Start with a lender conversation, then shop with a plan
Most purchases in Anchorage, Eagle River, Palmer, Wasilla and the rest of the Mat-Su Valley follow the same order. Knowing it helps you avoid surprises once you are under contract. This page explains each step in general terms. Your lender's own process and your purchase agreement control the details.
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Talk with a licensed lender
A lender reviews your income, debts, credit and savings and can issue a prequalification or preapproval letter. The Consumer Financial Protection Bureau (CFPB) notes that lenders use those two terms differently, and neither letter is a guaranteed loan offer.
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Set a budget that includes Alaska costs
Plan for property taxes, insurance, heat and, on many Mat-Su properties, a well, septic system and road or driveway upkeep. Our cost of living guide links the official tax and utility rates.
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Write an offer with your financing terms
Your purchase agreement sets the loan type, the earnest money deposit and contingency deadlines. Read how earnest money works before you sign.
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Compare your Loan Estimate
After you apply, the lender must send a Loan Estimate within three business days, according to the CFPB. It lists the estimated rate, payment and closing costs, so you can compare offers line by line.
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Appraisal and property review
The lender orders an appraisal. FHA, VA and USDA loans also have minimum property standards that look at items such as water supply, sewage disposal and heat. That matters for wells, septic systems and cabins.
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Review the Closing Disclosure, then close
The CFPB says you must receive your Closing Disclosure at least three business days before closing. Compare it with your Loan Estimate, and verify wiring instructions by phone. Read our wire fraud warning first.
Conventional, FHA, VA, USDA and AHFC loans, side by side
Alaska buyers commonly compare these loan types, and some can be combined. For example, AHFC programs can sit on top of FHA, VA or USDA insurance or guarantees. A lender can show you the trade-offs in down payment, mortgage insurance and fees.
Conventional loans
These loans are not insured by a government agency. Fannie Mae says its HomeReady loan allows down payments as low as 3% for borrowers who meet its income limits. VA explains that private mortgage insurance (PMI) is usually required on a conventional loan when the down payment is less than 20%.
Ask a lender which conventional options fit your income, savings and the property.
FHA loans
FHA loans are insured by the Federal Housing Administration, part of HUD. HUD says the minimum required investment is 3.5% in most cases. Its handbook allows maximum financing at a decision credit score of 580 or higher and limits scores of 500 to 579 to 90% loan-to-value. FHA loans carry mortgage insurance premiums.
The home must meet FHA property requirements, and a condo project generally needs FHA approval.
VA loans
VA says eligible veterans, service members and some surviving spouses can often buy with no down payment when the sales price is not above the appraised value, and without PMI. A one-time VA funding fee may apply. You need a Certificate of Eligibility and must live in the home.
USDA guaranteed loans
USDA Rural Development's Section 502 Guaranteed Loan helps low- and moderate-income households buy a primary residence in an eligible rural area with 100% financing, through approved lenders. Household income cannot exceed 115% of the area median.
AHFC loans
Alaska Housing Finance Corporation (AHFC) offers loan programs for first-time buyers, veterans, rural communities and nonconforming properties. AHFC does not lend directly on its single-family programs. You apply through an AHFC-approved lender.
Land, cabins and construction
A vacant lot, a dry cabin or a home you plan to build is often financed differently from a move-in-ready house. Some AHFC, VA and USDA options cover building or nonconforming homes. Each has its own rules.
No interest rates are quoted on this page. Rates change daily and depend on you, the loan and the property. A licensed lender can quote a rate after reviewing your application. Down-payment and credit-score figures above are the agencies' published minimums, not a promise that any buyer will be approved.
AHFC loan programs, in plain language
AHFC is the state's housing finance corporation. Its single-family loans are made through approved lenders. AHFC's loan list on November 13, 2026 included the programs below. Income limits, acquisition cost limits and other rules are published by AHFC and change, so this guide links them rather than repeating them.
| Program | Who it is for | Worth knowing |
|---|---|---|
| First Home Limited | First-time buyers who meet income and acquisition cost limits | Lower rate. Federal recapture tax may apply when you sell. Targeted areas and qualified veterans have exceptions to the three-year rule. |
| First Home | First-time buyers above the First Home Limited limits | Reduced rate with no income or acquisition cost limits and no recapture provisions. |
| Veterans Mortgage Program | Qualified veterans who apply within 25 years of discharge from active duty | Can be combined with a VA guarantee. See our VA loans guide. |
| My Home | Buyers or properties that do not meet another AHFC program's requirements | Available statewide. |
| Rural Owner-Occupied | Owner-occupants in AHFC-defined small communities | Also offers long-term financing for owner-built homes. Ask a lender whether a community qualifies. |
| Uniquely Alaskan | Homes with nonconforming features, such as unconventional utilities or no central heat | 20% minimum down payment. Recreational and hunting or fishing cabins are excluded. See land and cabin loans. |
| Manufactured Home | Manufactured homes in a park or on land, not on a permanent foundation | Other AHFC programs cover some manufactured homes on permanent foundations. |
AHFC also offers refinance and streamline refinance loans. Its free online HomeChoice class takes about two hours, and the completion certificate is good for up to a $250 credit on an AHFC single-family loan product. First-time buyers can read more in our Alaska first-time home buyer guide.
Whether a USDA loan works depends on the exact address
Many buyers look at USDA financing for homes in Wasilla, Palmer, Big Lake, Houston, Willow, Talkeetna and other Mat-Su communities. USDA decides eligibility on its own map, address by address. The town name or ZIP code alone does not settle it.
What USDA says about the Guaranteed Loan
- It is for low- and moderate-income households. Income cannot exceed 115% of the area median household income.
- The home must be your primary residence in an eligible rural area.
- Eligible buyers can purchase, build, rehabilitate, improve or relocate a dwelling with 100% financing.
- You apply through a USDA-approved lender. USDA lists no minimum credit score, but you must show you can manage debt.
- Buyers must be U.S. citizens, U.S. non-citizen nationals or qualified aliens.
How to check a Mat-Su address
Open the USDA property eligibility site and enter the full street address. USDA's own disclaimer says the map is not a final determination. Rural Development makes that decision when it reviews a complete application.
Check each address you are serious about before you write an offer, and ask your lender to confirm. Then plan the offer around the USDA appraisal and property standards.
Browsing homes first? Start with Wasilla homes for sale, Palmer homes for sale or the wider Mat-Su Valley.
Condos, land, cabins, new construction and multifamily
Lenders finance the property as well as the buyer. Before you fall for a listing, ask whether your loan type works for that kind of property.
Condos and townhomes
Condo projects are approved separately for each loan type. AHFC publishes a Common Interest Community project list, HUD has an FHA condominium search, and VA has a condo report. An approval can expire, so check the status and date. A conventional loan has its own project review.
Browsing Eagle River? See Eagle River condos.
Land and building lots
A vacant lot is usually financed differently from a home, and terms vary by lender. Access, power, a well and septic feasibility all matter. Read land, cabin and construction loans and our guide to buying land in Alaska.
Cabins and off-grid homes
A home without running water, central heat or a standard foundation may not meet FHA, VA, USDA or conventional property rules. AHFC's Uniquely Alaskan program covers some nonconforming homes, with a 20% minimum down payment.
Building a new home
VA says a VA-backed purchase loan can be used to build a new home. USDA's Guaranteed Loan can be used to build. AHFC offers long-term financing for owner-built homes under its Veterans and Rural programs.
Duplexes to fourplexes
VA says a VA-backed loan can buy a home with up to four units if you live in it. HUD lists 2-4 unit properties as FHA-eligible. AHFC has age and occupancy rules for some multi-unit purchases. See investing in Alaska rentals.
Manufactured homes
HUD says manufactured homes that meet FHA property requirements can be eligible. VA lists buying a manufactured home or lot. AHFC has a separate loan for manufactured homes that are not on a permanent foundation.
What closing costs are, and where to find your real numbers
Closing costs are the fees and prepaid items due when your loan closes, on top of your down payment. Your Loan Estimate shows the lender's estimate, and your Closing Disclosure shows the final figures. We do not publish a typical percentage, because it varies with the loan, the price and the property.
Common line items
- Lender charges, such as origination fees and any discount points you choose to pay
- Appraisal and credit report fees
- Title insurance and title company or escrow fees
- Government recording fees. The Alaska State Recorder's Office publishes its recording fees.
- Prepaid homeowners insurance and interest, plus an initial deposit for an escrow account for property taxes and insurance, if your loan has one
- For VA loans, the VA funding fee, unless you are exempt
Ways buyers reduce what they bring
- Seller credits. A seller can agree to pay part of your costs. Each loan type sets its own limit, so ask your lender before you write the offer.
- AHFC's HomeChoice certificate. AHFC says it is good for up to a $250 credit on an AHFC single-family loan product.
- VA funding fee exemption. VA says veterans receiving compensation for a service-connected disability are exempt from the funding fee.
- Down payment assistance. AHFC lists nonprofit down payment assistance providers by region. Funds are limited, and each provider sets its own rules.
Property taxes differ by district. See the Anchorage and Mat-Su mill rates before you estimate a payment.
Your earnest money deposit, and how to send money safely
Earnest money
Earnest money is a good-faith deposit that shows the seller you are serious. Your purchase agreement sets the amount and due date. A neutral third party holds it until closing, usually the title company, and it is credited toward your costs at closing. Whether you get it back if the sale falls apart depends on your contract and its contingency deadlines.
Wire fraud
Criminals target real estate closings with fake wiring instructions that look real. Never wire money based on emailed or texted instructions. Call the title company at a number you have verified yourself, from its official website or your signed documents. We will never email you changed wiring instructions.
A short checklist for your first lender conversation
Lenders set their own document lists. These are the items buyers are commonly asked for, so gathering them early can save time.
- Recent pay stubs and W-2s, or tax returns if you are self-employed
- Recent bank and retirement account statements
- A list of monthly debts, such as car, student loan and card payments
- Photo ID, and your Social Security number for the credit check
- For VA loans, your Certificate of Eligibility, or the documents to request one
- Gift letters, if family is helping with the down payment
- Your target areas, such as Wasilla, Palmer, Eagle River or Anchorage, and the property type
- Questions about the property: well, septic, heat source, road access or HOA
Ask for a Loan Estimate from more than one lender if you want to compare. The CFPB's Loan Estimate explainer explains how to read one. You can choose any lender you like.
Plan your financing with James or Ryan
Tell us where you want to live, your timeline and the kind of property you have in mind. We will help you line up the lender conversation, the preapproval and your offer terms so the search and the loan move together.
James Cash
Broker, Keller Williams Realty Alaska Group
Works with buyers across Anchorage, Eagle River and the Mat-Su Valley, from the first plan through closing.
james@herorealtygroup.com
Ryan Lunski
Licensed Alaska Real Estate Salesperson
A military veteran who works with buyers and military families relocating to Southcentral Alaska.
ryan@herorealtygroup.comWe are real estate agents, not lenders. We can help you plan when to talk with a lender, what your offer needs and how loan deadlines fit your contract. Only a licensed mortgage loan originator can review your application, confirm what you qualify for and quote rates or terms. You can check any loan originator's license at NMLS Consumer Access.
Alaska home loan questions
How do I get pre-approved for a mortgage in Alaska?
Contact a licensed mortgage lender, share your income, debts, assets and permission for a credit check, and ask for a preapproval letter. The CFPB notes that lenders use the words prequalification and preapproval differently, and neither is a guaranteed loan offer. Get the letter before you write an offer, so you know your price range and the seller can see you have talked with a lender.
What home loan programs are available in Alaska?
Alaska buyers commonly use conventional, FHA, VA and USDA loans, plus Alaska Housing Finance Corporation (AHFC) programs such as First Home, First Home Limited, the Veterans Mortgage Program, My Home, Rural Owner-Occupied and Uniquely Alaskan. AHFC programs are offered through approved lenders and can be combined with FHA, VA or USDA insurance or guarantees. A licensed lender can tell you which ones you qualify for.
Does AHFC lend money directly to home buyers?
No. AHFC says it does not offer direct lending on its single-family loan programs. You apply through an AHFC-approved lender, who checks your eligibility and quotes the rate.
Can I use a USDA loan in Wasilla or Palmer?
It depends on the exact address. USDA decides eligibility on its own map, so a town name or ZIP code alone does not answer it. Enter the full address on the USDA eligibility site and ask a USDA-approved lender to confirm. The household must also meet USDA's income limit, which is no more than 115% of the area median income.
How much do I need for a down payment?
It depends on the loan. HUD says FHA's minimum required investment is 3.5% in most cases. Fannie Mae says HomeReady allows as little as 3% down for income-eligible buyers. VA and USDA guaranteed loans can allow no down payment for eligible buyers. Closing costs are separate, and a lender will confirm what applies to you.
What closing costs should I expect when buying a home in Alaska?
Expect lender fees, an appraisal, title insurance and title or escrow fees, government recording fees, and prepaid insurance, interest and escrow deposits. The total depends on the loan, the price and the property, so use the Loan Estimate your lender sends within three business days of your application. Your Closing Disclosure, due at least three business days before closing, shows the final figures.
Can I finance a condo in Anchorage or Eagle River with FHA or VA?
Often, if the condo project is approved for that loan type. HUD has an FHA condominium search, VA has a condo report, and AHFC publishes a Common Interest Community project list. Approvals can expire, so check the status and date for the specific building before you write an offer.
Can I get a loan for a dry cabin or off-grid home?
Sometimes, but standard FHA, VA, USDA and conventional loans have property requirements for water, sewage and heat that a dry cabin may not meet. AHFC's Uniquely Alaskan program covers some owner-occupied homes with nonconforming features, with a 20% minimum down payment. Recreational and hunting or fishing cabins are not eligible for it. Our land, cabin and construction loans guide has more detail.
Do you recommend a lender?
You can choose any lender you like. If you want a starting point, ask us and we can share a few local names to interview. Compare Loan Estimates from more than one lender, and confirm any loan originator's license on NMLS Consumer Access.
Do you quote mortgage rates?
No. We are real estate agents, not lenders, and rates change daily based on the borrower, the loan and the property. A licensed lender can quote a rate after reviewing your application.
Financing guides and next steps
Start with the guide that matches your situation, then browse homes in the area you are considering.
Financing guides
Buying in Alaska
Homes for sale
Where the program details came from
Checked November 13, 2026 (America/Anchorage). Program rules change. If an official page differs from this summary, the official page controls.
- Consumer Financial Protection Bureau, prequalification vs. preapproval letters, documents before closing, Closing Disclosure timing and the Loan Estimate explainer.
- Alaska Housing Finance Corporation, List of All Loans, First-Time Homebuyer Loans, Uniquely Alaskan, Rural Loans, HomeChoice, Down Payment Assistance, Current Rates page (states AHFC does not lend directly on single-family programs) and Common Interest Community project list.
- U.S. Department of Veterans Affairs, VA purchase loan (last updated January 7, 2026) and VA funding fee and closing costs; VA condo report.
- U.S. Department of Housing and Urban Development, FHA Myths vs. Facts (June 2025), HUD Handbook 4155.1 Borrower Eligibility, Section A, and the FHA condominium search.
- USDA Rural Development, Single Family Housing Guaranteed Loan Program and the property eligibility site.
- Fannie Mae, HomeReady Mortgage.
- Alaska Department of Natural Resources, Recorder's Office, fees.
- Nationwide Multistate Licensing System, NMLS Consumer Access.
KELLER WILLIAMS REALTY ALASKA GROUP
Properties of Alaska by HERO Realty Group
A team at Keller Williams Realty Alaska Group, 621 S Knik Goose Bay Rd, Wasilla, AK 99654 · Office 907-360-7448
Properties of Alaska is a real estate team, not a mortgage lender or loan originator. Information on this page is general education, not a loan offer, a commitment to lend or financial, tax or legal advice.
Each office is independently owned and operated.
Equal Housing Opportunity
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