ANCHORAGE, Alaska – Just a few weeks after a ruling by the U.S. Department of Housing and Urban Development (HUD) took effect allowing Hybrid Adjustable Rate Mortgages (ARMs), Alaska USA FCU and its affiliates have introduced FHA insured 3/1 and 5/1 Hybrid ARMs. The products are 30-year mortgages, with a fixed rate for either the first three or five years. The loan then becomes a one-year ARM for the remainder of the loan term. Once the adjustments begin, the interest rate cannot be changed by more than 1% up or down each year, with a lifetime adjustment cap of 5% over the initial rate. The FHA Hybrid ARMs are available for both new home purchases and refinances. Lorran Skinner, chief lending officer for Alaska USA said the credit union has already seen as lot of interest in the products from members "because borrowers can take advantage of lower down-payment requirements and affordable rates and can also qualify for larger loan amounts." He added that the new product complements the 3/1 and 5/1 VA Hybrid ARMs and conventional ARMs already offered by Alaska USA FCU.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.