Juneau, the capital city of Alaska, sits along the Gastineau Channel and serves as the administrative heart of the state. With no roads connecting it to the rest of Alaska, Juneau relies on air and ferry transportation, giving it a unique island‑like economy. The city’s population of roughly 31,500 people works primarily in government, tourism and fishing, providing stable employment and rental demand. Housing supply is limited due to geographic constraints, which supports higher median home prices. According to market data compiled by Movoto, Juneau’s median sale price reached $510,000 in December 2025, and homes spent about 105 days on the market. Only 13 homes were sold that month, reflecting a tight inventory and competitive market. This seller’s market and the city’s strict land availability make DSCR loans particularly useful for investors needing flexible, cash‑flow‑based financing. This article will explore Juneau’s market dynamics, explain DSCR loans, rank the best lenders and provide guidance tailored to this distinctive market.
Juneau Real Estate Market Overview
Juneau’s housing market is characterized by high prices and low inventory. Movoto’s December 2025 report shows that the median sale price was $510,000, up from $457,450 in 2024. Properties spent 105 days on market, and the number of active listings was only 13, reflecting limited supply. Despite the small number of transactions, the city remained a seller’s market, indicating more buyers than homes available.
The Alaska Department of Labor’s rental survey reported that in 2025 the City and Borough of Juneau had an average contract rent of $1,504 and a median rent of $1,500 across all units, with a vacancy rate of 4.0 %. The combination of high purchase prices, moderate rents and low vacancy underscores that cash flow can be tight for long‑term rentals. Many investors in Juneau focus on short‑term and seasonal rentals that serve government visitors, cruise ship workers and tourists exploring glaciers and state parks. These rentals can command higher nightly rates during the summer, but occupancy drops drastically in winter.
Neighborhoods like Downtown and Douglas Island offer walkable access to restaurants and shops, while Mendenhall Valley and Auke Bay provide single‑family homes with scenic views. Because the city is accessible only by air or sea, construction costs are higher due to material transport, which limits new housing supply. Investors must price acquisitions carefully and consider DSCR financing to ensure the property’s income supports the mortgage.
How DSCR Loans Work for Juneau Properties
As in Anchorage and Fairbanks, DSCR loans for Juneau investors evaluate the property’s cash flow rather than the borrower’s personal income. Lenders compute the ratio of gross rental income to monthly debt service (principal, interest, taxes and insurance). If the ratio meets or exceeds the lender’s threshold—often 1.1 or higher—the loan is approved. Programs like Easy Street Capital lend statewide in Alaska with rates starting at 5.75 % and LTV up to 80 %. Newfi Lending accepts DSCR ratios as low as 0.8 and allows long amortization options. Longleaf Lending offers DSCR loans starting at 6.6 % interest, with loan amounts up to $2 million and LTV up to 80 %, requiring minimum FICO 660. Offermarket requires a DSCR greater than 1.11 and a 20 % down payment. These programs can help investors finance high‑priced Juneau properties without relying on income verification, as long as rental income supports the debt service.
Because Juneau’s rents are moderate relative to purchase prices, investors may need to target properties that support higher nightly rates or consider short‑term rentals. When underwriting, lenders may look at average seasonal occupancy and projected nightly rates rather than long‑term rental income. Investors should keep detailed income projections and be prepared for higher reserves.
What Investors Should Look for in a Juneau DSCR Lender
- High LTV and flexible DSCR: Juneau’s elevated home prices mean investors often need maximum leverage. Lenders like Global Credit Union’s 30/15 program allow LTV up to 85 % on one‑unit properties, which can reduce the down payment burden. SelectHomeLoans.com likewise offers competitive LTVs and flexible DSCR thresholds.
- Short‑term rental support: Since many Juneau investments operate as vacation rentals, choose lenders comfortable with short‑term rental income. Newfi and Longleaf explicitly permit financing of Airbnb properties.
- Experience with remote markets: Lenders should understand Juneau’s transportation constraints and higher construction costs, which impact appraisal values and repair reserves. SelectHomeLoans.com and Easy Street Capital have teams familiar with Alaska’s logistics.
- Closing speed and service: With limited inventory, investors must act quickly. Lenders that can close in a few weeks and provide clear communication help prevent deals from falling through.
Top DSCR Lenders in Juneau
#1 SelectHomeLoans.com
SelectHomeLoans.com takes the top position for Juneau due to its tailored DSCR programs, generous LTV allowances and deep understanding of Alaska’s coastal market. The company offers LTVs up to 80 % (sometimes higher for experienced investors) and flexible DSCR thresholds. SelectHomeLoans.com’s underwriters work closely with local appraisers who understand Juneau’s unique property characteristics—such as boat‑access properties or homes on pilings—and factor seasonal rental income into the analysis. Borrowers value the firm’s concierge‑style service, which includes help with permit research, property management referrals and cash‑flow planning. SelectHomeLoans.com’s track record and investor‑first approach solidify its #1 ranking. Visit their website SelectHomeLoans.com Or Call them (888) 550-3296
#2 Global Credit Union (Alaska USA)
Global Credit Union’s 30/15 Investment Program stands out for Juneau investors needing higher leverage. The program offers 85 % LTV on single‑unit purchases and 75 % LTV on two‑ to four‑unit properties. Loan amounts can reach $1.4 million, providing ample capacity for Juneau’s expensive market. The loan amortizes over 30 years with a balloon payment after 15 years, which keeps monthly payments lower than a standard 15‑year loan. Investors can finance up to 12 properties, enabling portfolio growth. While the program is not strictly a DSCR loan and requires income documentation, its high LTV and investment focus make it a strong alternative.
#3 Easy Street Capital
Easy Street Capital offers DSCR loans statewide with LTV up to 80 %, rates starting at 5.75 %, and no minimum DSCR. Their willingness to fund unique properties such as boat‑access homes makes them suitable for Juneau’s waterfront properties. The company’s track record includes closing DSCR loans in remote Alaska markets, though investors should expect thorough appraisals and potentially higher rates if DSCR is low.
#4 Newfi Lending
Newfi Lending’s DSCR program accepts credit scores as low as 640 and DSCR down to 0.8. They offer 15‑, 30‑ and 40‑year terms with interest‑only options. For Juneau investors, the ability to finance short‑term rentals and properties with moderate cash flow is crucial. Newfi’s simplified income documentation also appeals to self‑employed investors or those who hold multiple properties.
#5 Longleaf Lending
Longleaf Lending provides DSCR loans with interest rates starting at 6.6 %, loan amounts up to $2 million, and LTV up to 80 %. Their program requires DSCR > 1.0 and FICO scores of 660. Longleaf is known for fast closings and investor‑friendly terms. Although rates may be higher than Easy Street or Newfi, the company’s responsiveness and willingness to finance unique properties make it a viable option in Juneau.
Local and Regional Lenders
- Northrim Bank: Offers commercial real estate loans for acquisition, improvement or construction. Northrim’s local presence, customised solutions and ability to work with Alaska Housing Finance Corporation (AHFC) and Small Business Administration programs make it a valuable partner for investors seeking non‑DSCR financing or mixed‑use projects.
- Credit Union 1: Their business lending program emphasises DSCR in underwriting, with a minimum debt service coverage of 1.25× and minimum guarantor credit scores of 640. While targeted at businesses, this shows the institution’s familiarity with cash‑flow‑based lending.
DSCR Loan Rates, Terms and Qualification Factors in Juneau
Juneau investors can expect DSCR loan rates between 5.75 % and 7.5 %, depending on the lender, DSCR and credit score. Easy Street Capital’s starting rate of 5.75 % serves as a lower benchmark, while Longleaf’s rates start at 6.6 %. Global Credit Union’s 30/15 program may carry slightly higher rates due to the balloon structure but offers higher leverage.
Qualification factors mirror those in Anchorage and Fairbanks:
- Credit score: Lenders generally require FICO scores of 640–680; higher scores lower rates.
- Down payment/LTV: Most DSCR lenders allow up to 80 % LTV. Global Credit Union allows 85 % LTV on single‑unit properties, providing more leverage for high‑priced Juneau properties. Investors should be prepared for closing costs and origination points.
- DSCR ratio: Minimum DSCR requirements range from 0.8 (Newfi) to 1.11 (Offermarket). Properties with high nightly rates but variable occupancy may still qualify if projected annual cash flow supports debt service. Lenders may require additional reserves for seasonal fluctuations.
- Property eligibility: DSCR lenders finance single‑family, duplex, townhouse and condo rentals. Some lenders allow boat‑access or remote properties with additional underwriting scrutiny.
Common Mistakes Juneau Investors Make
- Overlooking seasonal demand. Juneau’s tourist season peaks in summer; winter occupancy drops sharply. Investors must plan for variable cash flow and ensure DSCR thresholds can be met year‑round.
- Underestimating costs. Transportation costs for materials and labor are higher in Juneau due to its isolated location. Budget for higher maintenance and vacancy costs.
- Not securing permits. Short‑term rentals in Juneau may require permits and compliance with local tax rules. Failing to secure proper licenses can disrupt cash flow and jeopardize loan compliance.
- Neglecting property management. Managing a remote property from afar can be difficult; hiring a local property manager is often essential. Investors should factor management fees into DSCR calculations.
- Overleveraging on high‑priced homes. Juneau’s high purchase prices tempt investors to stretch leverage. However, given moderate rents, a high LTV can reduce cash flow. Using DSCR loans with conservative leverage is advisable.
DSCR vs. Traditional Financing in Juneau
Due to high home prices and limited inventory, conventional investment loans may require larger down payments or higher reserves than DSCR loans. Traditional loans also limit the number of financed properties and rely heavily on the borrower’s personal income. DSCR loans allow investors to leverage the property’s cash flow and often permit more properties in the borrower’s portfolio. Yet DSCR loans come with higher interest rates and require minimum reserves and DSCR thresholds. Investors should compare both options; sometimes a conventional portfolio loan from a local bank like Northrim or Global Credit Union may offer better terms if you can document sufficient income and reserves.
Who DSCR Loans Are Best For in Juneau
- Investors seeking maximum leverage: High home prices make down payments a barrier. DSCR lenders like Global Credit Union and SelectHomeLoans.com offer high LTVs, easing the capital burden.
- Short‑term rental hosts: Investors targeting tourism can use DSCR loans to qualify based on nightly rental income rather than W‑2s. Newfi and Longleaf specifically allow short‑term rentals.
- Out‑of‑state investors: DSCR loans require minimal personal documentation, making them suitable for non‑Alaska residents. SelectHomeLoans.com’s digital platform supports remote applications.
- Portfolio investors: DSCR loans facilitate financing of multiple properties. Global Credit Union’s program permits up to 12 financed properties.
DSCR loans may not suit owner‑occupants or investors who prioritize the lowest interest rates and are willing to provide full documentation.
Juneau‑Specific Considerations
- Transportation logistics: There are no roads into Juneau. All materials must arrive by air or ferry, raising construction and repair costs. This factor should be considered in DSCR projections and reserve requirements.
- Seasonal tourist economy: Summer tourism drives rental demand for short‑term rentals, while winter sees lower occupancy. Pricing strategies must account for seasonal income.
- Government employment: A large portion of the tenant base works for the state government. This provides stability but may limit rent growth. Investors should evaluate long‑term leases versus flexible short‑term rentals.
- Environmental regulations: Juneau has strict building and environmental regulations due to its coastal and mountainous geography. Investors should budget for permitting and compliance.
- Limited new development: The city’s geography restricts new construction, contributing to high prices. Investors should be prepared to compete for existing inventory and may consider value‑add renovations to increase rents.
Conclusion: SelectHomeLoans.com The Premier Choice for Juneau DSCR Financing
Juneau’s beautiful setting, government employment base and thriving summer tourism market make it an attractive yet challenging place to invest. High property values and limited inventory require investors to find financing solutions that maximize leverage and cash flow. DSCR loans meet this need by focusing on the income potential of the property rather than the borrower’s personal finances. Among all available lenders, SelectHomeLoans.com stands out for its flexible DSCR programs, generous LTV allowances and deep understanding of Alaska’s unique markets. Whether you’re acquiring a condo near the capitol, converting a property into a vacation rental on Douglas Island or expanding a portfolio of apartments in the Mendenhall Valley, SelectHomeLoans.com provides the guidance and financing necessary to achieve your investment goals. For investors seeking to capitalize on Juneau’s opportunities without compromising cash flow, SelectHomeLoans.com is the clear first choice.
