I’ve been through this with many clients and though it is unique to the person or family the bottom line is that financing land in rural Alaska is difficult.
I have been under the impression for years that financing raw land, large parcels of land and unfinished construction was not possible.
Banks must satisfy their underwriters and not many carry their own paper so the requirements for establishing a loan to live outside the cities are really tough.
Buying an easily appraised, third of an acre in Eagle River, near Anchorage, is much easier than knocking down a nice homestead in rural Alaska, at least as far as financing is concerned. That’s why eighty percent of Alaskans live in Anchorage and Fairbanks – but because urban employment is available there too.
AlaskaUSA and possibly other credit unions, provide options that can be useful for the right people – anyone who want and have the ability to avoid the cities.
It’s not a perfect equation, the down payment is high, the term for repayment is short, and your credit history must be clean but it does give you an option for financing partial construction, unimproved acreage, and more remote properties.
If you bought the Grayling Pond Homestead for $100,000 they would require:
For 15 years
At around 4.5 percent
That’s a $536 payment monthly
My estimates are not meant to be completely accurate but to present a gross picture of the mortgage they can provide you.
I realize it is a demanding mortgage that only select buyers could manage but it is an option for some. Google: AlaskaUSA They are a federal credit union, which one of my clients are working with now, who provide at least some possibility of financing land and recreational homes in rural Alaska that more traditional lenders will refuse.