Interested in buying a condo as a rental property in Miami or another U.S. city?
Securing a loan for an investment property can feel out of reach, especially if you’re a foreign national without U.S. credit or income. But it doesn’t have to be. There are options available– even if you don’t have U.S. citizenship.
This guide walks through how investment property loans work, what makes condos different, and why Waltz is helping international investors close confidently from anywhere in the world.
Key takeaways
DSCR loans qualify you based on rental income, not your U.S. credit score or job history.
Waltz makes U.S. condo financing accessible for foreign nationals.
Condo investments come with unique hurdles, such as HOA rules and building-level approval. They also come with advantages such as lower maintenance than a single-family house.
Why condo financing is different
Condos offer a practical option for foreign investors managing properties from abroad. With exterior maintenance and shared spaces typically handled by the homeowners association (HOA), the ongoing responsibilities are often limited to the interior of the unit. Their lower purchase prices compared to single-family homes can make condos more accessible in urban areas. However, investors should carefully review HOA rules and financials, as these can affect both financing and rental strategy.
Condos aren’t just evaluated on their own. They come bundled with the financial and legal health of the building they’re in. For foreign investors, this adds a layer of complexity that most other property types don’t carry. Here’s what lenders look at:
The financial health of the HOA: Lenders want to see a strong reserve fund and consistent fee collection. A weak HOA balance sheet could signal risk, as deferred maintenance or unexpected costs can impact the building—and, by extension, your unit.
Owner-occupancy ratio: If a significant portion of the building's units are rented out rather than being owner-occupied, lenders may consider it a riskier investment. Many lenders prefer buildings where their owners occupy more than 50% of the units and may hold this as a requirement for the loan. Keep in mind that this may vary based on individual circumstances.
Pending special assessments or litigation: If the building is being sued or is about to issue a hefty assessment for repairs, lenders may be wary. These liabilities can impact both your rental income and future resale value, so it’s important to understand the full picture in advance and review the property’s financial records carefully before moving forward.
Building-level approval: Even if you qualify for the loan, the condo building itself might not. Many lenders require a condo project to be pre-approved. If it’s not, your financing could fall through at a late stage in the process.
Lenders must approve many buildings before they will finance units within them. If your desired condo fails that test, your financing could fall through, even if you qualify on paper.
What type of loan is best for a condo investment?
When financing a condo, your choice of loan depends on your residency, income documentation, and how quickly you want to move. For foreign nationals, some financing options offer a more direct path—but they aren’t the only routes to consider.
Conventional loans: These are traditional U.S. mortgages that are backed by personal income verification, tax returns, and a strong credit history. For foreign nationals, these are usually out of reach unless you’re a U.S. resident with documented W-2 income and a domestic credit score.
Portfolio loans: These are custom loans offered by lenders who keep the loan on their books rather than selling it. They allow for more underwriting flexibility, but often come with higher rates and stricter reserve requirements. They can sometimes work for non-standard properties or investors with mixed profiles.
Hard money loans: These short-term loans come with high interest rates and are usually intended for renovation projects or quick flips. While they also don’t depend on personal income, their high interest payments make them best suited for strategies other than rental property investing.
DSCR (debt-service-coverage-ratio) loans: These loans qualify you based on your condo's rental income, not your personal income or U.S. credit score. If the projected rent covers the mortgage payment (typically with a DSCR of 1 or higher), among some other basic requirements, you’re likely eligible–even as a foreigner. For this reason, DSCR loans are a go-to solution that many internationals explore.
For many foreign investors, certain loan types offer the right balance of accessibility, speed, and scalability. Understanding your full range of financing options can help you choose the smoothest path to securing your next condo investment.
DSCR loan breakdown: purchasing a condo investment property
To show how DSCR loans work in practice, let’s look at a sample scenario based on a condo investment.
Imagine you’re purchasing a condo in a popular rental market, such as Orlando, Dallas, or Scottsdale. The unit is priced at $250,000, and you're expecting monthly rent of $1,400. The mortgage payment is around $1,050 (including principal, interest, taxes, insurance, and your HOA dues). Here’s how it breaks down:
With DSCR lending, the property’s rental income drives the decision, not your personal finances. A DSCR above 1 indicates that the property generates more income than it costs to operate, which is the standard threshold most lenders look for. In this example, a DSCR of 1.33 exceeds that benchmark—making loan approval more likely. That opens the door to more international buyers who otherwise might be shut out of traditional financing.
In many ways, DSCR loans provide a pathway to investing in U.S. real estate that would otherwise be full of red tape. Traditional lenders with other loan products typically require:
Proof of U.S. income: Most lenders require U.S.-based income supported by domestic tax returns and bank statements, often rejecting or heavily investigating foreign income. DSCR loans are based on property performance, not personal income. Combined with Waltz’s unique approach—accepting international documents like local bank statements and pay slips plus evaluating the property’s projected cash flow—it creates a clear path to financing for foreign investors.
Down payment: Lenders expect foreign buyers to put down 30–50%, which is significantly more than what’s required of U.S. investors. They also require large cash reserves, viewing international borrowers as higher risk. Waltz takes a more balanced approach, offering down payments as low as 25% in some situations and typically requiring around six months of reserves, with flexibility depending on your financial profile and the property's projected income.
Identification and documentation: Unlike most lenders that require U.S. identification and hard-to-obtain documents, Waltz accepts international paperwork and lets you start with just a valid passport—guiding you through the rest from wherever you are around the world. Don’t believe it? See for yourself!
Credit review: With Waltz, a U.S. credit score isn’t required. We work with foreign real estate investors every day and understand that many don’t have U.S.-based credit history. Whereas other lenders who may rely on it due to limited experience with international borrowers, we accept credit reports from your home country and assess your overall financial strength.
Legal structure: DSCR loans must be taken out in the name of a U.S.-based entity, typically an LLC. Most lenders leave you to navigate this process alone—hiring an attorney, applying for an EIN separately, and even traveling to the U.S. to open a business bank account2. Waltz simplifies it all with our Investor Kit, letting you form your LLC, get your EIN, and start the process entirely online—in minutes, not months.
DSCR loans make it possible for international buyers to invest in U.S. real estate without the usual roadblocks. By focusing on the property’s rental income instead of your debt-to-income ratio, they offer a clear and practical path to financing.
With Waltz, that path becomes even smoother. You benefit from flexible financing terms, the convenience of remote closings, and a seamless end-to-end experience—all through one fully digital platform designed specifically for global investors. Make your U.S. condo investment a reality with just a few clicks!
Ready to invest in U.S. real estate without the typical headaches? Apply now
