Foreign national mortgage loans & Non-US citizen mortgages 

Foreign national mortgages are US mortgage programs for foreigners including US newcomers and nonresident investors with no/thin US credit history.

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Foreigners don’t need a US credit history to get a mortgage in the US. 

This is true; in 2023, 42% of foreign buyers made all-cash purchases, and a notable 58% used financing options, which means US mortgages are accessible to foreign nationals. (Source: National Association of Realtors)  

It’s a common understanding that a good credit history is a must to get a mortgage, and this leads many foreign nationals to believe that they can’t get a US mortgage unless they build a good credit score first. 

However, HomeAbroad has foreign national mortgage programs for US newcomers and non-resident investors that do not require a US credit history. 

In this guide, I’ll explain these specialized US mortgage programs in detail to help you buy a property in the US. 

With more than a decade of experience in the US mortgage industry, I have helped many foreign nationals qualify for these mortgage programs.  

I will blend my professional expertise with my personal experiences to explain to you everything about foreign national mortgages and how you can qualify for them with no US credit.  

Let’s start with the most pressing question. 

Key Takeaways:

⁕ Foreign nationals can get a mortgage in the USA regardless of their US credit history, citizenship, or residency status.

⁕ Foreigners can buy primary residence, vacation home, or investment property with foreign national mortgage programs.

⁕ HomeAbroad offers foreign national mortgage loan programs for non-US Citizens, suited to their specific needs as a USA newcomer on a visa or foreign real estate investor. We can consider your credit history from your home country or alternative methods of establishing creditworthiness, to qualify for a foreign national mortgage program.

Can foreigners get a mortgage in the USA?  

Yes, foreign nationals can get a mortgage in the US, even without a US credit history. It’s a common misconception that you must be a US citizen or a green card holder to buy or finance a property in the US.  

Whether you are a US newcomer or a non-resident investor, you can use foreign national mortgages to buy your property in the US with no/thin US credit history. 

If you are an expat with an established credit history, then you are eligible for all US mortgage programs US citizens can access. You just need a lender who works with foreign nationals and is familiar with the unique underwriting process for non-US citizens. 

HomeAbroad specializes in providing US mortgages for foreign nationals, including expats, newcomers, and non-resident investors buying primary residences, second homes, or investment property. Drop your details to get started.

You must be curious what these loans are and how they work? Let’s dive in.

What is a foreign national mortgage loan? 

Foreign national mortgages are specialized loan programs designed for foreign real estate buyers who do not have a US credit history. These programs cater to newcomers, and non-resident foreign real estate investors, enabling them to finance property purchases in the country with a no or thin credit history in the USA.

Foreign nationals who have established credit history are generally eligible for conventional mortgage loans in the USA. However, in the context of expats with an established credit history, foreign national loans refer to the lender’s expertise in working with foreign-born US residents who hold green cards or work visas such as H1-B, L1, J1, etc. 

The no-credit-check qualification process varies depending on the program. Let’s understand each program to understand how they work and determine which one best suits your needs.

Foreign national mortgage loan programs & requirements 

Below are the foreign national programs designed for non-US citizens purchasing property in the United States.

1. Full documentation loan

A Full Documentation loan is for expats, newcomers, and foreign real estate investors with thin or no US credit history. This loan program requires extensive income and asset documentation to evaluate the creditworthiness and income stability.  

Along with the extensive documents, a full documentation loan also requires an international credit report. International credit report (ICR) is a borrower’s credit report from their home country that serves as an alternative to a traditional credit check, making US credit history unnecessary.

A full documentation loan can be used to buy a primary residence or investment property. 

Documents required / Eligibility for full documentation foreign national mortgage:

For Expats/US Newcomers:

• Social Security Number (SSN)
• Passport
• Visa
• Proof of Income
• Employment Verification
• Residency documents (to include address, own/rent, start and end dates)
• College Enrolment Verification (for international students)
• International Credit Report

For Non-resident Foreign Investors:

• Passport
• Valid US Visa (if required by the lender; not necessary for investors from visa waiver countries, or if the lender’s guidelines do not mandate it)
• Income/Asset Documentation (
• Cash Reserves
• International Credit report

2. DSCR loan for foreign real estate investors

A Debt Service Coverage Ratio (DSCR) loan is an investment property that considers your investment property’s income rather than your personal income for loan qualification. To qualify, the property’s income should sufficiently cover mortgage payments and other essential obligations like taxes, insurance, and HOA. 

This loan is ideal for foreign real estate investors who may not have a US credit history. DSCR loans don’t need an international credit report and personal income documents like a Full documentation loan because qualification depends on the property itself.  

With these unique features and qualification methods, DSCR loans are a convenient US mortgage option for foreign real estate investors. 

Documents required / Eligibility for DSCR or investor cash flow mortgage:

• Passport
• Valid US Visa (if required by the lender; not necessary for individuals from visa waiver countries, or if the lender’s guidelines do not mandate it)
• Property Income Documents (Rent receipts or 1007 rent schedule)
• 6-12 Months Cash Reserves (may be required)

Please note these are general document requirements, and specifics may vary based on your lender.

Understanding ICR (International Credit Report)

An International Credit Report (ICR) is a credit report from a foreign borrower’s home country that lenders use to assess creditworthiness without a US credit history. These reports are created by third-party agencies that gather credit information from your home country or any other country where you have a financial history. This report helps lenders understand your financial background globally, removing the dependency on US credit history for mortgage approval.

An international credit report typically includes the following:

➡️ Your credit history in your home country  

➡️ Property ownership details, both within and outside the USA  

➡️ Information on property taxes and insurance  

➡️ Public records, including liens, judgments, and foreclosures  

➡️ Verification of your employment history for the past two years  

➡️ Verification of your residency history for the past two years

In most cases, your loan officer will fetch an ICR after you provide the necessary information.  

Now that we’ve covered the various foreign national mortgage programs, let’s move on to discuss the application process.

How to apply for a foreign national mortgage?

Here are the steps foreign nationals need to qualify for a US mortgage with no US credit history. These are general mortgage application steps, and the exact steps may vary based on your specific mortgage program and lender.

Step 1: Decide how much house you can afford  

The first step in buying a house and getting a mortgage is knowing how much you can comfortably afford to pay as a monthly mortgage payment.  

You can use our Foreign National Mortgage Calculator to calculate your monthly payments based on the loan amount and terms you are getting. 

If you are getting a Full documentation loan, generally, lenders prefer a debt-to-income ratio of less than 43%, which means your debt obligations, including your mortgage payments, should account for 43% or less of your income. Remember this ratio when setting a budget for your house and deciding how much you want to borrow. 

For a DSCR loan, the debt-to-income ratio don’t matter, and property should be able to pay for it’s debt obligations to qualify.

Step 2 – Get a preapproval for a foreign national mortgage 

A preapproval tells how much a lender is willing to loan you, which can help you shortlist the properties in your budget. You can also share it with the property’s seller to show your seriousness and financial capability to really buy the property.  

To get a preapproval letter, find a lender who can provide the loan you want, be it a full document loan or a DSCR loan. 

HomeAbroad provides both of these foreign national mortgage programs, and you can contact us for a quick quote and preapproval. 

Simply provide your basic financial information to us or your chosen lender to get a preapproval. 

Note: The exact amount you could borrow may vary from the preapproval letter, as it is generated based on rough analysis and thorough assessment occurs after the loan application. 

Step 3 – Understand the loan requirements and eligibility and prepare documents

For a smooth financing process, it’s important to understand the requirements of your mortgage program. Talk to your loan officer to know the exact requirements and prepare beforehand. 

Here are some basic qualification requirements for full documentation loans and DSCR loans. 

Full Doc Loans for foreigners:  

➡️ Down Payment: 20%-30% of the property’s purchase price.  

➡️ International credit report

➡️ Debt-to-Income Ratio: DTI should typically be less than 43%. This requirement may vary depending on your case and lender.

DSCR Loans for foreigners:  

➡️ Debt Service Coverage Ratio: The property's DSCR ratio should be 1 or higher, demonstrating its capacity to cover mortgage payments and operational costs.  

➡️ Down Payment: Similar to full doc loans, a down payment of 20% to 30% is required.  

➡️ Cash Reserves:  Cash reserves of 6-12 months for monthly mortgage payments and other necessary expenses. 

Step 4 – Search for your home and make an offer

Start your property search along with your mortgage preparations. If you are not confident or familiar with the market, you could use the professional help of a real estate agent to find the right property and manage the related paperwork. 

They also hold the CIPS (Certified International Property Specialist) designation, reflecting their expertise in facilitating international real estate transactions in the United States.

These specialists will assist you in finding the right property, making an offer on the property, and support you through the later stages of buying process to ensure a smooth transition to becoming a US property owner.

Here’s what a HomeAbroad agent can do for you:

Want a HomeAbroad agent in your area? Drop your details below.

The mortgage application process is closely connected to the property buying journey. For a birds-eye view of the entire process, be sure to check out our Foreigners Buying a House in the USA guide.

Step 5 – Process your foreign national mortgage application 

After signing the purchase contract, it’s time to process your mortgage application. Work with our HomeAbroad loan officer with foreign expertise to apply for the loan and submit all the required documents. 

Past three days of the loan application, your dedicated loan officer will share a loan estimate, which contains the information on the granted loan amount, loan terms, closing costs, etc. 

Accept the loan estimate or negotiate the terms to move forward in the financing process. 

Step 6 – Lock the interest rate 

In the United States, mortgage rates change daily according to the bond market, and it’s advised to lock your rates till you close on your property. This will give you peace of mind and financial predictability in your home-buying journey. 

Rate locks usually last 30 to 90 days, though the duration can vary. Your loan officer will guide you through the rate lock process, including choosing the appropriate timing based on current market conditions and your expected closing date.  

Step 7 – Mortgage loan processing and underwriting 

After you accept the loan estimate from a lender, your application goes to an underwriter for further processing.

The underwriter is the key decision-maker in the mortgage process. They thoroughly assess your application to decide whether you qualify for the mortgage or not.

Their goal is to determine the risk involved in lending to you and make an informed final decision.

If you don’t get the loan approval, the purchase agreement has a mortgage contingency. This allows the buyer to back out without losing the earnest money deposit.

Step 8 – Property appraisal  

When your underwriter processes your loan application, they order a property appraisal to know the current market value of the property and ensure the loan amount aligns accordingly.

If the appraised value falls short of your agreed sales price, you can pay the difference, renegotiate the price with the seller, or back out of the purchase contract. The purchase contract you signed earlier has an appraisal contingency, and you can withdraw from the agreement without losing the earnest money deposit.

Step 9 – Prepare for closing 

You are almost there!

With the mortgage approval after underwriting, it’s time to close on your property. Closing is finalizing the purchase and taking ownership of your new house in the USA.

Before the big day, your loan officer will share a closing disclosure. This document details your monthly mortgage payments, loan terms, and closing costs you are supposed to pay on the closing day. Review it carefully and accept if you agree with the details mentioned.

On closing day, remember to bring your photo ID, a copy of your Closing Disclosure, any other necessary paperwork, and the required funds. If all goes smoothly, you’ll sign all the documents, receive your keys, and officially become a homeowner in the USA! Congratulations.

Here is a closing day checklist to be well-prepared for the big day.

Can Non-Resident Foreign Investors Close on a US Mortgage from Overseas?

Yes, non-resident foreign buyers who cannot be present in the United States for the closing process have several options to complete the process remotely:

➡️ Embassy or Consulate Services: Many countries’ embassies and consulates offer notary services that are recognized in the United States. Buyers can sign documents in the presence of a consular officer.

➡️ Apostille Certification: If your country is part of the Hague Apostille Convention, documents such as a power of attorney can be apostille-certified. This makes them valid for international use, including in the USA.

➡️ Power of Attorney (POA): You can assign a power of attorney to someone in the US, like a real estate agent or lawyer, to sign documents on your behalf. 

These methods require careful legal preparation and following specific requirements. It’s highly recommended to work closely with your real estate agent, mortgage lender, and legal counsel to make sure everything is done correctly and compliant with both US and international laws.

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Are you ready to take the first step towards becoming a homeowner in the US?

At HomeAbroad, we are dedicated to making US real estate and mortgages easy and accessible for foreign nationals, and we offer foreign national mortgages at the most competitive terms.

Our dedicated mortgage officer will guide you through every step to ensure a seamless financing experience. Drop your details to get a quote for a foreign national mortgage.

If you’d like to hear from someone who’s experienced our service, here’s a success story from our customer, Thomas.

Success Story:

Hear from Thomas how we helped him buy and finance a home near his grandkids.

To conclude, you’re ready to begin your US property buying journey without worrying about your US credit history. The secret to affordable and smooth financing is working with a lender who specializes in serving foreign nationals and understands your unique credit situation and requirements. HomeAbroad mortgage officers have extensive experience assisting international real estate buyers in the US. Contact us for the best loan terms and a seamless experience.

Frequently Asked Questions