Alaska is a land of natural extremes. It’s home to 17 of North America’s tallest mountains, over 100 volcanoes and volcanic fields, and more than 3 million natural lakes. But beyond its breathtaking scenery, the state also offers unique real estate opportunities for foreign nationals looking to generate rental income.
What makes investing in Alaska unique? The state’s harsh climate and largely rural landscape can present challenges, but it also attracts millions of tourists each year, boasts highly rated universities, and has a competitive housing market – factors that can work in investors’ favor. In this guide, we’ll cover everything you need to know about buying property in Alaska and how foreign nationals can use DSCR loans to get rental property financing.
We are providing the following discussion to you for informational purposes only. All investments, including real estate, involve risk, and we encourage you to invest carefully. The information in this article is not intended to replace or serve as a substitute for any legal, real estate, tax, or other professional advice or service. You should consult with a professional in the respective legal, tax, accounting, real estate, or other professional area before making any decisions or entering into any contracts relating to a rental property.
Foreign investors looking to purchase rental properties in Alaska can benefit from DSCR (debt-service-coverage-ratio) loans, a financing option that prioritizes a property’s income potential rather than your personal financial history.
Unlike traditional loans that require proof of personal income, DSCR loans focus on the property’s ability to generate rental revenue.
These loans fall under the non-qualified mortgage (non-QM) category, making them a great fit for non-U.S. residents who want to invest in U.S. real estate without intending to live on-site. For international buyers, DSCR loans help navigate financial and legal hurdles, opening the door to investment opportunities in rental markets like Alaska.
DSCR loans make it easier for international investors to finance U.S. rental properties. Key advantages include:
For foreign nationals, DSCR loans streamline the investment process, making it easier to acquire profitable properties. That Alaska rental you’ve been considering could be secured quickly–sometimes in less than a month!
Lenders assess several factors when reviewing DSCR loan applications. Understanding these requirements can help streamline the process and improve approval chances.1
Most lenders: Many U.S. lenders prioritize income earned within the country since it’s easier to verify. Foreign income often requires additional paperwork, such as translated bank statements, proof of salary, and U.S. tax returns if applicable. Even with full documentation, approvals can be challenging due to lenders’ unfamiliarity with international financial systems.
Waltz: We recognize that income sources vary. Whether your earnings come from the U.S. or abroad, we review a broad range of documents, including foreign bank statements, employer pay slips, and existing rental income. Additionally, we consider the potential rental revenue of the property you’re purchasing, ensuring a more comprehensive evaluation.
Most lenders: Many lenders require foreign investors to put down 30-50% of the property’s purchase price. Some also insist on additional cash reserves to cover unexpected costs, increasing the upfront investment.
Waltz: We’re more flexible than your average lender. While a 30% down payment is typical, qualified borrowers may be eligible for a lower 25% requirement. We also adjust reserve fund expectations based on your financial profile and the rental income potential of the property.
Most lenders: U.S. lenders generally require a passport and visa for identification. If purchasing as an investor, you may also need to form a U.S.-based LLC, which involves submitting an operating agreement and other business documents.
Waltz: We simplify this step for international buyers. A valid passport is all that’s needed for identification. If an LLC is required, our Investor Toolkit guides you through the setup process, including obtaining an Employer Identification Number (EIN) in minutes.
Most lenders: U.S. lenders primarily rely on domestic credit scores, making it difficult for foreign investors without a U.S. credit history to secure financing. This is true even if they have strong credit in their home country.
Waltz: We understand that building U.S. credit takes time. Instead of requiring a domestic credit score, we review your home country’s credit profile along with other financial indicators to fairly assess your eligibility.
Find out how international investors have benefited from working with Waltz.
Alaska’s real estate landscape offers diverse investment options, each suited to different strategies. The best property for you will depend on your financial goals and lender requirements. Here are a few property types to consider:
Alaska has a lot to offer foreign investors. Here are a few undeniable advantages of investing in Alaskan real estate.
Fairbanks offers a unique mix of investment opportunities driven by tourism, education, and natural attractions. As one of the best places in the world to see the Northern Lights, the city attracts visitors year-round, increasing demand for short-term rentals. Plus, the University of Alaska Fairbanks, the flagship campus founded in 1917, brings a steady flow of students and faculty seeking housing.
As Alaska’s capital, Juneau has a steady government presence that helps keep its economy strong. Fishing plays a huge role in the local economy, with Juneau contributing significantly to the 450 million pounds of salmon caught in Alaska in 2024. This creates high demand for rentals, especially for fishers and seasonal workers who need housing for several months at a time. Tourism is also a major driver, with 1.6 million visitors arriving each year – far more than the city’s population of 32,000. With cruise ships bringing a constant flow of travelers, short-term rentals do especially well, making Juneau a great place to invest in real estate.
Anchorage stands out as Alaska’s largest city and economic hub, making it a prime location for real estate investment. The city is home to major oil companies like ConocoPhillips, the Port of Alaska, and the state’s largest university campus, which has over 10,000 undergraduate students. All of these industries drive job creation and increase demand for housing. Anchorage’s status as a cruise ship port and proximity to scenic hiking trails also bolster the tourism industry, further expanding rental opportunities.
Originally a Russian settlement, Sitka retains historical significance that attracts visitors interested in its past. The city's picturesque waterfront and thriving fishing industry add to its charm, making it a desirable place to live and visit. These factors, combined with limited land availability, have led to a competitive housing market. In January 2025, the median home list price in Sitka was reported at $892,000, reflecting a 17.4% increase from the previous year. This upward trend indicates a strong demand for properties, presenting valuable opportunities for real estate investors.
Like any other state, there are certain considerations to keep in mind when considering whether it’s worth it to buy real estate in Alaska. Here are four things to keep in mind:
Refinancing your Alaska investment property means replacing your existing mortgage with a new one – often to secure better loan terms or access your property’s equity for future investments.
At Waltz, we offer streamlined refinancing solutions designed to help Alaska real estate investors navigate this process with confidence. Whether you’re looking to lower your mortgage rate or unlock capital for new opportunities, we ensure a smooth and efficient experience. The refinancing process for foreign nationals typically includes:
A rate-and-term refinance allows you to adjust the terms of your existing mortgage. This helps you to potentially secure a lower interest rate or a more favorable loan structure. Keep in mind that while a lower rate can reduce your monthly payments, the total finance charges over the life of the loan may still be higher, depending on the new terms.
A cash-out refinance enables foreign investors in Alaska to access their property’s equity by borrowing more than their current mortgage balance. The additional funds can be used for property renovations, expanding your investment portfolio, or other financial needs. By reinvesting this capital, investors can scale their real estate holdings without needing to secure entirely new funding sources.
Learn more about refinancing.
From the urban appeal of Anchorage to the scenic opportunities in Juneau, Alaska presents a range of real estate investment options. Waltz makes the process of securing a DSCR loan simple. Just follow these steps:
1. Find a profitable investment
Determine your investment goals, whether you’re targeting long-term rental income, a vacation rental, or a future resale opportunity. Choose a property that aligns with your budget and financial objectives.
2. Gather essential documents
Gather essential paperwork, which will include a valid passport, proof of income (such as bank statements or employer pay slips), and details about the property you’re purchasing. Having everything ready will make the process faster and less stressful.
3. Select a lender experienced with foreign nationals
Select a lender who understands the unique challenges international buyers face. Waltz specializes in guiding foreign nationals through the U.S. mortgage system with tailored solutions.
4. Set up an LLC and U.S. bank account
For investment properties, setting up a U.S.-based LLC and opening a local bank account is typically required.2 This process is straightforward, and Waltz can assist in forming your LLC and obtaining an Employer Identification Number (EIN).
5. Submit your loan application
Once you have all of your documents together, it’s time to submit your DSCR loan application. Before you send it off, double-check that all paperwork is complete and accurate.
6. Perform due diligence
Before finalizing the purchase, inspect the property, verify its market value, and review the loan terms carefully. This step ensures your investment aligns with your expectations.
7. Complete the purchase process
Once all requirements are met, sign the final paperwork, complete the fund transfer, and officially secure your new investment property. Congratulations – you own property in Alaska!
