How Can Indian Citizens Get US Mortgages? [2025]

Key Takeaways

 1. Indian citizens can buy US real estate without a visa or US credit history, making it easier to invest from overseas.

2. You can secure a US mortgage with remote closing options, making the process convenient from anywhere. 

3. HomeAbroad simplifies the process by offering tailored mortgage options, LLC setup, and US bank account assistance, all under one roof for Indian citizens.

Did you know Indian citizens are making a significant investment in US real estate, purchasing 5,400 homes in 2024 with a total investment of $4.1 billion? This growing trend highlights the increasing demand for US properties among Indian citizens. (Source: NAR) 

What’s even more encouraging is that you don’t need a US credit history or residency to join this wave. Whether you’re investing for rental income, long-term appreciation, or personal use, mortgage programs designed specifically for foreign buyers make it easier than ever for Indian citizens to finance US properties. 

In this guide, we’ll walk you through how Indian citizens can get a US mortgage, explore loan options, eligibility requirements, and a step-by-step process to help you finance your US property with ease. 

Can Indian Citizens Qualify for US Mortgages? 

Yes! Indian citizens can qualify for US mortgages. Whether you are a resident or a non-resident, you have the opportunity to secure financing for US real estate, making property ownership across borders achievable. 

At HomeAbroad, we provide tailored mortgage solutions for Indian buyers and investors, even without a US credit history. We also assist with US bank account setup, LLC formation, and everything you need to streamline your US real estate journey. 

Let’s take a closer look at the mortgage options available for Indian citizens. 

US Mortgage Options for Indian Citizens 

Indian citizens have access to various mortgage options in the US, even without a US credit history or residency. These loan programs are tailored for Global Investors, offering flexible eligibility criteria and competitive terms. 

US Mortgage Options Without a US Credit History 

For Indian citizens without a US credit history, several loan programs focus on alternative qualifying criteria, such as rental income, international credit reports, or foreign financial documents. 

Here are the mortgage options available: 

1. DSCR Loan (Debt-Service Coverage Ratio) 

DSCR loans are a great option for Indian investors looking to finance rental properties in the US. Instead of relying on personal income, this loan focuses on the property’s rental income, making it ideal for building a real estate portfolio. 

Key requirements: 

• DSCR Ratio: >= 1 for best terms, <1 eligible with higher down payment 

• Down Payment: 25% 

• Loan Term: Up to 30 Years 

• Cash Reserves: 6 Months 

• LTV Ratio: Up to 75% for Purchase and Rate/Term Refinance, up to 70% for Cash Out Refinance

For more details, check out our comprehensive DSCR Loan Guide. 

2. Full Documentation Loan 

Full documentation loan is best suited for Indian citizens with stable employment and consistent income. By providing the necessary financial documents, you can secure this loan for purchasing your personal or investment property in the US. 

Key Requirements: 

• Debt-to-Income Ratio: Less than 43% 

• Down Payment: 20%-25% 

• Loan Term: Up to 30 Years 

• Cash Reserves: 6 months 

Required documents include W2s, Pay Stubs, 1099, Bank Statements, and CPA Letter for Self Employed. If you lack a US credit history, we also accept foreign income and asset documents, international credit reports, or alternative proof of creditworthiness from your home country. 

For more details, check out our comprehensive Full Documentation Loan. 

3. Fix-and-Flip Loan

Fix-and-flip loans are designed for investors who want to purchase, renovate, and sell properties for a profit. These short-term loans offer quick access to funds, making them ideal for those looking to capitalize on real estate opportunities. 

Key Requirements:

• Down Payment: 25%-30% 

• Loan Term: 6-24 Months 

• LTC (Loan-to-Cost): Up to 85% 

• Rehab Cost: Up to 100% 

• ARV (After Repair Value): Up to 75% 

• Other Requirements: A detailed renovation plan with cost estimates and Proof of previous successful flip projects may be required. 

For more details, explore our Fix and Flip Loan Guide. 

4. Bridge Loan 

A bridge loan is ideal for Indian investors who need temporary financing while transitioning between properties. Whether you’re selling an existing property or waiting for another deal to close, this loan helps you manage the gap without financial strain. 

Key Requirements: 

• Down Payment: 30% 

• Loan Term: 6-24 Months 

• LTV Ratio: Up to 70% for Purchase and Rate/Term Refinance, up to 65% for Cash Out Refinance 

• Other Requirements: Proof of existing property equity, exit strategy for loan repayment, and property appraisal. 

For more details, explore our Bridge Loan Guide. 

HomeAbroad simplifies the mortgage process for Indian citizens, offering expert guidance and seamless financing solutions. 

US Mortgage Options with a US Credit History 

If you have a valid US visa and a strong US credit score, you may also qualify for traditional mortgage options like Conventional Loans and FHA Loans. These loans offer lower interest rates and down payment options, making them attractive choices for long-term homeownership or investment. 

1.Conventional Loan: 

A widely used mortgage option for buyers with a strong credit profile. Conventional loans offer competitive interest rates and flexible terms, making them an attractive choice for long-term investments. 

2.FHA Loan (Federal Housing Administration loan) 

FHA loans were once a popular choice for Indian citizens in the US. However, non-permanent residents are no longer eligible for new FHA loans unless their case number was issued before May 25, 2025, as per the latest FHA guidelines. 

Whether you’re investing in US real estate as a foreign national or holding a visa with an established credit history, multiple mortgage options are available to suit your financial situation. Choosing the right one can make all the difference in your investment journey. 

HomeAbroad simplifies this process by offering expert guidance and tailored mortgage solutions. Whether you are looking for a DSCR loan for rental properties or a bridge loan for short-term financing, our team ensures you find the financing option that aligns with your goals. 

Case Study: How an Indian Investor Secured a US Mortgage with HomeAbroad 

Joseph D’Souza, an ambitious Indian investor, was eager to step into the US real estate market. His primary objective was to purchase an investment property without increasing his financial burden.

He was looking for a mortgage solution that didn’t require a US credit history or residency. That’s when he found HomeAbroad, which helped him secure a DSCR loan tailored for foreign investors. 

Here’s a breakdown of his successful purchase:  

Property Details: 

Location: Memphis, Tennessee 
Property value: $210,000 
Monthly Rent: $1,800
Rental Yield: 10.28%  

Loan Details:

Loan Amount: $157,500  (75% LTV) 
Down Payment: $52,500 (25%) 
Loan Term: 30 years fixed 
Interest Rate: 9.25% 
Mortgage Payment (PITIA): $1,525

DSCR Calculation:

DSCR = Gross Rental Income ÷ PITIA 
DSCR = $1,800 ÷ $1,525
DSCR = 1.18

With a DSCR of 1.18, Joseph’s loan was approved, allowing him to invest in profitable rental property while maintaining financial flexibility. 

With HomeAbroad’s support, Joseph completed the entire process smoothly. From securing a DSCR loan without a US credit history to setting up an LLC and finding the perfect rental property.

His success is a great example of how Indian investors can confidently enter the US real estate market with the right team. let’s explore the step-by-step process that will guide you through securing a US mortgage as an Indian citizen. 

How to Apply for US Mortgages as an Indian Citizen?

Applying for a US mortgage as an Indian citizen with HomeAbroad is a streamlined process tailored to help you secure financing without unnecessary hurdles. 

Our expertise, customer-centric approach, and AI-driven property search engine ensure you find high-rental-yield properties and get the right mortgage with minimal hassle. 

Here’s a step-by-step guide: 

Step 1 – Decide the Location 

Step 2 – Get a Pre-Approval Letter from HomeAbroad 

Step 3 – Work with a Local Investor-Friendly Real Estate Agent 

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Step 4 – Sign the Purchase Contract & Start the Loan Process 

Step 5 – Order Required Property Reports 

Step 6 – Loan Underwriting & Document Collection 

Step 7 – Clear to Close & Final Loan Disclosure 

Step 8 – Closing 

With HomeAbroad, you get more than just financing, we assist in setting up LLCs, US bank accounts, and every essential step to ensure a seamless investment journey in the US real estate market. 

Tax Considerations for Indian Investors

The tax obligations for Indian citizens investing in US real estate are the same as those for US Citizens. Rental income earned from US properties is subject to US tax. However, certain deductions, like property expenses and depreciation, can reduce taxable income. 

When selling property, Indian investors are also subject to capital gains tax. The FIRPTA law mandates a 15% withholding tax on the gross sale price, which can be credited against your tax liability. 

The US-India Double Taxation Avoidance Agreement (DTAA) helps prevent double taxation. Indian investors can claim tax credits for taxes paid in the US when filing taxes in India, ensuring they’re not taxed twice on the same income. 

For more details about tax implications check out our comprehensive Tax Guide.

Conclusion

As an Indian citizen, securing a US mortgage is within your reach with the right guidance and expert support. Whether you’re looking to invest in rental properties, buy a home for personal use, or expand your real estate portfolio, various mortgage options are available for foreign buyers like you. 

At HomeAbroad, we offer tailored mortgage solutions that fit your unique needs as a global buyer. With ziffy.ai, Our AI-driven property search platform, you can easily identify high rental yield properties, ensuring a seamless experience from start to finish.  

Let HomeAbroad guide you through every step, helping you secure financing and turn your real estate dreams into reality. 

Pre-qualify for a US mortgage as an international buyer.
No US credit history needed.

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FAQs

About the author:

Rachel Spaccarotelli is a licensed mortgage originator (NMLS #1497555) and Senior Customer Loan Manager at HomeAbroad with a decade of experience in home financing for foreign nationals, specializing in international lending and Non-QM mortgages.

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