Foreign Nationals DSCR Loans
DSCR loans, or Debt Service Coverage Ratio loans, are an excellent mortgage product for foreign nationals who wish to purchase or refinance investment properties in the United States. These loans are specifically designed for individuals residing and working in their home country. With a 1:1 ratio on cash flow, DSCR loans are incredibly straightforward, as no income or U.S. credit is required to qualify.
Our DSCR program offers several compelling features for foreign nationals:
- Loan amounts up to $3 million
- Minimum loan amounts of $100,000
- Investment property only
- DSCR program with a 1:1 ratio on cash flow
- Closing in a U.S. LLC entity permitted
- Assets sourced and seasoned for 60 days
- Eligible visa: B-1, B-2, H-2, H-3, I, J-1, J-2, O-2, P1, P2
Our DSCR program offers a streamlined process, focusing on the cash flow generated by the investment property rather than personal income. This makes it an ideal option for those without a U.S. credit history. With loan amounts up to $3 million and the ability to use overseas assets as reserves, our program provides flexibility and convenience for international investors.
Foreign National Mortgage Loans: A Comprehensive Explainer
Foreign National Mortgage Loans refer to residential and commercial mortgage loans offered to non-US citizens or residents who are interested in purchasing or refinancing properties in the United States. These loans are designed for non-US citizens who do not have a social security number or a credit history in the United States, allowing them to finance their investments in the US. In this article, we’ll go through Foreign National Mortgage Loans, how they work, and why they are important to consider.
How do Foreign National Mortgage Loans work?
Foreign National Mortgage Loans typically work by offering financing up to 70% of the property’s value. This ensures that the borrower is invested in the property’s value, as they will have put down 30% of the purchase price. Lenders will look at the income and assets of the borrower to determine their ability to repay the loan. Generally, these loans come with higher interest rates and fees than traditional mortgage loans. The terms of these loans vary with some being short-term (typically five years) while others are adjustable rate mortgages with an interest rate that is fixed for a certain period.
What are the requirements for Foreign National Mortgage Loans?
Every lender will have different requirements for Foreign National Mortgage Loans. Here are a few typical requirements you will need to meet for these types of loans:
Significant down payment: Typically, lenders require a minimum down payment of 30% of the purchase price.
Proof of income: Borrowers must provide proof of steady income, which demonstrates their ability to repay the loan.
Proof of assets: Lenders want to know that borrowers have enough liquidity to cover expenses and their mortgage payments.
Credit history: While a credit history isn’t required, it can be beneficial for the borrower to show their creditworthiness.
How can Foreign National Mortgage Loans benefit borrowers?
Foreign National Mortgage Loans can have several benefits for non-US citizens interested in investing in the US. Here are three benefits you could experience:
No Credit History Required: Foreign National Mortgage Loans do not require a credit history in the US, which can be helpful for non-US citizens who are just starting out.
Customizable Loan Terms: These loans have customizable terms that can be tailored to fit the borrower’s unique financial situation and investment needs.
Investment Opportunities: Non-US citizens can invest in US properties, giving them an opportunity to diversify their assets and potentially earn income through rental payments.
How to Get Started with Foreign National Mortgage Loans
If you are a foreign national interested in applying for a Foreign National Mortgage Loan, we encourage you to speak to one of our experienced loan officers at Franklin Mortgage Holdings. We understand the unique financing needs of foreign investors and have experience in working with a wide range of clients. Our team can help you navigate the complex process of acquiring a mortgage loan as a foreign national, and work with you to get the best loan terms possible. Contact us today to get started!