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.