Alaska Loan

AHFC provides renovation options covering three possible scenarios:

  • Purchase Renovation
  • Renovations in conjunction with a purchase
  • Second for Renovation
  • Improvements to a home you already own
  • Up to $100, 000 w/alternative evaluation
  • Up to $312, 750 w/appraisal
  • Refinance Renovation
  • Incorporates renovations into a new loan.
  • Who is Eligible?

    Alaska residents

    Eligible Properties

  • Owner-occupied single-family residences, duplexes, triplexes, fourplexes, condominium units or Type I manufactured homes may be eligible under all three renovation options.
  • Rural non-owner occupied duplexes, triplexes and fourplexes are eligible under the purchase renovation or refinance renovation option only.
  • Loan to Value (LTV)

    LTV is based on the ‘as-completed” appraised value. Appraisal must address the planned renovation with estimated market value of the home after the renovations are completed.

    Escrows for Completion

    50% of the total loan amount, or $50, 000, whichever is LESS. A 10% contingency is required for cost overruns. Unused escrow funds are applied to the principal. The term of the escrow may not exceed 180 days. A final inspection is required.


    Both an “as-is” and “as-complete” appraisal is required. Appraisals must clearly discuss the existing property, renovations proposed and include a discussion of materials used.

    Additional Considerations

    Renovations must comply with state laws regarding contractor licensing & minimum construction standards.

    Any addition (new construction) to a property where the original construction began on or after 1/1/92 (energy) or 7/1/92 (inspections) is subject to thermal standards and mandatory inspections. Engineer’s evaluation may be required.

    If an addition is being added to a home built prior to 1992, an engineer’s evaluation or home inspection may be required.

    Additions must comply with lot setbacks and not create any encroachment(s).

    Approved Lenders

    To begin, contact an AHFC approved lender to help identify the right option for you.

    Why renovate?

  • May increase your home’s value
  • Increase energy efficiency
  • Incorporate universal design principals to “age-in-place”
  • Improves Alaska’s aging housing stock
  • Purchase Renovation Example

    Purchase Price: $225, 000
    “As-Is” Appraisal:
    “After” Appraisal: $260, 000
    Maximum loan: (95% of final appraised value) $247, 000
    Total of repairs: (cabinets, accessibility, flooring, etc.) $ 27, 500
    Contingency @ 10%: $ +2, 750
    Total: $ 30, 250
    Renovation Loan Amount: (95% of original purchase price) $213, 750
    Renovations & Contingency: $+30, 250
    Final Total: $244, 000*

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