This article will cover buying a home in Alaska with bad credit. Buying a home in Alaska with bad credit is definitely possible at Gustan Cho Associates, empowered by NEXA Mortgage. Gustan Cho Associates, a dba of NEXA Mortgage LLC, is licensed in 48 states, including Alaska. Gustan Cho Associates has wholesale lending relationships with over 210 traditional and non-QM lenders.
Gustan Cho Associates is licensed in 48 states, including Alaska. We can provide hundreds of mortgage loan options for homebuyers buying a home in Alaska with low FICO scores and poor credit. Gustan Cho Associates has a national recommendation for being able to do loans other lenders cannot do in Alaska. We can help homebuyers with credit scores down to 500 FICO and bad credit.
No mortgage brokers and mini-correspondent non-delegated lenders like Gustan Cho Associates offer so many mortgage loan options like Gustan Cho Associates. The following paragraphs cover buying a home in Alaska with low FICO scores and poor credit. We will discuss the various mortgage loan options homebuyers will have buying a home in Alaska.
Is Buying a Home in Alaska Expensive?
Are you looking to buy property in one of the most stunning landscapes with open wilderness in the United States and don’t mind the cold weather? If so, you should check out Alaska! Here is the thing, not many people know much about Alaska other than the fact that it is cold and snowy, which is true, by the way! But if you were to dig a bit deeper, you would realize that it has one of the most vibrant property markets in the U.S.
Now, the other problem could be that you know more about Alaska and would actually like to reside there, but you are not sure you can get a mortgage with your bad credit history. This article ‘hits two birds with one stone,’ as we will tell more about what you can do when you have a bad credit history, and we will also delve a bit deeper into the state’s property market. So, stick around to find out more.
Some facts on the state of Alaska.
What You Need To Know About Buying a Home in Alaska
Alaska is a U.S state that’s located in the extreme northwest area of the North American continent. The state borders the Canadian province of British Columbia and the Yukon territory to the east and also shares a maritime border with the federation of Chukotka Autonomous Okrug in Russia to the west.
Buying a home in Alaska with poor credit is definitely possible. Home values in Alaska is higher than the rest of the United States. However, Gustan Cho Associates have helped thousands of homebuyers qualify for a home mortgage buying a home in Alaska with credit scores down to 500 FICO scores. First-time homebuyers can purchase a home in Alaska with poor credit, no credit, high debt-to-income ratio, and bad credit.
To the north of the state, you will find the Beaufort and Chukchi seas of the Arctic Ocean, while the Pacific Ocean lies to the south of the state. In terms of total area, Alaska is by far the biggest U.S state, bigger than California, Texas, and Montana combined. However, in terms of population, it is the third-least populous state, which, in turn, makes it the most sparsely populated state in the United States. But compared to all the other regions located north of the 60th parallel, Alaska is the most populous region.
Most Populous City in Alaska
The majority of the population in the state lives within the Anchorage metropolitan area. The state’s capital is Juneau and is the second-largest city by area in the U.S, with Sitka, which was the state’s former capital, as the largest city by area. Now, while Alaska has the smallest state economies, its per capita income is, in fact, among the highest in the U.S.
The major drivers of the state’s economies are fishing, oil, and natural gas, all of which are abundant. Also, tourism and the U.S military bases also contribute significantly to the economy. Most of the land is federally owned, including national parks, forests and wildlife refuges. Here are some more facts about this great state:
How Many People Live in Alaska
Population According to the 2020 census, the state of Alaska had 736,081 people, which was an increase from the last 2010 census.
Population growth The population growth rate is 3.6%; considering all the data from the past few censuses.
Tens of thousands of people, families, and businesses are migrating to Alaska and are loving it. Alaska has one of the mortgage beautiful landscapes in the World. No need to say about the beautiful breathtaking views throughout the state. The picture of anywhere in the state speaks for itself.
Median Income The median household income in the state is $77,800, while the individual income averages $34,900. Tax rate The local sales tax rate is 7.5% and the average combined state and local sales tax rate of 1.76%. The property tax rate average at about 1.18%.
School Districts To Know Buying a Home in Alaska
Education is one of the most important factors when relocating to other states. Everyone with school age children will not move to a different state if the state does not have high ranked high schools. People of Alaska has one of the most educated people than other states in the U.S. The state’s college and university system is one of the highest ranked in the nation.
Parents do not need to worry about their children getting a great education. In the past, Alaskan grade school students have scored low or near at the bottom percentile in mathematics and reading national tests. However, through rigorous training and educational development programs, scores and mathematic scores have sky rocketed in recent levels. The ACT and SAT scores for recent college graduates which many Alaskan citizens stand amazed, and proud.
The state of Alaska has on of the best educational systems in the nation. There are 53 school districts in Alaska, and the state has ten colleges. Also, over 65% of the residents in Alaska have attained college degrees to master degree level. Many out of state students apply and enroll at collect and universities in Alaska. Many of Alaska college graduates decide to make Alaska their home and seek employment in state.
Economy in Alaska To Consider Buying a Home in Alaska
The state of Alaska has a strong economy. The economy keeps on growing year after year due to the in migration and due to the growth the state has been experiencing. Many new residents moving to Alaska tend to stay for the rest of their lives.
The biggest industry in Alaska is the oil and gas industry. The main reason the state economy is strong is due to the gas and oil industry. There is no doubt the gas and oil industry is the major force and driver Almost 90% of the state budget is provided by the revenues derived
Once people decide to make Alaska their home, the tend to call the state their forever home. The gross state product stands at $50 billion, with the oil and gas industry contributing over 80% of the state’s revenues. It also has an unemployment rate of 4.8%, much lower than the national rate.
Weather in Alaska
Weather The state experiences an arctic climate with super long and cold winters and short summers. Sometimes the sun doesn’t appear at all during the winter, while it appears throughout the summer.
Median Home Prices Buying a Home in Alaska
Median home prices when buying a home in Alaska should be an important factor in how much home can you afford. Home values is Alaska is a lot of money versus living other
When buying a home in Alaska, Gustan Cho Associates are experts helping homebuyers in buying a home in Alaska. Gustan Cho Associates has a national reputation of being able to get borrowers approved for a mortgage when other lenders can’t. We can do the connection and non-conforming loans.
Median home prices The median home price in Alaska is about $301,000, an increase from the past year.
Cost of Living in Alaska
The public need to realize the cost of living in Alaska is substantially higher in Alaska versus other states in the United States. Alaska has a higher cost of living. However, Alaska has jobs that are paying a huge premium. Most jobs and career positions have higher wages and salaries than comparable companies throughout the nation. Cost of living The average cost of living in Alaska is $48,700 per year, which is pretty high compared to other states in the U.S.
Renting Versus Buying a Home in Alaska
Renters vs. owners Homeownership is 35% less expensive than renting in the state. Also, the burden of housing costs has been falling over the last three years, making it better and more cost effective to buy a home than rent.
Buying a Home in Alaska With Bad Credit
Yes, absolutely! The last thing anybody wants is for a bad credit history to stand in the way of them attaining their lifelong dream of buying their dream house, especially first-time buyers. So, here is the thing, there are a number of mortgage options available for aspiring homeowners in Alaska that don’t require a not-so-perfect credit score.
In the following sections of this guide of buying a home in Alaska, we will cover the various mortgage loan options borrowers have buying a home in Alaska with bad credit.
Buying a Home in Alaska With Non-QM Loans
Non-QM loans – this is one of the mortgage options that borrowers with a credit score that’s as low as 500 FICO would qualify for. These mortgage options do not conform to the current Fannie Mae and Freddie Mac limits and are available even to self-employed individuals who don’t have a consistent monthly income.
Non-QM Mortgage Guidelines and Requirements
The requirements for these non-QM mortgages are very relaxed and flexible, which is why you will be able to qualify even with bad credit history. There are several options under this category, including Jumbo loans, bank statement loans, 1099 loans, asset financing loans, etc. And all these options are offered in Alaska. Jumbo loan limits in all 29 counties surpass the conforming loan limit of $970,800.
FHA loans – this is the other mortgage option for borrowers with low credit scores in Alaska, as a credit score of as low as 500 FICO is acceptable. FHA loan limit in all the counties in Alaska ranges from $420,680 to $511,750. These loans happen to be the most popular in the state, given that over 40% of mortgages in the nation are these FHA mortgages.
VA loans – this is the third mortgage option for borrowers with a low credit score that would otherwise not qualify for a traditional mortgage. As a matter of fact, this option doesn’t have a minimum credit score or DTI ratio limits, and also doesn’t have a maximum loan limit. This option is quite popular among the veterans’ community in Alaska since they are designed only for military service members and veterans as well.
The property market in Alaska.
Housing Market For Homebuyers Buying a Home in Alaska
The property market in Alaska had ragged behind other U.S states, especially after the great recession a decade ago, and the situation worsened during the pandemic. This resulted from economic setbacks, largely due to state-wide job losses, especially in the oil sector. This literary sank Alaska into recession when the rest of the U.S was prospering.
As a result, more people were migrating to the U.S mainland for better lives, which in turn, led to a rapid decline in the property market. However, despite all these obstacles, the state seems to be bouncing back. The economy is starting to improve, income growth has resumed, and all these means that the housing market is starting to improve as well. In fact, the market is slowly surpassing other U.S states to be one of the best states to buy property in.
Housing Prices For Homebuyers Buying a Home in Alaska
To put everything into perspective, let’s look at property prices. Now, the median property value in Alaska is about $301,673. About a decade ago, before everything started going haywire, the home value stood at $235,000. This represents a 28.3% jump. Compare this to the home value in the U.S, which stands at $298,933 and has grown approximately 82.3% over the last ten years.
The Homebuying and Mortgage Process Buying a Home in Alaska
The home-buying and mortgage process buying a home in Alaska is like any other mortgage process throughout the nation. To most people, buying a home is the biggest investment decision they have, or could ever make. And to be honest, the whole process could be a little intimidating, particularly to first-time buyers. It’s even worse if the investment is in one of the most challenging environments in the United States, Alaska. You don’t have to worry though as we have broken the process down for you. Even though there may be small variations here and there, the process is similar across the board.
First Step of The Homebuying Process Buying a Home in Alaska
Step 1 – organize your finances – if you are planning to buy property in Alaska, whether you are in Alaska or U.S mainland, the very first step would be to organize your finances. And by this, we mean that you have to decide how you are going to finance the investment. While there are those who decide to pay cash, the majority choose to apply for a mortgage. If you are planning to do the latter, you need to get every document that you will need ready.
The Second Step of The Homebuyers Process Buying a Home in Alaska
Step 2 – get pre-approved for a mortgage – get a reliable and reputable mortgage broker in Alaska to guide you through the application process. This is important at this stage because you will know how much you qualify for so that when you begin the search, you will know which houses to look at, based on your budget. If you have a bad credit history, you will be looking for mortgage brokers or lenders who offer the type of mortgages we already looked at earlier in the article. You need to get pre-approved first before you begin your search.
Step Three of The Homebuying Process Buying a Home in Alaska
Step 3 – get a real estate agent – and while it is possible to buy a home alone, a real estate agent, especially a local one, who is familiar with the real estate market in Alaska, would be essential. He or she would help a lot, especially when it comes to looking through property listings, arranging for the property viewing, handling the paperwork and negotiations, and most importantly, ensuring that the process runs smoothly from start to finish. There are many estate agents in Alaska who would help you, so do your research well and find the right one.
Step Four of The Homebuying Process Buying a Home in Alaska
Step 4 – find a home – this is the most critical step as it is where you officially begin the search for your dream home. Now, there is a lot that goes into this. Most importantly, you will need to figure out the location you want to invest in before you even begin the search. Having said that, here are the top places you should really consider in Alaska:
Making the offer buying a house in Alaska
The fifth step buying a house in Alaska is to make the offer. Make an offer – after going through the listings in most of these areas, when you find your dream house, the next step would be to make an offer. The offer should include things like the price, closing date, and contingencies based on the inspections and appraisals among others.
Your estate agent will help you come up with a compelling, fair, realistic offer, even to the seller. Remember, you must stick to your budget. When it comes to inspections, you need to get a professional to do it. If you come across any serious issues, be sure to consider them while negotiating. And given that the weather in Alaska can be harsh, you should pay special attention to the home’s heating systems. They must be working perfectly.
Buying a Home in Juneau Alaska
Juneau – this is home to the best and most highly rated schools, which makes it the perfect place to raise a family. According to Zillow, the median home value is $355,100, with the median rent at $1262. The town has a population of 32,100, with a median household income of about $88,100.
The majority of the jobs in the town include government and tourism jobs, and given that this is home to the Tongass National Park, which is the largest national forest in the country, you can see why tourism is such a big deal here. So, even though the homes may not be as affordable as in other towns, the competitive median income and nature do make it up for it.
Buying a Home in Anchorage Alaska
Anchorage – this is where you will find over 40% of Alaska’s population, which is over 292,100 people. The median home value is about $320,100, and the median rent is $1,310. The main jobs in the city include military, tourism, and air cargo shipping. The median household income is $84,800, which is pretty good.
In this city, some of the top neighborhoods you should look at include South Addition, Rogers Park, Airport Heights, Turnagain, and North Star, among others. Also, being home to Chugach National Park as well as Kenai Fjords National Park, residents are always motivated to live an active lifestyle. We also have to mention that the ever-popular Iditarod Trail Sled Dog Race happens in this city, so you have a lot to enjoy here.
Buying a Home in Kodiak Alaska
Kodiak – this town experiences the harshest winter, and since it isn’t connected to the mainland, you can access it through ferries to Chenega Bay and Port Lions. It has a population of about 6,000 people, a median home value of $260,800, and a median rent of $1,200. The main jobs in the area include commercial fishing, tourism, and military from the navy and coast guard facilities in the town. Hunting of elk, Kodiak bear, and black-tail deer is very popular in this town. So, even though the weather isn’t that favorable, everything else, from the attractive median household income to a stable and thriving economy, should definitely make you choose this town. The property market is doing well, as many people are still moving to this area.
Step 6 – closing the deal – this is the final step where the ownership of the property is transferred to you. Your estate agent and the attorney will guide you through this process.
Other Areas To Consider When Buying a Home in Alaska
Other places you should look at include Ketchikan, Sitka, Fairbanks, and Wasilla, all of which have a pretty decent median household income, diverse populations, and jobs and the school system is top-notch.
Is It Hard Buying a Home in Alaska?
Alaska is gradually becoming a place where many people are considering moving to, especially those that don’t mind the cold weather. It has some of the highest household incomes, low crime rates, and interaction with nature, which many people really appreciate these days. If you are a first-time buyer with a not-so-good credit history, you don’t have to worry, as there are mortgage options designed for borrowers like you. You just need to get in touch with a reputable mortgage broker today!
January 5, 2023 - 12 min read