Foreign National DSCR Loan Program | Business Purpose

Foreign National DSCR Loan Program

The Foreign National DSCR (Debt Service Coverage Ratio) program offers financing options for non-owner occupied (N/O/O) investment properties. This program is structured for business purpose loans and emphasizes borrower performance through rental income rather than traditional income documentation.

Program Highlights

• No Ratio available
• Loan Amounts: $200,000 – 4,000,000
• Occupancy: Investment only (borrower or family may not reside in subject)
• Property types: Single Family, Attached, Detached, 2–4 Units, Condominiums (warrantable and non-warrantable with LTV adjustments)
• Terms: 30-Year Fixed, 5/6 ARM, 7/6 ARM
• Prepayment penalty: Allowed, subject to state restrictions
• Eligible borrowers: Foreign Nationals with valid passport, Visa, or I-797/I-94 documentation
• Gift funds permitted (borrower must contribute 10% of own funds)
• Assets must be sourced and seasoned for 60 days
• Subordinate financing must be institutional; seller carrybacks not permitted

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Loan-to-Value (LTV) & DSCR Requirements

Transaction Type	Max LTV	Minimum DSCR
Purchase / R/T Refi	85%	≥ 1.00
Cash-Out Refinance	80%	≥ 0.75
Purchase / Rate & Term	80%	No Ratio
Cash-Out Refinance	70%	No Ratio

Cash Out/ LTV Restrictions

Loan–to–Value	Cash Out Amount
≤65% LTV	No Limit
70.01% – 75% LTV	$1,500,000
75.0`1% – 80% LTV	$2,000,000

Reserve & Asset Requirements

Loan Amount	Reserves
≤1,500,000	None required
1,500,001 – 2,500,000	2 months PITIA
>2,500,000	6 months PITIA

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Credit & Housing History

• Minimum FICO: 680
• Tradelines:
  • 2 open reporting for 12 months, or
  • 1 open reporting for 24 months
• Housing history: 2x30x12 (no 30-day lates in the past 12 months)
• Exceptions: Considered under program guidelines

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Citizenship & Documentation

• Valid passport with Visa, or I-797/I-94 (as applicable)
• Canadian citizens may qualify without Visa for U.S. entry
• Citizens of OFAC-sanctioned countries (including Russia and Belarus) are ineligible

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Additional Restrictions

• Declining markets: 5% LTV reduction
• Acreage: Up to 2 acres (non-rural)
• State restrictions apply – certain locations ineligible (Hawaii lava zones 1 & 2, Puerto Rico, Guam, U.S. Virgin Islands, Baltimore MD)
• First-time homebuyers not eligible

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Available in The Following States:

Alabama, Arkansas, California, Colorado, Connecticut, DC, Delaware, Florida, Georgia, Hawaii, Iowa, Indiana, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Mexico, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.