To get a deed with your name on it, youll need to make a $500 payment. Other than that, the land is totally free. However, be sure to pay attention to the home instruction requirements. The minimum size is 1,400 square feet, and it must be on a foundation. You can find more information here. Homesteading in Alaska. Although the Homestead Act was enacted in 1862, it was not until 1898 that special legislation extended the provisions of the act to the territory of Alaska. Even with the lure of free land however, homesteading in the remote territory was slow to start due to poor weather and poor soils and by 1914 less than 200.