Foreign National Loan: US Mortgages for Non-Residents
A mortgage for someone who isn't a US citizen or resident and has no US credit history. Expect a bigger down payment and a higher rate than a US buyer would get. Many are DSCR loans, so the rent qualifies the deal and your foreign income doesn't come into it.
Prop Hound checks new listings in your market each night against your numbers. Start your 7-day free trial.
A foreign national loan is a US mortgage for a buyer who is neither a US citizen nor a US resident, and who has no US credit history. The lender underwrites the property and your documented assets rather than a US credit file.
Typical terms
| Term | Typical range |
|---|---|
| Down payment | 25% – 40% |
| Interest rate | 1.5% – 3% above a US resident's rate |
| Reserves | 6 – 12 months of payments |
| US credit score | Not required |
| Term | 30-year fixed widely available |
| Entity borrowing | Usually permitted, often preferred |
What lenders ask for
Since there is no US credit report, the file is built from documents:
- Passport, and a visa where applicable
- A credit reference letter from your home-country bank, or an international credit report
- 2 – 3 months of bank statements showing the down payment and reserves
- Proof of income: employment letter, home-country tax returns, or business records
- Source-of-funds documentation for the down payment
- Sometimes a US bank account for payments
Source of funds is where these deals most often slow down. Money that moved between several accounts shortly before closing requires a paper trail for each step. See funding a US rental property from Canada.
Foreign national vs ITIN loan
Different products for different borrowers:
- Foreign national loan: non-resident, lives abroad, no US credit. Highest down payment.
- ITIN loan: lives in the US without a Social Security number, files US taxes with an ITIN, often has some US credit. Usually lower down payment.
Many DSCR loans are also available to foreign nationals, and for a rental the two often overlap. Qualifying on the property's income rather than yours removes the hardest part of a cross-border file.
Other things that come with buying from abroad
- FIRPTA withholding applies when you eventually sell
- You will likely need an ITIN to file US returns on the rental income
- Closing remotely usually means a notary at a US consulate or an approved local notary
Related reading
Foreign national loans explained goes deeper on qualifying, and can a Canadian get a US mortgage or DSCR loan covers the Canadian case specifically. Start at investing in US real estate from Canada for the whole picture.
Longer reads on this
Related terms
Run the number on a real listing
The free calculator works out cash-on-cash return, cap rate and DSCR from a price and a rent.