Seller/Servicer Memorandum 19-08

Date: November 14, 2019

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

AHFC’s refinance option will now allow a minimum of 6 months seasoning for loans that were not used to acquire or renovate the property, and borrowers may receive a maximum of $1,000 back at closing. 

Refinance – Eligible Loans
(Section 7003.05A)

If the loan being refinanced is less than 6 months old at the time of loan submission, the lender must document that the original purpose was related to the acquisition or renovation of the subject property.

Refinance – Limitations
(Section 7003.05B)

The borrower may receive a maximum of $1,000 cash back at closing.  The may also be reimbursed any allowable closing costs and/or renovation costs paid the borrower prior to closing.  Excess funds may be applied to a principal reduction, if the borrower chooses.  State Statutes prohibit reimbursement of the borrower’s (or family members) own labor.