L1 Visa…

Updated on November 26, 2024

L1 Visa Mortgages for Primary Residence and Investment [2024]

L1 visa holders can secure a mortgage in the US with thin or no credit history. Options are available for both primary residences and investment properties.

Written by Amresh Singh

Founder & CEO of HomeAbroad

Reviewed by Jason Saylor

Sr. Customer Loan Specialist | NMLS #2594493

L1 Visa Mortgages for Primary Residence and Investment [2024]

Making informed real estate decisions starts with having the right knowledge. At HomeAbroad, we offer US mortgage products for foreign nationals & investors and have a network of 500+ expert HomeAbroad real estate agents to provide the expertise you need. Our content is written by licensed mortgage experts and seasoned real estate agents who share insights from their experience, helping thousands like you. Our strict editorial process ensures you receive reliable and accurate information.

Key Takeaways: 

➡️ L1 visa holders with an established credit history can qualify for conventional loans with flexible loan terms and competitive interest rates. 

➡️ Those without a US credit score can explore no-credit mortgage solutions through HomeAbroad Loans, assessing international credit reports and proof of assets. 

➡️ Non-immigrant visa holders don’t need a green card to qualify for a mortgage and buy a property in the US.

L1 visa holders and other works visa holders are eligible to buy property in the USA, and securing a mortgage is easier than you might think.

Take the example of John, an executive on an L1A visa, who recently secured a home loan through HomeAbroad Loans. With our personalized approach and expert guidance, John was able to buy a home in Florida within a year of moving to the US.

Whether you’re on an L1A or L1B visa, HomeAbroad Loans is here to provide seamless mortgage solutions, offering competitive rates and expert support throughout your homeownership journey.

Can L1 Visa Holders Get a Mortgage in the US?

Yes, L1 visa holders can get a mortgage in the US without any restrictions, whether you’re looking to purchase a primary residence or invest in rental properties. Mortgage eligibility will largely depend on your credit score and credit history.

Here’s how the process varies based on your credit history:

Without US Credit History: Alternative options include no-credit mortgage solutions like DSCR (Debt Service Coverage Ratio) loans or Full Documentation Loans.
With US Credit History: Access to conventional loans with competitive rates.

L1 Visa Mortgage Options for Primary Residences

L1 visa holders have access to various mortgage options in the US, tailored to their credit history in the US.

L1 Visa Mortgage Options with No/Thin US Credit History

1. US Newcomer Mortgage

Ideal for L1 visa holders purchasing a primary residence without a US credit history. These loans assess financial stability through comprehensive documentation.

Requirements:

International Credit History: Credit report from your home country or alternative proof of creditworthiness.
Income Verification: Proof of stable income, such as employment contracts or pay stubs.
Asset Documentation: Bank statements or other financial assets to demonstrate the ability to cover down payments and closing costs.
Identification: Valid passport and L1 visa status documentation.

Why Choose US Newcomer Mortgage?

HomeAbroad US Newcomer Mortgage program enables L1 visa holders and other work visa holders like H1B visas and TN visas to qualify for a mortgage based on international financial credentials, bypassing the need for a US credit score.

L1 Visa Mortgage Options with Good US Credit History

1. Conventional Loans

Suitable for L1 visa holders with an established US credit history, offering competitive terms for primary residences.

2. FHA Loans

Available to L1 visa holders who meet specific criteria, including holding an Employment Authorization Document (EAD). These loans provide lower down payment options and flexible credit requirements.

L1 visa holders with a good credit score can qualify for conventional loans with competitive mortgage rates. A strong credit history, stable income, and a low debt-to-income (DTI) ratio can help you qualify for more favorable loan terms.

Borrowers with excellent credit profiles often enjoy lower interest rates, reduced monthly mortgage payments, and better refinancing opportunities down the line.

L1 Visa Mortgage Options for Investment Properties

Without US Credit History

1. Debt Service Coverage Ratio (DSCR) Loans

Designed for L1 visa holders investing in rental properties, DSCR loans focus on the property’s income potential rather than the borrower’s personal financials or credit history.

Requirements:

DSCR Ratio: 0.75 or higher
Down payment: 25%
LTV Ratio: For rate/term refinance – 80%, For cash-out refinance – 75%
Cash Reserves: 3 months
Documents: 1007 rent schedule or historical rent receipts

Why Choose DSCR Loans?

HomeAbroad DSCR loans allow borrowers to qualify based on the income-generating potential of the property, making it easier to invest in rental properties without a strong personal income or high debt-to-income ratio. This loan program is available to all foreign nationals, including investors who live outside the US, which means no immigration status or residency status requirements.

2. Full Documentation Loans

For L1 visa holders interested in investing in US real estate, Full Documentation Loans provide a pathway to securing investment properties even without a US credit score.

These loans require thorough documentation of income, employment, assets, and international credit history, enabling investors to qualify based on financial stability rather than US credit.

Requirements:

Down Payment: 25%
Cash Reserves: 6 months
Documents: Income verification documents (tax returns, bank financial statements, etc.)

Why Full Documentation Loans?

This option is ideal for L1 visa holders looking to grow their real estate investment portfolio in the US. By focusing on comprehensive financial documentation, Full Documentation Loans allow applicants to demonstrate their creditworthiness based on income, assets, and international credit history, making it possible to acquire investment properties without a traditional US credit score.

Ready to apply for a L1 visa mortgage?

Explore our Foreign National Mortgage Guide to learn everything about the mortgage application process as a non-US citizen.

Case Study: UK Investor Buys a Rental Property in Florida

Sam Smith, an investor from the UK on an L1 visa, aimed to expand his real estate portfolio by purchasing a rental property in Sarasota, Florida. However, Sam lacked a US credit history, which he feared would hinder his ability to secure a mortgage.

UK investor on L1 visa purchased this single-family rental property in Sarasota, Florida, with a DSCR loan from HomeAbroad.

Challenge:

Without a US credit score, Sam got multiple rejections from various mortgage lenders.

Solution:

HomeAbroad Loans approached Sam’s situation by:

HomeAbroad DSCR Loan
Local Real Estate Agent with International Expertise
Concierge Service

Result:

Within 29 days, Sam secured a DSCR (Debt Service Coverage Ratio) loan through HomeAbroad, allowing him to purchase the $500,000 investment property. By focusing on the property’s income potential, HomeAbroad enabled Sam to achieve his US real estate goals without requiring a US credit score.

HomeAbroad Loans provides tailored mortgage solutions for L1 visa holders, ensuring that even without US credit, investors like Sam can qualify for loans that support their financial objectives.

Read the full story of Sam – a UK investor on L1 visa who purchased a rental property in Florida.

Get a L1 Visa Mortgage with HomeAbroad

Whether you’re an L1 visa holder with no US credit history or an established credit profile, HomeAbroad Loans is here to help you with the mortgage loan process. We are a licensed mortgage broker and offer tailored mortgage programs for L1 visa holders and other non-us citizens with competitive mortgage rates and expert guidance customized to your unique situation.

Our experienced loan officers understands the unique challenges and opportunities you face, and we make the process as smooth as possible, ensuring your path to homeownership is stress-free.

Are you ready to begin your mortgage journey? Contact HomeAbroad today for a free consultation and let us help you turn your US homeownership dreams into reality.

Pre-qualify for a US mortgage as an international buyer.
No US credit history needed.

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FAQs

1. Can L1 visa holders get a mortgage in the US without a credit history?

Yes, L1 visa holders without a US credit history can still secure a mortgage. HomeAbroad Loans offers tailored no-US-credit mortgage solutions, such as DSCR loans for investment properties and Full Documentation Loans for primary residences. These options focus on your international credit history, income stability, and assets instead of relying solely on a US credit score.

2. What is a DSCR loan, and why is it suitable for L1 visa holders?

A DSCR loan (Debt Service Coverage Ratio) is a mortgage option for L1 visa holders interested in investing in rental properties. It focuses on the income potential of the property rather than your personal credit history or finances. If the rental income can cover the loan payments, you can qualify, making it ideal for L1 visa holders without US credit. Learn more in our DSCR Loans Guide.

3. How can an L1 visa holder buy a primary residence without a US credit score?

L1 visa holders can buy a primary residence without a U.S. credit score by applying for the HomeAbroad Full Documentation Loan. This loan program verifies U.S. income and employment history but accepts a credit report from the applicant’s home country in place of a US credit history, allowing them to get a mortgage approval.

4. What are the typical down payment requirements for L1 visa holders?

Typically, L1 visa holders need a down payment of 20%-25%, depending on their financial profile and the specific loan program.

Amresh Singh, Founder & CEO of HomeAbroad

About the author:

Amresh is the Founder & CEO of HomeAbroad. With over 14 years of mortgage industry experience, he specializes in foreign national mortgages and Non-QM mortgages. He is also a licensed mortgage originator (NMLS # 2549148).