This case centered on whether a high-value short-term rental property in Hawaii could comfortably support long-term financing through its own income.
HomeAbroad structured a DSCR loan for a Canadian couple by underwriting the property’s short-term rental performance, rather than relying on personal income, US tax returns, or a domestic credit profile.
Investment Highlights
| Property Details | Loan Details | HomeAbroad Solutions |
|---|---|---|
| Purchase Price: $1,550,000 | Program: DSCR Loan Program | Foreign National DSCR Program |
| Location: Lahaina, Hawaii | Loan Amount: $1,085,000 | Cross-border Documentation Support |
| Property Use: Short-Term Rental | Down Payment: 30% | Loan Guidance for Non-US Credit Investors |
| Property Type: Single-family Rental | Interest Rate: 7.375% | End-to-End Closing Support |
Investment Properties on Sale in Hawaiian Today
The Investor’s Objective
Liam and Emma Thompson, Canada-based investors, wanted to purchase a short-term rental property in Hawaii using financing that aligned with the income generated by the property itself.
They were looking for US mortgages for Canadians. However, they did not have a US credit history or US tax returns, and did not want their personal income outside the US to determine eligibility. The objective was to secure long-term, fixed-rate financing based on short-term rental income while maintaining strong cash flow after all housing costs.
How HomeAbroad Worked Around The Investors’ Challenges
This case involved several challenges specific to foreign national short-term rental financing:
-
No US credit history - No US-based income or tax returns
- A high purchase price and large loan size
- Income derived from short-term rental activity
- Property taxes and insurance that materially affect cash flow
HomeAbroad addressed these challenges by underwriting the loan using gross short-term rental income against full monthly housing costs, including principal, interest, taxes, and insurance. This ensured the property met DSCR requirements based on realistic income and expense assumptions.
How HomeAbroad Structured the DSCR Loan
At HomeAbroad, we structured this loan using a foreign national DSCR program designed for international investors purchasing US short-term rental properties.
The loan was qualified by evaluating the relationship between gross rental income and total monthly housing expense. In this case, strong short-term rental performance supported a DSCR well above program minimums, even after accounting for taxes and insurance.
Steven Glick (Director of Mortgage Sales), who worked hand-in-hand with Liam and Emma, remarked:
The loan was approved with a 30-year fixed interest rate of 7.375 percent, providing long-term payment stability for a property with variable short-term rental income.
Despite having no US credit history, they guided us to the perfect DSCR loan, allowing us to invest in a stunning property in Lahaina. The process was smooth, and the rental income is covering our mortgage. We couldn’t be happier with their expert support and highly recommend them to any foreign national looking to invest in the US.
Emma and Liam, Canadian-couple who bought investment property in Hawaii
Loan Process Timeline
Stage | Details |
|---|---|
Registration | The investors submitted documents and began qualification review |
Loan Program Selection | HomeAbroad matched the investor with the Foreign national DSCR Loan Program |
Underwriting Review | Verification of Canadian income and financial records |
Final Approval | Loan cleared after full document review |
Closing | Investors completed the purchase of the Hawaii short-term rental |
Property Details:
Why This Deal Worked
Several factors contributed to the success of this case:
-
HomeAbroad underwrote the case with a clear focus on income durability - Short-term rental income comfortably exceeded total monthly housing costs
- DSCR was calculated using full PITIA, not just principal and interest
- The loan was structured around property performance rather than borrower income
- Fixed-rate financing reduced long-term interest rate risk
What Other Investors Can Learn From This Case
- Short-term rental income can support DSCR loans when documented correctly
- High-value properties can qualify when rental performance is strong
- Taxes and insurance meaningfully impact DSCR and must be modeled upfront
- Fixed-rate DSCR loans provide stability for variable rental income
- Working with a lender experienced in foreign national STR financing matters
