LOAN TYPES

Seeking a loan to buy a home or property? Denali offers a variety of home and real property loans to meet the most common financing needs.


Primary residence (where you live)

Primary residence loans generally have the most favorable terms, but they can only be used to purchase the home where you plan to live full-time, most of every year. You may use a primary residence loan to purchase a single or multiple-unit property, a house or a condominium.

Primary residence
May be for you if:

  • You are looking for a home for yourself, or (under some circumstances) are co-signing for a family member who is disabled or a dependent;
  • You can meet the occupancy requirements, such as occupying the home within a certain period of time (usually 60 days) after closing and thereafter living on site full time, most of the time;
  • You do not plan to rent out the home for income when you are not there.
Couple and house

Second home (vacation house)

This type of loan may be used to finance the purchase of a vacation home, which is an owner-occupied residence that you live in for part of a year, and which you do not depend upon for income. Second-home loans may require a higher down payment and carry higher interest rates than those for a primary residence.

Second home
May be for you if:

  • You qualify for loan terms—including a higher monthly payment than usually is required for a primary residence, and possibly a larger down-payment;
  • The property is at least 50 miles away, and you can afford the additional expenses of maintaining the home, such as travel;
  • You plan to occupy the home during some portion of the year and do not plan to rent out the property for income when you are not there.
Cabin on river

Investment property (property rented or sold for income)

Simply put, this is a loan for any property that you are buying with the intent of making money from it — whether you plan to rent a duplex for a steady income or want to renovate and resell a home for a one-time profit.

Investment property
May be for you if:

  • You are purchasing with the intention of creating a source of rental income.
  • You are purchasing with the intention of selling the home in less than 12 months.
  • You can qualify for the interest rates and terms, which tend to be less favorable than for non-investment property.
Rental house

Real property (a cabin or other rustic recreational-use land)

This type of loan may be used for such purposes as buying a cabin or getaway for personal use—or to refinance a vacant lot on which you intend to build such a property.

Real Property
May be for you if:

  • The property has electric service and is accessible by road (for the most favorable loan-to-value ratio).
  • You are looking to finance a single property—or if you are looking to finance multiple properties, they are adjacent;
  • You are looking for terms ranging from 60 months (five years) to 144 months (12 years).

Real property loans are managed by Denali's Real Estate Lending Department. The "LEARN MORE" button will direct you to a Real Estate Web page.

Rustic cabin

Home Equity Line of Credit (using your home for equity)

This type of loan is used to leverage the equity in your home or rental property (up to a four-plex)—at interest rates more favorable than most credit cards—for a credit line up to 85 percent of your home’s appraised value, $350,000 max.

HELOC
May be for you if:

  • You need a credit line to fund regular payments on necessary home repairs/remodeling;
  • You want to transform your home’s equity into a credit line for future large purchases and/or emergencies, and;
  • You have income sufficient to make the higher payments needed.

HELOCs are managed by Denali's Real Estate Lending Department. The "LEARN MORE" button will direct you to a Real Estate Web page.

Woman remodeling home

Owner-builder construction (leveraging your property value to finance building)

Denali’s owner-builder construction loan, also known as an “interim construction loan,” is a specialized, short-term, non-revolving loan that helps Alaskans build—or build onto—their dream homes (one- to four-family residences).

Owner-builder construction
May be for you if:

  • You are financing construction of a primary residence—not investment property.
  • You wish to leverage the increasing value of your home even as you are building it.
  • You do not require the funds as a single lump sum, and you can keep good records of disbursements—including keeping track of receipts! (The loan funds are disbursed as work progresses, and owner-builders must document each disbursement in detail.)

Owner-builder construction loans are managed by Denali's Real Estate Lending Department. The "LEARN MORE" button will direct you to a Real Estate Web page.

Home under construction