The defining factor in this case was not the investor’s background, but whether the rental property in Florida could support long-term financing on its own.
HomeAbroad structured this DSCR loan for a UK-based investor, Sam Smith, by evaluating the property’s income, leverage, and long-term viability rather than relying on personal income, US tax returns, or a domestic credit profile.
Investment Highlights
| Property Details | Loan Details | HomeAbroad Solutions |
|---|---|---|
| Purchase Price: $500,000 | Program: DSCR Loan | Foreign National Investment Property Loan Program |
| Location: Sarasota, Florida | Loan Amount: $341,000 | Cross-border Documentation Support |
| Property Use: Long-term rental | Down Payment: 30% | Loan Guidance for Non-US Credit Investors |
| Property Type: Investment Property | Interest Rate: 7.375% | End-to-End Closing Support |
The Investor’s Objective
The investor, Sam, who was in the US on a short-term assignment with an L-1 visa, wanted to acquire a Florida rental property through an LLC while securing long-term financing that did not rely on personal income earned outside the US.
Because Sam was based in the UK, there were no US tax returns, W-2s, or domestic income to support a traditional mortgage. The objective was to structure a DSCR loan that focused on the property’s rental income and ownership structure, even though the deal did not meet a standard DSCR of 1.
Despite these obstacles, Sam was determined to invest in a promising rental property in Florida.
The Investor Challenges and How HomeAbroad Addressed Them
This case involved several constraints specific to a foreign national DSCR purchase:
-
No US credit history - No US-based income or tax returns
- Property cash flow below a DSCR of 1
- Purchase through an LLC
- Cross-border documentation and banking considerations
Steven Glick, one of our dedicated mortgage officers, took on Sam’s case with a resolve to find a solution where others had failed. He addressed these challenges by structuring the loan under a DSCR program that allows approvals below a DSCR of 1 with appropriate leverage and risk adjustments, while also supporting LLC ownership for a foreign national borrower.
How HomeAbroad Structured the DSCR Loan
At HomeAbroad, we structured this using a foreign national DSCR loan designed for international real estate investors purchasing US rental property through an entity.
Rather than qualifying the borrower based on personal income, we evaluated the relationship between the property’s rental income and the mortgage payment. Although the DSCR was below 1, the deal was structured with leverage and pricing that aligned with program requirements.
The loan was approved as a 30-year fixed-rate mortgage at a 7.375% interest rate, providing long-term payment stability despite the sub-1 DSCR profile.
Loan Process Timeline
Stage | Date | Details |
|---|---|---|
Registration | September 25, 2025 | The investor submitted documents and began qualification review |
Loan Program Selection | Late September 2025 | HomeAbroad matched the investor with the DSCR program |
Underwriting Review | Early October 2025 | Checking of DSCR and Verification of UK income and financial records |
Final Approval | Mid October 2025 | Loan cleared after full review |
Closing | October 29, 2025 | Investor completed the purchase of the Sarasota investment property |
Even with LLC ownership and a DSCR below 1, the transaction moved through approval within a defined and predictable timeframe.
Property Details:
Sam chose this home in Sarasota, Florida for its strong rental appeal.
Closing Takeaway
Several factors contributed to the successful approval of this transaction:
-
The loan was structured to allow DSCR below 1 under program guidelines - Leverage was adjusted to balance cash flow and risk
- LLC ownership was addressed early in the underwriting process
- Documentation was aligned with HomeAbroad’s foreign national DSCR criteria from the start
- HomeAbroad underwrote the deal with a clear focus on structure rather than borrower income
This approach allowed the deal to move forward despite factors that often stop DSCR transactions.
What Other Investors Can Learn From This Case
- DSCR loans for foreign nationals can be approved even when DSCR is below 1
- Personal income and US tax returns are not required for DSCR qualification
- Entity ownership should be planned early, not added late
- Sub-1 DSCR deals require thoughtful leverage and structure
- Working with a lender experienced in foreign national DSCR loans matters
