Are you exploring different property types for U.S. real estate investment? The answer for you just might be townhouses.
Townhouse investments offer a mix of affordability, rental appeal, and manageable maintenance for foreign investors looking to invest in U.S. real estate from abroad. Townhomes often strike a balance between a lower price point than single-family houses and passive income potential. Whether you're drawn to urban locations, resort towns, or growing suburbs, a townhouse might present an opportunity for you.
This guide will discuss the best loan options for financing a townhouse, with a focus on solutions tailored to non-U.S. residents. You’ll also learn how Waltz makes the process more accessible with no U.S. credit history or U.S. income required.
International buyers often overlook townhouses in favor of single-family houses. However, for long-distance real estate investors, townhomes can offer a practical and efficient path into the U.S. market. Their relatively lower cost, ease of maintenance, and demand from renters make them worth serious consideration.
Whether you're targeting markets like Austin, Atlanta, or resort towns such as Aspen, townhomes can offer flexibility and stable income potential, especially when paired with financing designed for international buyers.
Learn more: How to Choose a U.S. Rental Property Market as a Foreigner
Choosing the right loan for a townhouse depends on your financial profile, investment goals, and whether you’re purchasing as a U.S. resident or foreign national.
Some loans prioritize borrower income and credit. These typically use a debt-to-income (DTI) ratio, which compares your monthly debt payments to your income.
In contrast, DSCR loans focus on the property's income potential, making them a better fit for foreign investors without U.S. income or credit history. For international buyers, the right fit often comes down to flexibility, speed, and ease of qualification.
DSCR loans are designed for rental property investors. Rather than considering your income or credit, lenders assess whether the expected rental income from the townhouse will cover the mortgage. This makes DSCR loans ideal for foreign nationals.
Learn more: Ultimate Guide to DSCR Loans for Foreign Nationals
Conventional loans offer competitive interest rates but require full documentation, including tax returns, W-2 income, and a U.S. credit score. These loans are often out of reach unless you have established U.S. residency and credit history.
Lenders who keep the loan in-house rather than selling it on the secondary market offer portfolio loans. They provide more underwriting flexibility. These can work well for non-standard properties or unique investor profiles, but often have higher rates and fees.
If you already own a U.S. property, especially one bought with cash, you may be sitting on untapped equity. A DSCR-based cash-out refinance with Waltz lets you unlock that equity and put it to work—whether that means acquiring your next rental, funding renovations, or maintaining cash flexibility.
Just ask Hagit from Israel. After paying cash for a Florida property in 2015, she struggled to access her equity, until she found Waltz. Within weeks, she refinanced remotely and unlocked $150,000, using it to buy three more rentals in Memphis. No need to travel or save up for a down payment elsewhere.
To qualify, your property must meet a DSCR threshold of at least 1. Although situations may vary, Waltz typically requires:
Whether you're looking to scale or tap into your equity for another reason, Waltz can help you unlock capital and move quickly.
Learn more: Unlock Rental Property Equity with a Cash-Out Refinance
These short-term loans are typically used for quick purchases or fix-and-flip strategies. They’re fast but expensive, with high interest rates and fees. These are not ideal for long-term rental strategies unless you're buying a distressed property that needs rehab.
For international buyers, getting a U.S. mortgage often comes with added complexity, from legal structures to documentation and banking2. That’s why it’s essential to choose a loan that’s built for cross-border investing.
Waltz’s Investor Kit solves one of the most common barriers international buyers face: setting up the legal and financial foundation to invest in U.S. real estate.
With the Investor Kit, you get a U.S.-based LLC and EIN, including your LLC’s operating agreement. These are essential for DSCR loan approval and rental property ownership. This occurs within minutes, not months! If you start the investment property purchase process without an LLC, it can cause costly delays. Waltz eliminates that problem by bundling:
Together, these unlock immediate loan eligibility and give you full control over your investment from abroad.
Learn more: Investor Kit
Most U.S. lenders require W-2 income, tax returns, and credit reports: requirements that many foreign nationals simply can't meet. Even with DSCR loans, lenders unfamiliar with international investors may still require these documents. That's why so many global buyers hear "no" before they find Waltz.
Waltz removes those roadblocks by focusing on the property's income potential instead:
Hot townhouse markets move fast, and if you’re waiting on legal paperwork or overseas wires, you risk missing out. Waltz simplifies everything into one digital flow, helping you close in about a month in many situations.
To see how a DSCR loan works in practice, let’s walk through a sample townhouse investment, from numbers to qualification.
Imagine you're purchasing a townhouse in a high-demand rental area for $500,000, with expected monthly rent of $4,000. A lender like Waltz will assess whether that rent covers the monthly mortgage payment using a DSCR ratio, typically requiring a minimum of 1. To make this calculation, you’ll need to estimate your monthly mortgage payment (principal and interest). Here’s how it breaks down:
This approach simplifies financing and helps foreign investors scale faster by focusing on property performance instead of personal paperwork.
If you’re ready to invest in a U.S. townhouse, Waltz makes the process faster, simpler, and purpose-built for international buyers.
From day one, we remove the typical roadblocks, no U.S. credit history needed, no income verification required, and no third-party chaos—just a streamlined path to rental property ownership. Whether you're looking for your first rental property or building a multi-townhouse portfolio, we’re here to help you make it happen!
Ready to invest in U.S. real estate without the typical headaches? Apply now
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