FHA Loan Requirements, Guidelines and Application Tips
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2023 FHA Loan Limits in Alaska

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Alaska homebuyers who need the flexibility of a loan backed by the Federal Housing Administration (FHA) can borrow up to $472,030 for a single-family home in most counties within the state. However, higher-cost areas, such as the county of Sitka City and Borough, may be able to borrow up to $586,500 under the 2023 limits for a one-unit home. Keep reading for more on FHA loan limits by county, how FHA limits are determined and how to qualify for an FHA loan in Alaska.

Alaska FHA loan limits by county

County NameOne-FamilyTwo-FamilyThree-FamilyFour-FamilyMedian Sale Price
ALEUTIANS EAST$472,030$604,400$730,525$907,900$174,000
ALEUTIANS WEST$545,100$697,800$843,500$1,048,300$437,000
ANCHORAGE MUNIC$472,030$604,400$730,525$907,900$405,000
BETHEL CENSUS A$472,030$604,400$730,525$907,900$113,000
BRISTOL BAY BOR$472,030$604,400$730,525$907,900$282,000
CHUGACH CENSUS$472,030$604,400$730,525$907,900$320,000
COPPER RIVER CE$472,030$604,400$730,525$907,900$320,000
DENALI BOROUGH$472,030$604,400$730,525$907,900$297,000
DILLINGHAM CENS$472,030$604,400$730,525$907,900$198,000
FAIRBANKS NORTH$472,030$604,400$730,525$907,900$311,000
HAINES BOROUGH$472,030$604,400$730,525$907,900$200,000
HOONAH-ANGOON C$524,400$671,300$811,450$1,008,450$456,000
JUNEAU CITY AND$533,600$683,100$825,700$1,026,150$464,000
KENAI PENINSULA$472,030$604,400$730,525$907,900$295,000
KETCHIKAN GATEW$485,300$621,250$750,950$933,300$422,000
KODIAK ISLAND B$485,300$621,250$750,950$933,300$422,000
KUSILVAK CENSUS$472,030$604,400$730,525$907,900$93,000
LAKE AND PENINS$472,030$604,400$730,525$907,900$179,000
MATANUSKA-SUSIT$472,030$604,400$730,525$907,900$405,000
NOME CENSUS ARE$472,030$604,400$730,525$907,900$358,000
NORTH SLOPE BOR$472,030$604,400$730,525$907,900$171,000
NORTHWEST ARCTI$472,030$604,400$730,525$907,900$160,000
PETERSBURG CENS$472,030$604,400$730,525$907,900$280,000
PRINCE OF WALES$472,030$604,400$730,525$907,900$244,000
SITKA CITY AND$586,500$750,800$907,550$1,127,900$510,000
SKAGWAY MUNICIP$524,400$671,300$811,450$1,008,450$456,000
SOUTHEAST FAIRB$472,030$604,400$730,525$907,900$228,000
WRANGELL CITY A$472,030$604,400$730,525$907,900$280,000
YAKUTAT CITY AN$472,030$604,400$730,525$907,900$254,000
YUKON-KOYUKUK C$472,030$604,400$730,525$907,900$95,000

How are FHA loan limits determined?

The FHA loan limits are based on a percentage of the conforming loan limits published by the Federal Housing Finance Agency (FHFA) for conventional loans. The limits change yearly to reflect the direction of average U.S. home prices over the past year, and they are set for both low-cost and higher-cost areas.

Here’s how the calculations work:

The low-cost limit, or “floor,” is $472,030 for a single-family home, which is 65% of the national conforming loan limits of $726,200 for 2023. If you’re buying a multifamily home, the low-cost limits increase with each unit:

  • $604,400 for a two-unit home
  • $730,525 for a three-unit home
  • $907,900 for a four-unit home

The high-cost limit (also known as the “ceiling”) is set at 150% of the conforming loan limit, which allows you to borrow up to $1,089,300 for a single-family home. Higher loan limits apply to multifamily homes.

The highest single-family loan limit in Alaska is in Sitka City and Borough for $586,500, while the lowest “high-cost” bump goes to the counties of Ketchikan Gateway Borough and Kodiak Island Borough at $485,300.

THING TO KNOW

Alaska is one of four special areas with a much higher ceiling of $1,633,950 to account for higher costs of construction. The other special exception areas are located in Hawaii, Guam and the U.S. Virgin Islands. The FHA mortgage limits search page doesn’t provide information about which parts of Alaska are eligible for this special ceiling, so it’s best to contact a local FHA-approved lender if you’re looking for a home in Alaska that requires a loan amount of this size.

How to qualify for an FHA loan in Alaska

FHA loans are typically the “go-to” mortgage for borrowers who can’t qualify for a conventional loan. With the average median home price topping out at $510,000 for the most expensive counties in the state (as of December 2022), the highest loan limits will come in handy.

Here’s a breakdown of the most current requirements to qualify for an FHA loan in Alaska:

Down payment and credit score. The minimum down payment is 3.5% with a credit score of at least 580. The money can come from friends, family and even employers. Lenders may approve an FHA loan with a score as low as 500 with a 10% down payment.

Debt-to-income (DTI) ratio. FHA lenders divide your monthly income by your monthly debt to calculate your DTI ratio. A 43% DTI ratio is the guideline maximum for your total debt in most cases, but exceptions may be possible with strong credit scores or extra cash reserves.

Mortgage insurance. You’ll pay two types of FHA mortgage insurance to protect lenders in case you default. The first is an upfront mortgage insurance premium (UFMIP) worth 1.75% of your loan amount, which is usually added to your mortgage balance. The other is an annual mortgage insurance premium (MIP) of 0.45% to 1.05% of the loan amount, divided by 12 and added to your monthly payment. One note about FHA mortgage insurance: You’ll pay it regardless of your down payment.

Occupancy. You’ll have to live in the home you purchase with an FHA loan for at least a year. The program doesn’t allow financing on second homes or rental properties.

FHA home appraisals. The FHA requires an appraisal to verify the value and condition of your home for any purchase loan, and FHA appraisal guidelines are stricter than conventional loans.

Buying a multifamily property with an FHA loan

If you don’t mind tackling homeownership and landlord duties at the same time, you might want to consider buying a multifamily (two- to four-unit) home with an FHA loan. You’ll only need a 3.5% down payment (compared to 15% for a conventional loan) and you can use the rental income on the other units to qualify. The catch: You have to live in one of the units for at least a year.

FHA lenders in Alaska

Here are some FHA lenders to choose from in Alaska.

Lender nameLT ratingMinimum FHA credit score
Bank of America5 starsNot disclosed
Better Mortgage5 stars620
Rocket Mortgage5 stars580
Chase Mortgage5 starsNot disclosed
Wells Fargo5 starsNot disclosed

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