Lenders finance the property as well as the buyer
In much of the Mat-Su Valley, a listing can be a bare lot, a cabin without running water, a home on a private well and septic system, or a parcel where you plan to build. Each one can change which loans are available, how much you put down and how long the loan takes.
Government loans have property standards
FHA, VA and USDA loans each have minimum property requirements. They cover items such as a safe water supply, sewage disposal, heat and access. HUD's FHA rules are in HUD Handbook 4000.1. VA's are in Chapter 12 of the VA Lenders Handbook. USDA's Guaranteed Loan is for decent, safe and sanitary homes.
Ask before you write the offer
Tell your lender the property type, the water and sewer setup, the heat source and the road access before you are under contract. Then set inspection and financing deadlines that give everyone time to check them. Our land buying guide covers the site checks.
Financing a lot or acreage with no home on it
Land loans often work differently from home loans, and terms vary by lender and property. FHA, VA and USDA purchase loans are built around a home you will live in, so vacant land usually needs another plan.
Common ways buyers pay for land
- A land or lot loan from a bank or credit union
- Cash, sometimes from the sale of another property
- Seller financing, written into the purchase agreement
- A construction loan that includes the lot, if you are ready to build
Questions a lender may ask about a parcel
- Is there legal, year-round access, and who maintains the road?
- Is power at the lot line, or will it need an extension?
- Has the soil been tested for a septic system, and is a well likely?
- Is there a survey, and are there easements or covenants?
- Do you plan to build soon, and with which builder?
Financing a cabin, a dry cabin or an off-grid home
Homes with no running water, no central heat, an unconventional foundation or off-grid utilities may not meet the property rules for FHA, VA, USDA or conventional loans. Alaska Housing Finance Corporation (AHFC) has programs for some of these homes.
Uniquely Alaskan
AHFC offers conventional financing for homes with nonconforming features that limit other financing. Its examples include an unconventional foundation, unconventional utilities, no central heating and an unconventional ceiling height.
- Minimum down payment: 20%
- Owner-occupied single-family homes, duplexes and Type I manufactured homes
- The home must be structurally sound and free of health or safety hazards
- Not for recreational properties or hunting and fishing cabins
Rural Owner-Occupied
This AHFC loan finances owner-occupied homes in small communities, defined by population and road or rail connection to Anchorage or Fairbanks. One part of the definition covers communities of 1,600 or fewer people that are on the road system and at least 50 miles from Anchorage. The rural rate applies to the first $250,000 of the loan.
Ask a lender whether a specific community is on AHFC's approved list.
A weekend or recreational cabin is a different loan from a year-round home. AHFC's Uniquely Alaskan page says recreational properties and hunting and fishing cabins are not nonconforming properties under that program. If the cabin will be a second home, ask a lender about second-home or portfolio options, or plan for cash.
What FHA rules say about private wells and septic
Many homes outside city water and sewer service in the Mat-Su Valley, Eagle River and the Anchorage Hillside use a private well and an on-site septic system. HUD's FHA handbook gives a clear example of what a lender may check. The version last revised on August 13, 2025 says:
Wells, under FHA rules
- Water quality must meet the requirements of the health authority with jurisdiction, or EPA standards if there are none.
- A well water test is required for new construction, when an appraiser reports problems with the well or water, when water is known or reported to be unsafe, and near sites that could contain hazardous waste.
- A disinterested third party must collect and test the sample, not the buyer or seller.
- An existing well must deliver a continuous flow of at least three gallons per minute.
- Homes served by a mechanical chlorinator, springs, lakes, rivers, sand-point wells or artesian wells are not eligible for FHA insurance.
Distances and shared wells
For existing homes, the handbook's minimum distances from a well are 10 feet to the property line, 50 feet to a septic tank and 100 feet to a drain field, reduced to 75 feet if the local authority allows. Larger local requirements control.
A shared well needs a written agreement that meets HUD's terms, including easements and cost sharing. VA, USDA and conventional loans have their own rules, so ask your lender which apply.
For inspections, documents and negotiation, read our well and septic guide.
Construction loans and owner-built homes
Building usually means a construction loan that pays the builder in stages, followed by long-term financing once the home is finished. Some loans combine both steps. Ask lenders which they offer and what they need from your builder.
VA
VA lists building a new home as a use of a VA-backed loan. Lenders that offer VA construction loans set their own builder and plan requirements.
USDA
USDA says eligible buyers can use a Section 502 Guaranteed Loan to build a home in an eligible rural area, through an approved lender.
AHFC
AHFC offers long-term financing for owner-built, newly constructed single-family homes under its Veterans programs and its Rural Owner-Occupied loan.
Conventional and FHA
Many lenders offer construction-to-permanent loans. Under FHA rules, a newly built home with a private well needs a well water test.
Before you buy a lot to build on, ask the lender whether it will finance that parcel, what it needs for the site (access, power, septic design and a well), and how long approval takes. Then match your offer deadlines to those answers.
Manufactured and mobile homes
The foundation and how the home is titled usually decide the loan.
HUD says manufactured homes that meet FHA property requirements can be FHA-eligible. VA lists buying a manufactured home or lot. AHFC's First Home programs cover Type I manufactured homes, and AHFC has a separate Manufactured Home loan for homes in a park or on land that are not attached to a permanent foundation.
Disclosures can differ
The CFPB says a loan for a manufactured or mobile home that is not secured by real estate does not use the Loan Estimate and Closing Disclosure forms. You get Truth in Lending disclosures instead. Ask the lender which forms you will receive.
Looking at land or a cabin? Talk with James or Ryan
Before you write an offer on land, a cabin or a home on a well and septic system, we help you list the questions for your lender and set inspection and financing deadlines that leave room to get answers.
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.
Land, cabin and construction loan questions
Can I get a loan to buy land in Alaska?
Often, yes, but land loans usually work differently from home loans, and terms vary by lender and property. Many buyers use a bank or credit union land loan, cash, seller financing or a construction loan that includes the lot. FHA, VA and USDA purchase loans are built around a home you will live in. Talk with a lender before you write an offer.
Can you finance a dry cabin in Alaska?
Sometimes. A dry cabin may not meet the water and sewage requirements of FHA, VA, USDA or conventional loans. AHFC's Uniquely Alaskan program covers some owner-occupied homes with nonconforming features, such as unconventional utilities or no central heat, with a 20% minimum down payment. AHFC says recreational properties and hunting and fishing cabins are not eligible for that program.
What is AHFC's Uniquely Alaskan loan?
It is Alaska Housing Finance Corporation's conventional financing for homes with nonconforming features that limit other financing, such as an unconventional foundation, unconventional utilities, no central heating or unconventional ceiling height. It is limited to owner-occupied single-family homes, duplexes and Type I manufactured homes, requires at least 20% down, and the home must be structurally sound and free of health or safety hazards.
Does an FHA loan require a well water test?
Not always. HUD's FHA handbook requires a well water test for newly constructed homes, when an appraiser reports problems with the well or water, when water is known or reported to be unsafe, and near sites that could contain hazardous waste. A disinterested third party must collect and test the sample. Your lender may ask for a test in other cases too.
How far must a well be from a septic system for an FHA loan?
For existing homes, HUD's FHA handbook lists minimum distances from a well of 50 feet to a septic tank and 100 feet to a drain field, which can be reduced to 75 feet if the local authority allows, plus 10 feet to the property line. If local rules require more distance, the local rules control.
Can I use a VA or USDA loan to build a house in the Mat-Su Valley?
Possibly. VA lists building a new home as a use of a VA-backed loan, and USDA says its Section 502 Guaranteed Loan can be used to build in an eligible rural area. Lenders set their own construction requirements, such as builder approval. AHFC also offers long-term financing for owner-built homes under its veterans and rural programs.
What does AHFC consider a small community for its rural loans?
AHFC defines a small community as one with 6,500 or fewer people that is not connected by road or rail to Anchorage or Fairbanks, or one with 1,600 or fewer people that is connected by road or rail and is at least 50 statute miles from Anchorage or 25 from Fairbanks. Ask an AHFC-approved lender whether a specific community qualifies.
Can I finance a manufactured home on land in Alaska?
Often, depending on the foundation and how the home is titled. HUD says manufactured homes that meet FHA property requirements can be eligible, VA lists buying a manufactured home or lot, and AHFC has a separate Manufactured Home loan for homes not on a permanent foundation. A lender can tell you which applies.
Land, building and financing guides
Use these together when a property is not a standard move-in-ready home.
Financing guides
Land and property checks
Land and 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.
- Alaska Housing Finance Corporation, Uniquely Alaskan, Rural Loans, Veterans Programs, List of All Loans and First-Time Homebuyer Loans.
- U.S. Department of Housing and Urban Development, HUD Handbook 4000.1, FHA Single Family Housing Policy Handbook, last revised August 13, 2025 (Individual Water Supply Systems, shared wells), and FHA Myths vs. Facts (June 2025).
- U.S. Department of Veterans Affairs, Purchase loan and the VA Buyer's Guide (minimum property requirements, Chapter 12 of the Lenders Handbook).
- USDA Rural Development, Single Family Housing Guaranteed Loan Program.
- Consumer Financial Protection Bureau, When do I get a Closing Disclosure? (manufactured homes not secured by real estate).
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.
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