15 AAC 151.645. Second mortgage program for purchase

(a) The Corporation will, in its discretion, purchase second lien mortgage loans for the purchase of a one-to-four unit residence that is subject to an existing mortgage. To qualify for a loan under this section, the borrower must demonstrate to the satisfaction of the Corporation that the property will be occupied as the borrower's primary residence.

(b) The loans purchased by the Corporation under this section are subject to the following terms:

(1) the maximum term of the loan will be:

Loan Amount Maximum Term $ 0 - 6,450 5 years $ 6,500 - 12,450 10 years $12,500 + over 15 years

(2) the maximum loan amount will not exceed the lowest of the following amounts applicable to the loan:

(A) the following loan-to-value ratios (which, notwithstanding the definition of the term at 15 AAC 150.900, is determined by dividing the sum of all liens by the value) for the type of dwelling involved:

(i) 90% for single-family and duplex, except as provided in (ii) of this subparagraph;

(ii) 80% for all tri-plexes and four-plexes; or

(B) 50% of FNMA's conventional first mortgage limit for a single family dwelling in Alaska; or

(C) if the Corporation owns an interest in the first mortgage, the Corporation's limit for conventional first mortgage reduced by the original balance of the first mortgage.

(3) the loan must be subject only to permitted encumbrances and a first lien mortgage loan; any other liens must be subordinated to this loan.

History: Eff. 5/7/93, Register 130; am 2/24/99, Register 149

Authority: AS 18.56.088

AS 18.56.096

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