Foreign Investor Without Social Security Number Loan Program
Foreign Investor Without Social Security Number Loan Program
We're working with people abroad who want to buy or refinance their property located in the United States. Our Foreign National Loan Program has a flexible process with realistic guidelines which helps more borrowers to qualify. As your trusted local lender it is our primary focus to make sure that any borrower who comes through our door has an option to receive financing.
What is an Investor Loan Program (DSCR)?
The Foreign Investor Loan Program, particularly the Debt Service Coverage Ratio (DSCR) loan, is tailored for real estate investors seeking financing for investment properties. This loan type assesses the property's capacity to meet its debt obligations, including mortgage payments, taxes, and insurance. Typically, lenders mandate a DSCR ranging from 1 to 1.5 to qualify for a DSCR loan, with the most prevalent threshold being 1.25. However, our program offers flexibility by considering DSCRs below 1.
What are Foreign Investor Loan Program (DSCR) Requirements?
- No credit score needed
- Program exclusively designed for Investment Occupancy Type
- Down payment can be as low as 30%
- Borrower must have or have had ownership in any residential property within the last 24 months
- At least 20% of the down payment must be the borrower's own funds; additional funds can be gifted. Funds not documented must "Season" in the borrower's account for over 60 days before use in the transaction
- Reference letter from a financial institution in the borrower's country of residence is mandatory
- Borrower must demonstrate 12 months of reserves (future all-in monthly payment for the property multiplied by 12)
- Closing costs, including bank services, title company services, government fees, transfer tax, appraisal, prepaid home insurance, and home tax typically around 5-7%
- Cash-out refinance option available with this program.
Ineligible borrowers:
- Borrowers with diplomatic immunity or otherwise excluded from U.S. jurisdiction
- Residents of any country not permitted to transact business with US companies are ineligible (as determined by any U.S. government authority).
- Irrevocable Trusts or Land Trusts
- Borrowers less than 18 years old
What documents are needed for a Foreign Investor Loan (DSCR) pre-approval?
- Copy of the Passport and unexpired Visa
- Proof of property ownership (your primary residence) translated to English by the certified translator (does not need to be notarized)
- Most recent two Bank Statements to document available funds for down payment, reserves, and closing costs. USA bank account is required. Funds for the transaction must be wired to the title company from the USA bank account and not the foreign account.
What is the Foreign Investor Loan (DSCR) Limit?
The loan amount for our Foreign Investor Loan Program (DSCR) ranges from a minimum of $100,000 up to $2 million. This allows for flexibility in financing options, catering to a wide range of property values and borrower needs. Whether you're seeking a smaller loan for a single unit or a larger investment loan for multiple units, our program is designed to accommodate various financial scenarios.
Conventional Loan vs Foreign Investor Loan (DSCR)
Conventional Loans and Investor Loans (Debt Service Coverage Ratio - DSCR) are two distinct mortgage options with unique characteristics and eligibility criteria.
Conventional Loan:
Foreign Investor Loan (DSCR):
Conventional Loan:
- Offered by private lenders without government backing
- Typically necessitates a higher credit score, usually around 620 or higher
- May entail private mortgage insurance (PMI) if the down payment is less than 20% of the home's purchase price
- Provides various loan amounts and repayment periods for borrower flexibility
Foreign Investor Loan (DSCR):
- Designed specifically for foreign investors seeking to finance investment properties
- Requires a Debt Service Coverage Ratio (DSCR) calculation, which measures the property's income against its debt obligations
- Requires a higher down payment compared to Conventional Loans
What are Foreign Investor Loan (DSCR) Rates?
Foreign Investor Loan (DSCR) Rates and Conventional Loan Rates represent two distinct types of mortgage options with differing characteristics and eligibility criteria.
Conventional Loan Rates:
Foreign Investor Loan (DSCR) Rates:
Conventional Loan Rates:
- Interest rates for Conventional Loans can fluctuate based on factors such as the borrower's credit score, loan amount, and prevailing market conditions
- These rates are influenced by broader economic factors like inflation rates and decisions made by the Federal Reserve
Foreign Investor Loan (DSCR) Rates:
- Interest rates for Foreign Investor Loans are higher compared to Conventional Loans, reflecting the risk associated with income-generating properties
- These rates may vary depending on factors such as the borrower's creditworthiness, the property's cash flow, and the lender's assessment of risk
Why choose my team & I?
- #1. Transparency is paramount in your home buying journey. I ensure a clear understanding of the entire process, from application to closing, while Lending Capital Group INC guarantees straightforward communication, no hidden fees, and no surprises. You'll be well-informed and confident at every stage.
- #2. Your dream home is within reach with our Low Down Payment Programs starting at 3%. I understand the importance of affordability, offering options that make securing your first home easier without straining your budget.
- #3. Your financial well-being matters to me. At Lending Capital Group INC, we secure competitive interest rates, ensuring that you get the best possible terms and save money over the life of your mortgage.
