Editorial Integrity
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:
1. Conventional loans are designed for US-based borrowers with W2 income, US tax returns, and established domestic credit.
2. HomeAbroad DSCR loans qualify foreign nationals based on the property’s rental income rather than personal income and debt-to-income ratios.
3. DSCR lending makes it possible to buy in an LLC, close remotely, and add more properties as long as each deal cash flows.
4. HomeAbroad specializes in DSCR loans for foreign nationals and provides end-to-end support, from property selection to closing.
Table of Contents
Conventional mortgages are built for people who live and work in the US. They assume W2 income, US tax returns, and a long domestic credit history.
Most foreign nationals do not fit that profile, even when they have strong income and assets abroad.
HomeAbroad’s DSCR loans work differently. Instead of centering everything on your personal US income and credit, they focus on the property’s rental income and your available funds. That structure makes it realistic for international real estate investors to buy and scale US rental portfolios while living abroad.
Quick Snapshot: Which Loan Fits You?
Conventional loans work best if you:
-
Live and work in the US - Have a full US credit history and FICO score
- File US tax returns and receive W2 income
- Want to buy a primary residence or second home
DSCR loans work best if you:
-
Live abroad and earn income outside the US - Do not have a US credit history or W2 income
- Want to buy rental properties in the US
- Want to hold property in a US LLC and grow a portfolio over time
For most foreign nationals investing from abroad, getting a conventional loan is difficult, and rejection from lenders is inevitable. That is why DSCR financing tends to be the better match.
DSCR vs. Conventional: Side-by-Side
Feature | HomeAbroad DSCR Loan | Conventional Loan |
|---|---|---|
Approval focus | Property’s rental income | Your personal US income and DTI |
US credit history required | Not required | Required |
Income documentation | No US W2s or tax returns needed | W2s, tax returns, paystubs required |
Typical use | Investment and rental properties | Primary residence, some second homes |
Ownership structure | LLC ownership allowed | Usually personal name only |
Number of properties | Easier to finance multiple rentals | Limits on financed properties |
Timeline | Streamlined, investor-focused closing | Slower due to extensive verifications |
Why DSCR Loans Work Better For Foreign Nationals
If you are a foreign national investing from abroad, the challenge with conventional loans is structural, not personal. You may have:
- High income in your home country
- Substantial savings or investment assets
- Strong credit history outside the US
Yet conventional lenders often cannot use these in the format their guidelines require.
DSCR loans solve this by:
- Ignoring US DTI rules
The focus is on the property’s DSCR, not your personal income or DTI. - Not requiring a US credit score
You can often qualify without a domestic FICO score, which would otherwise take years to build. - Allowing non-resident borrowers
You can buy US rental property without relocating or obtaining a particular visa class. - Supporting LLC ownership
Many foreign nationals prefer to hold US real estate through a local LLC for privacy and asset protection. - Making portfolio growth realistic
As long as each property’s rental income supports its mortgage, you can keep adding properties across different US markets.
For these reasons, DSCR loans have become the practical default for foreign nationals who want to build a US rental portfolio instead of just one vacation or second home.
How HomeAbroad Supports DSCR Borrowers
HomeAbroad is focused on unlocking US real estate for foreign nationals, from the first purchase to a diversified portfolio.
Working with HomeAbroad, you can:
- Explore DSCR friendly markets and properties using an investment focused search experience
- Structure your purchase using a DSCR loan tailored for foreign nationals who live and earn abroad
- Hold your investments in a US based LLC with guidance from experienced professionals
- Open a local US bank account to manage rent collection and mortgage payments
- Close remotely with support on cross border documentation and coordination
The result is a financing path that matches how international real estate investors actually live and invest, instead of asking you to fit into a purely domestic lending model.
Pre-qualify for a US mortgage as an international buyer.
No US credit history needed.
FAQs
Can a foreign national living abroad get a conventional loan?
No, Conventional loans are designed for borrowers with US credit, US based income, and tax returns. Only foreign nationals who already live in the US on eligible visas and have a full domestic financial profile typically qualify.
Are DSCR loans only for experienced investors?
No. DSCR loans can work for first time investors as long as the property’s projected rental income supports the mortgage and you meet the down payment and reserve requirements. Experience helps, but it is not always required.
Can I buy in a US LLC with a DSCR loan?
Yes. One of the advantages of DSCR lending with HomeAbroad is the ability to finance properties under a US based LLC, which many foreign nationals prefer for structuring their holdings.
