Can Foreign Nationals Get US Mortgages?

The short answer is yes. While conventional Fannie Mae and Freddie Mac loans require US residency or citizenship, there is a robust market of lenders who specialize in foreign national mortgages. I have helped clients from over 40 countries finance US property purchases.

These loans typically require higher down payments and carry slightly higher interest rates than conventional mortgages, but they make US real estate ownership accessible to non-residents who cannot qualify for traditional financing.

Key Difference from Conventional Loans

Foreign national mortgages are portfolio loans, meaning the lender keeps them on their books rather than selling to Fannie Mae or Freddie Mac. This gives lenders flexibility to work with non-resident borrowers but typically results in rates 0.5-1.5% higher than conventional loans.

Types of Foreign National Mortgages

Foreign National Loans (No US Credit Required)

These loans are designed specifically for buyers with no US credit history. Lenders evaluate your foreign credit, income documentation, and assets. Available for both investment properties and vacation homes.

ITIN Loans

If you have an Individual Taxpayer Identification Number (ITIN), you may qualify for loans that do not require a Social Security Number. ITINs are commonly held by foreign nationals who have US tax obligations, such as rental income or business earnings.

DSCR Loans (Debt Service Coverage Ratio)

For investment properties, DSCR loans qualify you based on the property's rental income rather than your personal income. If the property's projected rent covers 1.0x to 1.25x the mortgage payment, you can qualify regardless of your employment situation.

Loan Type Down Payment Rate Premium Best For
Foreign National 25-40% +1.0-1.5% Vacation homes, second homes
ITIN Loan 20-30% +0.75-1.25% Buyers with ITIN, some US ties
DSCR 20-25% +0.5-1.0% Investment properties
Bank Statement 20-25% +0.5-1.0% Self-employed, business owners

Documentation Requirements

Lenders will request different documentation depending on the loan program. Here is what I typically see requested from my foreign national clients:

Standard Documentation

Additional Documents Often Requested

Document Translation

All documents must be translated to English by a certified translator. Some lenders accept translations from agencies; others require court-certified translations. Budget $50-200 per document for translation services.

Lenders Who Work with Foreign Nationals

Not every bank or mortgage company will work with non-residents. Here are categories of lenders who actively serve the foreign national market:

National Banks with International Divisions

HSBC, Citibank, and other international banks sometimes offer mortgages to their existing foreign clients.

  • Requires existing banking relationship
  • May offer better rates for high-net-worth clients
  • Often requires significant deposits

Portfolio Lenders

Regional banks and credit unions that keep loans in-house and can set their own underwriting guidelines.

  • More flexible underwriting
  • Often focus on specific markets (Florida, California)
  • May require local property management

Non-QM Lenders

Specialty lenders who focus on non-qualified mortgages, including foreign national programs.

  • Widest range of programs
  • Often work through mortgage brokers
  • Examples: Angel Oak, Deephaven, Citadel

Hard Money / Bridge Lenders

Short-term lenders for investors who need quick closings or cannot qualify elsewhere.

  • Close in 1-2 weeks
  • Higher rates (8-12%)
  • 1-3 year terms, then refinance

The Financing Process Step by Step

  1. Get Pre-Qualified

    Before shopping for property, get a pre-qualification letter from a foreign national lender. This shows sellers you are a serious buyer and helps you understand your budget.

  2. Gather Documentation

    Collect and translate all required documents. Having everything ready speeds up the process significantly.

  3. Make an Offer

    Work with a real estate agent to submit an offer. Include your pre-qualification letter and proof of funds for the down payment.

  4. Formal Application

    Once under contract, submit a formal loan application. The lender will order an appraisal and begin underwriting.

  5. Underwriting

    Expect 3-5 weeks for underwriting. The lender may request additional documentation during this phase.

  6. Closing

    Sign closing documents (can often be done remotely via notary or at a US consulate), wire funds, and receive the keys.

Timeline Expectation

Foreign national mortgages typically take 45-60 days from application to closing, compared to 30-45 days for conventional loans. Plan accordingly when negotiating your purchase contract.

Common Challenges and How I Help

Wire Transfer Complications

Moving large sums internationally can trigger compliance reviews. I help clients prepare proper documentation to demonstrate the legitimate source of funds and avoid wire delays that could jeopardize the closing.

Entity Structuring

Many lenders will finance properties held in LLCs, but require personal guarantees and specific operating agreement provisions. I work with clients to structure entities that satisfy both lender requirements and asset protection goals. Learn more about LLC ownership.

Country-Specific Restrictions

Some lenders have restrictions based on your country of citizenship due to sanctions or compliance concerns. If you are from a restricted country, I can help identify lenders who will work with your situation.

FIRPTA and Tax Planning

The financing structure can impact your eventual tax obligations when selling. I coordinate with tax advisors to ensure your purchase structure optimizes for FIRPTA withholding and treaty benefits.

Ready to Finance Your US Property?

Schedule a consultation with me. I will review your situation, recommend appropriate lenders, and help structure your purchase for maximum protection and tax efficiency.

Sergei Tokmakov, Attorney — California Bar #279869