Can You Get a US Mortgage as a Foreign Investor? Your Complete Guide to DSCR Loans

Can a Non-US Citizen Get a Mortgage to Buy US Investment Property?

Yes — foreign nationals can legally finance US rental property. This surprises a lot of investors who assume the American mortgage market is closed to non-residents, but there's an entire product category built specifically for cross-border buyers.

The key distinction is that foreign national mortgage programs — sometimes called foreign national loans or Non-QM loans (non-qualified mortgages that fall outside standard Fannie Mae/Freddie Mac guidelines) — underwrite you differently than a conventional bank would. They don't expect you to have a US credit score, US tax returns, or even a US bank account at the time of application. What they care about is the property itself and your ability to fund the deal.

That said, not every lender offers these programs. Most conventional banks and credit unions will turn you away, not because it's illegal, but because they simply don't have the infrastructure for it. The lenders who do — including Greenbox, AD Mortgage, Forward Lending, and AmWest — have built dedicated foreign national desks and know exactly what documentation a non-US borrower can actually provide.

Do I Need a Social Security Number or US Credit History?

No. Most foreign national DSCR programs require neither a Social Security number nor a US credit history.

Some lenders will ask for an ITIN (Individual Taxpayer Identification Number) — a nine-digit tax processing number the IRS issues to foreign nationals who have US tax obligations but aren't eligible for a Social Security number. An ITIN is worth getting regardless because it simplifies tax filing on rental income, but it's not universally required just to close a loan.

For credit, lenders typically accept one of two things: an international credit reference (a letter from your home-country bank confirming your relationship and standing), or no credit reference at all if the property's income profile is strong. The underwriting logic is different — the loan qualifies on the deal, not on you personally.

What Is a DSCR Loan and Why Do Most Foreign Investors Use It?

A DSCR loan (Debt Service Coverage Ratio loan) is a mortgage that qualifies based on the rental income of the property rather than the borrower's personal income or employment. It's the dominant financing tool for foreign national real estate investors for a simple reason: it sidesteps the documentation that foreign buyers can't easily provide — US W-2s, US tax returns, US pay stubs.

The DSCR formula is straightforward: Net Operating Income divided by total annual debt service. Monthly rent divided by monthly PITIA (principal, interest, taxes, insurance, and association fees if applicable) gives you the ratio. A DSCR of 1.0 means the rent exactly covers the mortgage payment — the property breaks even. A ratio of 1.25 means rent covers 125% of the payment, which is what lenders consider comfortably profitable.

Lenders price on that ratio. A property with a 1.25+ DSCR in a tier-1 market can unlock better rate pricing and potentially reach 80% LTV (Loan-to-Value) on strong files. A property sitting below 1.0 — common in some high-appreciation markets where rents haven't caught up to prices — may still qualify under a no-ratio DSCR loan, though those carry higher rates and stricter reserve requirements.

Consider a concrete example: a $300,000 single-family rental in Tampa generating $2,100/month in rent, with a PITIA of $1,700/month. DSCR = 2,100 ÷ 1,700 = 1.24 — just under the 1.25 threshold, but close enough that some lenders will still price it favorably.

What Documents Does a Foreign National Need to Apply?

The document list is shorter than most investors expect, but what's on it needs to be thorough.

• Valid passport (the primary identity document — no driver's license required)
• 6–12 months of foreign bank statements showing the source of your down payment funds
• Proof of down payment and reserves (more on that below)
• Signed purchase contract or appraisal of the target property
• Rental schedule or lease agreement (used to calculate DSCR)
• International credit reference letter if available (helps but rarely required)

Notice what's not on that list: US tax returns, US pay stubs, or proof of US employment. The loan is underwriting the property, not your career. Some lenders will ask for a CPA letter from your home country confirming income, particularly if you're applying for a full-doc foreign national program rather than a pure DSCR product.

One common surprise: lenders typically want 12 months of bank statements, not 3. If your funds are spread across multiple accounts, you'll need statements for all of them. Start gathering these early — sourcing and seasoning requirements mean the money needs to have been sitting in your account, not just wired in the week before application.

A typical foreign national DSCR closing takes 21–45 days once the loan file is complete. If you need to form a US LLC (Limited Liability Company) to hold the property — which many lenders prefer or require — build in an extra 2–4 weeks before you even submit the application.

How Much Do I Need for a Down Payment as a Foreign Investor?

Plan for 25–30% down. Most foreign national DSCR programs set their LTV ceiling at 70–75%, which translates to a 25–30% down payment requirement. On a $350,000 property, that's $87,500–$105,000 before closing costs.

The down payment premium exists because lenders price in the additional complexity of lending to a non-US borrower — enforcing a loan against a foreign national is legally and practically harder than against a US resident. The higher equity cushion is their risk offset.

Strong files can do better. If your DSCR comes in at 1.25 or above and you're buying in a tier-1 market, some lenders will extend to 80% LTV — a 20% down payment — which meaningfully changes the capital required and the cash-on-cash math.

The figure that surprises most first-time foreign investors isn't the down payment — it's the reserve requirement. Most programs require 6–12 months of PITIA payments in liquid reserves after closing. That means after you've wired the down payment and paid closing costs, you need to show another 6–12 months of mortgage payments sitting in an accessible account. On a $350,000 loan at 7%, PITIA might run $2,600/month — so reserves alone could mean $15,600–$31,200 in documented liquid assets, post-close.

Those reserves need to be real, accessible, and documented with statements. They cannot be equity in another property or funds that disappear after verification.

Should I Buy US Property in My Own Name or Through a US LLC?

This is one of the most consequential structural decisions you'll make, and the answer for most foreign investors tilts toward the LLC.

A US LLC (Limited Liability Company) is a legal entity formed under state law — typically Delaware or the state where the property sits — that owns the asset in its place. You own the LLC; the LLC owns the property. From a lender's perspective, many foreign national DSCR programs actually prefer or require the LLC structure because it simplifies title and enforcement. From an investor's perspective, it creates a liability wall between your personal assets and the property.

Practical considerations:

• LLC formation takes 1–3 weeks depending on the state; some states are faster than others
• You'll need an EIN (Employer Identification Number) for the LLC, which requires an IRS application — add another 1–2 weeks if done by mail, or use an agent service for faster processing
• The LLC needs a US bank account, which requires the EIN and sometimes an in-person visit or a business formation agent
• Annual LLC fees vary by state; Delaware runs around $300/year, Florida around $138/year

The FIRPTA angle reinforces the LLC case. FIRPTA (the Foreign Investment in Real Property Tax Act) is a US federal law that requires a buyer to withhold a portion of the sale price when purchasing US real estate from a foreign seller. For investment properties over $1M, that withholding is 15% of the gross sale price — not net profit, gross proceeds. On a $500,000 sale, that's $75,000 withheld at closing, which is then credited against your actual US tax liability when you file. The LLC doesn't eliminate FIRPTA, but it does simplify the tax filing structure and can affect how treaty benefits are claimed.

If you're Israeli, the US-Israel tax treaty is worth a specific conversation with a cross-border CPA before you close. The treaty governs how US rental income is taxed at the source and whether withholding rates are reduced — an area no general mortgage guide will get right for your specific situation.

What Interest Rate Should a Foreign National Expect?

Foreign national DSCR rates are meaningfully higher than what US domestic investors pay. As of June 2026, expect approximately 7.00% at par for a foreign national DSCR loan, compared to roughly 6.12% for a similarly structured domestic investor loan — a spread of about 90 basis points.

In practice, the range you'll see quoted runs wider: 7.0–8.5% depending on LTV, DSCR ratio, property type, and lender. Points, buydowns, and lender fees will affect your effective cost further.

That spread matters for deal analysis. Model your deals at 7.5% to be conservative. At that rate, a $280,000 30-year loan carries a principal and interest payment around $1,958/month. Add taxes, insurance, and HOA (if applicable) and you have your full PITIA — which is what the DSCR calculation works from.

The gap narrows on strong files. A 30% down payment, a DSCR of 1.3+, and a property in a high-demand rental market can pull your rate toward the lower end of that range. The lender sees less risk; the pricing reflects it.

One angle Israeli investors specifically navigate: the shekel-to-dollar exchange rate. If you're funding the down payment from shekel-denominated savings, when you convert matters. The ILS/USD rate has moved significantly over multi-year periods, and a 5–8% currency swing can meaningfully amplify or erode your effective acquisition cost before the deal even closes.

Can Israeli Investors Get a US Mortgage From an Israeli Bank?

Generally, no — and this is one of the most common time-wasters for Israeli investors entering the US market.

Israeli banks (Bank Hapoalim, Bank Leumi, Mizrahi-Tefahot) do not offer US property loans through their standard retail mortgage channels. Some private banking divisions at these institutions can arrange financing for high-net-worth clients buying in the $2M+ range, but for a typical $250K–$600K US rental property, the Israeli bank will tell you it's not their product. That's accurate — it genuinely isn't.

The right path is a US-based Non-QM lender with a foreign national DSCR program. The lenders who consistently work with Israeli buyers know how to read foreign bank statements in Hebrew, understand the Israeli banking system's document formats, and have processed Israeli borrowers before. That familiarity shortens the process.

A US mortgage broker who specializes in foreign national lending is often the fastest entry point. They know which lenders are currently active in foreign national programs, which are backed up, and which have specific overlays (restrictions) on Israeli borrowers or Israeli-entity LLCs. One broker relationship can save you weeks of cold outreach to lenders who will ultimately decline.

The 21–45 day closing window is realistic once you have the right lender and a complete file. The time that gets wasted is almost always at the front: approaching the wrong lenders, assembling documents piecemeal, or waiting on the LLC formation that should have started earlier.

Sources

• HomeAbroad — DSCR Loan Rates for Foreign Nationals (June 2026)
• America Mortgages — 2026 Foreign National Handbook and DSCR FAQ
• HomeAbroad — US Tax Treaties and Real Estate (FIRPTA Overview)