Quick Summary: Foreign nationals can buy US property without a green card, visa, or Social Security number through specialized mortgage programs requiring 25% to 40% down payments, accepting foreign income and credit reports, and charging rates 1% to 2% higher than conventional mortgages. International buyers purchased 78,100 US homes recently, a 44% increase, with loan amounts reaching $10 million through programs evaluating global financial profiles instead of US credit history.
Quick Facts About Foreign National Mortgages
| Category | Details |
|---|---|
| Down Payment Required | 25% to 40% typical (20% minimum some lenders) |
| Interest Rates | 1% to 2% higher than conventional loans |
| Maximum Loan Amount | Up to $10 million (lender dependent) |
| Loan-to-Value Ratio | 60% to 75% maximum |
| US Credit Required | No, accepts foreign credit reports |
| Property Types | Investment properties, second homes, condos |
| Reserve Requirements | 6 to 12 months mortgage payments |
| Recent Foreign Buyers | 78,100 homes (44% increase year-over-year) |
What Are Foreign National Mortgage Loans?
Foreign national mortgage loans let non-US citizens and non-US residents purchase property in America without Social Security numbers, green cards, visas, or US credit histories. These specialized non-QM (non-qualified mortgage) programs use alternative documentation to verify creditworthiness, including foreign bank statements, international employment records, and credit reports from borrowers’ home countries.
Approximately 46 million foreign-born people reside in the US as of recent data, representing the highest number in recent history. This massive population includes everyone from temporary visa holders to undocumented immigrants. However, foreign national mortgage programs specifically serve those living outside the United States who want to invest in US real estate or purchase second homes.
The programs solve a critical problem: building US credit takes years. Without existing credit history, foreign nationals face impossible barriers to traditional mortgages. Foreign national loans bypass this requirement entirely, allowing qualified borrowers to purchase US property immediately rather than waiting years to establish domestic credit.
Lenders view these loans as slightly higher risk due to borrowers’ lack of US financial ties and
the complexity of pursuing collections internationally if defaults occur. This risk translates to stricter requirements, higher down payments, and elevated interest rates compared to conventional mortgages. However, the tradeoff provides immediate access to the world’s most stable real estate market.
Who Qualifies for Foreign National Mortgages?
Foreign national mortgage programs serve three distinct groups of international buyers. Understanding which category you fall into helps determine your best loan options.
Foreign Investors (No US Residency)
These borrowers live and work in their home countries while investing in US real estate for rental income or appreciation. They typically use DSCR (Debt Service Coverage Ratio) loans that qualify borrowers based on property income rather than personal income.
Requirements:
- Must live and work outside the United States
- Cannot have US residency or work authorization
- Property must be investment property (no primary residence)
- Valid passport from visa waiver country or specific visa types
Visa types accepted: B-1, B-2, H-2, H-3, I, J-1, J-2, O-2, P-1, P-2, or residence in visa waiver countries.
US Newcomers on Work Visas
These individuals live and work in America on temporary visas (H-1B, L-1, E-2, O-1) but lack US credit history. They want to purchase primary residences or investment properties.
Requirements:
- Valid work visa showing legal US presence
- Employment verification from US employer
- Proof of income (foreign or US sources accepted)
- Address verification in United States
Best For: Professionals relocating to America for employment who want immediate homeownership without waiting years to build credit.
US Expats Living Abroad
American citizens living and working overseas who want to purchase US investment properties using their foreign-earned income.
Requirements:
- US citizenship proof
- Foreign income documentation
- International bank statements
- Valid US address for correspondence
Best For: Expats maintaining US investment portfolios while earning income internationally.
Down Payment and LTV Requirements
Foreign national loans require substantially higher down payments than conventional mortgages. This difference protects lenders against higher default risks.
Standard Down Payment Requirements
Minimum 25% down payment represents the most common requirement across lenders. On a $400,000 property, you need $100,000 down payment plus closing costs.
30% to 40% down payments provide access to better rates and terms. Some lenders offer improved pricing at 35% down versus 25% down, saving thousands in interest over the loan term.
Maximum loan-to-value ratios typically cap at 70% to 75%, meaning lenders will only finance 70% to 75% of property value. The 25% to 30% equity cushion protects lenders if property values decline.
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LTV by Property Type
| Property Type | Maximum LTV | Minimum Down Payment |
|---|---|---|
| Single Family Home | 75% | 25% |
| Condo (Warrantable) | 75% | 25% |
| Condo (Non-Warrantable) | 70% | 30% |
| 2-4 Unit Multi-Family | 70% | 30% |
| Luxury Properties | 65% to 70% | 30% to 35% |
| Short-Term Rentals | 65% to 70% | 30% to 35% |
Reserve Requirements
Lenders require proof you can cover mortgage payments even without rental income. Typical reserve requirements range from 6 to 12 months of PITI (principal, interest, taxes, insurance).
Reserve calculation example: Monthly PITI: $3,500 Required reserves (12 months): $42,000
These reserves must sit in liquid accounts (savings, checking, brokerage) and remain after closing. Retirement accounts typically don’t count toward reserves.
Interest Rates and Costs
Foreign national mortgages cost 1% to 2% more than conventional loans due to higher lender risk. Understanding total costs helps you evaluate whether financing makes sense versus all-cash purchases.
Interest Rate Premiums
Current conventional rates: 6.00% to 6.25% for 30-year fixed Foreign national rates: 7.00% to 8.25% for 30-year fixed
This 1% to 2% premium reflects additional risk lenders accept when financing borrowers without US financial ties.
Rate impact on monthly payment: $400,000 loan at 6.00% = $2,398 monthly $400,000 loan at 7.50% = $2,797 monthly Additional cost: $399 monthly, $4,788 annually
Loan Terms Available
Fixed-rate options: 30-year, 20-year, 15-year (most common is 30-year) Adjustable-rate options: 5/1 ARM, 7/1 ARM (fixed 5 or 7 years, then adjustable) Interest-only options: Pay interest only for 5 to 10 years, then principal plus interest
Interest-only loans reduce initial payments but increase total interest paid over the life of the loan. They work for investors planning to sell properties within the interest-only period.
Closing Costs
Foreign national loans include standard closing costs plus potential additional fees:
Standard costs:
- Appraisal: $500 to $800
- Title insurance: $500 to $2,000
- Origination fee: 1% to 2% of loan amount
- Attorney fees: $500 to $1,500 (required in some states)
- Recording fees: $100 to $300
Additional foreign national costs:
- Document translation: $100 to $500
- International credit report: $50 to $150
- Foreign income verification: $200 to $500
Total closing costs typically range from 3% to 6% of purchase price.
Documentation Requirements
Foreign national loans require extensive documentation proving identity, income, and financial stability. Gathering these documents before applying speeds up the approval process.
Identity Documents
Valid passport from your home country with at least 6 months remaining validity. Some lenders accept multiple passport copies showing entry stamps proving you live outside the United States.
Visa documentation (if applicable) showing legal status for those present in America. Include I-94 arrival/departure records and visa approval notices.
Proof of address in your home country through utility bills, lease agreements, or property ownership documents.
Income Verification
Employment letter from your employer stating position, salary, start date, and employment status. This letter should come on company letterhead with authorized signature.
Recent pay stubs covering the most recent 2 to 3 months showing consistent income.
Foreign tax returns for the previous 2 years demonstrating income stability and tax compliance.
CPA letter from a foreign certified public accountant verifying your income for the past 2 years plus year-to-date earnings. This document carries significant weight with underwriters.
Bank statements from the previous 3 to 12 months showing income deposits, account balances, and spending patterns. Lenders verify consistent income and adequate reserves.
Asset Documentation
Proof of funds for down payment and closing costs through recent bank statements showing sufficient balances for at least 60 days (demonstrating seasoned funds).
Source of funds documentation explaining where down payment money originated. Large recent deposits require explanation through gift letters, property sale proceeds, or business sale documentation.
Investment accounts statements showing additional liquid assets beyond required reserves.
Real estate holdings in your home country can strengthen your application by demonstrating real estate management experience and asset diversity.
Types of Foreign National Loan Programs
Multiple program types serve different borrower profiles and property situations. Choosing the right program maximizes approval odds and minimizes costs.
DSCR Loans (Debt Service Coverage Ratio)
DSCR loans qualify borrowers based purely on property cash flow rather than personal income. This program works perfectly for foreign investors who don’t want to provide personal income documentation.
How DSCR works: Lenders calculate the ratio of monthly rental income to monthly mortgage payment (PITI). DSCR ratios of 1.0 or higher mean rental income covers the full mortgage payment.
DSCR calculation: Monthly rental income: $3,500 Monthly PITI: $3,000 DSCR ratio: 1.17 (rental income covers 117% of mortgage)
Minimum DSCR ratios:
- 1.0 or higher: Best rates and terms
- 0.75 to 0.99: Higher rates, larger down payment required
- Below 0.75: Typically declined
Advantages: No personal income documentation required. No employment verification needed. No tax returns necessary.
Best for: Foreign investors purchasing rental properties who want streamlined documentation requirements.
Full Documentation Loans
Full doc foreign national loans require complete income, asset, and employment verification similar to conventional mortgages but accept foreign documentation.
Documentation required:
- Complete employment history
- Foreign tax returns (2 years)
- Bank statements (6 to 12 months)
- Credit report from home country
- CPA income verification letter
Advantages: Often qualify for slightly better rates than DSCR loans due to comprehensive documentation reducing lender risk.
Best for: Borrowers with stable foreign employment and willingness to provide extensive documentation for marginally better rates.
Asset-Based Loans
Asset-based programs qualify borrowers based on liquid assets rather than income. Lenders calculate qualification by dividing total liquid assets by loan term.
Qualification calculation: Liquid assets: $2,400,000 Loan term: 30 years (360 months) Monthly income equivalent: $6,667
Lenders use this calculated monthly income to determine loan qualification amount.
Advantages: Perfect for high-net-worth individuals with substantial assets but limited documented income.
Best for: Wealthy investors, retirees, or business owners with significant liquid assets but complex income situations.
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Best Markets for Foreign National Buyers
Foreign nationals concentrate purchases in specific US markets offering investment potential, lifestyle amenities, and property management ease. Understanding top markets helps target property searches.
Florida
Miami, Orlando, and Tampa dominate foreign investment due to international appeal, strong rental demand, and favorable tax climate.
Why Florida:
- No state income tax
- Strong tourist rental market
- International airport connectivity
- Diverse international communities
- Year-round climate appeal
California
Los Angeles, San Francisco, and San Diego attract foreign buyers seeking luxury properties and tech industry proximity.
Why California:
- Global recognition and prestige
- Strong property appreciation history
- Tech industry employment hub
- Asian investor interest
- Premium lifestyle amenities
New York
Manhattan and surrounding areas provide investment-grade real estate with global appeal.
Why New York:
- International financial center
- Cultural attractions
- Rental market depth
- Luxury property availability
- Global business connections
Texas
Houston, Dallas, and Austin offer affordable entry points with strong job markets and appreciation potential.
Why Texas:
- No state income tax
- Business-friendly climate
- Affordable prices relative to coasts
- Strong population and job growth
- Diverse economy
Common Challenges and Solutions
Foreign national borrowers face specific obstacles during the mortgage process. Anticipating these challenges and preparing solutions prevents delays and denials.
Challenge: Currency Exchange Documentation
Problem: Down payment funds held in foreign currency require conversion to US dollars. Banks flag large international transfers as potential money laundering.
Solution: Work with your lender before transferring funds. They provide documentation explaining the transfer purpose to your foreign bank and US receiving bank. Plan transfers 30 to 60 days before closing to address any delays.
Challenge: Language Barriers
Problem: Mortgage documents, disclosures, and technical terminology confuse non-native English speakers.
Solution: Many lenders offer translation services or allow translated documents. Some lenders employ multilingual loan officers. HSBC and other international banks provide services in multiple languages specifically for foreign nationals.
Challenge: Remote Closing
Problem: Foreign investors living overseas cannot attend in-person closings.
Solution: Power of attorney allows trusted US representatives to sign on your behalf. Some lenders offer remote online notarization (RON) enabling closings from anywhere globally via video conference.
Challenge: Property Management
Problem: Investors living in other countries cannot personally manage rental properties.
Solution: Professional property management companies handle tenant screening, rent collection, maintenance, and legal compliance for 8% to 12% of monthly rent. This expense should factor into your DSCR calculations.
Can I get a mortgage without a Social Security number?
Yes, foreign national mortgage programs don’t require Social Security numbers. Lenders use your passport number and foreign identification for verification. You’ll need an ITIN (Individual Taxpayer Identification Number) for tax purposes, which you can obtain through IRS Form W-7 during the closing process. Most lenders help coordinate ITIN applications if you don’t already have one.
What credit score do I need if I don’t have US credit?
You don’t need a US credit score for foreign national mortgages. Lenders accept credit reports from your home country or alternative documentation showing financial responsibility. Some programs approve borrowers with no credit score at all when using DSCR loans that qualify based on property income rather than personal creditworthiness. If you do have US credit, a minimum FICO score of 620 helps but isn’t always required.
Can I buy a primary residence or only investment properties?
This depends on your visa status and residency. Foreign investors living outside the US can only purchase investment properties (no primary residence) through foreign national programs. However, visa holders living in the US (H-1B, L-1, etc.) can purchase primary residences using these programs. Check your specific lender’s guidelines as some specialize in investment properties while others serve visa holders buying homes to live in.
How long does the foreign national mortgage process take?
Foreign national mortgages typically take 45 to 60 days from application to closing, longer than conventional loans due to additional documentation requirements. Document translation, foreign income verification, and international bank statement reviews add 2 to 3 weeks to standard timelines. Starting the documentation process before house hunting accelerates approval. Some lenders with foreign national specialization can close in 30 to 40 days for straightforward situations.
Can I use rental income from the property to qualify?
Yes, DSCR loans specifically use rental income for qualification. Lenders calculate expected rental income through comparable market analysis or existing lease agreements. The property must generate enough rent to achieve minimum DSCR ratios (typically 1.0 or higher). This means monthly rent must equal or exceed your monthly mortgage payment including principal, interest, taxes, and insurance. Properties falling short require higher down payments or won’t qualify.
Foreign national mortgage programs open US real estate investment opportunities to millions of international buyers who previously faced impossible barriers. Without requiring Social Security numbers, green cards, or US credit histories, these specialized loans provide immediate access to the world’s most stable property market.
The tradeoff for this access includes higher down payments (25% to 40%), elevated interest rates (1% to 2% above conventional loans), and extensive documentation requirements. However, international buyers willing to meet these requirements gain portfolio diversification, rental income opportunities, and potential appreciation in premium US markets.
Recent data showing 78,100 international property purchases (up 44% year-over-year) demonstrates growing global confidence in US real estate despite higher barriers. Foreign investors recognize that even with premium financing costs, US property offers stability, legal protections, and appreciation potential unmatched in many home countries.
Start your foreign national mortgage journey by gathering documentation early. Collect 2 years of foreign tax returns, 6 to 12 months of bank statements, employment verification letters, and proof of funds for down payment. Having complete documentation ready accelerates approval and demonstrates financial sophistication to lenders.
Research lenders specializing in foreign national programs rather than approaching conventional mortgage companies. Specialized lenders like HSBC, America Mortgages, and other international banks understand foreign documentation, accept alternative verification methods, and employ multilingual staff familiar with cross-border transactions.
Calculate your true costs including higher interest rates, property management fees (if needed), international wire transfer costs, and potential currency exchange losses. Even with these premium costs, US real estate often delivers superior risk-adjusted returns compared to alternatives in many countries.
Consider starting with DSCR loans if your primary goal is investment rather than residency. These programs require minimal personal financial disclosure while qualifying purely on property cash flow. You avoid sharing detailed personal income information while still accessing US real estate.
The foreign national mortgage landscape continues improving as lenders compete for international business. Down payment requirements decreased from 40% to 50% several years ago to current 25% to 30% minimums at many lenders. Interest rate premiums narrowed as lenders gained experience with foreign borrower default rates.
Your opportunity to invest in US real estate as a foreign national has never been more accessible. Take advantage of current programs, understand the requirements clearly, prepare thorough documentation, and work with experienced foreign national mortgage specialists who handle international transactions daily.
