Rural Loans

Small communities are an integral part of Alaska's rich heritage. Alaska Housing supports the residents in these rural areas with special loans to purchase or renovate homes.

Alaska Housing Rural Owner-Occupied Loan

This loan provides financing to purchase or renovate owner-occupied housing in small communities. Long term financing is also available for the owner-built, newly constructed home.

How it Works

Owner-occupied properties located in small communities are eligible. A small community is defined by having 6,500 or fewer people and is not connected by road or rail to Anchorage or Fairbanks. Additionally, a community of 1,600 or fewer people that is connected by road or rail to Anchorage or Fairbanks and at least 50 statute miles outside of Anchorage or 25 statute miles outside of Fairbanks qualifies as a small community. "Connected by road" does not include a connection by the Alaska Marine Highway System or roads outside the boundary of the State of Alaska.

Commercial use is allowed only on single-family homes and is limited to 25% of the gross floor area. No commercial use is allowed on duplex, triplex or fourplex properties.

The rural program interest rate applies to the first $250,000 of the loan amount. Loans over $250,000 receive a blended interest rate; the excess over $250,000 is calculated at the rural loan rate plus 1%.

Additional Considerations

  • Mortgage Insurance is required if the down payment is less than 10%.

Single-Family LOAN OPTIONS

How to Apply

Rural Non-Owner-Occupied Loan

How it Works

Borrowers may be Alaska residents, businesses, local government entities or regional education attendance areas. Properties must be located in small communities and are limited to duplexes, triplexes or fourplexes. Commercial use is not allowed.

The interest rate applies to the first $250,000 of the loan amount. Loans over $250,000 receive a blended interest rate; the excess over $250,000 will be calculated at the Rural loan rate plus 1%.

Additional Considerations

  • Housing units do not have to be attached except when obtaining financing through the HUD 184 program, which allows up to four attached units.
  • Properties with nonconforming features are not eligible.
  • The project must be self-supporting with a break-even point of 85% or less and a minimum debt service coverage ratio of 1.15%.

Loan Options

How to Apply