Foreign National Mortgage Rates 2026: Current Rates for Foreign Buyers

Foreign National Mortgage Rates: A Clear Guide for International Investors

Updated: June 2, 2026

For international buyers, owning U.S. property can be very rewarding. But choosing the right mortgage and lender as a foreigner can be confusing.

I’ve personally purchased over 120 properties in the U.S. as a foreigner, and in this guide you’ll learn everything you need to know about foreign national mortgage rates, and how to get the very best interest rate on your own foreign national loan.

Remember, mortgage rates in the U.S. change daily. For up to date U.S. mortgage rates available for foreign nationals, see current rates below.

Key Takeaways

• Rates are Often Higher: Mortgage rates for foreign nationals are usually higher compared to loans for U.S. citizens (see current rates below).

• Credit & Income: You might not need to prove your credit score or verify personal income, depending on the type of loan and lender.

• Money in Reserve: Lenders often want you to show cash reserves for a number of months mortgage payments.

• Specialist Lenders: There are a ton of banks and private lenders with foreign national loan programs. Working with a broker that has access to a range of lenders and programs is the best approach.

While this guide covers foreign national mortgage interest rates, you can learn more about foreign national mortgages in general in my Foreign National Mortgage Guide.

Current Foreign National Mortgage Rates — Updated June 2026

The following table shows current estimated foreign national mortgage rates.

These rates are updated monthly, but please do remember that U.S. mortgage rates change daily, and terms vary significantly based on the lender, property, and borrower.

For an up to the minute quote based on your specific circumstance, please schedule a call.

What is a Foreign National Mortgage?

A foreign national mortgage is a loan provided to a non-U.S. resident for the purposes of purchasing a property in the United States.

There are various types of mortgages available for foreigners nin the U.S., and the type of loan you use will depend on the the type of property you are buying, and your borrower profile.

The Different Types of Foreign National Mortgage

First, let’s understand the different types of loans that are available for foreign nationals and non-residents.

If you are buying a property for personal use, you might use a conventional mortgage (also known and a “full-documentation” loan). Or, if you already earn income in the U.S., you could consider an ITIN loan. If you are buying rental properties like my clients and I, you should consider an asset-based DSCR loan.

Related: Check out my Foreign National Mortgage Guide to see exactly what types of loans are available, and how to qualify.

Foreign National Mortgage Loan Comparison

Programs and LTVs vary by lender and state. For DSCR specifics, see the DSCR Loan Guide and Rates.

Fixed Rate vs Adjustable (ARM) vs Interest Only Mortgages for Foreigners

Whether you choose a conventional or DSCR mortgage, the interest rate could be fixed or adjustable (ARM). The loan can also be amortized (principal and interest payments) or interest-only.

Fixed Rate Foreign National Mortgages

Just as the name implies, fixed rate mortgages have a fixed rate of interest for the full term of the loan.

Typically, loans terms for fixed rate foreign national mortgage are 15 years and 30 years. This is the most common types of loan used by homebuyers in the USA. I use 30-year fixed rate DSCR loans when I’m buying rental properties in the U.S. because it helps me to plan my cash flow projections with some level of certainty.

Foreign National ARM Mortgages – Adjustable Interest Rate Loans

ARM mortgages have lower interest rates for an initial period then revert to an interest rate that resets every year (adjusts). So you might consider using an ARM mortgage if you think interest rates will fall in the future, or you intend to sell or refinance the property within the initial lower fixed rate period.

ARM mortgages come in varying combinations, including:

• 5/1 ARM: Fixed for 5 years, then resets annually.
• 5/6 ARM: Fixed for 5 years, then resets every 6 months.
• 7/1 ARM: Fixed for 7 years, then resets annually.
• 7/6 ARM: Fixed for 7 years, then resets every 6 months.
• 10/1 ARM: Fixed for 10 years, then resets annually.
• 10/6 ARM: Fixed for 10 years, then resets every 6 months.

The first number refers to the fixed rate period, and the second number refers to the adjustment (reset) period.

For example, with a 5/1 ARM mortgage, the “5” refers to a fixed rate period for the first five years, and the “1” signifies the rate will change (reset) once per year after the initial fixed rate period has ended.

For a 7/6 ARM, the initial fixed rate is for 7 years, then the rate adjusts every 6 months thereafter.

The interest rate during the fixed rate period tends to be lower than standard 15 or 30-year fixed rate mortgages, making ARM mortgages a good option if you plan to sell or refinance shortly after the initial fixed rate period ends.

Interest Only Mortgages for Foreign Nationals

There are also some interest only loan options for foreign nationals. Specific loan terms vary from one lender to another, but some rental property investors use interest only DSCR loans to improve their monthly cash flow, and/or help a property qualify for a loan due to the lower monthly payment.

For example, with an interest only DSCR loan, the first 10 years are interest only, then the mortgage reverts to a fully amortized (principal and interest) mortgage for another 30 years.

Interest rates tend to be a little higher on interest only loans. Some lenders will approve the loan based on the future fully-amortized payment, so you still have to have a solid rental property with excellent cash flow to qualify.

What Affects Your Interest Rate?

Just like mortgage rates for U.S. citizens, foreign national mortgage rates tend to track the 10-year treasury bond yield. That said, there are other factors that influence your interest rate, including:

• Credit Score: As I mentioned above, not all foreign national loans use your credit score in underwriting. While credit will be a factor for conventional mortgages, it’s not usually used in underwriting for DSCR loans for non-residents.

• Loan Amount: Interestingly, very small loans (under $100,000) tend to have higher interest rates. At the same time, the interest rates can start to go up for very large loans (jumbo loans) as well. Typically, loans in the region of $100,000 to $350,000 tend to have the best interest rates for foreigners.

• Down Payment and LTV: Loans with a higher loan-to-value (LTV), tend to have higher interest rates. Most foreign national loan programs require down payments for between 25% and 30%.

• Lender Specifics: Lenders all have different lending criteria, fees, and interest rates. In my experience, the lender you choose will have a big impact on your interest rate and fees. For more information, your can review my list of foreign national mortgage lenders.

• Prepayment Penalties: Loans with higher prepayment penalties, or longer prepay penalty periods tend to have lower interest rates. Most loans have a 5-year step down prepayment penalty. others have a 3-year step down, and some loans do not have any pre-payment penalties.

• Points: You can pay points (upfront interest) at closing to secure a better interest rate. This is often worth doing if the cost of the points is lower than the amount of interest you would save over the period of time you intend to own the property (see more below).

• Market: Mortgage terms in the U.S. vary from state to state. Lenders have specific state overlays that influence the terms they offer based on location. For example, you might pay a higher interest rate for a like-for-like property in Cleveland than you would pay in Missouri.

• Economic Conditions: Mortgage rates in the U.S. are influenced by wider economic conditions. Conventional loan rates tend to track the 10-year treasury yield, and DSCR loans track the SOFR rate. But other factors also play a part, like FED interest rates, and the strength of the jobs market which all form a part of lenders risk assessment.

• Real Estate Experience: With investor-focussed DSCR loans, lenders take into account your real estate experience. A borrower with 5 properties might get a better interest rate than a first time investor.

Points and Rate Buydowns for Foreign National Loans

You can pay upfront interest – known as points – on a foreign national loan to reduce the interest rate. This in called an ‘interest rate buydown’.

One “point” typically equals 1% of the total loan amount. For example, on a $200,000 mortgage, one point would be $2,000. In most cases I’ve seen, paying 1 point will reduce the interest rate on the loans by 0.25%.

While paying extra interest upfront might seem counterintuitive, it can actually make a lot of sense. I recently helped a client from Canada purchase a rental property in the US. The client paid 4 points ($4,500 in this case), which reduced the mortgage rate by 1% for the term of the loan. The total interest savings amounted to $36,000 over the term of the loan!

Total Interest Savings by Paying Discount Points on a $200,000 Mortgage

How to Get the Best Interest Rate on Your Foreign National Mortgage

There are few things you can do to optimize your loan application and ensure you get the best interest rate possible. The process varies between DSCR loans and conventional mortgages, but here’s a rough guideline:

• DSCR Loans: If you’re buying a rental property, make sure you have accurate property information, and the property has a good DSCR ratio (rent to mortgage payment ratio). You can use my DSCR Loan Calculators to work out the DSCR ratio, closing costs, and estimated interest rate for any rental property.

• Personal Paperwork: Make sure you have access to all of the paperwork you’ll need to prove your identity, income and assets, and credit (if using a conventional mortgage). If your documents aren’t in English, you’ll need to have them officially translated and notarized/apostilled. If you’re buying the property in your own name, you’ll need and International Tax Identification Number (ITIN). These can takes weeks or even months to process, so get it done early.

• U.S. Entity Paperwork: If you’re buying your property with a U.S. entity like and LLC, LP, or Trust, get it set up ahead of time, and apply for your Employer Identification number (EIN) right away. The IRS can be slow to issue EIN numbers for non-residents and this can really hold up your mortgage application process. Have your paperwork ready to provide to your lender on request.

• Down Payment: Budget for the biggest down payment possible. Putting down a bigger deposit will get you a better interest rate!

• Consider Buying Points: As I mentioned above, you can pay upfront interest to your lender in exchange for a lower interest rate for the term of the loan. This can make sense if you intend to hold the property for a long time.

Final Thoughts – Making Your U.S. Property Investment Journey a Success

If you want to buy real estate in the USA, understanding the types of mortgage that are available, and foreign national mortgage rates is an important piece of the puzzle. Over the past 10 years, I’ve seen the range of lenders with foreign national loan programs increase dramatically. Now, with range of options to choose from, including fixed rate and adjustable rate mortgages, and DSCR loans for rental property investors, it’s never been easier to get a much better rate.

If you’d like to discuss current real estate financing options for foreign nationals, and find the very best interest rate available today, you can connect with me or my team below.

Frequently Asked Questions (FAQs)

What Are Current Foreign National Mortgage Rates?

Foreign national mortgage rates change daily and vary based on the lender, loan type, property type, loan amount, down payment, and borrower profile. In general, foreign national borrowers should expect to pay a slightly higher interest rate than a comparable U.S. borrower.

Why Are Foreign National Mortgage Rates Higher?

Foreign national mortgage rates are typically higher because lenders face additional risks, including limited U.S. credit history, challenges verifying foreign income, and fewer secondary market options for selling these loans. The difference is often between 0.5% and 1.5% above comparable U.S. mortgage rates.

Can Foreigners Get the Same Mortgage Rates as U.S. Citizens?

In some cases, yes. Foreign investors with strong financial profiles, significant reserves, lower loan-to-value ratios, and substantial real estate experience may qualify for rates similar to those available to U.S. borrowers. However, most foreign national borrowers pay a small premium.

What Factors Affect Foreign National Mortgage Rates?

The most important factors include the loan-to-value ratio (LTV), property type, loan amount, borrower experience, reserves, country of residence, loan program, and whether the borrower chooses a fixed-rate, ARM, or interest-only mortgage.

How Can I Get a Lower Foreign National Mortgage Rate?

You can often improve your rate by making a larger down payment, maintaining substantial reserves, choosing a lower-risk property, demonstrating real estate investment experience, and paying discount points at closing.

Do Foreign National Mortgage Rates Change Daily?

Yes. Like other U.S. mortgage products, foreign national mortgage rates can change daily based on market conditions, lender pricing, Treasury yields, SOFR movements, and investor demand.

Are DSCR Loan Rates Higher Than Conventional Foreign National Mortgage Rates?

Generally, yes. DSCR loans often carry slightly higher interest rates because qualification is based primarily on the property’s rental income rather than the borrower’s personal income and financial profile.

Do Adjustable-Rate Mortgages (ARMs) Have Lower Rates?

Usually. ARM loans often offer lower initial interest rates than fixed-rate mortgages. However, the rate can increase after the initial fixed period ends, so investors should carefully consider their holding period and refinancing strategy.

Is It Worth Paying Discount Points to Lower My Interest Rate?

It depends on how long you plan to keep the loan. If you expect to own the property for many years, paying discount points can significantly reduce your total interest costs and may produce a positive return on investment.

What Down Payment Is Required for a Foreign National Mortgage?

Most foreign national mortgage programs require a down payment of between 20% and 35%, although requirements vary by lender, property type, and loan program.

Do Foreign National Mortgage Rates Vary By Country?

Sometimes. While many lenders use similar underwriting guidelines regardless of nationality, certain countries may face additional restrictions, documentation requirements, or pricing adjustments depending on lender policies.

What Is the Difference Between a Foreign National Mortgage and a Foreign National DSCR Loan?

A foreign national mortgage is a broad category of loan designed for non-resident foreign buyers. A foreign national DSCR loan is a specific type of mortgage that qualifies borrowers primarily using the property’s rental income rather than personal income or employment history.

Can Foreigners Get a Mortgage Without U.S. Credit?

Yes. Many foreign national mortgage programs and DSCR loans do not require a U.S. credit score. Depending on the lender, borrowers may qualify using foreign credit reports, bank statements, reserves, or the property’s rental income instead.