Can Foreign Nationals Get DSCR Loans?

Yes. Many DSCR lenders offer specific "Foreign National" programs designed for non-US citizens who want to purchase investment properties in the United States. These programs exist because US real estate is a global investment asset class, and there is significant demand from international buyers who cannot qualify for conventional Fannie Mae loans (which require US citizenship or permanent residency).

Who Qualifies as a "Foreign National" Borrower?

For lending purposes, a foreign national borrower is typically someone who is:

• Not a US citizen
• Not a US permanent resident (green card holder)
• May or may not have a US visa
• Does not have a US Social Security Number (or has a limited US credit history)

US permanent residents (green card holders) typically qualify for standard DSCR programs, not foreign national programs, and may access better terms.

Key Differences in Foreign National DSCR Programs

Down Payment Requirements

Foreign national programs require larger down payments than domestic programs:

• 30-35% down — Typical minimum for foreign national DSCR loans
• Some programs require 40% for certain property types or borrower profiles
• 65-70% LTV is the standard ceiling for most foreign national programs

Credit Verification

Without a US credit history, lenders use alternative credit verification:

• International credit report from borrower's home country
• Bank reference letters from international banks (12-24 months of banking history)
• 12 months of utility, rent, or mortgage payment history
• Two professional reference letters (attorneys, accountants, established business contacts)

Income Documentation

Since DSCR loans use property income rather than personal income for qualification, foreign nationals benefit significantly — the property's rent must simply cover its mortgage. However, lenders still verify:

• Asset documentation (proof of down payment source)
• Bank statements (12 months, international accounts accepted)
• Proof of income or employment is often required for the file even if not used for qualification

Interest Rates

Foreign national DSCR rates typically run 0.5-1.0% higher than equivalent domestic DSCR loans, reflecting the additional documentation complexity and risk.

Eligible Property Types for Foreign National DSCR Loans

• Single-family homes (most programs)
• 2-4 unit properties
• Condominiums (warrantable)
• Short-term rental properties (documented Airbnb income)

Some programs exclude condotels, mixed-use properties, and rural properties for foreign national borrowers.

Entity Ownership

Many foreign national investors purchase through US-formed LLCs or corporations. This is fully supported by most foreign national DSCR programs, and a US LLC can simplify the banking and ownership documentation requirements. The LLC must be formed in a US state (Delaware and Wyoming are popular for foreign owners due to favorable LLC laws).

US ITIN vs. EIN

Foreign national investors without a SSN should obtain either:

• ITIN (Individual Taxpayer Identification Number) — Issued by the IRS for tax filing purposes; allows foreign nationals to file US tax returns on rental income
• EIN (Employer Identification Number) — Required if purchasing through a US LLC or corporation