Frequently asked questions for homebuyers.

  • No. We offer a Down Payment Assistance (DPA) product to individuals purchasing homes in the Cook Inlet Region who meet income eligibility guidelines, regardless of race, ethnicity, religion, etc.

    The HUD-184 program is offered to federally recognized tribal members and tribal entities.

  • This varies between the different programs that are offered. Please contact the program administrator for more information.

  • Yes! Many of the programs we offer can be combined!

  • HUD-184 loans can aid in financing the purchase, rehabilitation, and construction of new homes to fit their communiti’s needs.

Mortgage Basics

  • A mortgage is a loan used to purchase real estate. The property itself serves as collateral for the loan.

  • You apply for a mortgage with a lender, providing financial information. The lender evaluates your creditworthiness and, if approved, provides funds to buy the home. You repay the loan over an agreed-upon period with interest.

  • Factors include, but are not limited to, credit score, income, employment history, debt-to-income ratio, and the amount of the down payment.

  • A down payment is a percentage of the home's upfront purchase price. It's not borrowed and serves as your initial equity in the home.

  • A fixed-rate mortgage has a constant interest rate and monthly payments. An ARM has an interest rate that may change periodically based on changes in a corresponding financial index.

  • Private Mortgage Insurance (PMI) is often required if the down payment is less than 20%. It protects the lender in case of default.

  • An escrow account holds funds for property taxes and homeowners insurance, paid with your monthly mortgage payment. The lender manages these payments on your behalf.

  • Pre-approval is a lender's conditional agreement to lend a specific amount after reviewing your finances. It helps in the home search process.

  • Pre-qualification is an estimate of how much you can borrow based on basic financial information. Pre-approval involves a more thorough analysis and is a stronger commitment from the lender.

  • Yes, refinancing involves replacing an existing mortgage with a new one, usually to get a lower interest rate, change the loan term, or tap into home equity.

  • Closing costs are fees associated with the home purchase transaction, including loan origination fees, appraisal fees, and title insurance.

  • Most mortgages allow for early repayment, but some may have prepayment penalties. It's essential to check your loan terms.