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HomeAbroad’s DSCR loans are designed for international real estate investors who want to buy US rental properties without dealing with traditional income checks or any US credit requirements.
For foreign-national buyers, the qualification is based entirely on the property’s rental income and DSCR rather than your personal credit history. A US credit score isn’t needed, and it doesn’t influence approval.
This guide breaks down how DSCR loans work for foreign investors and why credit scores play no role in the process.
Table of Contents
DSCR Loan Credit Score Requirements
For foreign-national investors, a US credit score isn’t part of the qualification process at HomeAbroad. Instead of evaluating your personal credit history, we look directly at the property you’re buying, its projected rental income, cash flow, and overall DSCR.
Since approval is driven by the property’s ability to cover its own mortgage payments, you don’t need a US credit score to qualify.
Steven Glick,
Director of Mortgage Sales, HomeAbroad Loans
If you want to gain a deep understanding of DSCR loans, our guide is here to help.
Factors That Matter for Foreign Nationals to Secure DSCR Loans
Foreign nationals don’t need to have a US credit history to secure a DSCR loan. Here are the key factors that carry the most weight when determining eligibility for a DSCR loan as a Foreign National:
1. Property Cash Flow
The most important factor is the property’s DSCR, which shows the ability to generate enough rental income to cover its mortgage payments. We typically require a DSCR of 1.0 or higher, which ensures the property’s income fully covers its mortgage payments.
However, not all properties meet that threshold. For those cases, we offer a No-Ratio DSCR Program, which allows investors to qualify even when the DSCR falls between 0 and 1. This option comes with a slightly larger down payment (a 5% hit to LTV) and higher interest rates, but it still enables foreign investors to secure financing for strong properties that are temporarily underperforming.
2. Down Payment Strength
Foreign National DSCR loans generally require larger upfront contributions, with a minimum down payment of 25%. A higher down payment lowers the lender’s risk, strengthens your file, and can lead to better interest rates and quicker approvals.
This post is a must-read to know how the DSCR loan down payment works and the factors that influence it.
3. Cash Reserves
A minimum of 6 months of PITIA reserves is required to ensure you can comfortably cover mortgage payments. This financial cushion ensures you can cover mortgage payments even if the property experiences vacancies, seasonal dips, or unexpected expenses.
These factors matter far more than any personal credit data when evaluating a foreign-national borrower.
How to Get Approved for a DSCR Loan Without a US Credit Score
Foreign-national investors can qualify for a DSCR loan without a US credit score since approval is based on the property’s cash flow and your overall financial strength, not traditional credit metrics. HomeAbroad uses clear and straightforward criteria to ensure the investment is strong. Here’s what helps you qualify:
1. Get Started with HomeAbroad
Working with the right lender makes the entire process easier. HomeAbroad specializes in DSCR loans and structures terms specifically to support international real estate investors building US real estate portfolios.
Start your DSCR loan journey with us and lay a strong foundation for your investment.
2. Choose a Property With Strong Rental Potential
Since DSCR loans are driven by cash flow, selecting the right property is one of the most important steps. Higher rental income leads to a stronger DSCR and a smoother approval process. HomeAbroad’s AI-driven investment property search platform makes this easier by identifying top-yield rental opportunities across the US.
3. Meet the DSCR Requirement
Aim for a DSCR of 1.0 or higher, which means the property’s rental income fully covers its monthly mortgage payment (PITIA). A stronger DSCR indicates healthier cash flow and gives you a better chance of securing favorable terms.
4. Prepare a Strong Down Payment
For foreign nationals, DSCR loans require a minimum 25% down payment. Putting more down reduces risk, strengthens your application, and can help improve loan pricing.
5. Provide Necessary Documents
Without a US credit score, financial documentation becomes even more important. HomeAbroad reviews:
- 2 Months’ Bank Statements
- Property’s purchase contract
- Appraisal
- 1007 Rent Schedule
- Homeowners Insurance
- Entity Documentation (If buying under LLC)
6. Maintain Required Reserves
A minimum of 6 months of PITIA reserves is required. These reserves ensure you can manage payments during vacancies, seasonal dips, or unexpected expenses.
Conclusion
Foreign-national investors don’t need a US credit score to qualify for a HomeAbroad DSCR loan. Approval is based on the property’s cash flow, not your credit history, which makes financing accessible even if you’ve never built credit in the US. With the right support, the entire process is straightforward.
HomeAbroad offers flexible terms, competitive rates, and a streamlined lending experience designed specifically for international real estate investors. Our AI-driven investment property search platform helps you find top-yield rental opportunities across the US, and our expert local agents provide personalized guidance every step of the way.
We also assist with LLC formation, US bank account setup, and property management support, giving you everything you need to invest confidently from abroad.
Get a DSCR loan with HomeAbroad today and start building your US real estate portfolio with confidence.
Frequently Asked Questions
Do foreign nationals need a US credit score to qualify for a DSCR loan?
No, foreign national investors do not need a US credit score to qualify for a HomeAbroad DSCR loan. Approval is based on the property’s rental income, DSCR, your down payment, reserves, and proof of funds, not personal credit history.
What documents do foreign investors need for a DSCR loan?
The documentation is simple. You’ll need your passport, international or US bank statements, proof of funds for the down payment and closing costs, source-of-funds documentation, and any LLC formation documents if you’re purchasing through an entity.
What is the minimum down payment for a Foreign National DSCR loan?
HomeAbroad requires a minimum 25% down payment for Foreign National DSCR loans. A stronger down payment can improve your terms and make approval easier, especially for properties with tighter cash flow.
