Foreign National Loans: Mortgages for International Buyers

The single biggest hurdle for an international buyer is the lack of a US credit score. Conventional mortgage guidelines rely heavily on Equifax, Experian, and TransUnion to generate a FICO score. Foreign National Non-QM programs eliminate this barrier entirely.

What can I show instead?

Instead of a US FICO score, the underwriter will verify your creditworthiness through alternative methods:

• International Credit Reports: If your home country has established credit reporting agencies, the lender can pull an international report.
• Credit Reference Letters: If international reports are unavailable, you can provide official letters from your current banks, credit card companies, or mortgage lenders in your home country stating that your accounts are in good standing.

Because you do not file US tax returns (1040s) or receive US W-2s, the lender cannot use standard Fannie Mae income calculations. There are two primary ways to qualify a Foreign National buyer.

What if I document my income?

If you are employed or own a business in your home country, we can verify your income through your foreign employer or an internationally licensed Certified Public Accountant (CPA). The CPA simply drafts a letter detailing your net income over the past two years. (Note: All documents must be translated into English by a certified translation service).

Can the property qualify on its own?

The easiest and most popular way for an international buyer to purchase an investment property in the US is by combining the Foreign National program with the DSCR (Debt Service Coverage Ratio) program. In this scenario, the underwriter doesn't ask for any CPA letters or foreign employment records. You are approved strictly based on the projected rental income the US property will generate.

While your income and credit can be verified internationally, the actual cash used to close the loan cannot suddenly arrive from overseas on the day of closing.

Where does the money have to sit?

To comply with anti-money laundering (AML) regulations, lenders require that the funds for your down payment and closing costs be transferred into a US-based bank account prior to closing. Furthermore, these funds usually need to be "seasoned" (sitting in the US account) for at least 30 to 60 days before the lender will clear the file.

How much do I need in reserves?

Because the lender cannot easily pursue international assets if you default on the mortgage, they require a safety net. After you pay your 25%-30% down payment and closing costs, you must prove you have remaining liquid reserves. This is typically equal to 12 months of mortgage payments sitting untouched in your US bank account.