Mat-Su Valley, Alaska
Buying a home in Wasilla and Palmer, Alaska
I'm Slavik Lund, a mortgage broker with First Rate Financial in Anchorage, and I write loans all over the Mat-Su. The Valley is its own borough with its own property taxes, but HUD groups it with Anchorage for FHA limits, and Wasilla and Palmer get the Anchorage BAH rate. What's different is the property: more land, wells and septic systems, and a commute to plan for.
Last updated: October 4, 2026
topic 1 of 4 · 5 questions
what to know about buying in the Valley
Taxes, commute and which town you pick. Here's what actually matters for your loan.
Is the Mat-Su treated like Anchorage for a mortgage?
Partly. The Matanuska-Susitna Borough is its own borough with its own property taxes. But HUD puts it in the Anchorage metro area, so the 2026 FHA limits are the same as Anchorage: $541,287 for a 1-unit home (HUD).
How much are property taxes in the Mat-Su?
For fiscal year 2027 the borough set an areawide rate of 7.955 mills. On the borough's average assessed value of $416,848, that's about $3,316 a year in areawide property tax (Mat-Su Borough). Road and fire service areas can add to it depending on the address, so I use the real tax number for your exact property when we run your payment.
Wasilla or Palmer: does it change my loan?
Not the loan. Same programs, same process. It changes your taxes, your drive, and whether the home is on public utilities or a well and septic. Pick the town that fits your life and we'll make the numbers work.
How should the commute to Anchorage change my budget?
Count it before you fall in love with a house. Fuel, winter driving and time on the Glenn or Parks Highway all belong in your monthly number. The cheaper house isn't cheaper if the drive eats the difference.
Can I buy before I sell my place in Anchorage?
Often, yes, and I'd look hard at keeping the old place as a rental. Selling is a one-way door. You can always sell later. A signed lease on the old home can help offset its mortgage when we qualify you.
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land, wells, septic and new builds
This is where Valley homes differ most from town. None of it is hard, it just needs a plan.
Can I finance a home on acreage in the Mat-Su?
Usually, yes. Under standard rules, if the home is anchored to the ground it's probably something we can lend on. In rural areas we line up comparable sales early so the appraisal goes smoothly.
Can I get an FHA or VA loan on a home with a well and septic?
Yes. FHA, VA and conventional loans all work on homes with a private well and septic system. The appraiser looks at the systems too, and depending on the loan the lender may ask for proof the water is safe. I'd test it either way.
Do I need a COSA like in Anchorage?
The COSA is a Municipality of Anchorage rule for homes on a well or septic (Municipality of Anchorage), and the Mat-Su is a separate borough. Either way, I want a well and septic inspection written into your offer.
Can I buy new construction in the Valley?
Yes, with VA, FHA or conventional. Ask the builder for a credit toward closing costs or a rate buydown instead of a lower price. It often does more for your payment.
Can I finance a dry cabin?
Probably not with a regular mortgage. Most people go to a local bank or credit union for a recreational-style loan instead. If you're looking at a cabin, call me first and I'll point you to the right place.
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military families and JBER
Plenty of JBER families look at the Valley for more house and more land.
What's my BAH if I live in Wasilla or Palmer and work at JBER?
The same as on base. BAH is based on your duty station, and Wasilla (ZIP 99654) and Palmer (ZIP 99645) show the Anchorage rate anyway (Military Housing Area AK404). For 2026 an E-6 with dependents gets $2,892 a month (DoD BAH lookup). Every rank is in my JBER VA loan guide.
Can I use my VA loan in the Mat-Su with zero down?
Does my BAH count as income?
Yes. BAH is tax-free, so lenders can gross it up, which means it counts for more than the number on your LES. My JBER guide shows the math.
Can I start my pre-approval before my PCS?
Yes. Most of my military buyers start from out of state. Apply online, upload your LES, your orders, a bank statement and your ID, and we build the plan before you land.
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loans that fit the Mat-Su
VA, FHA, conventional, AHFC, and in the right spot, USDA. Here's how I sort them.
Can I get a USDA zero-down loan in Wasilla or Palmer?
It depends on the exact address and your household income. USDA eligibility goes property by property, so I check yours on USDA's eligibility map before we count on it. If it doesn't qualify, VA, FHA and AHFC still give you low-down options.
What are the 2026 FHA loan limits in the Mat-Su?
For the Matanuska-Susitna Borough in 2026: $541,287 for 1 unit, $693,050 for 2 units, $837,700 for 3 units and $1,041,125 for 4 units (HUD).
Do AHFC loans work in the Valley?
Yes. AHFC programs are good for almost everybody, not just first-timers. Some have income limits and property rules, so I put an AHFC option side by side with conventional and FHA and we pick the winner.
How much money do I need to buy in the Mat-Su?
If you'll live in it, plan on about 5% of the price as a safe starting number, plus about 2% for closing costs. VA and USDA can take the down payment to zero when you qualify. We make the money plan together before you shop.
Can I house hack a duplex or fourplex in the Valley?
Yes. Live in one unit and rent the others, and the rent from the other units helps you qualify. That's how I started, with my first fourplex at 20. My real estate investing Q&A covers the details.
ready to buy in the Valley?
Apply in 5 to 10 minutes, or book a call and ask me straight. Rather text? 907-917-5259.
Sources
- HUD FHA mortgage limits: 2026 limits for the Matanuska-Susitna Borough (U.S. Department of Housing and Urban Development)
- Assembly approves FY27 budget: areawide mill rate and average assessed value (Matanuska-Susitna Borough, May 2026)
- FHFA conforming loan limit values for 2026: the $1,249,125 Alaska limit
- BAH rate lookup: 2026 rates for ZIPs 99654 and 99645, Military Housing Area AK404 (Defense Travel Management Office)
- Certificate of On-Site Systems Approval (COSA) (Municipality of Anchorage)
- USDA property eligibility map and AHFC loan programs
Slavik Lund, NMLS 2054568, First Rate Financial, NMLS 184451, Equal Housing Lender. Educational only, not an offer to lend. Loan limits, BAH rates, tax rates and program rules change; the numbers here were checked in October 2026.