One of the most common misunderstandings among international buyers is that they have to pay all cash to buy U.S. investment properties.
Not because they want to—but because there’s an assumption that financing isn’t available to foreigners. With traditional banks requiring U.S. credit history, W-2 income, or in-person closings, not to mention the headaches along the way, it’s easy to understand why that belief exists.
Luckily, you don’t have to pay cash for investment properties. This guide walks you through your financing options as a foreign real estate investor and how to take advantage of the options available.
Key takeaways
Getting approved for a U.S. loan as a foreign investor is challenging because most lenders require credit scores, income documents, and IDs tied to the U.S. system. Without those, even well-qualified international buyers often struggle to meet traditional loan requirements.
DSCR loans let you qualify based on property income, not your personal income. This is advantageous to foreigners who may not have U.S.-based documentation.
Waltz simplifies U.S. investment property financing for foreigners with up to 70% LTV without U.S. credit.
The challenges of financing U.S. property while living abroad
Financing a property in your own country can be complex. Financing one across borders? That’s a whole different level of difficulty. The path to property ownership is often full of complexity ranging from slow bureaucratic processes to differences in requirements that American lenders have. Here are some of the most common challenges foreign investors face:
Local lenders may not finance non-residents: Most U.S. banks don’t lend to people without U.S. credit scores or income history because they rely on those credentials to assess risk and verify repayment ability. Without them, it’s harder for traditional lenders to gauge trustworthiness, even if the borrower has strong finances abroad.
Income based mortgages: Conventional mortgages are based on your debt-to-income ratio, meaning that lenders need to verify how much of your income goes toward debt each month.
Strict U.S. documentation requirements: With debt-to-income based mortgages, lenders typically require W-2s, tax returns, and a Social Security number. These are documents most foreign nationals simply don’t have.
Foreign exchange risks and high wire transfer fees: Moving large sums into the U.S. can trigger fees, scrutiny under anti-money laundering rules, and even transfer delays.
U.S. legal entity setup is required: To finance real estate using certain loan products, you’ll need a U.S.-based LLC and an EIN for banking and tax purposes. These provide the legal and financial structure lenders require to process your application, open a U.S. business bank account2, and report income correctly to the IRS.
Some lenders require in-person closings: This adds costly international travel to an already stressful process.
What are your rental property financing options as a foreigner?
When you’re buying real estate abroad, there are really three paths to financing, but only one is built for international investors.
Pay all cash
Paying cash is fast and straightforward. That’s why 50% of foreigners avoid financing U.S. real estate altogether. But at what cost?
This means that you don’t have leverage, making it harder to scale quickly. Other investors understand the advantages of U.S. real estate, but simply don’t have enough cash to buy an entire property.
Conventional mortgages
A conventional mortgage is based on your personal finances and often looks at your financial history in the United States. Most U.S. mortgage lenders won’t approve foreign nationals unless you have a U.S. credit score, tax filings, and documented U.S.-based income. Even if you meet those requirements, the process is typically slow, inflexible, and bogged down by red tape.
DSCR (debt-service-coverage-ratio) loans offer a flexible, scalable option for growing your portfolio from abroad.
DSCR loans qualify you based on the rental income of the property, not your personal income or tax history. If the property cash flows, you’re likely eligible. This eliminates the need for much of the U.S. documentation such as W-2s, credit score, and visa requirements. There’s also no limit to the amount of DSCR loans that you can take.
How Waltz simplifies international real estate financing
Waltz combines the benefits of DSCR loans with a platform that’s designed for foreigners. Here’s how we make U.S. financing easier:
We specialize in foreign national lending: No U.S. credit? No U.S. income? No problem. Waltz is designed specifically for investors like you, offering flexible solutions for foreign nationals.
DSCR loans up to 70% loan-to-value (LTV): Finance up to 70% of the property’s purchase price based on rental income, not personal income.
Digital and remote process: When permitted by state and county regulations, the entire process can be completed remotely. In these instances, everything from application to closing can be done from your home–with no need to travel or sign documents in person.
End-to-end investor solutions: In order to obtain a DSCR loan, you’ll need a U.S. entity such as an LLC. Waltz’s Investor Kit add-on streamlines the entire process for you. It includes everything you need to start purchasing investment properties such as: LLC setup and related documents, EIN registration, access to U.S. banking through Regent Bank2, foreign exchange capabilities, and one year of mail scanning and registered agent services.
Close in about 30 days: Our streamlined platform tracks your progress in real time and keeps you informed at every step, so you always know what’s happening. And if you have questions along the way, our dedicated team is here to support you and keep your deal moving forward.
Financing for U.S. investment properties is within your grasp. You don’t need to rely on all-cash purchases. You don’t need U.S. credit or income. And you don’t need to fly across the world just to sign documents.
With DSCR loans, you can qualify based on the income of the property you’re buying. And with Waltz, you can handle everything; from LLC formation to DSCR loans, in one simple, fully digital experience.
