Foreign national programs exist because conventional underwriting has no way to evaluate a borrower with no US tax history and no US credit file. These programs qualify you on documented assets, source of funds, and — for investment property — the rental income of the property itself.
How Foreign National Loans Work
A foreign national loan is a Non-QM mortgage designed for borrowers who are not US citizens or permanent residents. Rather than pulling a US credit report and reading US tax returns — neither of which typically exists — the lender evaluates documented assets, verified source of funds, credit references from your home country, and the income the property will generate.
Why the market exists: Foreign investment in US residential real estate is substantial and long-established. The financing gap is purely a documentation problem, not a credit-quality one, and Non-QM lending closed it.
Who Qualifies
- Non-US citizens purchasing US investment property
- Borrowers with no US credit file or Social Security number
- Investors residing abroad who intend to hold US rentals
- Non-resident owners refinancing property already held in the US
- Borrowers using an ITIN rather than an SSN, depending on the program
Programs are generally oriented toward investment property. Requirements for second homes vary considerably, and the strongest, most predictable execution is on income-producing property.
Documentation
- Valid passport, and a visa where applicable
- Credit reference letters from banks or lenders in your home country, or an international credit report where available
- Verified assets, typically with a portion held in a US account before closing
- Documented source of funds — this receives close scrutiny and should be prepared early
- Proof of income or business ownership in your home country, translated where required
- Property file — purchase contract, appraisal, insurance, and lease or market rent analysis
Translation and, in some cases, notarisation or apostille of foreign documents is standard. Building that time into your timeline prevents surprises near closing.
What to Expect on Terms
Foreign national programs are among the more conservative Non-QM products, and the terms reflect that:
- Larger down payment. Expect meaningfully more equity than a US-citizen borrower would need on the same property.
- Higher rate. Pricing reflects the additional verification burden and the collection considerations.
- Larger reserves. Often required to be held in a US account.
- Longer timeline. Document gathering, translation, and international verification take time.
- Prepayment penalties. Common, as on most investor Non-QM programs.
Combining With a DSCR Loan
For an investment property purchase, foreign national and DSCR guidelines are typically applied together. The DSCR framework qualifies the property on its rental income; the foreign national framework governs the borrower requirements around identity, assets, and source of funds.
That combination is genuinely powerful: it means your personal income situation in your home country is largely beside the point, as long as your assets and source of funds are documented and the property covers its own payment.
Buying Through an LLC
Many foreign investors hold US property through a US entity for liability and structuring reasons, and Non-QM programs permit entity vesting. You will need proper formation documents, an operating agreement, an authorized signer, and usually a personal guarantee.
Tax treatment for non-resident owners of US real estate — including withholding on rental income and on eventual sale — is a genuinely specialised area. Speak to a US tax advisor with cross-border experience before structuring the purchase, not after.
How the Process Differs
- Start earlier. Source-of-funds documentation and translation drive the timeline more than underwriting does.
- Establish a US account early. Most programs want reserves and often closing funds held domestically.
- Expect closing logistics to need planning. Remote closing, powers of attorney, and consular notarisation may be involved.
- Disclose the structure upfront. If an entity or a trust is involved, say so at application rather than at underwriting.
Program parameters differ between lenders and change with market conditions. The figures here describe what is typical across the Non-QM market — your actual terms depend on your scenario, so submit your deal for real numbers.
