How to buy a home in Alaska

Alaska has a welcoming spirit, rich history, and breathtaking landscapes like fjords, towering mountain ranges, and stretches of coastline and wilderness. While home prices can vary widely by region, buying a house in Alaska can be a great choice if you’re looking for open space and natural beauty.

Whether you already call Alaska home or you’re moving north for work or adventure, it helps to go in with a plan. We’ll guide you through what to know so you can begin your home search in the Last Frontier with confidence.

Alaska’s housing market: At a glance

Understanding the housing market in Alaska

Before you start house hunting, it’s a good idea to understand Alaska’s housing market and how home prices can vary throughout the state.

The median home price is $386,900

In Alaska, October 2025 home prices have increased 3.8% compared to October 2024, according to Redfin. However, the median home sale price is still lower than the national average, $386,900 compared to $439,917.

You’ll find some areas that are both more and less affordable than Alaska’s state average. Some major cities have additional housing inventory and might be more affordable than rural areas with fewer homes for sale.

• In Fairbanks, the median home price is $354,950.
• In Anchorage, the median home price is $399,450.

Neighborhood, home size, unique features, and proximity to major cities also influence home prices in Alaska. You can use the Rocket Mortgage home affordability calculator to help compare prices to see which cities may fit your budget best.

Market trends and inventory

Alaska has seen a 0.42% decrease in newly listed homes for sale compared to last year. Each city in Alaska differs slightly, so working with an experienced local real estate agent can help you navigate the market.

Spring and summer are peak shopping seasons

How to buy a house in Alaska

Now that you know about Alaska’s housing market, we’ll guide you through the steps of buying a house in the state.

Step 1: Check your credit and set a budget

Before beginning your home search, examine your finances, such as your credit score, DTI, and potential budget. You can use the Rocket Mortgage mortgage calculator to see what you could afford each month and how much you should save for your down payment and closing costs.

• Check your credit score
• Find out your debt-to-income ratio
• Save for a down payment
• Plan for closing costs and additional fees
• Finalize your budget

Step 2: Decide on the type of financing you want

There are various home loans available if you’re buying a home in Alaska.

• Conforming conventional loans. These loans typically require a minimum 3% down payment, and are offered by private lenders. You’ll have to pay private mortgage insurance (PMI) if your down payment is lower than 20%.
• Jumbo loans. These are conventional loans that exceed conforming loan limits. They usually require a higher credit score, down payment, and additional cash reserves.
• FHA loans. These are government-backed loans through the Federal Housing Administration. These loans offer lower down payments depending on your credit score.
• VA loans. These loans are for qualifying service members and surviving spouses and require no down payment. They are backed by the Department of Veterans Affairs.
• USDA loans. These loans are for home buyers in qualifying rural areas, with no down payment requirement. They are backed by the U.S. Department of Agriculture.

Step 3: Apply for preapproval

A mortgage preapproval gives you a clear idea of how much you can borrow when buying a home in Alaska. Having a preapproval early in your search can help you stand out, especially in competitive areas.

During the preapproval process, lenders review your credit score, income, and assets to determine which loans you may qualify for, your potential interest rate in Alaska, and the loan terms. The process typically takes just a few days.

Step 4: Find a real estate agent in Alaska

Choosing a local real estate agent in Alaska makes the homebuying process smoother, as they have a deep understanding of the area. You can find a great real estate agent through sites like Redfin.com or through your family and friends.

Some real estate agents might be dual agents, who represent buyers and sellers in the transaction. However, dual agency is illegal in Alaska, so it’s important that your agent only represents buyers.

Step 5: Start house hunting

After finding a few cities that fit your home buying goals, it’s time to look at homes for sale. Work with your real estate agent to look at homes for sale on the MLS and sites like Redfin to narrow down the homes you want to see in person.

Key factors to consider:

• Proximity of the neighborhood to jobs, amenities, and schools
• Major roads, highways, and public transit,
• HOA fees and potential costs
• Costs of property taxes in the city

Step 6: Make an offer and negotiate

Your real estate agent will guide you through making an offer on a house in Alaska. You’ll work together to decide how much to offer, which contingencies to include, and how much to put down as an earnest money deposit. This deposit shows the seller you’re committed to purchasing the home and is typically 1% – 3% of the purchase price, later applied toward your down payment.

Step 7: Begin the closing process

Now that your offer is accepted, you’ll:

• Submit your earnest money
• Officially apply for a mortgage
• Read through the closing documents
• Schedule the appraisal and inspection
• Prepare for closing day
• Have a final walkthrough

FAQ about home buying in Alaska

Here are some of the top frequently asked questions about buying a home in Alaska.

How much are property taxes in Alaska?

The effective property tax for Alaska is 1.14%, but local property taxes might differ.

Do I need a real estate agent to buy a home in Alaska?

A great real estate agent can help you find your dream home and navigate the home buying process, but you technically don’t need one to buy a home in Alaska. 

How long does it take to close on a house in Alaska?

In Alaska, it typically takes 30 to 60 days to close on a home. Loan approval and home could affect this timeline.

Are there any specific factors that could affect the home buying process?

Some regions in Alaska are high-risk flood zones, so your lender could require you to carry flood insurance.

The bottom line: There’s a home in Alaska waiting for you

Home prices in Alaska are still relatively affordable compared to many parts of the country. The state’s unique landscapes, outdoor recreation, and community feel, make it an attractive place to live. By working with a trusted real estate agent and preparing your finances, you can feel confident buying a home in Alaska.

If you’re ready to buy a home in the Last Frontier, start the mortgage approval process with Rocket Mortgage® for a personalized plan that fits your financial goals.

The 3% down payment option is only available on certain conventional loan products and is not available in all states. Additional terms and conditions may apply.