DSCR Loan for New Construction Rentals

International buyers continue to look to the U.S. for rental property opportunities, and new construction is becoming one of the most attractive options. Whether it’s a turnkey single-family house, a condo in Miami, or a suburban townhome, newly built properties appeal to foreign investors who want modern amenities, lower maintenance, and steady tenant demand.

But when it comes to financing, confusion is common. Many assume buying a new construction property from a developer requires paying all cash, since most U.S. lenders won’t work with non-residents. Others mix up developer financing with mortgage options available once the property is complete. The truth: foreign nationals can use debt-service-coverage-ratio (DSCR) loans to finance rent-ready new construction without U.S. credit, income, or in-person closings.

Key takeaways

• New construction properties, turnkey houses, condos, townhomes, and duplexes attract foreign investors with their modern features and strong rental appeal.
  
  
• DSCR loans allow international buyers to finance rent-ready new builds without U.S. credit or income, leveraging up to 70% LTV with Waltz.
  
  
• DSCR loans are used once construction is complete, not as upfront construction financing, a key distinction for foreign nationals.

What is new construction?

In real estate, “new construction” refers to properties that are newly built and have never been lived in. These properties may be developed by large national builders, regional developers, or smaller boutique firms. For foreign investors, it’s important to distinguish between two very different scenarios:

Building new construction

Financing a project from the ground up, which requires construction loans and hands-on involvement with contractors. This approach is typically less accessible to foreign nationals as it requires specific financing and active on-site management. 

Buying new construction

Buying new construction refers to purchasing a finished, rent-ready house or condo directly from a builder. This is the path most international buyers take, since the property is complete and can be immediately rented.

In this article, we’re focusing on buying rent-ready new construction properties that are already complete (or close to completion) and available to generate rental income.

The key advantage? These properties can qualify for investment property financing once construction is complete, allowing foreign nationals to use leverage instead of paying all cash.

Why long-distance investors buy new builds

For foreign nationals managing properties from abroad, new construction has clear advantages over older, resale houses. Beyond the appeal of modern design, these properties often reduce the headaches of ownership.

• Lower maintenance costs: With brand-new systems, appliances, and warranties, investors face fewer unexpected repairs. This is especially valuable when you can’t easily fly in to handle issues.
  
  
• Discount opportunities: Buying during pre-construction or as an early buyer sometimes comes with pricing incentives, which can improve long-term returns.
  
  
• Tenant demand: Renters are often drawn to modern amenities, energy efficiency, and contemporary layouts. From young professionals to families, demand for newer housing stock remains strong in many U.S. markets.
  
  
• Ease for new investors: Compared to rehabbing older houses, purchasing a new build is a simpler entry point. For first-time foreign investors with other responsibilities, it offers a convenient path into U.S. rental property ownership.

Types of new construction options for foreign investors

Not all new builds are the same. Depending on your goals, different property types offer distinct advantages for foreign nationals investing in U.S. real estate.

Single-family 

Single-family houses are standalone units built for one household, offering investors wide availability and straightforward management. They attract international buyers due to strong rental demand, flexible resale options, and ownership that aren’t typically restricted by homeowners’ associations (HOAs) that other property types are often subject to.

Read more: Adi from Israel bought a new construction single-family rental property

Condominiums

Condos are especially popular in urban centers like Miami, New York, and Los Angeles. Some feature amenities such as gyms, pools, and 24/7 security attract tenants and can support both long-term leases and short-term rental strategies. For international buyers, condos also offer simplified ownership since many building services are handled by the HOA.

Townhomes

Townhomes provide a balance between condos and single-family houses. Typically located in suburban growth markets, they attract families and  long-term renters looking for more room than an apartment but lower maintenance than a single-family property.

Learn more: Types of rental properties

3 New construction trends: a Miami case study

Florida continues to be a top destination for foreign real estate investors, and Miami stands out as a hotspot for new construction purchases. The recent Miami New Construction Global Sales Report shows international buyers snapping up new builds at remarkable rates, offering insights into trends, buyer origins, and the types of properties driving this surge in demand. 

1. Global buyers are driving nearly half of Miami’s new condo market

International investors are major players in Miami’s real estate. According to the Miami New Construction Global Sales Report, in the 18 months ending June 2025, international buyers purchased 49% of all new construction units in South Florida’s condo market. Latin Americans alone accounted for 86% of these purchases.

This shows strong global confidence in Miami’s market, highlighting that foreign demand can sustain pricing, create competition for high-quality units, and signal potential for consistent rental income for investors.

2. Demand is leading to a greater supply of new construction

Large, multi-unit projects attract international interest. The report highlights activity across 37 new luxury condo projects totaling 9,115 units. High-volume development indicates demand is there globally to support this.

3. International investors favor specific Miami neighborhoods

Location is key for international investors looking to purchase rental properties. Uptown areas like Downtown Miami, North Miami, and Coral Gables are seeing particularly strong interest from foreign buyers, with Downtown Miami reporting that 99% of international purchases came from Latin America.

Selecting a neighborhood with proven global demand helps you attract reliable tenants, maximize rental income, and make smarter long-term investment decisions.

How to finance new construction as a foreign national

A common misconception among international buyers is that new construction in the U.S. requires paying all cash. That belief comes from experience with traditional banks, which often require U.S. credit, income verification, or in-person branch visits, roadblocks that most foreign nationals can’t clear.

The reality is different: DSCR loans allow foreign investors to finance rent-ready new construction properties once they are complete. Instead of focusing on your personal financial profile, DSCR loans qualify based on the property’s rental income potential.

Key features of Waltz DSCR loans:

• Loan-to-value (LTV) up to 70%
  
  
• Down payments of 25–30%
  
  
• Loan amounts ranging from $100,000 to $1 million
  
  
• No U.S. credit, income, or residency required
  
  
• Remote-friendly process with digital closings

Explore more: Here’s why foreign real estate investors work with Waltz 

Rental property financing for new builds at your fingertips

New construction properties offer foreign investors a straightforward way to enter the U.S. real estate. Modern homes, condos, and townhouses appeal to tenants, require less maintenance, and provide potential cash flow. 

Don’t let financing be a roadblock.

With DSCR loans, you can finance rent-ready new construction without U.S. credit, income, or residency requirements. Start building your U.S. rental portfolio today, explore new construction financing with Waltz.

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