- Eligible borrowing limits are the same across Alaska, and FHA borrowing limits vary by county.
- You can borrow up to $970,800 in all counties if you’re taking out a qualifying mortgage.
- FHA mortgage limits start at $420,680 and go up to $545,100, depending on which county you buy the home in.
If you live in Alaska and plan to apply for an eligible or FHA mortgage to buy your next home, you’ll need to make sure your loan amount doesn’t exceed certain credit limits.
Alaska has a higher credit limit than most other states. In 2022, Alaska home buyers can borrow up to $970,800 in all counties.
FHA mortgage limits vary by county. Depending on where you buy a home in Alaska, your credit limit could be between $420,680 and $545,100 in 2022.
How do mortgage credit limits work?
This Federal Housing Finance Agency when setting lines of credit to comply with mortgages, Federal Housing Administration The FHA sets limits for mortgages. These limits are based on average home values, so they are higher in counties where homes are more expensive.
These limits are the maximum amount of money a borrower can take with each type of loan. Note, however, that borrowing limits do not refer to what you can personally borrow. Your lender will determine how much you can repay based on your income, debt, and assets. This number may be much lower than the maximum borrowing limit for your county.
Alaska borrowing limits in 2022 by county
How to decide which type of mortgage is best for you?
If you’re planning to buy a home on the higher end of the average price range for your area, lines of credit will be an important part of deciding which type of mortgage to take. However, you will also be limited to what you can be approved for.
To qualify for an eligible mortgage, a
minimum 620 and minimum 3% down payment. FHA mortgages generally require a minimum credit score of 680 and a 3.5% down payment. If you take a 10% discount, you may qualify for an FHA mortgage with a credit score of as low as 500.
If you need to borrow more than the appropriate line of credit for your county, you’ll need to apply for a jumbo mortgage. You’ll likely need at least 680 credit scores and a 10% or 20% down payment to be approved for one of these mortgages, although this can vary from lender to lender.
VA mortgages and USDA mortgages are other options for those who qualify. There is no borrowing limit on any of these mortgage types. VA mortgages are available to service members or veterans who meet minimum service requirements. Some surviving spouses may also be eligible. USDA mortgages are intended to help low-income households in rural or suburban areas get into a home, so they are subject to certain income and location limits. You can do check your eligibility on the USDA website. Both of these mortgage types allow 0% down payment.