Can foreign and international investors get mortgages for purchasing property in US?

[AJ Wong]

Just wanted to share some insight regarding foreign national loans and mortgages for international investors without a FICO or US credit score asI've had a a recent uptick in international buyer activity and interest. 

Increasingly Non-QM or non-conventional lenders (not Wells Fargo or Citi/Chase) will offer International investors financing from 65-80% LTV on SFR & Condos and 65-75% LTV on 2-4 units. Above 5+ units is possible but more challenging and rates are where you would expect them..50-65%LTV will be common for higher plex units, a common workarounds is if they have a US based family member or business partner with an LLC..

Some investors or lenders have specific countries of origin that are restricted or even prohibited, check with your mortgage professional. 

Oddly, foreign national loans are very efficient as there is often limited income and employment verification. 

Hope this helps. 

[Colin McMahon]

Great post AJ, 

To add to your insight:

1. DSCR loans have become extremely popular amongst foreign national investors because they do not require income verification to qualify or U.S. credit history (many use local credit history from their home country to verify creditworthiness), allowing for a more efficient underwriting process.

2. International investors should expect an interest that's 1-1.5% higher than U.S. citizen primary mortgages because of the added risk to the lender

3. International investors should expect to provide a downpayment of 25-30% for investment properties. Local banks in their home country (for eg. Canadian investors) may be able to provide a slightly lower downpayment if they can prove that they have enough INCOME (not assets) to cover the monthly mortgage payments in addition to any existing debt. 

4. Max LTV to expect for purchase is 75% of the purchase price, and for refinance, 65%.

It sounds like we serve similar clientele. I'd be happy to connect to see how we can aid each other's efforts. Please feel free to reach out and I'll send a DM to connect.