US Mortgage Options for Foreign Real Estate Investors (DSCR, Foreign National & ITIN)
David Garner
David GarnerUS Mortgage Options for Foreign Real Estate Investors (DSCR, Foreign National & ITIN)
Updated: August 18, 2025
Welcome to my quick reference guide on mortgage options for foreigners buying real estate in the United States. I’ve personally purchased over 120 rental properties in the US since 2016 as a foreigner. Today, my team and I help other non-residents purchase investment properties all over the United States. Typically, we use mortgages to purchase our US properties, and this guide is based on my own personal experience sourcing real estate financing in the USA for me and my clients.
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Who This Guide Is For
If you’re a non-US citizen buying investment property in the United States (like me), this is your quick reference map of the main US real estate financing options you’ll have available to you right now in 2025.
I’ll keep it practical with an overview of the main mortgage types, the best next steps, and I’ll include links into my deeper, in-depth guides for each mortgage types so you learn more about the specific options that best suit your circumstances.
Quick Summary: Which Option Fits You?
- DSCR Loans: This is the type of loan I use to purchase rental properties in the USA. You qualify for this type of mortgage using the property’s cash flow, not your personal income. These are great for scaling rental portfolios. If you’re buying rental properties in the US, you can start with my DSCR Loan Guide, check today’s DSCR rates, and model deals with the DSCR calculator.
- Foreign National Mortgages: For more conventional purchases – like a vacation home – this might be a better option for you. This is basically a conventional mortgage, but the lender reviews your foreign income/assets rather than US income or credit score. If you’re buying a vacation home or second home, check out my guide on foreign national mortgages, and my foreign national lenders list.
- ITIN Loans: For investors who file US taxes with an International Tax Identification Number (ITIN), an ITIN loan could be the perfect solution. You’ll need to prove your U.S. source income with tax returns, and have a reasonable U.S. FICO credit score. Usually, ITIN loans are best suited for borrowers that live and work in the U.S., but aren’t U.S. citizens.
Option 1: DSCR Loans (Cash-Flow Based)
Approval is based on the property’s income, not your personal income. Lenders want to see enough rent to cover the mortgage payment, property taxes, insurance premiums, and any HOA fees. Typical purchase LTVs run up to ~70–75% for non-residents. Most DSCR loan programs allow entity vesting (LLC), with specialist options for short-term rentals. There are fixed, ARM, and interest-only options.
Go deeper: how DSCR loans work • DSCR rates today • best DSCR lenders • run numbers in the DSCR calculator • ways to improve DSCR.
Option 2: Foreign National Mortgages
For non-US residents/citizens, a number of lenders offer conventional-style mortgages. The underwriting process looks at your foreign income and/or assets from your country of residence.
There are fixed rate and adjustable rate options available, and interest rates usually sit around 0.25% to 1.5% higher than the mortgage rates U.S. citizens are paying at the time of your application.
Start here: Foreign National mortgage rates • lenders list • Foreign National mortgage guide (overview).
Option 3: ITIN Loans
ITIN mortgages serve borrowers who already file US taxes with an ITIN number. You’ll provide your lender with your ITIN assignment, bank statements, and U.S. tax returns. LTVs can be up to 85%, with pricing tied to your income level, loan to value, and US credit score.
Side-by-Side Comparison
| Feature | DSCR Loans | Foreign National Mortgages | ITIN Loans |
|---|---|---|---|
| Best For | Non-residents buying rental properties in the US. | Non-residents using foreign income/assets. | Investors who file US taxes with an ITIN. |
| Income Verification | No personal income; uses property income to qualify. | Foreign bank statements/income docs; reserves; references. | ITIN documentation; bank statements and/or tax returns. |
| Typical LTV | Up to ~70-75% | Often ~70–85% (based on lender, program, country, reserves, property type). | Often ~70–85%, varies by state/lender. |
| Rates & Drivers | DSCR ratio, LTV, prepay terms. | Country/AML risk, LTV, asset verification, reserves. | LTV, documentation depth, reserves. |
| Property Types | 1–4 units, condos/townhomes, some STRs; some 5+ unit options. | 1–4 units common; condos/townhomes. | 1–4 units, condos/townhomes. |
| Entity (LLC) Allowed | Yes. | Often allowed; structure varies by lender/state. | Often allowed; confirm vesting/closing requirements. |
| Docs to Prepare | Lease/market rent, appraisal, ID, reserves, insurance. | Passport/visa, foreign bank statements, asset proof, appraisal, reserves. | ITIN letter, bank statements, appraisal, reserves; tax docs if applicable. |
How to Choose:
- Purchase Type: If you’re buying a rental property, DSCR loans are an excellent option. For vacation homes, conventional or ITIN loans might be better suited.
- Income Evidence: If you’re self-employed, it might be hard to prove your income. In that case, DSCR loans (provided you’re buying a rental property) are a good option.
Getting Started: Docs & Timeline
- ID & Entity: Passport/visa; LLC docs if applicable.
- Assets: Proof of funds for down payment, closing costs, reserves.
- Property: Purchase contract, appraisal, insurance.
- Income (as required): Rent roll/leases for DSCR; foreign statements/letters for FN; ITIN letter and banking/returns for ITIN.
Wire-safety tip: Always confirm wiring instructions by phone with escrow/title using a known number. Don’t rely on emailed changes.
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“Having personally invested in over 120 US rental properties from overseas, I know the true value of getting the right advice and support.
David Garner – Cashflow Rentals
GROW YOUR WEALTH WITH U.S. REAL ESTATE
Start your U.S. real estate investment journey today with high-quality cashflow real estate. Book a Free 1-2-1 Discovery Call with a member of our senior management team to discuss your personalized strategy.
“Having personally invested in over 120 US rental properties from overseas, I know the true value of getting the right advice and support.
David Garner – Cashflow Rentals
FAQs
Can foreign investors get DSCR loans?
Yes. Many DSCR lenders work with non-US residents buying investment property. Qualification is based on DSCR rather than personal income, with overlays for LTV, reserves, and property type. Start with the DSCR guide.
Do I need a US credit score or SSN to get a mortgage in the USA?
Foreign National programs generally use passport/visa and foreign documentation (US credit not required). ITIN loans serve investors who file with an ITIN (no SSN). Some DSCR lenders don’t require US credit.
Can I buy US property in an LLC?
Often yes, especially with DSCR. Many programs allow entity vesting with personal guarantees, but rules vary by lender and state—confirm early.
What down payment is typical for foreign nationals in the USA?
Typical LTV ranges: DSCR ~70–75% purchase; Foreign National ~70–85%; ITIN ~70–85%. Cash-out is usually lower. Exact limits vary by lender and scenario.
