[Case Study] How a UK Investor Secured a DSCR Loan with No US Credit History
Client: Sam Smith, UK Investor on L1 Visa
Goal: Buy an investment property in Sarasota, FL ($500,000)
Challenge: No US Credit History, Multiple Lender Rejections
Solution: HomeAbroad DSCR Loan for Global Investors
Outcome: $341,000 Loan Approved in 29 Days
At HomeAbroad, we pride ourselves on helping clients navigate the complex landscape of US real estate especially for foreign nationals. One of our most memorable successes involved Sam Smith, an investor from the UK who faced significant hurdles in his quest to secure a rental property in Sarasota, Florida.
Let’s take a closer look at Sam’s profile and the property he aimed to purchase.
Borrower Profile
- Name: Sam Smith (Name changed for privacy)
- Background: Sam arrived in the US on a short-term assignment with an L1 visa, having spent less than six months in the country. His lack of US credit history posed a significant challenge in securing financing for his investment property.
Despite these obstacles, Sam was determined to invest in a promising rental property in Florida.
Property Details
- Location: 6505 Colonial Drive, Sarasota, FL 34231
- Type: Rental Property
- Purchase Price: $500,000
- Closed under: LLC
This promising rental property in Sarasota presented an exciting investment opportunity for Sam, despite the financing hurdles ahead.
Challenges Sam Faced
Sam’s journey to secure financing was fraught with challenges. His short-term residency in the US and absence of a US credit history led to multiple rejections from various lenders.
It was disheartening for him to see his dream of owning a rental property in the US slipping away.
With these setbacks, Sam turned to us, and our mortgage officers assured him that he would get the financing with us.
Based on his scenario, a DSCR (Debt Service Coverage Ratio) loan was perfect for him as it doesn’t require a US credit history for qualification and entirely depends on the property’s income.
However, the rental property he aimed to purchase had a DSCR ratio of less than 1, further complicating the qualification process.
Sam feared he wouldn’t be able to buy his rental property in the US, but we were determined to help him achieve his goal.
The HomeAbroad Solution
When Sam turned to us at HomeAbroad, we knew we had to turn his situation around. Our team is renowned for its specialization in assisting foreign nationals with their mortgage needs, and we were determined to help Sam.
Steven Glick, one of our dedicated mortgage officers, took on Sam’s case with a resolve to find a solution where others had failed.
Recognizing Sam’s unique situation, Steven helped him select the best loan program for foreign investors (DSCR loan), which utilizes the property’s income for qualification and does not require a US credit history.
Through meticulous work and a deep understanding of the unique needs of foreign investors, Steven managed to reduce the interest rate, thereby lowering the monthly mortgage payments and improving the DSCR ratio.
This tailored approach made it possible for Sam to qualify for the loan.
Loan Details:
- Loan Program: DSCR Loan
- Loan Amount: $341,000
- Purpose: Purchase
- Loan Type: 30-year fixed-rate
- Interest Rate: 7.375%
- Time to Close: 29 days
With the right loan in place, Sam was finally able to move forward with his investment.
Reflecting on the successful closing, Steven Glick shared:
Sam Smith’s story is a testament to HomeAbroad’s dedication and expertise in navigating the complexities faced by foreign national investors.
Despite the initial setbacks, HomeAbroad’s personalized approach and specialized products turned a challenging situation into a successful investment.
Sam is now a proud owner of a rental property in Sarasota, Florida, thanks to the unwavering support and innovative solutions provided by HomeAbroad.
Start your success story with us! Our tailored mortgage programs, including DSCR loans for foreign nationals with no US credit history, are designed to meet your unique needs. Get started today!
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