Can I Get a Loan in the US as a Foreigner? Complete Guide 2026

Yes, foreign nationals can absolutely secure loans in the United States, including construction loans, investment property financing, and development projects. While the process differs from traditional US citizen mortgages, specialized loan programs like DSCR (Debt Service Coverage Ratio) loans make it increasingly accessible for international investors to participate in the US real estate market.

Understanding Foreign National Lending

Foreign national lending refers to mortgage and construction financing available to non-US citizens who wish to purchase, build, or develop property in the United States. These programs recognize that international investors represent a significant portion of US real estate investment, particularly in construction and rental property markets.

The key difference between foreign national loans and traditional mortgages is the underwriting approach. Instead of relying heavily on US credit history and tax returns, lenders evaluate property performance, down payment capacity, and global financial stability.

DSCR Loans: The Primary Solution for Foreign Nationals

DSCR loans have emerged as the most popular financing option for foreign nationals investing in US real estate. These loans qualify borrowers based on the property's rental income potential rather than personal income documentation.

Why DSCR Loans Work for Foreign Nationals

DSCR loans eliminate the most significant barriers facing international investors:

No US tax returns required. Foreign nationals typically don't file US tax returns, making traditional income verification impossible. DSCR loans bypass this entirely by focusing on property cash flow.

No US credit history needed. Many foreign nationals lack established US credit scores. DSCR underwriting considers alternative credit profiles and international financial credentials.

Investment-focused qualification. The loan approval centers on whether the property generates sufficient rental income to cover the mortgage payment, typically requiring a DSCR of 1.0 or higher.

Streamlined documentation. Foreign nationals provide passport identification, proof of down payment funds, and property appraisal rather than extensive personal financial documentation.

Use our DSCR calculator to determine if your investment property qualifies for foreign national financing.

Loan Types Available to Foreign Nationals

1. DSCR Investment Property Loans

Best for rental properties and small multifamily acquisitions. These loans offer:

• Loan amounts up to $3 million
• Down payments starting at 20-25%
• No personal income verification
• Fast closing timelines (30-45 days)
• Interest-only payment options available

2. Construction Loans for Foreign Nationals

Construction financing is available for foreign nationals building ground-up projects or major renovations. Construction loans typically require:

• 30-40% down payment
• Detailed construction plans and budgets
• Licensed contractor agreements
• Proven experience in real estate development or strong financial reserves
• Interest reserve accounts during construction phase

3. Portfolio Loans

Portfolio loans remain on the lender's books rather than being sold to secondary markets. This flexibility allows lenders to create custom solutions for foreign nationals with unique circumstances:

• Non-warrantable condos
• Multiple simultaneous purchases
• Commercial properties
• Mixed-use developments

4. Foreign National Conventional Loans

Some lenders offer modified conventional loans for foreign nationals with:

• ITIN (Individual Taxpayer Identification Number)
• US bank accounts and credit history
• Work visas or extended US residence
• Higher down payments (25-35%)

Documentation Requirements for Foreign Nationals

While DSCR loans minimize documentation, foreign nationals should prepare:

Essential Documents

Valid passport. Primary identification from your home country, valid for at least six months beyond closing.

Proof of down payment funds. Bank statements showing available funds for down payment and closing costs. Some lenders accept 60-90 days of bank statements.

ITIN or foreign tax ID. While not always required for DSCR loans, an Individual Taxpayer Identification Number helps establish financial identity in the US.

Purchase agreement. Contract showing the property details and purchase price.

Property appraisal and rent analysis. Professional valuation and rental income projection demonstrating the property's DSCR.

Additional Helpful Documents

Letter of explanation. Brief statement about your investment goals and real estate experience.

International credit report. Some lenders consider credit reports from your home country as alternative credit documentation.

Bank reference letter. Letter from your international bank confirming account history and average balances.

Proof of reserves. Documentation showing additional liquid assets beyond the down payment, typically 6-12 months of property expenses.

Down Payment and Rate Expectations

Foreign nationals should budget for higher down payments and slightly elevated interest rates compared to US citizens.

Down Payment Requirements

• DSCR investment properties: 20-30%
• Construction loans: 30-40%
• Primary residence: 30-35%
• Commercial properties: 35-45%

The larger down payment mitigates lender risk and demonstrates your financial commitment to the investment.

Interest Rates

Foreign national interest rates typically run 0.5-1.5% higher than comparable US citizen loans. Current DSCR rates for foreign nationals range from 7.5-9.5% depending on:

• Down payment size
• Property location and condition
• Borrower reserves and international financial strength
• Loan amount and property type
• Credit profile strength

The Foreign National Loan Application Process

Step 1: Initial Consultation

Contact a foreign national lending specialist to discuss your investment goals, citizenship status, and financing needs. This initial conversation establishes whether DSCR, construction, or other loan products fit your situation.

Step 2: Pre-Qualification

Provide basic information about your financial capacity and target property type. Lenders issue pre-qualification letters that strengthen your position when making offers on US properties.

Step 3: Property Identification

Locate investment properties that meet DSCR lending criteria. Focus on properties with strong rental markets and cash flow potential. Your lender can help evaluate whether specific properties qualify.

Step 4: Formal Application

Submit your passport, proof of funds, and property details. The lender orders appraisal and title work while you prepare remaining documentation.

Step 5: Underwriting

Underwriters evaluate the property's DSCR, your down payment source, and overall loan feasibility. This process typically takes 7-14 days for DSCR loans.

Step 6: Closing

Close in person or through power of attorney if unable to travel to the US. You'll need to wire your down payment from international accounts 2-3 days before closing.

Ready to start the process? Apply for foreign national financing today.

Common Challenges and Solutions

Challenge: Transferring Large Sums from Overseas

Solution: Work with international wire services familiar with real estate transactions. Document the fund source clearly and initiate transfers early to account for multi-day processing. Many foreign nationals establish US bank accounts 60-90 days before closing to simplify fund transfers.

Challenge: Understanding US Real Estate Markets

Solution: Partner with real estate agents experienced with international investors. Focus on markets with strong rental demand, landlord-friendly regulations, and established property management industries. Popular foreign national investment markets include Florida, Texas, Arizona, and Tennessee.

Challenge: Managing US Properties from Abroad

Solution: Hire professional property management companies before closing. Budget 8-12% of rental income for management fees. Quality property managers handle tenant screening, maintenance, rent collection, and compliance with local regulations.

Challenge: Entity Structure Questions

Solution: Consult with US tax advisors familiar with international real estate investment. Many foreign nationals use LLC structures for liability protection and potential tax benefits. Entity formation should occur before loan application, as some lenders prefer lending to individuals while others accept LLC borrowers.

Tax Considerations for Foreign Nationals

While DSCR loans don't require US tax returns for qualification, foreign nationals should understand the tax implications of US real estate ownership.

Key Tax Points

FIRPTA withholding. The Foreign Investment in Real Property Tax Act requires withholding on rental income and property sales. Work with international tax specialists to optimize your tax position.

ITIN requirement for rental income. Foreign nationals earning US rental income need an Individual Taxpayer Identification Number to file annual tax returns reporting rental income and expenses.

Tax treaty benefits. Many countries have tax treaties with the US that may reduce withholding rates or provide other benefits. Consult with advisors familiar with your home country's treaty provisions.

Estate planning considerations. US property ownership may create US estate tax exposure for foreign nationals. Proper structuring protects your heirs from excessive taxation.

Special Situations

Foreign Nationals with US Visa Status

Work visa holders (H-1B, L-1, E-2) and students (F-1) may qualify for more favorable loan terms, including lower down payments and conventional financing options. Your visa status demonstrates stronger US ties and may reduce lender risk perception.

Foreign Nationals with Existing US Properties

Portfolio lenders offer special programs for foreign nationals expanding their US real estate holdings. If you've successfully owned and managed US properties, lenders view you as less risky and may offer:

• Lower down payments on additional purchases
• Better interest rates based on proven performance
• Higher loan amounts
• Faster approval processes

Construction Projects for Foreign Nationals

Foreign nationals building ground-up projects or major renovations face additional scrutiny but can definitely secure construction financing. Keys to approval include:

• Hiring licensed, insured US contractors with strong track records
• Providing detailed construction budgets and timelines
• Demonstrating real estate development experience
• Maintaining larger reserves (12-18 months of expenses)
• Potentially using experienced co-borrowers or partners

Best Practices for Foreign National Borrowers

Start early. Begin the lending relationship 3-6 months before you plan to purchase. This allows time for documentation gathering, fund transfers, and market research.

Build US financial footprint. Open US bank accounts and establish some US credit history through secured credit cards if possible. While not required for DSCR loans, this strengthens your overall profile.

Focus on cash flow properties. Target properties with strong rental markets and conservative DSCR ratios (1.2 or higher). This increases approval odds and ensures investment success.

Maintain larger reserves. Keep 12-18 months of property expenses in liquid reserves. This demonstrates financial stability and preparedness for property management challenges.

Use experienced professionals. Work with real estate agents, lenders, attorneys, and accountants familiar with foreign national transactions. Their expertise prevents costly mistakes and delays.

Understand total investment costs. Budget for down payment, closing costs (3-5% of purchase price), furniture/repairs, property management setup, and 6 months of reserves.

Why Foreign Nationals Choose US Real Estate

International investors continue to see the United States as a premier real estate investment destination for several compelling reasons:

Market stability. US property markets offer relative stability compared to many international markets, with strong legal protections for property owners.

Currency diversification. US real estate provides asset diversification outside your home country's currency and economy.

Strong rental markets. Many US metros offer excellent rental yield opportunities with professional property management infrastructure.

Potential residency path. Real estate investment, while not directly providing visas, demonstrates US economic ties that may support future visa applications.

Generational wealth building. US property can provide income and appreciation while creating legacy assets for your family.

Next Steps for Foreign National Borrowers

Getting a loan in the US as a foreigner is absolutely achievable with the right approach and lending partners. DSCR loans have revolutionized foreign national lending by focusing on property performance rather than personal documentation barriers.

The key is working with lenders who specialize in foreign national transactions and understand the unique aspects of international real estate investment.

Contact our foreign national lending team to discuss your specific situation and explore financing options tailored to international investors.

Whether you're purchasing rental properties, building ground-up construction projects, or expanding an existing US real estate portfolio, specialized financing solutions exist to help foreign nationals succeed in the American real estate market.

Start your US real estate investment journey by applying for pre-qualification today and discovering exactly what financing options match your investment goals.

This article provides general information about foreign national lending and should not be considered legal or tax advice. Foreign nationals should consult with qualified advisors familiar with international real estate investment before making property purchases in the United States.