Rules for FHA Mortgages in Alaska

Alaskan homeowners may qualify for FHA loans up to a certain amount.alaska home image by Silke Wolff from Fotolia.com

The Federal Housing Administration (FHA) offers low-cost loans to first-time homeowners. In addition to complying with all other federal guidelines regarding these loans, Alaska homeowners should be aware of the lending limits for their counties of residence. The FHA sets lending limits based on the size of the home and the state of the Alaskan economy in the area.

Loan Limits

The FHA sets loan limits based on the county in Alaska where the prospective homeowner lives. Homeowners in Alaska may borrow up to $271,050 to purchase a single-family home in most Alaskan counties, although in a few counties, such as Kodiak Island, the loan limit is higher. The FHA allows Alaskan citizens more funds for larger houses such as duplexes.

In Alaska, homeowners seeking an FHA loan must have lived in their current home for two years and been employed during that time. Homeowners must also have a good credit history, including on-time payment of bills for the last 12 months.

If an Alaskan homeowner intends to pay 20 percent or less of the total cost of the home as a down payment, he must purchase mortgage insurance via the FHA. Mortgage insurance protects the lender against default on the loan by the homeowner. Alaskan homeowners must pay 1.5 percent of the total cost of the home upfront as an insurance payment and must pay a premium payment of .5 percent per year.