U.S. mortgage rates for foreign buyers run a little higher than for citizens, usually about 0.5% to 1.5% more. Over 120+ of my own purchases, financed entirely with foreign national loans, I have learned exactly what moves the rate and how to bring it down. Here is what to expect in 2026, and how to get the best deal on your loan.
Financing
Foreign National Mortgage Rates 2026: Current U.S. Rates
U.S. mortgage rates for foreign buyers run a little higher than for citizens. Here is what to expect in 2026, what moves your rate, and how I get the best deal on every loan.
David Garner · Co-Founder
Key takeaways
- Expect roughly 0.5% to 1.5% above a comparable U.S. rate.
- You often do not need a U.S. credit score or proven personal income for a DSCR loan.
- Loan size, down payment, points, prepay terms, and experience all move the rate.
- Paying points buys the rate down by about 0.25% each.
- A specialist broker with whole-of-market access finds the sharpest pricing.
Current foreign national mortgage rates
U.S. mortgage rates change daily, and terms vary a lot by lender, property, and borrower. The table below is a monthly estimate; for a live quote on your specific situation, book a call.
Rates updated July 17, 2026
| Loan type | Base U.S. average | Foreign national rate (est.) |
|---|---|---|
| 30-year fixed | 6.55% (Freddie Mac) | ~7.05% to 7.30% |
| 15-year fixed | 5.93% (Freddie Mac) | ~6.43% to 6.68% |
Base rates from Freddie Mac (Primary Mortgage Market Survey). Foreign national estimates add a typical 0.5% to 0.75% premium and are indicative only.
Types of foreign national mortgage
A foreign national mortgage is a loan to a non-U.S. resident buying U.S. property. Which one fits depends on the property and your profile. For the full qualification detail, see my foreign national mortgage guide and, for rentals, the DSCR loan guide.
| Loan type | Ideal for | Qualification |
|---|---|---|
| Conventional | Vacation and second homes | Proof of income, credit, and financial assets |
| DSCR | Rental investors (including short-term rentals and 2 to 4 units) | Based on the property's rental income, not personal income |
| ITIN | Investors who file U.S. taxes with an ITIN (no SSN) | ITIN required; alternative or foreign income docs; larger down payment and reserves common; typically higher rates |
Fixed vs ARM vs interest-only
Whether you pick a conventional or DSCR mortgage, the rate can be fixed or adjustable, and the loan can be fully amortizing or interest-only. Fixed-rate terms are usually 15 or 30 years; I use 30-year fixed DSCR loans on my rentals for predictable cash flow. ARMs carry a lower initial rate for a set period, then reset, and come in combinations such as:
- 5/1 ARM: fixed for 5 years, then resets annually.
- 5/6 ARM: fixed for 5 years, then resets every 6 months.
- 7/1 and 7/6 ARM: fixed for 7 years, then annual or 6-month resets.
- 10/1 and 10/6 ARM: fixed for 10 years, then annual or 6-month resets.
Interest-only loans keep payments lowest during the IO period (often the first 10 years) to boost cash flow or help a property qualify, then convert to fully amortizing. See DSCR ARM vs fixed for how I choose.
| Feature | Fixed rate | ARM | Interest-only |
|---|---|---|---|
| Interest rate | Fixed for the life of the loan | Starts lower, then adjusts | Fixed or ARM; IO adds a small premium |
| Monthly payments | Predictable and consistent | Lower at first, can move after resets | Lowest during IO, rises when amortization begins |
| Ideal for | Long-term investors seeking stability | Short or medium holds before a reset | Near-term cash flow or improving DSCR |
| Risk level | Low, no payment surprises | Higher, payment can rise after resets | Medium to higher, jump after IO |
| Principal reduction | Yes | Yes | Not during the IO period |
What affects your rate
Foreign national rates track the 10-year Treasury yield (conventional) or SOFR (DSCR), but several borrower and deal factors move your specific number:
- Credit score: matters for conventional loans; usually not used in DSCR underwriting for non-residents.
- Loan amount: very small loans (under $100,000) and jumbo loans price higher; roughly $100,000 to $350,000 tends to price best.
- Down payment and LTV: higher LTV means a higher rate; most programs want 25% to 30% down.
- Prepayment penalties: longer or larger prepay terms usually earn a lower rate.
- Points: paying upfront interest buys the rate down.
- Market and state: lender state overlays can change pricing for a like-for-like property.
- Experience: on DSCR loans, a seasoned investor can price better than a first-timer.
Lender choice matters a lot too; see my list of foreign national lenders.
Points and rate buydowns
You can pay upfront interest, called points, to lower the rate. One point is 1% of the loan, and typically buys the rate down about 0.25%. It often pays off on a long hold: I recently helped a client from Canada who paid 4 points to cut the rate 1%, saving about $36,000 over the loan term.
| Points | Upfront cost | Rate | Monthly P&I | Total interest | Saved vs 7.00% |
|---|---|---|---|---|---|
| 0 | $0 | 7.00% | $1,330.60 | $279,016 | n/a |
| 1 | $2,000 | 6.75% | $1,297.20 | $267,993 | $11,023 |
| 2 | $4,000 | 6.50% | $1,264.14 | $257,090 | $21,926 |
| 3 | $6,000 | 6.25% | $1,231.43 | $246,297 | $32,719 |
| 4 | $8,000 | 6.00% | $1,199.10 | $235,600 | $43,416 |
How to get the best rate
- DSCR loans: have accurate property numbers and a strong rent-to-payment ratio; model it in my DSCR calculator.
- Personal paperwork: gather identity, income, asset, and credit documents; translate and notarize where needed; get an ITIN early if buying in your own name.
- Entity paperwork: if using an LLC, set it up ahead of time and apply for the EIN right away, since IRS delays for non-residents can hold up the loan.
- Down payment: budget the largest you can; a bigger deposit earns a better rate.
- Consider points for a long hold, and come with a pre-approval-ready file.
When you want a live quote and the sharpest rate available today, you can book a call with my team.
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Frequently asked questions
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 rates are typically higher because lenders face extra risks, including limited U.S. credit history, harder-to-verify foreign income, and fewer secondary-market options for selling the loans. The difference is often between 0.5% and 1.5% above comparable U.S. 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 close to those available to U.S. borrowers. Most foreign national borrowers, though, pay a small premium.
What factors affect foreign national mortgage rates?
The most important factors are the loan-to-value ratio, property type, loan amount, borrower experience, reserves, country of residence, loan program, and whether you choose a fixed rate, an ARM, or an 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, keeping substantial reserves, choosing a lower-risk property, showing 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 rates can change daily with 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 rates because qualification is based mainly on the property's rental income rather than your personal income and financial profile.
Do adjustable-rate mortgages (ARMs) have lower rates?
Usually. ARMs often offer a lower initial rate than fixed-rate loans, but the rate can rise after the initial fixed period ends, so weigh your holding period and refinancing plan carefully.
Is it worth paying discount points to lower my interest rate?
It depends on how long you keep the loan. If you expect to own the property for many years, paying discount points can meaningfully cut your total interest cost and produce a positive return.
What down payment is required for a foreign national mortgage?
Most foreign national programs require a down payment between 20% and 35%, though the exact figure varies by lender, property type, and loan program.
Do foreign national mortgage rates vary by country?
Sometimes. Many lenders use similar underwriting regardless of nationality, but certain countries may face extra restrictions, documentation requirements, or pricing adjustments depending on lender policy.
What is the difference between a foreign national mortgage and a foreign national DSCR loan?
A foreign national mortgage is the broad category of loan designed for non-resident buyers. A foreign national DSCR loan is a specific type that qualifies you mainly on 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 programs and DSCR loans do not require a U.S. credit score. Depending on the lender, you may qualify using a foreign credit report, bank statements, reserves, or the property's rental income.
Written by
David Garner
David is co-founder of Cashflow Rentals and a British investor who has personally purchased more than 120 U.S. rental properties as a foreign national since 2016. He helps overseas investors build U.S. rental portfolios remotely, from his base in Brazil.
