Foreign national vs ITIN: two different products
First, clear up the confusion, because these get mixed together constantly. A foreign national loan is for someone who lives outside the US — no Social Security number, no ITIN, no US residency, often no US credit file at all — buying US property, almost always as an investment or second home. An ITIN loan is for someone who lives and works inside the US without a Social Security number, files US taxes with an Individual Taxpayer Identification Number, and is usually buying a primary residence. Different borrower, different documentation, different lender panel. If you live and earn in the US, you want the ITIN mortgage guide instead. If you live in Toronto, London, Dubai, São Paulo, or Mexico City and want a Miami condo — this is your page.
How you qualify without US credit
US lenders can't pull a FICO score on you, so foreign national programs replace credit scores with other evidence. The dominant qualification method is the DSCR structure: the lender qualifies the property, not your paycheck. If the unit's rent covers the mortgage payment — a debt service coverage ratio of 1.0 or better — the deal works, and nobody needs to translate your employment contract or verify income across borders. It's the same engine behind domestic DSCR loans, extended to non-resident borrowers. Some lenders also offer full-doc foreign national loans using your foreign income and credit reference letters, but DSCR is faster, cleaner, and what most of the market uses.
Typical terms in 2026
| Term | Typical foreign national range | Compared to US-citizen investor loans |
|---|---|---|
| Down payment | 25-30%, sometimes 35%+ for condotels or weak DSCR | Investor minimums often start at 15-20% |
| Rate | Premium of roughly 1-2% over comparable domestic non-QM | Priced for the extra recovery risk on a non-resident borrower |
| Qualification | DSCR (property cash flow) most common | Same DSCR math; no US credit score required |
| Reserves | Commonly 6-12 months of payments in verifiable accounts | Higher than domestic norms |
| Occupancy | Investment or second home; primary residence rarely available | Non-residents by definition aren't primary occupants |
| Prepayment penalty | Common on DSCR versions (often 3-5 year step-downs) | Standard non-QM feature — negotiate it |
The bigger down payment isn't arbitrary. If a borrower in another country stops paying, the lender's only realistic recovery is the property itself — so they want an equity cushion big enough that foreclosure never loses money. You're paying for their inability to chase you.
The documentation checklist
Every lender's list differs slightly, but expect:
- Passport, and a visa if your country isn't visa-exempt for US entry (many lenders accept ESTA-eligible passports without a visa for purchase transactions)
- Foreign credit reference letters: since there's no US credit file, lenders typically want two or three letters from your home-country banks confirming account history and standing, or an international credit report where one exists
- Proof and sourcing of funds: bank statements (usually two months) showing the down payment and reserves. Cross-border money movement gets scrutiny — wire funds from an account in your own name, keep the paper trail from origin account to US escrow, and avoid last-minute transfers between family members, which trigger sourcing questions
- US bank account: most lenders require one for the monthly payment autodraft; open it early, some banks make this slow for non-residents
- Property documents: purchase contract, and for DSCR qualification, the appraiser's market-rent schedule
Holding through a US entity
Many foreign buyers take title through a US LLC rather than personally — for liability separation, privacy, and sometimes estate-tax planning (US estate tax exposure for non-residents is a real issue on directly held US property; the exemption for non-resident aliens is dramatically smaller than for citizens). Most foreign national DSCR lenders will happily lend to a newly formed LLC with you as guarantor. The mechanics — formation, operating agreements, how lenders vet the entity — work the same as for domestic investors; see LLC mortgage loans. Whether an LLC, a foreign corporation, or direct ownership is right for you is a tax question that varies wildly by your home country's treaty situation. Spend the money on a cross-border tax advisor before you close, not after.
The FIRPTA note (for when you sell)
One thing to plan for now: when a foreign person sells US real estate, FIRPTA generally requires the buyer to withhold 15% of the gross sale price and send it to the IRS as a prepayment against your capital gains tax. You file a US return to settle up and recover any excess. It's a withholding mechanism, not an extra tax — but 15% of gross is a serious cash-flow event at closing, and there are reduced-withholding certificates worth applying for in advance. This is squarely tax-professional territory; just know the acronym so it never surprises you.
Where foreign national lending runs deepest
You can get a foreign national loan in most states, but the market is deepest — more lenders, better pricing, appraisers and title companies who do this daily — where foreign buyers concentrate: Florida (Miami, Orlando, Tampa — the single biggest FN market in the country), Texas (Houston, Dallas, Austin), New York, and California. Arizona, Georgia, and Nevada have growing panels too. In thin markets, expect fewer options and slower closings.
Worked example: Canadian buyer, Florida condo
Illustrative numbers only — not a quote. A Toronto-based buyer purchases a $500,000 long-term-rental condo in Tampa:
- Down payment: 30% ($150,000), loan amount $350,000
- Rate: illustrative 8.0% on a 30-year foreign national DSCR loan → principal and interest about $2,568/month
- Taxes, insurance, and HOA: about $850/month → total PITIA about $3,418
- Appraiser's market rent: $3,800/month
- DSCR = $3,800 ÷ $3,418 ≈ 1.11 — above the 1.0 threshold most lenders want, so the deal qualifies on the property's cash flow alone. No US credit pull, no income translation, no tax returns from either country.
The buyer wires $150,000 plus closing costs from her Canadian account (documented for 60 days), shows two bank reference letters from Toronto, opens a US checking account for the autodraft, and closes in an LLC in about four weeks.
Price your Start your foreign national loan in minutes
Tell us your citizenship, target market, and down payment and we'll match you with lenders who close foreign national deals every week. No documents, no login — live indicative pricing as you answer, then a licensed loan officer reviews your exact scenario.
RUN MY SCENARIO →