Foreign nationals can purchase and finance investment property in the United States, but the process differs from financing available to U.S. citizens and permanent residents.
Investors may have limited U.S. credit history, income earned outside the country, assets held in foreign currencies, or ownership structures involving domestic and foreign entities. A lender experienced with international investors can help evaluate these factors within an appropriate business-purpose loan program.
Foreign national financing is not one standardized product. Requirements vary by lender, property type, investment strategy, country of residence, ownership structure, and applicable law.
A foreign national real estate loan generally refers to financing available to a borrower who is neither a U.S. citizen nor a U.S. permanent resident.
For CoreVest, foreign national financing is intended for eligible non-owner-occupied residential investment properties. It is commercial, business-purpose financing—not a consumer mortgage for a primary residence, second home, or property used primarily by the borrower.
The lender may evaluate:
Foreign national status does not eliminate underwriting or guarantee approval.
A foreign investor may not have a U.S. Social Security number or established credit profile. Depending on the program, a lender may consider:
The absence of U.S. credit does not guarantee that alternative documentation will be accepted.
Foreign income and assets can involve:
Lenders may require certified translations, independent verification, or documents covering a specified period.
Foreign national programs may offer lower maximum leverage than comparable programs for qualifying domestic borrowers. Required equity depends on the loan, property, borrower, and risk profile.
A lender may require:
Specific requirements vary.
Foreign national mortgage articles often combine two different categories.
These finance properties used as a primary residence or for another personal, family, or household purpose. Immigration status, residency, income, credit, and occupancy requirements apply.
FHA and VA loans should not be presented as general foreign national investment financing:
These finance eligible non-owner-occupied properties held for rental, resale, renovation, construction, or another investment purpose.
CoreVest operates in this category. Its loans are not intended for personal residences.
Depending on lender and program requirements, eligible investments may include:
Property eligibility should be confirmed before entering a binding purchase agreement.
A visa is not necessarily required simply to purchase U.S. real estate, but lender and transaction requirements vary.
Documents may need to be translated or certified.
Lenders and financial institutions must comply with applicable identity-verification, anti-money-laundering, sanctions, and other legal requirements.
A foreign investor may be asked to document:
Investors should allow sufficient time for international transfers and verification.
A foreign investor may need to form a U.S. entity to own and finance the property.
The appropriate entity structure depends on:
Forming an LLC does not automatically reduce taxes or eliminate personal liability. Foreign investors should obtain coordinated U.S. and home-country legal and tax advice before selecting a structure.
An Individual Taxpayer Identification Number, or ITIN, is issued by the IRS to certain individuals who need a U.S. taxpayer identification number but are not eligible for a Social Security number.
An Employer Identification Number, or EIN, identifies a business entity for federal tax and administrative purposes.
A lender may require one or both numbers depending on the borrower and ownership structure. Obtaining an ITIN or EIN does not provide immigration status, work authorization, or automatic loan eligibility.
CoreVest’s foreign national requirements include U.S.-based banking and property management.
A U.S. bank account can facilitate:
A U.S.-based property manager can help oversee:
Self-management requirements and exceptions depend on the lender and program.
A DSCR loan may be appropriate when the property is complete, rentable, and generating or capable of generating qualifying rental income.
DSCR is commonly expressed as:
Qualifying property income ÷ applicable debt service = DSCR
The lender’s precise calculation may differ.
A bridge loan may be appropriate for a property that does not yet meet permanent rental-loan requirements. The investor should have a defined plan to sell, renovate, lease, or refinance the property.
A fix and flip loan can finance an eligible acquisition and rehabilitation project. Renovation proceeds are commonly reimbursed after approved work is completed, documented, inspected, and approved.
Ground-up construction financing may support an eligible investor building residential property to sell or hold.
Build-to-rent financing may support the development of multiple rental homes under one construction strategy.
Multifamily bridge or term financing may be appropriate for transitional, value-add, lease-up, or stabilized multifamily properties.
CoreVest offers financing solutions for qualifying international investors who can provide the required documentation.
Current foreign national program requirements include:
CoreVest states that foreign national programs may offer non-recourse options with soft cash management and leverage of up to 65% LTV. Availability and terms depend on the applicable product, property, borrower, ownership structure, and transaction.
A foreign national’s investment strategy may align with several CoreVest products, subject to program eligibility.
For an eligible stabilized rental property, CoreVest’s Single-Asset DSCR Loan provides long-term financing based primarily on property rental income rather than traditional personal-income documentation.
Explore Single-Asset DSCR Loans.
Investors acquiring or refinancing multiple eligible rental properties may qualify for a portfolio-level loan. The properties, portfolio cash flow, ownership structure, and foreign national requirements must satisfy the applicable program.
Explore Rental Portfolio Loans.
CoreVest’s Single-Asset Bridge Loan can provide short-term financing for eligible purchases and refinances without a traditional DSCR requirement. It may fit a property awaiting stabilization or permanent financing.
Explore Single-Asset Bridge Loans.
Foreign investors pursuing eligible acquisition and renovation projects may consider CoreVest’s Fix and Flip Loan, subject to foreign national and program requirements.
Experienced foreign national builders and developers may be eligible for construction financing, subject to sponsorship, entity, experience, property, and underwriting requirements.
Explore Ground-Up Construction Loans and Build-to-Rent Loans.
Foreign ownership of U.S. real estate can create federal, state, local, and home-country tax obligations.
Potential considerations include:
Under the Foreign Investment in Real Property Tax Act, dispositions of U.S. real property interests by foreign persons are generally subject to withholding. The general withholding rate is commonly 15% of the amount realized, although exceptions and reduced-withholding procedures may apply.
FIRPTA withholding is not necessarily the seller’s final tax liability. Foreign investors should plan for the tax and cash-flow implications well before selling or transferring a property.
Determine whether the property will be rented, renovated and sold, developed, or added to a portfolio.
Establish the appropriate ownership structure and understand obligations in both the United States and the investor’s home country.
Collect identification, banking, credit, entity, income, asset, and property records before applying.
Open required accounts, form the approved entity, obtain necessary tax identification, and arrange property management.
Prepare a clear record showing the source and movement of equity, reserves, and closing funds.
Compare:
International documentation, fund transfers, translations, entity formation, tax identification, and compliance review can extend the process.
Generally, foreign nationals can acquire U.S. real estate, but legal, tax, sanctions, financing, and local requirements may apply.
Not necessarily. Some foreign national programs accept an ITIN instead. CoreVest requires qualifying foreign national borrowers to obtain an ITIN.
Requirements vary. Some lenders may consider international credit reports, bank references, or other documentation when U.S. credit is unavailable.
Not always. A foreign investor living outside the United States may not need a visa merely to own property. Lenders may still request immigration or travel documentation when relevant.
CoreVest financing is limited to eligible non-owner-occupied investment properties. It cannot be used for a primary residence or other personal, family, or household purpose.
Potentially. Approval depends on the property, DSCR, investor, ownership entity, credit documentation, liquidity, tax identification, U.S. banking, property management, and other program requirements.
Pricing may differ because of leverage, documentation, structure, credit, liquidity, and other factors. There is no universal foreign national interest rate.
Often, but the required amount varies. CoreVest’s foreign national programs currently indicate leverage of up to 65% LTV, meaning the investor may need to contribute at least 35% of the property value or purchase price, plus applicable closing costs and reserves. Actual requirements may be more conservative.
No. Recourse depends on the lender, loan program, ownership structure, and guaranty documents. CoreVest may offer non-recourse options to qualifying foreign national borrowers, subject to underwriting and standard carve-outs.
There is no universal timeline. Timing depends on documentation, appraisal, title, insurance, entity formation, tax identification, international fund verification, and underwriting.
Foreign nationals can access financing for eligible U.S. investment properties without following the same path as a domestic consumer mortgage borrower. Success depends on selecting an experienced business-purpose lender, establishing the correct ownership and banking structure, documenting the source of funds, and planning for U.S. legal and tax obligations.
As a direct lender backed by Redwood Trust, CoreVest provides international investors with access to in-house underwriting, capital markets, and construction management expertise across multiple stages of the real estate investment lifecycle.
Disclaimer: This article is provided for informational purposes only and does not constitute immigration, legal, tax, regulatory, investment, or financial advice. Foreign national eligibility, loan programs, terms, leverage, pricing, recourse, cash-management requirements, and availability are subject to change and vary by borrower, property, country, ownership structure, transaction, and jurisdiction. This is not a commitment to lend. All loans are subject to underwriting, credit approval, and applicable program requirements. Consult qualified U.S. and home-country professionals before making investment, financing, immigration, legal, or tax decisions.
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