Alaska Home Loan, No Money Down, Equity Loan by Kelstar Alaska Mortgage

Fixed Rate – Fixed rate mortgages are the most popular type of loan with borrowers because the principal and interest payments are guaranteed not to change. Fixed rate mortgages are amortized over a specific length of time. Usually this period covers anywhere from 10 to 40 years. Monthly principal and interest payments do not change over the term of the loan, which means your mortgage expenses are easily anticipated. If you believe interest rates are going to increase, this may be the best option for you. With this type of loan, the shorter the term, the less interest a borrower will pay over the life of the loan.

However, monthly payments will be higher because the mortgage will be paid off with fewer payments.

VA Home Loans - This type of mortgage is for former and active military personnel. This can include reservists depending on their length of service. VA requires no payment- it is a 100% loan. There is no monthly mortgage insurance for VA loans. The amount of mortgage that the individual is eligible for is determined by the Veteran's Administration based on factors including (but not limited to) type of military service and length of service. Despite the amount of eligibility an individual may be eligible for, he/she must still qualify with a lender. This service works like mortgage insurance. The percentage required is based on eligibility and whether the individual has used his/her VA eligibility before. The Funding Fee is rolled into the loan amount and is not paid out of pocket. Disabled Veterans are not required to pay a funding fee.

2. Statement of Service and LES (Leave and Earnings Statement) if currently on active duty status.

3. Certificate of Eligibility – This can be obtained by your request through us or directly to the Department of Veterans affairs

Adjustable Rate Mortgage - The mortgage interest rate on this loan will be fixed for a stated period of time and will then become adjustable for the remainder of the loan. For example, a 5-year fixed (30-year) loan would have a fixed interest rate for the first five years and then convert to an adjustable rate for the remaining 25 years. This adjustment is based on changes in a pre-selected index, and will take place according to a pre-defined schedule (generally once a year). Your interest rate and monthly payment will fluctuate based on changes in your index. The most common indices are the Treasury Bill, Certificate of Deposit (CD), LIBOR and COFI. Adjustable rate loans have more risk due to the possibility that the interest rate could increase. However, because you are assuming additional risk the lender will generally reward you with a lower interest rate and monthly payment during the initial fixed interest period. These loans are of particular benefit to borrowers that plan to either sell the property or refinance before reaching the adjustable period.

100% Financing Mortgages – No down payment loans have become a popular choice for financing a home. These programs are tailored with either a 1st mortgage exclusively or a combination of a 1st and 2nd mortgage (sometimes referred to as a piggyback mortgage).

Combination / Piggy Back Loan - A combination loan is a loan that has a first and second mortgage combined. Usually, a combination loan is used when a borrower wants to avoid paying mortgage insurance. For example, one type of combination loan is an "80/20" providing 100% financing with no down payment required. On this loan, you get a first mortgage for 80 percent of the loan amount, usually with a fixed interest rate for the life of the loan. A 20 percent second mortgage at the same time for the remainder of the loan balance offers fixed rate and interest only options. Often, the combination loans provide lower payments than the traditional “all in one” loan and allows borrower to avoid mortgage insurance. The borrower is allowed to use the interest rates on the first and second mortgages as a tax deduction where mortgage insurance is generally not tax deductible. Ask your tax advisor for more information.

Payment Option ARM Program - This type of program puts you in control of your home loan. This is how it works: Each month, you will receive an easy to read loan statement that lets you choose the payment amount that best suits your current financial needs. Pay the minimum amount to free up funds for other uses, or make larger payments for faster equity build up.

Construction Loan - This type of loan is typically used to finance the construction of a home. We offer borrowers One Time Close construction loans. This type of construction loan will finance the construction of a primary residence or financing for builders who intend on selling the property and the permanent loan when construction is finished. A One Time Close construction loan requires borrowers to sign only one set of documents and allows borrowers to lock in a rate for the permanent loan at this time. This type of home loan has several options for 12 months of construction time and during the construction period, interest is charged only on the funds that have been disbursed. Some construction loans have fixed interest rates, others have variable interest rates.

Second Home Loan - This type of loan is used to purchase or refinance a property other than a borrower's principal residence. In most instances, such a property is a borrower's vacation home (or "second home"). Provided that the property is not strictly an investment property, the interest rate and costs charged on such loans will generally be the same as those available on loans used to purchase or refinance a borrower's principal residence.

Home Improvement/Debt Consolidation - Equity lines of credit are available for just about any reason. A home equity line of credit is a form of revolving credit in which your home serves as collateral. Think of it as a credit card that is secured by the equity in your home. Many homeowners use these credit lines for major items such as debt consolidation, travel expenses and home improvements.

Investment / Multi Family Property Loan - This program provides up to 100% financing for properties of 1-4 units with no down payment required. Whether you intend to occupy the property or purchase for strictly investment income, there are many program options available.

Stated Income / No Income – Borrowers can often qualify for up to 100% financing with no down payment required. In qualifying for these products, the lender will not require you to provide standard explanations of your income, such as tax returns. This means that there is no verification of your income, but you must state the source of your income. Individuals likely to be interested in a stated income loan are typically self-employed or individuals who write-off a large portion of their income such as contractors, waiters & waitresses. Full time wage earners are also eligible for this type of financing.

Challenge Credit Loans - If you've had past credit trouble, you may think getting a home loan is going to be difficult and expensive. It doesn't have to be. We understand that anyone can run into financial difficulty at some point in his or her life. That's why we created several loan options for people who traditionally haven't had many choices. The type of programs are often known as “subprime” loans. A Subprime loan is a mortgage that does not meet the credit underwriting guidelines of Fannie Mae, Freddie Mac, FHA and VA. Subprime mortgages exist for home buyers from AA to D credit and are designed to bridge the gap between the traditional A credit or prime lenders. Subprime mortgage options are determined by credit more than any other factor. The more damaged an individual's credit is, the higher the rate.

Choosing A Mortgage Program - There isn't a single or simple answer to this question. The right type of mortgage for you depends on many different factors:

For example, a 15-year fixed-rate mortgage can save you many thousands of dollars in interest payments over the life of the loan, but your monthly payments will be higher. An adjustable rate mortgage may get you started with a lower monthly payment than a fixed-rate mortgage -- but your payments could get higher when the interest rate changes.

The best way to find the "right" answer is to discuss your finances, your plans and financial prospects, and your preferences frankly with on of our mortgage professionals.

**Credit and program guideline restrictions may apply. Program guidelines are subject to change. Up front Approval is subject to satisfactory appraisal and title review and no change in financial condition. If the rate is not locked or rate protection expires, any rate increase may lower the loan amount for which the borrower has pre-qualified. Refinancing or taking out a home equity loan or line of credit may increase the total number of monthly payments and the total amount paid when comparing to your current situation.

Cris Skinner, Member since 2004

Misty Stokes & Tauna Clegg,

Members since 2006.

Kelstar Alaska Mortgage Specializes in Alaska Home Loans, Alaska VA loans and Refinances