Deciding to purchase a house in Alaska is a huge financial decision, but with the unique benefits provided by the VA loan, your dream of homeownership just got that much easier.
With the average listing price of a home in Alaska landing at $345,363, the VA loan’s signature $0-money-down benefit is a considerable advantage for Alaska homebuyers.
VA loans are made by private lenders and guaranteed by the Department of Veterans Affairs. Because private lenders make the loans and not the VA, you need to find a lender licensed in the state you plan to purchase or refinance. For example, if you're purchasing a home in Anchorage, AK, you'll need to find a lender licensed in Alaska to do the loan.
See also: VA Loan Eligibility Requirements
VA borrowers in Alaska should also consider the cost and impact of VA loan limits and property taxes when making their home purchase.
VA borrowers in Alaska with their full VA loan entitlement are not restricted by VA loan limits. This means you can borrow as much as a lender is willing to lend without needing a down payment.
However, Veterans without their full VA loan entitlement are still bound to Alaska’s VA loan limits.
|Fairbanks North Star||$1,089,300|
|Kusilvak Census Area||$1,089,300|
|Lake and Peninsula||$1,089,300|
|Prince Of Wales-Hyder||$1,089,300|
Another consideration for VA buyers in Alaska is property taxes. For certain VA buyers, there are exemptions.
You may receive a property tax exemption if the Veteran is 50 percent or more disabled due to service. This exemption can be up to $150,000 of the assessed value of his/her primary residence. If the Veteran is deceased from a service-connected cause, the exemption will transfer to a surviving spouse.
If you are required to pay property tax in Alaska, the American Community Survey by the U.S. Census Bureau estimates you may pay the following in each county:
|County||Property Tax Rate|
|Aleutians West Census Area||1.42%|
|Bristol Bay Borough||0.88%|
|Dillingham Census Area||1.07%|
|Fairbanks North Star Borough||1.30%|
|Hoonah-Angoon Census Area||0.37%|
|Juneau City and Borough||0.98%|
|Kenai Peninsula Borough||0.78%|
|Ketchikan Gateway Borough||0.89%|
|Kodiak Island Borough||1.01%|
|Lake and Peninsula Borough||0.80%|
|Nome Census Area||1.35%|
|North Slope Borough||1.39%|
|Northwest Arctic Borough||2.28%|
|Prince of Wales-Hyder Census Area||0.76%|
|Sitka City and Borough||0.54%|
|Southeast Fairbanks Census Area||1.10%|
|Valdez-Cordova Census Area||1.10%|
|Wrangell City and Borough||0.72%|
|Yakutat City and Borough||0.51%|
|Yukon-Koyukuk Census Area||0.75%|
View the graphic below to learn more about how VA loans work in Alaska.