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Programs
Foreign national DSCR loans
Buying U.S. rental property from abroad, without U.S. income documents.
Depending on the lender, DSCR programs lend to foreign nationals who want U.S. rental property. Typical terms are leverage of about 65% to 75%, a U.S. LLC as the borrower, a valid passport, larger reserves and no U.S. income documents. Depending on the lender, programs do not require a U.S. credit score.
Who uses these programs
Investors living abroad who want U.S. rental property, people relocating who have not yet built U.S. credit, and entrepreneurs with international income that a U.S. lender cannot verify. The ratio still has to work, because that remains the core of the approval.
What is commonly asked
| Item | General expectation |
|---|---|
| Leverage | About 65% to 75% on a purchase, lower on cash-out |
| Borrowing entity | A U.S. LLC is common |
| Identity | A valid passport and other identity documents |
| Credit | Depending on the lender, programs accept international credit references or a letter, and some need no score |
| Reserves | Larger than for U.S. borrowers, with funds often needing to be in U.S. dollars |
| Ratio | 1.0 or higher is typical |
| Income documents | Not the basis for approval. The property's rental income qualifies the loan |
Ranges across our lender network, which vary by lender. Guidelines differ and change, and ITIN holders have separate options with some lenders.
Practical steps
- Form the LLC with a qualified professional before you apply
- Move cash to a U.S. account early, so it is seasoned for the lender
- Line up a U.S. insurance policy and a property manager, since you will not be on site
- Ask your own advisers about tax treatment of U.S. rental income
Start with an application or ask for a quote.
Frequently asked questions
Do you lend to buyers who live outside the U.S.?
Depending on the lender, programs do, commonly at about 70% to 75% loan-to-value with a U.S. LLC, a valid passport and larger reserves, and some need no U.S. credit score. Details differ by lender, so read the foreign national page.
Can I buy the property in my business entity?
Where lender guidelines allow it, yes. Expect a personal guarantee from the owners and entity paperwork such as an operating agreement, an EIN letter and a certificate of good standing. Depending on the program, lenders also take other entities or trusts. Your attorney should advise on structure, and the LLC page covers the lender side.
How many months of reserves will a lender ask for?
Reserves are the liquid funds still in your accounts after closing, measured in months of PITIA. The range runs from none where lender guidelines allow it to about six months, and goes higher for first-time investors, foreign nationals, large loans and low ratios. Where lender guidelines allow it, cash-out proceeds can count toward the requirement.