Foreign National Loans
What Are Foreign National Loans?
Foreign national loans are mortgage products created for non-U.S. citizens or residents who want to buy property in the United States. They are designed for borrowers who may not have a U.S. credit history, Social Security number, or permanent residency status.
Key Features
- No Social Security number or U.S. credit history is required.
- Loan amounts can be as high as $5 million.
- Flexible documentation options, with foreign credit reports often accepted.
- Down payments are higher, usually between 20% and 30%.
- Interest rates are generally above conventional loan levels.
- Lenders often require cash reserves covering 3 to 12 months of payments.
How Foreign National Loans Work
Typical Requirements
- A valid passport and visa, if applicable.
- Proof of income and assets, which can come from the borrower’s home country.
- At least two years of employment and residency history.
- Funds placed in a U.S. FDIC-insured bank account, often for at least 30 days before closing.
- Some programs do not allow gift funds for down payments.
Loan Types
- DSCR loans (Debt Service Coverage Ratio): Approval is based on the property’s rental income rather than the borrower’s income.
- Non-QM loans: Flexible mortgages that do not follow traditional qualified mortgage standards.
- Fixed and adjustable rate mortgages: Terms usually range from 15 to 30 years.