Foreign National Mortgage Loans

Foreign national mortgage programs may be available to eligible non-U.S. citizens who primarily reside outside the United States and want to purchase or refinance a second home or investment property in the U.S.

Documentation, residency requirements, eligible countries, property types, down payment, reserves, credit review, loan purpose, and available terms vary by lender and program.

What Is a Foreign National Mortgage?

A foreign national mortgage is financing offered by certain lenders to eligible non-U.S. citizens who primarily reside outside the United States and want to purchase or refinance property in the U.S.

Rather than relying entirely on U.S. tax returns, W-2 income, or an established U.S. credit score, the lender may evaluate qualifying foreign income, employment or business activity, assets, banking relationships, credit references, identity, residency, and the proposed property.

A foreign national mortgage is not a no-documentation loan. The lender must still review the borrower's financial qualifications, source of funds, property, ownership structure, and ability to repay.

Who May Consider a Foreign National Mortgage?

• Non-U.S. Residents / International Investors: Eligible non-U.S. citizens who primarily live and earn income outside the United States.
• International Investors: Borrowers purchasing eligible U.S. rental properties for income, diversification, or long-term investment.
• Second-Home Buyers: Foreign buyers purchasing an eligible U.S. residence for vacation, seasonal, or occasional personal use.
• Self-Employed Borrowers: Business owners whose qualifying income and financial strength are documented outside the United States.
• Buyers Without U.S. Credit: Borrowers who may be evaluated using eligible foreign credit references, banking history, housing payments, or alternative documentation.
• U.S. Entity Buyers: Eligible investors purchasing property through an approved U.S. LLC or other permitted business entity.

Foreign National Documentation Options

Identification and Residency Documents: Depending on the program, the lender may request a valid passport; visa or travel documentation, when applicable; proof of the borrower's primary foreign residence; government-issued identification; U.S. contact or service information; and other documents required by the lender or title company.

Foreign Employment Income: Salaried borrowers may be asked to provide employment-verification letters, recent pay statements, employment contracts, foreign tax or income documents, bank statements showing payroll deposits, and employer contact information. Documents may need to be translated into English or converted into U.S. dollars using an acceptable exchange-rate source.

Foreign Self-Employment Income: Business owners may be asked to provide business-registration documents, ownership verification, accountant or CPA letters, profit-and-loss statements, business bank statements, foreign tax documents, and evidence of ongoing business operations.

Asset-Based Qualification: Some programs may place greater emphasis on eligible liquid assets, investment accounts, or banking relationships rather than traditional monthly income.

Rental-Property Cash Flow: For eligible investment properties, certain programs may evaluate the property's qualifying rental income through a DSCR or similar business-purpose calculation.

Foreign National Mortgage Options

• Second-Home Purchase: Purchase an eligible U.S. residence for personal vacation or seasonal use, subject to occupancy and property requirements.
• Investment-Property Purchase: Finance an eligible U.S. rental property using foreign financial documentation or property cash flow.
• Rate-and-Term Refinance: Replace an eligible existing mortgage to adjust the interest rate, payment, term, or loan structure.
• Cash-Out Refinance: Access eligible property equity for permitted purposes, subject to ownership seasoning, valuation, credit, reserves, and program requirements.
• Individual Ownership: Purchase or refinance the property in the eligible borrower's individual name.
• Entity Ownership: Certain business-purpose investment programs may permit title to be held by an approved U.S. LLC or other eligible entity.

Potential Benefits of a Foreign National Loan

• U.S. Credit May Not Be Required: Certain lenders may evaluate foreign credit references, banking history, housing payments, or other approved documentation.
• Foreign Income May Be Considered: Eligible income earned outside the United States may be reviewed using program-approved documents.
• Foreign Assets May Be Used: Qualifying foreign bank, investment, or other liquid assets may be considered for the down payment, closing costs, and reserves.
• Purchase and Refinance Options: Programs may be available for eligible purchases, rate-and-term refinances, and cash-out refinances.
• Second-Home and Investments: Foreign national programs may serve eligible personal-use second homes and non-owner-occupied investment properties.
• Entity Vesting May Be Available: Certain investment programs may allow closing through an approved U.S. business entity.

What Properties May Be Eligible?

Five-unit and larger properties, commercial buildings, and certain mixed-use properties should generally be reviewed through commercial financing rather than a residential foreign national mortgage program.

• Commonly Considered: Single-family homes
• Commonly Considered: Two- to four-unit residential properties
• Commonly Considered: Townhomes
• Commonly Considered: Eligible condominiums
• Commonly Considered: Second homes
• Commonly Considered: Investment properties
• Commonly Considered: Certain planned-unit developments
• Commonly Considered: Certain short-term rental properties
• Program-Specific or Restricted: Condotels
• Program-Specific or Restricted: Non-warrantable condominium projects
• Program-Specific or Restricted: Mixed-use properties
• Program-Specific or Restricted: Rural or unique properties
• Program-Specific or Restricted: Properties requiring substantial repairs
• Program-Specific or Restricted: Properties with title, zoning, or environmental concerns
• Program-Specific or Restricted: Manufactured homes
• Program-Specific or Restricted: Five-unit and larger multifamily properties
• Program-Specific or Restricted: Commercial real estate

What Determines Your Foreign National Loan Options?

Available terms may depend on:

• Country of citizenship
• Country of residence
• Valid passport and identification
• Visa or U.S. residency documentation, when applicable
• Foreign income and employment history
• Self-employment or business history
• Foreign and U.S. assets
• U.S. or foreign credit history
• Mortgage and housing-payment history
• Purchase or refinance purpose
• Property type and occupancy
• Estimated purchase price or property value
• Down payment or available equity
• Loan amount
• Assets and reserves
• Source and transfer of funds
• Currency-exchange considerations
• Individual or entity ownership
• State and property location
• Lender and program requirements

Important Foreign National Mortgage Considerations

• Larger Down Payments May Be Required: Required buyer contributions may be higher than comparable financing for borrowers with established U.S. income and credit.
• Rates and Costs May Be Higher: Foreign national programs may carry higher interest rates, points, lender fees, or closing costs than traditional mortgage programs.
• Significant Reserves May Be Required: Borrowers may need to maintain a specified amount of eligible liquid assets after closing.
• Documents May Need Translation: Documents prepared in another language may need an acceptable English translation.
• Property Use Must Match the Loan: A second home generally cannot be represented as a personal-use property when it will primarily operate as a rental. Investment properties must use an appropriate investment or business-purpose program.
• Funds Must Be Documented: The lender, title company, and other transaction participants may require documentation showing the ownership, source, and transfer of funds. Mortgage applicants should generally be prepared to explain large deposits and provide documentation supporting down-payment funds.
• Currency Conversion May Be Required: Foreign income and assets may need to be converted into U.S. dollars using a lender-approved exchange-rate method.
• International Transfers May Take Time: Currency conversion, foreign-bank processing, compliance review, and wire-transfer timing should be considered before closing.
• Tax and Legal Advice May Be Needed: Foreign ownership of U.S. property can involve income-tax, estate-planning, entity, withholding, and reporting considerations. Borrowers should consult qualified legal and tax professionals regarding their circumstances.

Foreign National Mortgage Process

• 1. Review Your Financing Goals: We discuss the property, occupancy, purchase or refinance purpose, estimated price or value, ownership plan, and timeline.
• 2. Review Citizenship and Residency Information: We determine which lenders may consider the borrower's citizenship, country of residence, identification, visa status when applicable, and supporting documentation.
• 3. Review Income, Assets, and Credit: We evaluate available foreign income, business records, banking history, assets, housing payments, foreign credit references, and any established U.S. credit.
• 4. Confirm the Source of Funds: We review the proposed down payment, closing funds, reserves, account ownership, currency conversion, and planned transfer of funds into the United States.
• 5. Compare Available Programs: You receive a comparison of estimated payments, down payment or equity, reserves, rates, fees, documentation, prepayment terms, and ownership options.
• 6. Complete the Application and Approval Process: We coordinate documentation, appraisal, title, entity documents when applicable, underwriting, loan conditions, and closing.

Invest in U.S. Real Estate With a Clear Financing Plan

Buying or refinancing U.S. property while living abroad requires more than finding a lender that accepts a foreign passport. The income, assets, credit references, source of funds, ownership structure, property, and long-term plans must work together.

I can help you compare available foreign national programs, estimated payments, down payment, reserves, documentation requirements, entity options, and potential prepayment terms.

Foreign national mortgage programs are subject to credit, income or alternative documentation, assets, reserves, identity, residency, property, occupancy, valuation, source-of-funds, loan-to-value, lender, and state requirements. Rates, fees, terms, eligible countries, documentation requirements, and program availability vary. Foreign national financing does not provide immigration status, employment authorization, or tax advice. Not all borrowers or properties will qualify.