Did you know the first successful airplane flight happened in North Carolina? In 1903, the Wright brothers launched their historic flight in Kitty Hawk.
Your real estate investments can take flight here, too – pun intended. North Carolina is a beautiful, well-regarded place to live and work. If you're thinking about buying a rental property, North Carolina may provide everything you're looking for. But if you're a foreign national, there are a few key things to know before you buy. This guide will walk you through them.
We are providing the following discussion to you for informational purposes only. All investments, including real estate, involve risk, and we encourage you to invest carefully. The information in this article is not intended to replace or serve as a substitute for any legal, real estate, tax, or other professional advice or service. You should consult with a professional in the respective legal, tax, accounting, real estate, or other professional area before making any decisions or entering into any contracts relating to a rental property.
Many real estate investors use debt-service-coverage-ratio (DSCR) loans. DSCR loans are tailored to foreign investors looking to buy income-generating properties.
A DSCR loan allows investors to purchase rental properties in North Carolina without needing to live there. Unlike traditional loans, DSCR loans don’t depend on the borrower’s personal income; they focus instead on the property’s cash flow.
These loans offer flexible documentation and qualification requirements, making it easier for foreign investors to buy property in North Carolina and beyond. It streamlines the process compared to a conventional mortgage.
DSCR (debt-service-coverage-ratio) loans provide a simple and effective financing option for foreign nationals interested in income-generating properties in North Carolina.
Here’s why DSCR loans are viable option:
With DSCR loans, international investors can quickly expand their real estate portfolios.
Lenders consider several factors when reviewing applications. Understanding these can make the process smoother and improve your chances of approval in North Carolina. Here’s what you should know:
Most lenders: U.S. lenders usually prefer income earned in the U.S. because it is easier to verify. If your income comes from another country, you will need extra documents, such as translated bank statements, proof of salary, and U.S. tax returns if available. Even with the right paperwork, delays or denials often happen because many lenders do not prefer to work with foreign financial systems.
Waltz: Whether your earnings are from the U.S. or another country, we accept documents like local bank statements, employer pay slips, and rental income from properties you own. We also consider the rental income the North Carolina property you want to buy could earn, giving you a fair evaluation.
Most lenders: Foreign buyers are often asked to make large down payments. These payments are usually 30–50% of the property price. In some cases, this is two times the amount expected for Americans purchasing investment properties. Some lenders also require extra savings to cover possible costs, like repairs or empty rental months, which increases upfront expenses.
Waltz: We offer more flexible options. While 30% down payments are common, some qualified buyers can pay as little as 25%. We also adjust reserves to match your financial situation and the rental income the property could generate.
Most lenders: Many lenders require U.S. identification, such as a passport and visa. For investment properties, buyers are often required to create a U.S.-based LLC (Limited Liability Company), which involves setting it up and submitting its legal documents.
Waltz: We make this process easier for international buyers. All you need is a valid passport for identification. LLCs are a requirement for our investment property loans, however, our Investor Kit helps you set one up quickly and get an EIN (Employer Identification Number) in as little as minutes rather than waiting months.
Most lenders: Most lenders rely on U.S.-based credit scores, which can make it hard for international buyers without a U.S. credit history. Even if you have strong credit in your home country, it can still lead to delays or denials.
Waltz: We understand that building a U.S. credit history can be difficult when living elsewhere. That’s why we review your credit from your home country among other factors to determine your creditworthiness. This allows us to fairly assess your financial reliability without requiring a U.S.-based credit score.
Find out how international investors have benefited from working with Waltz.
North Carolina’s real estate market has a variety of investment opportunities. The right property depends on your financial goals. Here are some property types to consider:
There are many advantages in store for foreign nationals who decide to invest in North Carolina real estate.
North Carolina, with its diverse landscape, thriving economy, and strong quality of life, presents numerous opportunities for real estate investors. Here are some of the state's top investment markets:
As the state capital, Raleigh offers a booming tech industry, a vibrant downtown scene, and a growing population. In 2024, over 17,000 people moved to the metro area, and in 2023, it ranked as the third fastest-growing large city in the U.S., behind Atlanta, Georgia, and Fort Worth, Texas. It’s also home to top universities and strong public schools, and was recently named the sixth best place to live in America.
Charlotte, North Carolina’s largest city, is a growing financial hub with a diverse economy, thriving job market, and emerging cultural scene. Nearly half of all households in Charlotte are renters, making it an attractive market for real estate investors seeking rental income. The city also boasts a lower-than-average cost of living, making it more affordable for families. Finally, pro sports fans appreciate the Carolina Panthers (NFL) and the Charlotte Hornets (NBA) teams.
Asheville, a mountain city known for its arts, culture, and stunning natural beauty, is quickly becoming a top destination for both residents and visitors. Recently named one of the Southeast’s most livable mid-sized towns, Asheville boasts a strong sense of community, craft beer scene, live music, and art deco architecture. Despite Hurricane Helene’s impact in September 2024, the city has bounced back and is welcoming residents and tourists. With property prices under $500,000, Asheville is North Carolina’s top “move-to” city and the second in the country, making it a prime choice for real estate investors.
What’s not to love about Durham? The city blends a vibrant college town atmosphere with growing job opportunities in the Research Triangle. Major employers include Duke University, which welcomed nearly 17,000 students in Fall 2023 and employs over 44,000 people across its university and healthcare system. Blue Cross Blue Shield and IBM are also top employers in the area. With an average property price just over $400,000, Durham is the second-highest on this list, above Charlotte, and still an affordable option compared to many other East Coast cities.
North Carolina, with its diverse geography and growing economy, presents unique factors to consider when investing in real estate. These include:
Refinancing your North Carolina investment property means replacing your existing mortgage with a new one. This allows you to leverage your property’s equity to fund new investment opportunities.
Waltz provides tailored solutions to make the refinancing process smoother for North Carolina real estate investors. With our expertise, you can confidently optimize your investment strategy in North Carolina. For foreign nationals, the refinancing process typically includes:
For foreign investors looking to improve their terms, rate-and-term refinancing offers an opportunity to do just that. This option lets you adjust the terms of your current mortgage, potentially securing more favorable loan conditions. Even if you refinance at a lower interest rate, it’s worth noting that your total finance charges could end up being higher over the life of the loan.
Cash-out refinancing enables you to tap into your property’s equity and borrow more than your current mortgage balance, based on the original equity. For those looking to invest in North Carolina real estate, the extra funds can be used for a variety of purposes, such as home improvements, debt consolidation, or a down payment on another property. This gives you cash at closing, expanding your investment opportunity potential.
Learn more about refinancing.
Securing a DSCR mortgage with Waltz makes owning your next property easier than you think. Simply follow these steps:
1. Find a profitable investment
Think about what you want from the property and find a place that fits your budget and your goals. For example, you might want steady rental income from a multi-family property or a quick flip from a suburban house.
2. Gather essential documents
You'll need a few key documents like your passport, proof of income (pay stubs or bank statements), and details on the property you’re interested in. Having everything ready will speed things up.
3. Select a lender experienced with foreign nationals
Work with a lender who’s experienced with international buyers. A lender like Waltz will walk you through the process with guidance tailored to your situation.
4. Set up an LLC and U.S. bank account2
You’ll need a U.S.-based LLC and a local bank account for investment properties. It’s a simple process, and Waltz can help you set up your LLC and get your Employer Identification Number (EIN) quickly.
5. Submit your loan application
Once everything’s ready, submit your application. Make sure all your paperwork is complete to avoid delays.
6. Perform due diligence
Before sealing the deal, hire an inspector to take a close look at the property. Make sure it’s in good shape, check that the price matches its value, and confirm that the terms fit what you’re expecting.
7. Complete the purchase process
When everything checks out, sign the papers, transfer the funds, and finalize your purchase. It’s that easy!
