I exported a heightmap from blender in tiff format. I then converted it to 8-bit greyscale raw in photoshop. No interleaved options. The tiff also does not seem to have any artifacts after exporting from blender. The result and my settings are below. Can anyone help me solve this issue?
Figured out that those artifacts were caused by the conversion from 16 bit to 8 bit. You have to be very careful about the way you generate heightmaps apparently. I found that it was best to use the Unity Terrain editor to sculpt my terrain and export the heightmap from there if I need to use it in another program.