If I had a dollar every time someone asked me that! The answer is simple….whatever someone will pay for it!
Now to get market value, that’s a whole different question (and probably what they mean, eh?) Pricing a home correctly is not the easiest thing in the world to do, and takes a whole lot of general knowledge about the property and the recent sales, adjusting for the current market fluctuations.
Yes, there is a formula.
Yes, there is a form!
Yes, I can help you determine what the most likely appraised value for your property will be.
Yes you can call, email or text for more information 907-304-2871!
While it isn’t as available as it once was, there are still some financing options that do cover 100% of the purchase price of the home!
- VA offers 100% financing with NO DOWN, no PMI (private mortgage insurance), closing costs can be paid by the seller.
- USDA Guaranteed Rural offers 100% financing, fixed rates, gift funds allowed for closing costs and allows for new construction.
In addition, purchasing a Nome Sweet Home requires much less than the 20% downpayment required in the lower 48. The FHA downpayment is only 3.5%, and the HUD184 for Alaska Natives is typically only 2.25% down.
Some of the local native organizations have programs to help with downpayment and closing cost also!
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Did you know that in Alaska charging a pre-payment penalty on a 1-4 unit dwelling is not allowed? So make sure if you are using a lender from outside of Alaska or an owner finance that there are no pre-payment clauses in your loan paperwork.
Conventional loans are not government-insured, so lenders typically require 20% downpayment, although I have seen conventional loans with large PMI (Mortgage Insurance that protects the lender) that will loan as low as 5%. Keep in mind that anything less than 20% down will required this insurance and increases the monthly mortgage payment considerably.
FHA loans are federally insured loans that allow qualified borrowers to borrow with a lower downpayment of 3.5%. This loan also includes monthly PMI.
Other common loans in Nome and Kotzebue are:
- HUD184 available to Alaska Natives, with a 2.25% downpayment.
- USDA/RD has zero downpayment, but there are some upfront guarantee fees and income restrictions
- VA loans are available for eligible veterans. Often veterans can purchase a home with zero down, and the loan terms are very favorable.
In addition to rules about who can borrow on the government insured loans, the lender will have requirements for the property you are trying to purchase. A fixer-upper may not work for your loan program.
These programs are available from most lenders, but beware of the ‘found on the internet’ lenders. If the lender is not familiar with the challenges of living and doing business in Alaska, you WILL have problems with closing. Feel free to give me a call to discuss qualifying for a loan or to find out if your lender has successfully been able to close properties here!
According to Freddie Mac reports for last week, 30-year-fixed mortgages averaged 4.01%, a slight decrease from the prior week and much less than the reported average of 4.35% from November 2013!
With the crazy Nome temps right now, don’t hesitate to head down to the beach for a few buckets of sand. It works wonderfully to increase traction on icy driveways/walkways, its environmentally safe and best of all it’s FREE!