Seller/Servicer Memorandum 23-12

Date:               September 5, 2023

From:               Michelle Graves
                        Director, Mortgage Operations

SELLING GUIDE REVISIONS: CONTACT UNDERWRITING 
(Anchorage Only: 907-330-8400/ Outside Anchorage: 888-854-3884)

Second Mortgage Program Updates
(Section 5008)

AHFC has increased the term for the Second Mortgage Program.  A borrower can now go up to 30-years.  

This section has also been updated with more guidance on the process and required items for the program.   

  • Term  Section 5008.04.B

    • Up to a 30-year term

  • Interest Rate​​​​​​​  Section 5008.04.C ​​​​​​​

    • 0-15 years - 15-year My Home or Rural rate plus .500% 
    • Over 15 years - 30-year My Home or Rural rate plus .500%

  • Proposed Improvements​​​​​​​  Section 5008.05.D ​​​​​​​ 

    • Cost estimate will need to be provided.Clarification on escrows for completion. 

  • Underwriting​​​​​​​ Section 5008.06 ​​​​​​​ 

    • Manual underwriting guidelines have been added. 

  • Program Documentation  Section 5008.07

    • PUR-75 if the construction is completed prior to purchase.
    • PUR-75A if there are remaining items to be completed.