4 Best Land and Lot Loans in Alaska


Land loans give Alaskans a convenient way to purchase land for home, business or recreational purposes.

Key Terms

  • Purchasing land with a land loan gives you a way to buy large parcels or lots in expensive areas.
  • A lot loan can come with flexible payment options.
  • Land loans, sometimes referred to as lot loans, do not require PMI.

Alaska is famous for many things, but maybe the most well-known characteristics of the Great White North are its cold weather and its vast amounts of space. According to the U.S. Census Bureau, Alaska includes some 571,022 square miles of land, defining it as a place with a wealth of opportunities for those in search of property. 

Given that vast amount of acreage, many Alaskans often look for large parcels and then build eventually when they are ready to put up a new home. This approach to homeownership often involves taking out a land loan, sometimes referred to as a lot loan,  Per the New Estimates of Value of Land of the United States, the value per acre of land in Alaska is $12,355.59, meaning that getting even ten acres can be cheaper than the average home. 

While construction loans in Alaska help you finance a new home build, a land loan, instead, allows you to find and purchase a parcel of land that you love, then build when you’re ready. 

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The pros and cons of a land loan in Alaska

As with many things in life, there are pros and cons to land loans. The pros are as follows:

  • You can purchase different types of land, including raw, improved and unimproved acres.
  • Land loans for residential lots in Alaska can include as many as 10 acres or more, in some cases.
  • You can build on your own schedule.
  • Lot loans are a great way to plan long-term for a vacation home or second home.

And what are the cons? Well, banks have more exposure with land loans, so they may ask for a down payment that is upwards of 20 percent. Interest rates can be higher with these loans, too, when compared to other types of loans. Since borrowers don’t need to pay insurance until there is a built home on the property, those extra costs can balance out over time. As for the down payment, and given the relatively low price per acre for Alaska land, many may find that a down payment is not that high at the end of the day. 

If you’re not looking for a traditional mortgage loan, home equity line of credit, a refinance, or other more common home loans, a land loan may be the way for you to get the perfect property once you’ve identified the land on the NMLS. The state of Alaska has many beautiful places to put your new home, and real estate loans like a land loan may open many doors for you. Whether you plan to build single family or multi family on your new piece of land, traditional refinancing options or home loans may not be a fit for your needs.

As the Alaska housing marketing is more in demand, it’s very important that you do your research first whether you’re a first-time homebuyer or an experienced investment property owner. Your monthly payment, loan rates, and other details may vary based on the lender you work with for your land loan. You may have more loan options depending on if this will be your primary residence or an investment property, so it pays to know everything available to you before you make a commitment.

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4 Best Alaska land and lot loan lenders

If you’re in the market to purchase land in Alaska, consider these land loan lenders that are available for projects in the state.

1. Alaska USA Federal Credit Union

Alaska USA Federal Credit Union is a not-for-profit organization with over 700,000 members serving people throughout the U.S. It has 5,500 branches across all 50 states, providing full banking services since 1948. That includes offering land loans for recreational and residential property development in Alaska, Arizona, California, and Washington.

We reached out to Alaska USA Federal Credit Union to discuss land loan details, which you can read about below:

  • Land loans available for recreational purposes
  • Eligible recreational property must be accessible by road from a major population center, or accessible by water from a public launch site using small watercraft on a navigable waterway.
  • Fly-in locations or properties located long distances from the launch site or across unprotected water do not qualify.
  • May include a loan processing fee, title insurance policy (varies depending on loan amount), appraisal fee or plat map, as-built survey, and an escrow closing fee (for purchases only; varies depending on loan amount).
  • Hazard insurance and/or flood insurance may be required if you are financing a structure in addition to land.

When you’re ready to connect with a loan officer, use our form to quickly match with land and lot loan programs based on your specific circumstances. You may reach out with your other details such as your phone number to get the process started.

2. First Bank of Alaska

A community-oriented business, First Bank of Alaska has served the southeastern portion of the state since its founding in 1924. A locally owned and operated bank, it aims to provide competitively priced financial services to its clients, including through the use of land loans for personal home development.

To get you the best information, we contacted First Bank of Alaska for more details on their land loans and here are the key features and terms:

  • Various term options
  • Variable payment plans
  • No application fee
  • Pre-approval available
  • Local underwriting and processing

When you’re ready to connect with a loan officer, use our form to quickly match with land and lot loan programs based on your specific circumstances.

3. Matanuska Valley Federal Credit Union

Founded in 1948, the Matanuska Valley Federal Credit Union was established to serve and meet the needs of the people of Alaska financially. The Matanuska Valley Federal Credit Union offers a variety of different loan products, including conventional mortgages, construction loans, and cabin and recreational property loans.

We asked Matanuska Valley Federal Credit Union for more details on their vacant land loan product and here is what they said:

  • Available for land located within Matanuska Susitna Borough, Municipality of Anchorage or, in Hawaii, on the islands of Oahu, Maui, Hawaii, or Kauai.
  • Property must be accessible by road.
  • Available for unimproved Residential Land
  • Available for raw land loan purchases. May include well, septic, or utility improvements.
  • Available for improved residential land purchases.
  • Structures shall not include residential living space, shall be on a permanent foundation and be insurable.
  • Must be a completed structure such as a garage, barn, shop, hangar, or similar structure type – Mobile Homes are not acceptable

When you’re ready to connect with a loan officer, use our form to quickly match with land and lot loan programs based on your specific circumstances.

4. First National Bank Alaska

First National Bank Alaska opened its doors in 1922, aiding Alaskans in moving into the region. It provides full banking services and investment offerings today. That includes mortgage and construction loan financing with a minimum of 25% down for 12-month loan terms for home construction projects.

We reached out to First National Bank Alaska to discuss land loan details, which you can read about below:

  • Mainly focuses on land loans with the intent to build.
  • Construction loans require 25% down payment (can use land equity toward down payment).
  • Total project cost includes the land value, the construction budget and a 10% contingency fee for cost overruns.

When you’re ready to connect with a loan officer, use our form to quickly match with land and lot loan programs based on your specific circumstances.

Does a Alaska real estate land loan make sense for you?

If you are struggling to find the right home in Alaska or are planning for a second home or vacation home, then a land loan may be right for you. They allow you to take your time with your project, but give you the opportunity to secure the lot you want before prices rise or it gets bought up by someone else. 

Remember that there are different types of acreage available out there, which will impact the type of land loan you get. There are many undeveloped acres in Alaska, for example, which would require a raw land loan. If you are looking at a residential lot with existing infrastructure elements, then an improved land loan may be the right choice. Factor all of this in while reviewing your options. 

If you’re looking to explore land and lot loans in other states, check out our national overview of land loans as a starting point in your search.

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Joshua Holt

Joshua Holt is a licensed mortgage loan originator (NMLS #2306824) and founder of Biglaw Investor. His mortgage expertise lies in the areas of professional mortgage loans, particularly for lawyers, doctors and other high-income professionals. Prior to Biglaw Investor, Josh practiced private equity mergers & acquisition law for one of the largest law firms in the country.

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