Foreign National Mortgages: Guidelines, Documents and Property Use

A foreign national mortgage is a home loan for buyers who live outside the United States and usually do not have U.S. credit history or a Social Security number. These loans come from non-QM lenders and investors, and they rely on documents that work across borders: a passport, a visa if applicable, foreign income and bank records, international credit references and funds moved into a U.S. account. Most are used for second homes or investment property, and guidelines vary by borrower, property and investor.

Who foreign national programs are designed for

These programs are built for buyers whose financial lives are mostly outside the U.S. Common situations include:

• Buyers abroad who want a vacation home in a U.S. market they visit often.
• International investors buying rental property.
• Families buying a home to use during regular visits.
• Business owners abroad who want a U.S. property for business travel.

Each lender defines who qualifies as a foreign national in its own guidelines, and your circumstances decide which program applies. This site does not give immigration, visa, tax-residency or legal advice. For questions about those topics, consult an immigration attorney or a tax professional.

How foreign national guidelines generally work

Programs differ, but most look at the same core areas:

• Income. Foreign income is commonly documented with an employer letter, foreign tax filings, bank statements or a letter from an accountant in your home country. Documents are usually translated into English and amounts converted to U.S. dollars.
• Credit. Instead of a U.S. credit score, lenders may accept an international credit report or reference letters from banks and creditors in your home country.
• Funds to close. Your down payment and closing money are verified and usually need to be in, or moved to, a U.S. bank account before closing. Many programs expect a larger down payment than other loans.
• Reserves. Lenders commonly want to see additional funds left over after closing.
• Property use. Second homes and investment properties are the typical uses.

Some investment programs look mainly at the property's rent. Rental-property loans based on the property's rent are a separate category. Non-QM loans often price higher than agency loans because they carry more risk for the investor, and foreign national loans are no exception.

Documents lenders commonly ask for

• A valid passport.
• A visa, if applicable.
• Proof of your foreign address.
• Foreign bank statements, often with translations.
• Statements from a U.S. bank account, or records of the wire transfers that funded it.
• Credit references, such as letters from your bank or credit card issuers.
• An employer letter or business documents supporting your income.
• An ITIN, if you have one and the program asks for it.
• Formation documents, if you are buying through a company and the program allows it.

Requirements change by program and by property, so ask for the full checklist in writing before you start moving money.

Second homes and investment use

How you plan to use the property shapes which programs fit.

Second homes. A second home is for your own use part of the time. Programs typically expect it to be in a location suited to personal use and may limit renting it out. If you plan to rent it regularly, tell the loan officer, because that usually makes it an investment property for lending purposes.

Investment properties. These are bought to rent. Lenders may weigh the property's expected rent, your experience as an owner and your reserves. Investment loans sometimes carry a prepayment penalty, so ask whether one applies and when.

Condos. Many vacation markets are heavy with condos, and buyers from abroad often prefer them because the association handles exterior upkeep. Some projects do not meet agency standards, often because of short-term rental activity, hotel-style operations or building issues. Check the project's status early, since it can narrow your financing choices.

Ongoing costs. Plan for property taxes, homeowner's insurance, association dues and, if you will not be nearby, property management. Lenders weigh these costs along with the payment, and many want to see reserves that can cover them for a period after closing. Insurance in coastal areas can be a large part of the monthly cost, so get quotes early rather than after you are under contract.

Always describe your intended use honestly on the application. Occupancy matters to how a loan is priced and underwritten.

How lenders review foreign income and credit

Underwriters need to see income and payment history they can verify, even when it comes from another country. Expect them to ask who prepared each document, whether it is an original or a certified copy, and how amounts were converted to U.S. dollars. They may contact your employer, bank or accountant abroad to confirm details. Reference letters usually need to be on letterhead, signed and dated, and to describe how long you have held the account and how it has been paid. Clear, consistent documents move faster than a stack of loosely related records, so ask for the lender's preferred format before requesting letters from institutions overseas.

Moving money and closing

International transfers take time and paperwork. Expect the lender to ask where your funds came from and how they moved, and plan for currency conversion and bank processing time. Moving funds well before closing, and keeping every transfer record, gives the lender a clear paper trail and reduces last-minute requests. If you cannot attend closing in person, ask the lender and the closing agent early about remote options, signing abroad or using a representative, since rules vary.

Owning U.S. property as someone who lives abroad can have tax effects in the U.S. and in your home country, including on rental income and on a future sale. The IRS publishes guidance on how nonresident aliens are taxed, but how it applies to you depends on your situation, so talk to a tax professional.

Compare offers carefully

Ask for a Loan Estimate from each lender you are considering and compare the same type of loan side by side. Look at whether the rate is fixed or adjustable, whether there is a prepayment penalty, the closing costs and the cash needed to close. A fixed rate stays the same for the life of the loan, while an adjustable rate can rise or fall after an initial period. Before you share documents, confirm the company and loan officer are licensed using NMLS Consumer Access.

Also watch for warning signs common in international transactions: pressure to wire money quickly, changes to wiring instructions sent by email, or anyone who asks you to send funds to a personal account. Confirm wiring instructions by phone with a number you already know before sending any money. Programs vary by borrower, property and investor, and every loan is subject to credit approval.

Frequently asked questions

Next steps

• Foreign National Mortgages
• Non-Warrantable Condo Loans
• Foreign National Mortgages in Florida
• Foreign National Mortgages in New York
• Foreign National Mortgages in New Jersey
• Foreign National Mortgages in Pennsylvania
• Foreign National Mortgages in Connecticut
• Foreign National Mortgages in Virginia

Sources

• IRS: Taxation of nonresident aliens
• IRS: Individual Taxpayer Identification Number (ITIN)
• CFPB: How to check if a company or person is permitted to make or broker mortgage loans
• CFPB: Loan Estimate explainer
• CFPB: What is the difference between a fixed-rate and adjustable-rate mortgage (ARM) loan?
• CFPB: What is a prepayment penalty?