The Best Alaska Mortgage Lenders In 2021

While the average mortgage premium in Alaska is relatively affordable, you can save even more money by getting the right lender. But with so many options to choose from – and with each borrower having different needs – it can be difficult to find the best one for your case.

There are many aspects of a mortgage loan that you’ll have to consider when picking a lender. Factors such as Alaska mortgage rates, what loan types a lender offers, their availability, and online features can all impact your final arrangement.

In this guide, you’ll learn about the best mortgage brokers in Alaska, USA, and how to pick the best one.

How To Pick A Mortgage Lender

No two mortgage lenders are the same. Before you start looking for an approved lender in Alaska, USA, below are a few factors you should consider.

Loan Products

Knowing your mortgage options can influence the Alaska, USA lender you choose. Here are a few of the most common loans you’ll find available on the state’s lending market:

Conforming loans: Compared to most states where the average loan limit stands at $510,400, Fannie Mae and Freddie Mac can guarantee up to $765,600 in Alaska, USA.
Fixed-rate loans: As their name suggests, these mortgage loans have a fixed interest rate and are available in 10, 20, and 30-year options, with options in between.
Adjustable-rate loans: ARMs enforce a fixed rate only for a specific time called the introductory period. Based on a 3/1, 5/1, 7/1, or 10/1 term, interest rates will fluctuate according to market prices after this period.
Jumbo mortgage: These loans exceed maximum conforming limits, allowing you to purchase a more expensive home.
Government-backed loans: These loans are ideal for home buyers with low-to-no credit scores and minimum income. You can get a government-backed loan from the Federal Housing Administration/Federal Housing Authority (FHA), the US Department of Agriculture (USDA), or the Department of Veterans Affairs (VA).
Mortgage refinance: Borrowers can use this product to pay off an existing mortgage loan with better rates and terms. If necessary, borrowers can also use a refinance loan for consolidating debt.

Credit Requirements

To qualify for a new home, you must meet a lender’s credit requirements. In most cases, these minimum credit requirements will begin at 620, with some lenders accepting scores as low as 500.

The best way to get your credit score in shape is to review and correct any errors. If you have a low credit score, you can give it an immediate boost by settling late payments and repaying existing loans. Lowering your debt can also improve your debt-to-income ratio, which often determines your interest rate.

Affordability

Mortgage loans are subject to constantly changing interest rates. However, the market isn’t the only thing that’ll dictate how affordable your loan is. Things you’ll have to consider as a prospective homeowner are:

Minimum down payment: The best way to lower your overall mortgage rate is to place a down payment of at least 20%. However, you can find a loan officer willing to accept a down payment as low as 3%, given that you also cover private mortgage insurance (PMI).
Closing costs: When financing a loan, you’ll also have to set aside funds for application and origination fees, underwriting costs, and more. Lender commissions can range anywhere between 0.5% and 2.75% of the total loan cost.
First-time homebuyer programs: Some lenders provide assistance to those buying property for the first time. You can apply for the First Home and First Home Limited Mortgages program for down payment assistance in Alaska, USA.

Application Process

When assessing an Alaska lender, make sure you ask the following mortgage questions.

Do you offer your services online? Nowadays, online lending processes help cater to busy consumers who live far away from their bank.
Do you publish mortgage rates on your website? Tools such as online calculators can help you compare rates before choosing the right lender.
Based on my financial data, what type of loan do you recommend? The best loan officer will offer financial protection by being honest about their recommendation. They can direct you towards the most affordable mortgage.
How long does the mortgage application process take? Depending on your loan officer, completing a mortgage application can take anywhere between a few weeks to months.
Are you licensed and insured? It should go without saying that the most reliable mortgage services are insured and licensed to operate.

Customer Satisfaction

If you need added perspective on a particular lender, you can look at online reviews by customers. Data analytics companies such as JD Power provide valuable resources, customer insights, and data analytics to inform your decision. Similarly, the Better Business Bureau (BBB) uses a trust rating system that grades a mortgage agency from F to A+.

Top 5 Best Alaska Mortgage Lenders

Alaska Housing Finance Corporation

Minimum credit score: 620

Minimum DP: 5%

Loan types offered:

Affordable housing enhanced loan
Energy efficiency interest rate reduction
Interest rate reduction for low-income borrowers
State veterans interest rate preference

BBB Rating: A+

JD Power rating: N/A

Overview: The Alaska Housing Finance Corporation aims to make mortgage loans more accessible and affordable while promoting energy efficiency. Its online tools such as the Loan Wizard can help facilitate the entire loan process, connect homebuyers to different lenders, and review their loan options. Unlike many others, this Alaska, USA lender also helps homeowners reduce energy costs through interest rate reductions and educational programs.

Availability: This mortgage lender caters to those looking to move into Alaska from other states. Customers can contact their loan officer remotely and request additional resources.

Alaska USA Mortgage Company LLC

Minimum credit score: 640

Minimum DP: 3.5%

Loan types offered:

Conventional
Fixed-rate
ARM
Investment property
Portfolio
Refinance
Rural

BBB Rating: A+

JD Power rating: N/A

Overview: The Alaska USA Mortgage Company LLC provides a wide variety of mortgage loans at competitive rates. Can’t make it to a face-to-face meeting? You can undergo the entire application process online!

This Alaska, USA mortgage company also offers multiple options for consumers seeking financing for new homes or investment properties. If you are new to the homebuying process, you can enroll in one of its comprehensive mortgage education programs.

Availability: Based in Anchorage with availability in Arizona, California, and Washington

Mortgage Brokers Of Alaska LLC

Minimum credit score: 640

Minimum DP: 5%

Loan types offered:

Fixed-rate
Adjustable ARM
Graduated payments
FHA
VA
USDA
Jumbo loans

BBB Rating: A+

JD Power rating: N/A

Overview: This family-owned mortgage lender headquartered in Anchorage, Alaska, USA, helps potential homeowners secure the lowest rates on the housing market. It allows applicants to lock in rates and lower them even further with discount points.

With these Alaska, USA insurance brokers, homebuyers may pre-qualify online and get access to additional site resources on credit scoring, financing for first-time homeowners, and refinance options.

Availability: Available for potential homeowners originating anywhere from the U.S. and relocating to Alaska, USA

Alaska USA Federal Credit Union

Minimum credit score: 680

Minimum DP: 3.5%

Loan types offered:

Conventional
FHA
VA loans

BBB Rating: A+

JD Power rating: N/A

Overview: Also known as Alaska USA Insurance Brokers, this non-profit, full-service insurance company is the largest brokerage in the state. Homebuyers can submit applications entirely online and contact customer service agents via the website or by phone. Consumers can work with this fully licensed Alaska, USA mortgage lender to purchase a primary residence, vacation home, or income property.

Availability: Services borrowers from all 50 states and has physical branches in Alaska, Arizona, California, and Washington

First National Bank Alaska

Minimum credit score: 620

Minimum DP: 3.5%

Loan types offered:

Conventional
VA
FHA
HUD Indian Home Loan Guarantee
Rural Development (RD)

BBB Rating: A-

JD Power rating: N/A

Overview: The First National Bank Alaska provides multiple financial services, including conventional home loans and community programs such as NeighborWorks, which provides affordable housing for low-income families. This bank also offers low down payment options backed by the USDA for properties in eligible rural parts of Alaska, USA. Buyers can apply for financial protection programs and closing cost assistance worth up to 4% of the loan amount.

Availability: Services are specifically for Alaska, USA residents

The Bottom Line

If you are looking for a change of scenery or a rural place to retire, Alaska is the place to be. Housing costs are a little higher than usual, but the right lender can help you save money and make the most of your investment.

Do you want to know more about your options in Alaska? Contact Wesley Mortgage, LLC to learn everything you need to know about home loans!