Since 2009, foreign investors have poured over $1.2 trillion into U.S. real estate. That’s a huge show of faith in the American real estate market!
Suppose you’re a foreign national eyeing a cozy vacation home in Miami, a rental property in Austin, or even a primary residence in Seattle. With that being said, you’re probably thinking, “Can I get a mortgage in the U.S.?” Well, yes, you absolutely can!
In this guide, I’ll explain everything you need to know about qualifying for foreign national mortgage loans in 2025.
What Are Foreign National Mortgage Loans?
A foreign national mortgage loan allows foreign nationals to purchase property in the United States. These loans often come from private lenders, international banks, or specialty programs tailored for foreign buyers.
Whether you’re dreaming of a beachfront condo, a city apartment, or an investment property to rent out, these loans are your ticket. The best part is that you don’t need to be a U.S. citizen or even live here full-time to qualify.
These loans cater to folks on visas, international investors, or anyone looking to own properties in the U.S. or dip their toes in the U.S. real estate market.
Who Qualifies as a Foreign National?
A foreign national means that you are not a U.S. citizen or a U.S. green card holder and that your primary residence is outside of the U.S. It does not matter if you frequently come to the U.S. or if you even have a U.S. visa, as long as your primary residence is in a foreign country, you will be considered a foreign national.
Why Invest in U.S. Real Estate?
Why are so many foreign nationals jumping into the U.S. real estate market? For one, the U.S. offers a stable economy and strong property rights, which means your investment is pretty secure.
Also, properties here tend to appreciate over time, which is an added financial plus. From April 2023 to March 2024, foreign buyers purchased $42 billion of U.S. residential real estate, which is 54,300 properties!
Whether you want a vacation home to visit, a rental property for extra income, or a place to call home, you can find a property well suited for you. And let’s be honest, owning a property in America is as luxurious as it can get!
How to Qualify for a Foreign National Mortgage Loan
It’s not as complicated as it might seem, but you’ll need to check a few boxes.
Here’s what lenders typically look for:
- Documentation: You’ll need to prove who you are and that you’ve got the funds. This means a valid passport, a visa, and proof of income (bank statements, tax returns, or a letter from your employer). Some lenders might also ask for a U.S. bank account to make things easier.
- Down Payment: Brace yourself for a bigger down payment than U.S. citizens might pay. Most lenders require 25% to 40% of the property’s value upfront. It’s a way for them to feel secure since you might not have deep ties to the U.S. financial system.
- Credit History: No U.S. credit score? No worries! Lenders can use international credit references, like reports or letters from banks in your home country. They’ll also look at your overall financial strength, like how much cash you’ve got in the bank.
- Visa Status: Your visa can play a big role. Certain visas, like B-1, B-2, H-2, H-3, I, J-1, J-2, O-2, P-1, P-2, or being from a Visa waiver country, might make you eligible for specific loan programs.
- No Social Security Number? That’s okay! You can make use of an Individual Taxpayer Identification Number (ITIN). It’s like a Social Security number for non-citizens and works just fine for mortgage applications.
Start collecting these documents now. Having them ready will save you time and stress when you’re applying!
Types of Foreign National Mortgage Loans
Not all foreign national loans are the same. Depending on your goals, you’ve got options. Here’s a quick rundown:
- Fixed-Rate Loan – Has fixed interest rates that have stable monthly payments
- Debt service coverage ratio loans – Allows borrowers to qualify based on the rental income the property generates.
- Adjustable-Rate Mortgage (ARM) – Has initial lower rates but changes sometimes.
- Interest-Only Loan – These loans have lower payments for investors.
- Portfolio Loans – They look at specific borrowers’ assets rather than income to identify customized financing.
- ITIN loans refer to loans in which a borrower does not hold a Social Security number, instead they are looking to finance a purchase while using an Individual Taxpayer Identification Number (ITIN).
Each type has its specialty, so talk to a lender to figure out which one fits your situation.
The Application Process
Applying for a foreign national mortgage loan might sound intimidating, but it’s just a series of steps. Here’s how it goes:
- Find a Lender: Not every bank offers foreign national loans, so look for ones that specialize in them. A quick online search or a chat with a real estate agent can point you in the right direction.
- Gather Your Documents: Round up your passport, visa, proof of income, bank statements, and any international credit references. Having these ready makes you look serious and speeds things up.
- Get Pre-Approved: Pre-approval indicates to sellers you are serious and helps you understand your budget.
- Search for a Property: Find a real estate agent who knows your local area and can help you find a suitable property to suit your needs and budget.
- Submit Your Application: Once you’ve found “the one,” send in your loan application with all your documents. Be patient—this part can take a bit.
- Underwriting: The lender will review everything to make sure you qualify. They might ask for extra documents, so stay responsive.
- Closing: If approved, you will sign the final documents, pay your down payment, and get your keys to the property!
It’s a process, but with the right team, it’s manageable.
Challenges and How to Tackle Them
Let’s be real—there can be some bumps in the road. Here are a few common challenges and how to handle them:
- Language Barriers: If English isn’t your first language, all the mortgage lingo can feel overwhelming. Solution: Work with a bilingual mortgage broker or real estate agent who speaks your language. They can break it down for you.
- Unfamiliar Financial Systems: The U.S. banking system might be totally different from what you’re used to. Solution: Do some research on U.S. mortgage practices and lean on experts who understand both your home country and the U.S.
- Higher Down Payment: Saving up 25-40% can be a stretch. Solution: Get creative—sell assets, borrow from your home country, or team up with investors to pool resources.
These hurdles are real, but they’re not dealbreakers. With a little planning, you can overcome them.
FAQs
- Can I get a loan from another country?
Many lenders offer foreign national mortgage loans to people living abroad. You don’t need to be in the U.S. to apply. - Who is considered a foreign national?
Anyone who’s not a U.S. citizen or permanent resident. That includes tourists, students, or workers on visas. - Can a foreign national own an LLC?
Yup! You can set up an LLC in the U.S. to hold your real estate, which can be a smart move for tax or liability reasons. - What are foreign national loans?
They’re mortgages for non-U.S. citizens or residents looking to buy U.S. property, like homes or rentals. - Does the National Credit Code apply to business loans?
Nope, that’s an Australian law. U.S. mortgage loans follow their own rules, so you’re in the clear here.
Wrapping Up
So, there you have it—a complete guide to qualifying for a U.S. mortgage loan as a foreign national in 2025. From gathering documents to picking the right loan type, it’s all about preparation and finding the right team to guide you.
With foreign investment in U.S. real estate booming, now’s an exciting time to jump in. Whether you’re dreaming of a vacation home, an investment property, or a place to call your own, you’ve got this.
Start exploring lenders, connect with a real estate agent, and take that first step toward achieving your American dream.