to debt, or allow you a chance to be approved for a mortgage loan even if you have little or no credit. Each program has different requirements, although some will be similar, and are generally based on purchase location, your household size and income.

There are several programs available offering additional lending flexibility, special help funding a down payment and qualifying for an affordable interest rate. Additionally, special financing is available to first time home buyers and if you are employed as a teacher, firefighter, law enforcement officer, nurse or healthcare worker.

Be sure to ask your originator for more information to determine which program(s) you may qualify for. Apply online now or contact an originator.

What resources are available to me for down payment assistance in Alaska?

There are multiple resources available for down payment assistance in Alaska, most with limited funding. Program guidelines are based on property location and/or your income, sometimes including the income for all occupants of your household. Current program agencies include the following:

  • Alaska Community Development Corporation - Kenai Peninsula and Mat-Su Boroughs
  • AnCHOR Loan Program - Municipality of Anchorage
  • Anchorage Neighborhood Housing Services Homebuyer Affordability Program - Municipality of Anchorage (excluding Girdwood)
  • Anchorage Neighborhood Housing Services Down Payment Assistance Program - Municipality of Anchorage (excluding Girdwood)
  • Cook Inlet Housing Authority - Cook Inlet Region Area
  • Fairbanks Neighborhood Housing Services - Denali Borough, Valdez-Cordova Census Area, Yukon-Koyukuk Census Area, Fairbanks North Star Borough, Southeast Fairbanks Census Area, Nome Census Area, Northwest Arctic Borough, Bethel Census Area, Wade Hampton Census Area, and the North Slope Borough
  • Home$tart and Home$tart Plus - Alaska and Washington
  • Tlingit-Haida Regional Housing Authority - Any Southeast Alaska Community which includes: Juneau, Ketchikan, Sitka, Haines, Skagway, Hoonah, Angoon, Petersburg, Yakutat, Prince of Wales, and Saxman.
  • Tribal Equity Advantage Mortgage - Doyon Region

Be sure to ask your originator for more information to determine what programs may assist you to achieve your dream of homeownership and what steps need to be taken to determine qualification.

What resources are available to me for credit counseling and assistance with homeownership?

Your originator will be with you for every step of the mortgage process to answer your questions and assist you in your decision to purchase a home. Additionally, credit counseling and assistance with homeownership can be obtained through several other sources, either face-to-face or via the Internet.

Internet: The Alaska USA Federal Credit Union website offers you information on preparing to purchase a home with a multi-chapter Home Buying Program, establishing a budget using the Money Savvy Budget Blueprint, and general finance information which includes articles, calculators and guides to autos, retirement and credit. Alaska USA Mortgage Company also has tools and links to help you understand the home buying process, including help choosing a mortgage, pre-qualification information, mortgage terms and definitions, and several financial calculators. Freddie Mac offers similar services on their website and also has a homebuyer education class, the Homeowner Readiness Check, available online.

Additionally, CMG, a mortgage insurance company, offers an online education program, Pre-Purchase Homebuyer Education. You will be required to register online to receive a login ID. Once you receive your login ID you can complete the Homebuyer Education program. To register, access the following website: Emerging Markets - Pre-Purchase Homebuyer Education.

Face-to-Face: In Alaska, the Alaska Housing Finance Corporation (AHFC) offers HomeChoice classes, which are a requirement for several home loan programs. By taking the class you may receive a discount on the AHFC commitment fee when an AHFC loan is best suited for your needs. Find out more information from their website: www.ahfc.state.ak.us.

In Washington, the Washington State Housing Finance Commission offers homebuyer education. You can get more information on their website: http://www.wshfc.org/buyers/education.htm.

These are no cost resources available to help you along the path to home ownership! If you want further information, be sure to ask your originator. Apply online now or contact an originator.

Many programs require me to attend a homebuyer education class. How do I obtain the necessary certification?

Multiple programs are available for the required homebuyer education. However, not all programs are acceptable for all loan types. Talk to your originator to determine the homebuyer education options for the program that best fits your needs.

Some of the options you have in Alaska are:

Alaska Housing Finance Corporation (AHFC) - offers HomeChoice classes, which are a requirement for several home loan programs. By taking the class you may receive a discount on the AHFC commitment fee when an AHFC loan is best suited for your needs. Find out more information and class schedules from their website: www.ahfc.state.ak.us

In Washington, the Washington State Housing Finance Commission offers homebuyer education. You can get more information on their website: www.wshfc.org/.

Freddie Mac has a homebuyer education class, the Homeowner Readiness Check, available online at www.freddiemac.com/hrc/. This education course will provide you with a certification for Freddie Mac loan programs, although other investors may not accept it.

Additionally, PMI Mortgage Insurance Co. offers links to local homebuyer education education programs. Emerging Markets - Pre-Purchase Homebuyer Education.

These are no cost educational opportunities available to help you along the path to home ownership!

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Alaska: 800-737-3033

Arizona: 602-338-5801

California: 800-737-3033

Washington: 800-737-3033

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