How to Qualify for a DSCR Loan as a Non-U.S. Resident

Think getting a mortgage in the U.S. is impossible without a local credit score or U.S. income? Think again.

There’s a financing method that flips the script: DSCR loans.

Designed for rental properties, DSCR loans don’t focus on your personal finances. Instead, they look at whether the property itself can pay for the loan. It’s the ultimate mortgage cheat code, and it’s not just for Americans. With Waltz, foreign nationals can qualify for DSCR loans without a U.S. credit score, U.S. income, or U.S. residency, making it possible to invest from anywhere.

Key takeaways

• DSCR loans are based on rental income, not your personal U.S. credit score or income.
  That makes them advantageous for foreign nationals who want to invest in U.S. real estate.
  
  
• To qualify for a DSCR loan, you'll need your LLC documents, a signed purchase agreement, proof of deposit, recent bank statements, and rental verification if the property is leased.
  
  
• The Waltz Investor Kit bundles everything you need to qualify for a loan, including LLC formation, EIN registration, and more, so you can close quickly and scale your portfolio from abroad.

What a DSCR loan actually looks at (hint: it’s not your U.S. credit score)

Many foreign investors hit a wall when they learn that traditional U.S. mortgages typically require a FICO credit score, proof of income from a U.S. employer, and residency status. It’s no wonder so many non-U.S. buyers assume they have to pay all-cash.

But DSCR loans level the playing field for foreigners.

Short for Debt-Service-Coverage-Ratio, a DSCR loan is based on a rental property's ability to cover its own monthly expenses, rather than your personal financial situation. That means no need for a U.S.: credit scores, no tax returns, or pay stubs. If the numbers on the property make sense, you’re likely eligible.

Key differences: DSCR vs. traditional mortgages

Traditional lenders look at your debt-to-income ratio, which compares how much you earn versus how much you owe. DSCR lenders, on the other hand, look at the property’s rental income relative to its monthly costs (principal, interest, taxes, and insurance).

DSCR = Rental Income ÷ Monthly Debt Service

A DSCR greater than 1 means the property generates enough income to cover the loan, which is typically the threshold for qualification.

DSCR loan scenario explained

Let’s say you’re buying a $250,000 property in Florida and putting 30% as a downpayment ($75,000). That leaves a $175,000 loan. If the total monthly mortgage payment (including taxes and insurance) is $1,500 and you expect to rent it out for $2,000/month, the DSCR is:

$2,000 ÷ $1,500 = 1.33

That’s a strong DSCR — and it’s what lenders like Waltz are looking for. With this model, international investors may qualify based solely on the property’s performance.

Learn more: DSCR Loans: The Foreign National's Guide to U.S. Real Estate

Property performance: your DSCR score

When applying for a loan, the most important number is your DSCR score. This ratio tells lenders whether the rental income can cover the mortgage payment. A DSCR above 1 means the property is generating enough to pay for itself, and then some.

At Waltz, we typically look for a DSCR of at least 1 to qualify. That means the property’s rent should be equal to or greater than the total monthly debt service (your loan’s principal, interest, taxes, insurance, and HOA if applicable).

Explore more: 5 Steps to Apply for a DSCR Loan as a Foreign National

How Waltz underwrites foreign nationals

Many U.S. lenders ask for W-2s, U.S. tax returns, or proof of local employment. Waltz evaluates foreign investors based on the property’s rental strength and their financial profile from their home country. We don’t require:

• A U.S. credit score
• U.S. income verification
• U.S. residency

For example, Adi from Israel had never purchased U.S. real estate before. As a first-time investor with no U.S. credit or income, he was repeatedly told “no” by U.S. lenders. Waltz looked at the numbers on his Alabama rental instead, and within a few weeks, he had financing in place and closed the deal entirely remotely.

Read more: Adi’s Success Story

Down payment requirements

While traditional U.S. lenders may require a hefty down payment from foreign nationals or reject them altogether, DSCR loans offer a more accessible path. Our typical minimum is 30% down. This allows you to unlock leverage — using less capital upfront to control more property — without the complexity or barriers of conventional loans.

More leverage with down payments compared to paying cash

The beauty of financing is scalability. With 30% down, you can buy three properties for the cost of one all-cash deal. That’s exactly how many of our clients build their portfolios over time.

Take Avi from Israel, for example. He initially paid all cash, thinking it was his only option. But as he expanded, he realized that tying up hundreds of thousands of dollars per property was limiting his growth. Through Waltz, Avi refinanced multiple rental properties using DSCR loans and began recycling capital across new investments. With each refinance, he freed up equity to reinvest, scaling his St. Louis, Missouri portfolio rapidly, one loan at a time.

Learn more: Avi’s Success Story with Waltz

U.S. business entity (LLC)

To qualify for a DSCR loan, you'll typically need to hold the property under a U.S.-based business entity, most commonly a Limited Liability Company (LLC). That’s because DSCR loans are for business purposes, not personal or owner-occupied use. Lenders require the property to be owned by a legal U.S. entity to issue financing.

Waltz eliminates this pain point entirely. With the Waltz Investor Kit, you can create a U.S. LLC, get an EIN (Employer Identification Number), and open a U.S. bank account through Regent Bank² in one seamless flow, with no legal knowledge or U.S. address required. The process takes minutes, not weeks.

Explore more: Waltz Investor Kit

Eligible property types

DSCR loans are designed for rental properties, not vacation homes or primary residences. That means your loan must be tied to a non-owner-occupied investment property that generates income.

At Waltz, we finance a wide range of property types across 41 U.S. states, including:

• Single-family rentals (SFRs)
• Condos and townhomes
• 2–4 unit multi-family properties

What you'll need to qualify

DSCR loans are simpler than conventional mortgages, especially when you work with a lender like Waltz that’s built for foreign nationals. Still, there are a few documents you’ll need to gather before you can close the deal.

Here’s what you’ll typically need to provide:

• Business entity documents (LLC formation docs, EIN letter, Operating Agreement, etc.) — If you’re using the Waltz Investor Kit, we handle this for you.
• Fully signed purchase agreement
• Proof of earnest money deposit — A receipt showing funds sent to the title company or escrow agent.
• Bank statements and source of funds — Usually the last 2–3 months, with a note explaining large deposits.
• Rental verification (if the property is already rented) — A signed lease and proof of the last 2 rent payments.

Once these are in, Waltz keeps things moving with a streamlined process that includes ID verification, disclosures via DocuSign, and even remote closing authorization. In most cases, there’s no need to travel or sign anything in person. As we like to say: Click. Click. Click. And the property is yours.

Ready to qualify? Here’s your next step

Waltz was built to remove the friction foreign nationals face when trying to invest in U.S. real estate. No U.S. credit? No problem. No U.S. income? No need when you apply for a DSCR loan. Plus, you don’t need to fly across the world just to sign a stack of papers!

With Waltz, you can qualify for a DSCR loan, set up your U.S. business entity, and close on your next property — all in one place.

Start your investment journey with Waltz today.

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