Foreign National Mortgage: How Non-US Citizens Can Buy Property in 2026

# Foreign National Mortgage: How Non-US Citizens Can Buy Property in the United States

Buying property in the United States as a non-US citizen is entirely legal and more common than most people realize. According to the National Association of Realtors, foreign buyers purchased [$42 billion worth of US residential real estate](https://www.nar.realtor/research-and-statistics/research-reports/international-transactions-in-u-s-residential-real-estate) in the 12 months ending March 2024. The challenge is not whether you can buy, but how you finance it. A foreign national mortgage is the specialized loan product that makes this possible, and understanding how it works can save you tens of thousands of dollars over the life of your loan.

At Reinvent NY, we help non-US citizens navigate the American real estate market every day. This guide breaks down exactly what a foreign national mortgage is, who qualifies, what it costs, and how to position yourself for approval.

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What Is a Foreign National Mortgage and Who Qualifies

A foreign national mortgage is a loan product designed specifically for borrowers who are not US citizens or permanent residents. Unlike conventional mortgages that rely heavily on US credit history and Social Security numbers, these loans use alternative documentation to assess a borrower's creditworthiness.

Eligibility typically includes:

- Non-US citizens living abroad with no US visa
- Visa holders (B-1/B-2, E-2, H-1B, L-1, O-1, and others)
- Permanent residents (green card holders) who lack sufficient US credit history
- Canadian and other foreign nationals purchasing vacation or investment properties

The key distinction is that foreign national loans do not require a US Social Security number or US credit score. Lenders evaluate your application based on your passport, foreign income documentation, and the property itself.

Not every lender offers these products. Major US banks like Chase and Bank of America have largely pulled back from foreign national lending in recent years. Instead, the market is dominated by portfolio lenders, private lenders, and non-QM (non-qualified mortgage) specialists such as:

- [Quontic Bank](https://www.quontic.com) (New York-based, strong foreign national program)
- [HSBC US](https://www.us.hsbc.com) (leverages international banking relationships)
- [Citadel Servicing / Acra Lending](https://www.acralending.com) (non-QM specialist)
- Regional credit unions in Florida, New York, California, and Texas

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Requirements and Documentation You Need to Prepare

The documentation requirements for a foreign national mortgage are more extensive than a conventional loan. Lenders need to verify your identity, income, and ability to repay without access to standard US financial databases.

Standard requirements include:

- Valid passport from your home country (primary identification)
- ITIN (Individual Taxpayer Identification Number) or willingness to obtain one. You can apply using [IRS Form W-7](https://www.irs.gov/forms-pubs/about-form-w-7)
- Down payment of 30% to 40% of the purchase price (some lenders require up to 50% for condos)
- Proof of income: 2 years of tax returns from your home country, employment letters, bank statements showing 12-24 months of reserves
- Foreign credit report or international credit references (letters from banks in your home country)
- Proof of funds: Bank statements showing the down payment and at least 6-12 months of mortgage reserves in liquid assets
- US bank account: Most lenders require you to open a US bank account before closing
- Property appraisal conducted by a US-licensed appraiser

One critical point that catches many buyers off guard: the source of your down payment must be fully documented and traceable. Cash deposits, cryptocurrency conversions, or funds from unverifiable sources will disqualify your application. Wire transfers from established foreign bank accounts with clear paper trails are the standard expectation.

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Interest Rates, Costs, and How Foreign National Loans Compare to Conventional Mortgages

Foreign national mortgages carry higher costs than conventional loans. This reflects the additional risk lenders take when they cannot verify a borrower's US credit history or enforce collection across international borders.

As of early 2026, here is how the numbers break down:

The 1% to 2% interest rate premium on foreign national loans translates to meaningful cost over 30 years. On a $500,000 loan at 8.5% versus 7.0%, you would pay approximately $148,000 more in total interest over the life of the loan. This is why we advise our clients to consider larger down payments when possible, as reducing the loan amount offsets the higher rate.

Additional costs to budget for:

- Property taxes: Vary by state; New York City effective rate is approximately 0.88% of market value, while New Jersey averages 2.23%
- Homeowners insurance: $1,200-$3,000+ per year depending on location and property type
- HOA/condo fees: $500-$2,000+ per month in Manhattan
- Legal fees: $2,000-$5,000 for a real estate attorney (required in New York)

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DSCR Loans for Foreign National Investors and Tax Implications

For foreign nationals purchasing investment properties, a DSCR (Debt Service Coverage Ratio) loan is often the best financing option. DSCR loans qualify borrowers based on the property's rental income rather than personal income, which eliminates the need to verify foreign employment or tax returns.

How DSCR works:

The lender calculates whether the property's expected rental income covers the monthly mortgage payment. A DSCR of 1.25 or higher is the typical minimum, meaning the property must generate 25% more income than the mortgage payment. For example, if your monthly mortgage payment is $4,000, the property needs to produce at least $5,000 in monthly rental income.

DSCR loans for foreign nationals typically require:

- 30%-40% down payment
- Interest rates of 8.5%-10.0% (2026 rates)
- 12 months of reserves in a US bank account
- Appraisal with rental income analysis
- No personal income verification required

Tax Implications for Foreign Property Owners

Foreign nationals who own US property face specific tax obligations that are different from those of US citizens. Failing to plan for these can result in unexpected withholding and penalties.

Key tax considerations:

- FIRPTA (Foreign Investment in Real Property Tax Act): When you sell US property, the buyer is required to [withhold 15% of the gross sale price](https://www.irs.gov/individuals/international-taxpayers/firpta-withholding) and submit it to the IRS. This is not a tax rate; it is a withholding amount. Your actual tax liability may be lower, and you can file for a refund of any excess withholding.
- Rental income taxation: Foreign nationals must file a US tax return ([IRS Form 1040-NR](https://www.irs.gov/forms-pubs/about-form-1040-nr)) to report rental income. You can deduct expenses including mortgage interest, property taxes, insurance, depreciation, and management fees.
- Estate tax exposure: Non-resident aliens are subject to US estate tax on US-sited assets exceeding $60,000 (compared to $13.61 million for US citizens). Proper structuring through an LLC or trust is essential. Consult a cross-border tax attorney before purchasing.
- State taxes: States like New York impose additional transfer taxes and mansion taxes on purchases above certain thresholds. The [NYC mansion tax](https://www.nyc.gov/site/finance/taxes/property-real-property-transfer-tax-rptt.page) starts at 1% for properties over $1 million.

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Final Thoughts

A foreign national mortgage requires more paperwork, more money upfront, and higher interest rates than a conventional loan. That is the reality. But it also opens the door to the largest and most liquid real estate market in the world, with strong property rights protections that many other countries cannot match.

The buyers we work with who succeed in this process share a few common traits: they start preparing their documentation early, they work with lenders experienced in foreign national programs, and they get professional tax advice before closing, not after.

If you are a non-US citizen considering a property purchase in New York or anywhere in the United States, we can help you evaluate your options, connect you with the right lenders, and guide you through the entire transaction.

[Schedule a free consultation with our team](https://docs.google.com/forms/d/11dV2EAJwqcnYLRKvRI70A9BJOWBwZpAzeODotMbereg/viewform)

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FAQ

Can a non-US citizen get a mortgage in the United States?

Yes. Foreign national mortgages are available from portfolio lenders, non-QM specialists, and select international banks. You do not need a US Social Security number, green card, or US credit history. Expect a minimum down payment of 30%-40% and interest rates of 8%-9.5% in 2026.

What is the minimum down payment for a foreign national mortgage?

Most lenders require 30% to 40% down. Some require up to 50% for condos or co-ops. The higher down payment compensates for the lender's inability to verify US credit history and reduces their risk exposure.

Do I need an ITIN to buy property in the US?

An ITIN (Individual Taxpayer Identification Number) is not always required at the time of purchase, but you will need one to file US tax returns on rental income or capital gains. We recommend applying for an ITIN early in the process using [IRS Form W-7](https://www.irs.gov/forms-pubs/about-form-w-7).

What is FIRPTA and how does it affect foreign property owners?

FIRPTA (Foreign Investment in Real Property Tax Act) requires the buyer to withhold 15% of the gross sale price when a foreign person sells US real estate. This withholding is submitted to the IRS. If your actual tax liability is less than 15%, you can file for a refund. Planning for FIRPTA before you buy is essential.

Can I get a DSCR loan as a foreign national?

Yes. DSCR (Debt Service Coverage Ratio) loans are popular among foreign national investors because they qualify you based on the property's rental income, not your personal income. You typically need a DSCR of 1.25 or higher, 30%-40% down, and 12 months of reserves.

How long does it take to close a foreign national mortgage?

Expect 45 to 90 days from application to closing. The process takes longer than conventional mortgages because of additional documentation requirements, international document verification, and the time needed to open a US bank account and obtain an ITIN.

What are the interest rates for foreign national mortgages in 2026?

As of early 2026, foreign national mortgage rates range from 8.0% to 9.5%, compared to 6.5%-7.5% for conventional loans. Rates vary based on down payment size, property type, loan amount, and the borrower's overall financial profile.

Should I buy US property through an LLC?

Purchasing through an LLC (Limited Liability Company) can provide liability protection and may offer estate tax planning benefits for non-resident aliens. However, some lenders do not lend to foreign-owned LLCs, and the structure adds legal costs. Discuss this with a cross-border tax attorney before deciding, as the right answer depends on your country of residence, the property's purpose, and your long-term plans.