The Basics
What Is a Foreign National Loan?
A foreign national loan is a mortgage designed for non-U.S. citizens who want to purchase property without a Social Security number or established U.S. credit history. These loans use alternative eligibility documentation — foreign income verification, foreign credit references, and larger down payments — to qualify borrowers who wouldn't be eligible for conventional, FHA, VA, or USDA financing.
Foreign national loans are available to buyers who are not U.S. citizens, permanent residents, or green card holders. They typically require larger down payments (20–30%), higher credit documentation from the borrower's home country, and are priced with a rate premium over standard Non-QM programs due to the additional verification complexity.
20%
Typical minimum down payment
$2M+
Loan amounts available
30yr
Fixed terms available
Eligibility
Who Qualifies as a Foreign National Borrower
Foreign national loan programs are specifically for borrowers who are neither U.S. citizens nor permanent residents. This is a distinct category from ITIN loans, which typically serve long-term domestic residents without SSNs.
Typically Eligible
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Non-resident aliens purchasing U.S. propertyBuying a U.S. vacation home, investment property, or second residence from abroad.
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Visa holders (B-1, B-2, certain work visas)Visa status and remaining duration affect eligibility. Lenders review visa type and expiration.
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Borrowers with foreign income and foreign assetsIncome earned outside the U.S. can qualify. Asset documentation from foreign institutions is required.
Documentation Typically Required
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Valid passport and visa documentation
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Foreign credit report or credit reference letters (2–3)
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Foreign bank statements (12 months)
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Foreign income documentation (employer letter, tax returns from home country)
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U.S. bank account for down payment sourcing
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Foreign national vs. ITIN — what's the difference?
Foreign national loans are for buyers who primarily live and earn income outside the U.S. ITIN loans are for borrowers who live and work in the U.S. but don't have a Social Security number — they file taxes with an ITIN and have domestic income and credit history. The two programs have different documentation requirements, down payment standards, and lender appetites. See the ITIN loan guide →
Loan Requirements
Foreign National Loan Requirements
RequirementTypical Standard
U.S. Credit Required
No — foreign credit references used
Min. Down Payment
20–30% depending on lender
Occupancy
Second home or investment (primary varies)
Income Documentation
Foreign bank statements, employer letter, or foreign tax returns
Credit References
2–3 letters from foreign financial institutions
Reserves
12 months PITI typically required
Max Loan Amount
Up to $2M+ on most programs
Common Questions
Foreign National Loan FAQ
Can a foreign national get a 30-year fixed mortgage? +
Yes — many foreign national programs offer 30-year fixed terms. ARM products (5/1, 7/1) are also common and may offer lower initial rates for buyers who don't plan to hold the property long-term. The availability of term options depends on the specific lender and program.
Do I need a U.S. bank account? +
For the down payment and closing costs, yes — lenders typically require funds to be in a U.S. account at or before closing for verification and wire purposes. Foreign funds can be transferred to a U.S. account, but the sourcing and transfer must be documented. Reserve funds may be held in foreign accounts depending on the lender.
What if I have no U.S. credit at all? +
Most foreign national programs are specifically designed for this situation. Instead of a U.S. credit report, lenders accept foreign credit references — typically letters from 2–3 financial institutions in your home country attesting to your relationship, account history, and payment record. Some programs also use rental payment history or utility payment history as supplemental credit evidence.
Can I buy a rental property as a foreign national? +
Yes — investment property purchases are one of the most common uses of foreign national loans. Buyers from other countries purchasing U.S. rental properties for income or appreciation are a primary target borrower for this product. Expect 25–30% down for investment properties and the lender may consider rental income projections in qualification.
Does FIRPTA affect my purchase? +
FIRPTA (Foreign Investment in Real Property Tax Act) is a tax withholding rule that applies when a foreign person sells U.S. property — not when they buy. At purchase, your main tax consideration is understanding ongoing U.S. tax obligations on rental income if you're buying an investment property. Bayou Mortgage recommends consulting a tax advisor familiar with cross-border real estate before purchasing.
Ready to Purchase Property?
Bayou Mortgage works with lenders who specialize in foreign national financing. Tell us your situation and we'll identify your options.
