Alaska Mortgage Rates
December 3, 2016 06:38 AM Eastern
Are you thinking about buying a home in Alaska? You can find useful information on this page, as well as links to additional information about purchasing a home in Alaska and obtaining a mortgage.
Alaska Mortgage Rates
Mortgage rates in Alaska vary from those in other states. Factors that influence mortgage rates include the state of the local economy, laws affecting lenders in that state and competition for your business among lenders. The State of Alaska Department Division of Banking and Securities oversees and regulates mortgage lenders.
Buying a Home in Alaska
The Alaska housing market held firm throughout the recession and prices are on the rise. Anchorage median home sales prices are $276,000, and for households with median incomes of $87,800 nearly 78 percent of homes in that metropolitan area are affordable. Homebuyers in Fairbanks find the median price of homes at $239,000 even more affordable. With a median household income of $78,400 in Fairbanks, more than 92 percent of Fairbanks homes are within reach financially to median income earners.
When it comes to buying a home in Alaska, you can expect to pay more in closing costs than in 48 other states. Alaska ranks behind only Hawaii in closing costs-- $2,675 for a $200,000 home compared to a nationwide average of $2,402. Still, given the historically robust health of the housing market in Alaska, you should not let a few hundred dollars in closing costs deter you.
For additional sources of assistance buying a home in Alaska you can contact the following agencies:
- Alaska Housing Finance Corporation (AHFC) - homebuyer programs that provide safe, affordable housing and assistance with down payments and closing costs.
- Habitat for Humanity – a volunteer program that rehabs and builds housing for those in financial need
- USDA Rural Development Office – help for home buyers in rural Alaska
Alaska FHA Mortgages
If you qualify for an FHA mortgage, you will find that FHA lending limits in Alaska vary quite a bit from one county to another. The highest limits are found in SitkaCounty, $431,250. The standard basic limit for an FHA-insured mortgage in Alaska is $271,050.
VA Home Mortgages in Alaska
VA mortgage amounts are not limited by the government. However, most lenders cap 100 percent financing at four times the amount of your VA guaranty. This means most lenders in Alaska cap VA home loans at $625,500.