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
- Loan amounts: $125,000 – 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
Credit & Housing History
- Minimum FICO: 680
- Tradelines:
- 2 open reporting for 12 months, or
- 1 open reporting for 24 months
- Housing history: 0x30x12 (no 30-day lates in the past 12 months)
- Exceptions: Considered under program guidelines
Loan-to-Value (LTV) & DSCR Requirements
| Transaction Type | Max LTV | Minimum DSCR |
|---|---|---|
| Purchase / Rate & Term | 75% | ≥ 1.00 |
| Cash-Out Refinance | 70% | ≥ 0.75 |
- Cash-out limits vary with LTV:
- ≤65% LTV: No limit
- 70.01%–75% LTV: $1,500,000
- 55% LTV: $500,0001,51,500,000,000
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 |
- 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
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
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
This Foreign National DSCR Business Purpose Loan Program is a notable option for global investors seeking to expand U.S. real estate holdings without reliance on U.S. income documentation. The focus on property cash flow and disciplined credit standards makes it a worthwhile reference for borrowers navigating unconventional mortgage solutions.
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********
Loan amounts: $125,000 – 3,000,000
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
Credit & Housing History
- Minimum FICO: 680
- Tradelines:
- 2 open reporting for 12 months, or
- 1 open reporting for 24 months
- Housing history: 0x30x12 (no 30-day lates in the past 12 months)
- Exceptions: Considered under program guidelines
Loan-to-Value (LTV) & DSCR Requirements
| Transaction Type | Max LTV | Minimum DSCR |
|---|---|---|
| Purchase / Rate & Term | 75% | ≥ 1.00 |
| Cash-Out Refinance | 70% | ≥ 0.75 |
- Cash-out limits vary with LTV:
- ≤50% LTV: No limit
- 60.01%–65% LTV: $1,500,000
- 60.01% LTV: $2,500,000
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 |
- 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
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
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
This Foreign National DSCR Business Purpose Loan Program is a notable option for global investors seeking to expand U.S. real estate holdings without reliance on U.S. income documentation. The focus on property cash flow and disciplined credit standards makes it a worthwhile reference for borrowers navigating unconventional mortgage solutions.
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.