DSCR Loan Requirements for Foreign Nationals in US

The U.S. real estate market attracts international investors seeking stable returns and portfolio diversification. However, foreign nationals face challenges with traditional financing: no U.S. credit history, difficulty verifying foreign income, and navigating a complex lending system for domestic borrowers.

Enter the DSCR loan, a modern, intelligent financing solution that evaluates your investment based on the property's cash flow potential rather than your personal income documentation. This approach levels the playing field for international investors earning income outside the United States.

This guide covers the DSCR loan requirements for foreign nationals, explaining how the lender makes U.S. property investment accessible for international buyers. Whether you're a first-time investor or expanding your portfolio, you'll see how our program removes traditional barriers to American real estate opportunities.

What is a DSCR Loan?

A Debt Service Coverage Ratio (DSCR) loan operates on a simple principle: The property qualifies if the expected rental income is equal to or greater than the monthly mortgage payment (Principal, Interest, Taxes, Insurance, and Association dues, or PITIA). A DSCR of 1.0x means the rent covers the payment, while a ratio above 1.0x indicates positive cash flow from day one.

The advantage for foreign national investors lies in the no income verification structure. Unlike traditional mortgages that require W-2s, U.S. tax returns, and paystubs, DSCR loans focus exclusively on the investment property's income potential. This eliminates the major hurdle international investors face, which is documenting and translating foreign income for U.S. lenders.

Instead of scrutinizing your employment history or verifying overseas income, we evaluate what matters for investment success: the asset's ability to generate enough rental income to service the debt. This approach means your path to U.S. real estate ownership depends on finding cash-flowing properties, not navigating complex income documentation.

The DSCR Advantage

• Qualification is based on property cash flow, not personal income.
• No U.S. income or employment verification needed
• A streamlined path to financing for foreign national investment loans

Why Choose theLender for Your Foreign National DSCR Loan?

theLender isn't just another mortgage company. We're specialized partners for international real estate investors. Since 2019, we've funded over $3 billion in DSCR loans, establishing ourselves as industry leaders who understand the unique needs of foreign nationals seeking U.S. property investments.

Proven Expertise in Investor Financing

Our company was founded by industry veterans focused on real estate investors. We understand entity vesting, portfolio scaling strategies, and cash-flow-based underwriting that traditional lenders struggle with. This expertise translates into smoother transactions and creative solutions for complex investment scenarios.

A Dedicated Foreign National Program

We've developed a comprehensive program for foreign nationals and non-permanent resident aliens. This is a core product with clear guidelines our team executes daily. Our loan officers are trained on visa requirements, international documentation, and cross-border investment strategies.

Flexible, Investor-Friendly Terms

Our foreign national investment loans offer exceptional flexibility:

• Loan amounts up to $3.5M for substantial investment opportunities
• Welcome first-time investors, no previous landlord experience required.
• STR financing for short-term rentals like Airbnb and VRBO properties
• Flexible entity vesting for LLCs, S-corps, and other business structures
• Portfolio lending solutions for investors managing multiple properties

Speed and Simplicity

Managing a property purchase from abroad requires responsive, efficient service. We deliver closings in as little as 30 days with a streamlined process featuring a single point of contact throughout your transaction. This support structure provides peace of mind when coordinating across time zones and international communication channels.

DSCR Loan Requirements for Foreign Nationals

Understanding the DSCR loans requirements for foreign nationals ensures a smooth application process. Our guidelines are comprehensive, and every investment scenario is unique. Our experienced loan officers are available to help navigate your situation.

Borrower Eligibility Requirements

Individual Borrowers: You must be a foreign national or a Non-Permanent Resident Alien (NRA) with a valid visa. Citizens of other countries living abroad can participate in our program without needing U.S. residency.

U.S. Entity Borrowers: Foreign nationals can borrow through U.S.-based entities like LLCs, S-corporations, or partnerships. This approach is popular for asset protection and tax planning. We accommodate layered LLC structures and complex entity arrangements, though a personal guarantee from the foreign national principals is required. Our team can guide you through entity formation considerations and documentation requirements.

Essential Documentation

Preparing the right documentation streamlines your loan approval process:

• A valid, unexpired passport from your country of citizenship
• Valid U.S. Visa: Required for Non-Permanent Residents (detailed requirements in the next section)
• Proof of Foreign Address: Recent utility bill or bank statement showing your international residence
• Asset Verification: Bank statements from U.S. or foreign financial institutions showing sufficient funds for down payment, closing costs, and required reserves. Unlike traditional lenders, we require no sourcing or seasoning for large deposits, simplifying the documentation process.
• U.S. Bank Account: A domestic bank account must be established before closing to facilitate monthly mortgage payments and property management.

Property & Loan Requirements

• Eligible Property Types: Our no income verification mortgage for foreign nationals covers diverse investment properties including Single-Family Residences (SFR), 2-8 unit properties, condominiums, townhomes, and Planned Unit Developments (PUDs). Both long-term and short-term rentals (STRs) qualify, making us one of the few lenders offering rental property loans for non-US citizens.
• Geographic Restrictions: We don’t lend in Utah, Nevada, Puerto Rico, Guam, or the U.S. Virgin Islands. All other states are eligible for our foreign national program.
• Loan-to-Value (LTV) Guidelines: LTV represents the loan amount as a percentage of the property's appraised value. We offer competitive LTV ratios, typically up to 85% on purchases up to $1M. However, maximum LTV for foreign nationals varies based on credit profile and DSCR strength.
• Down Payment Requirements: Borrowers must source down payments from their own funds. Gift funds may be considered on a case-by-case basis with proper documentation and gift letter requirements.
• Loan Purpose: All loans are for business purposes only. This includes the purchase or cash-out refinance of investment properties. Cash-out proceeds can be used for business purposes, including acquiring additional investment properties. No owner-occupancy is permitted.

The DSCR Calculation

The Debt Service Coverage Ratio calculation is straightforward: 

Gross Rental Income ÷ Monthly PITIA

The challenge lies in accurately determining rental income, especially for properties without existing tenants or rental history.

For Long-Term Rentals, we use market rent determinations by licensed appraisers documented on the Appraisal Report (Form 1007). This provides objective, third-party validation of the property's rental income potential based on comparable local properties.

For Short-Term Rentals (STRs): Our expertise in STR financing sets us apart from traditional lenders. We've developed three innovative methods for evaluating vacation rental income:

1. Appraisers provide market rent projections for short-term/vacation rentals on Form 1007, considering seasonal variations and local STR demand.
2. We accept 12-month income projections from AirDNA, the leading STR market data provider. The projections require a 20% expense factor and a minimum market score of 60.
3. Our proprietary simplified analysis by qualified appraisers has proven highly accurate for vacation rental income projections.

Our rebuttal process for low appraisals demonstrates our commitment to working with investors to complete transactions, even when initial valuations fall short.

Credit Requirements for Foreign Nationals

While U.S. FICO scores aren't always required, we maintain credit standards to ensure borrower reliability. For foreign nationals without U.S. credit history, we accept alternative credit documentation from your home country, including official credit reports or letters from established banking relationships.

For borrowers with existing U.S. credit history, we use the highest mid-FICO score among all borrowers on the loan application. This benefits married couples or business partners where one has stronger credit.

Navigating U.S. Visa Requirements for Your Loan

A valid visa is crucial documentation for your legal presence in the U.S. for Non-Permanent Resident Aliens. Pure foreign nationals without U.S. residency may have alternative documentation pathways, but establishing a U.S. connection strengthens loan approval prospects.

The goal of the documentation is to demonstrate legal presence in the U.S., even if temporary or limited. Commonly acceptable visas for investment purposes include:

• B-1/B-2: Visitor visas (often acceptable for property purchases)
• E-2: Treaty Investor Visa (for international investors)
• H-1B: Specialty Occupation Visa
• L-1: Intracompany Transferee Visa
• F-1: Student visas (for investors studying in the U.S.)

Our experienced team works with borrowers across various visa categories and provides guidance based on your immigration status and investment timeline.

The Path to Ownership: Our Streamlined 3-Step Process

We've simplified investment financing. Now, there's a clear path from application to property ownership:

Step 1: Get Pre-Approved & Submit Your Property Information

Contact a foreign national loan specialist or complete our online pre-approval form. We'll review your investment scenario and issue pre-approval within 24 hours. Once you've identified a target property, we'll collect the necessary documentation and begin formal processing.

Step 2: Appraisal and Underwriting

We order a professional appraisal to confirm property value and determine the market rent for DSCR calculations. Our in-house underwriting team, experts in non-QM mortgage for foreign nationals, reviews your complete file. You'll maintain contact with a single loan officer throughout the process for consistent communication and faster resolution of questions.

Step 3: Clear to Close & Funding

After final approval, we coordinate with the title company to schedule your closing. After signing, we fund your loan and you become a U.S. property investor. Our process can complete in under 30 days, even for international borrowers managing transactions remotely.

FAQ for Foreign National Investors

Can a foreign national buy property in an LLC?

Absolutely. We specialize in LLC mortgages for foreign national borrowers and recommend entity-based ownership for liability protection and tax planning benefits. Our team guides you through all documentation requirements for entity lending, including layered LLC structures and complex ownership arrangements.

Do I need a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN)?

An SSN or ITIN isn't always required for our Foreign National program, while it is helpful for credit reporting and financial account establishment. We have developed alternative pathways for investors without traditional U.S. tax identification numbers.

What are the reserve requirements?

Reserves are funds remaining after your down payment and closing costs. Requirements typically range from 3-6 months of the complete mortgage payment (PITIA), depending on loan specifics, property type, and borrower profile. These reserves provide security and demonstrate your capacity to handle temporary vacancy or unexpected expenses.

Can I use this loan to finance multiple properties?

Our DSCR loans are designed for portfolio scaling. For investors managing 3-25 properties, we offer theBlanket portfolio loan, which consolidates multiple properties into a single financing vehicle with potential cost savings and simplified management.

Conclusion

As a foreign national, you can invest in U.S. real estate with specialized lenders who understand international investors' needs. The outlined DSCR loan for foreign nationals requirements provide a clear roadmap to property ownership without the barriers of income verification and extensive U.S. credit history.

Don't let conventional lending limitations stop you from building wealth through American real estate. theLender serves as your bridge to the U.S. property market with a focus on property cash flow, flexible underwriting guidelines, and dedicated international investor support. Whether you're seeking your first American investment property or expanding an existing portfolio, our solutions deliver the financing flexibility you need.