Foreign National Loan Program | Foreign National Mortgage Guidelines
Looking for an investment rental Foreign National loan program? The investment rental Foreign National loan program is available to a Foreign National as long as they borrower in a name of a U.S. based LLC and in a permitted country.
Can Qualify Based on Cash Flow of the Property
Foreign National mortgage guidelines are based on debt-service coverage rather than personal debt-to-income. The property qualifies based on property’s debt-service ratio. Debt-service ratio is taking the full mortgage payment (principal, interest, taxes, insurance, and association dues) to rent to determine cash flow coverage. The minimum loan amount is $75,000 and minimum property value is $100,000.
Permitted Countries Include
Eligible country list includes:
- A-B: Argentina, Australia, Austria, Belgium, Brazil, and Bulgaria.
- C-E: Canada, China, Columbia, Croatia, Czech Republic, Denmark, and Estonia.
- F-J: Finland, France, Germany, Greece, Hungary, Ireland, Israel, Italy, and Japan.
- L-N: Latvia, Lithuania, Luxembourg, Malta, Netherlands, and New Zealand.
- P-S: Poland, Portugal, Romania, Slovakia, Slovenia, Spain, and Sweden.
- U-V: United Kingdom, and Venezuela.
Credit Requirements – Investment Foreign National Loan
The Foreign National mortgage guideline for credit requires an attempt to pull credit. When a credit report is available, it must be evaluated for the loan. If a credit report is not available, the borrower is still eligible.
Loan-to-Value and Loan-to-Costs
The maximum loan-to-value is 70% on the investment/business purpose 1-4 unit and condo loan. Options for investment/business purpose loans for 2-6 units are available too.
Property Types
- Single-family detached
- Planned unit developments (PUD)
- Condominiums (warrantable and non-warrantable)
- Townhomes
- 2-4 units
- Modular Homes
Minimum Property Requirements
- Detached units must be a minimum of 700 square feet.
- Attached units must be a minimum of 500 square feet.
- Property must have a fully functional bath in the main structure.
- Property must have a fully functional kitchen in the main structure.
- Property must have an “as is” appraisal, which is habitable and lease ready condition with a rating of C4 or better.
Refinance Transactions
- Cash out refinances are acceptable.
- For 1 unit properties, the property must be leased at the time of financing or provide evidence that the property has been leased within the 2 months of normal turnover.
- For 2-4 unit properties, the property should not have more than 1 vacant unit at the time of closing and must provide evidence that the property was leased in the past 2 months.
Purchase Transactions
- For 1 unit properties, the property does not require to be leased.
- For 2-4 units, the property cannot have more than 1 vacant property at the time of closing.
Foreign National Mortgage Guidelines
The investment Foreign National loan program is considered wholesale portfolio lending and each loan is underwritten based on a more common sense approach to underwriting and the ability to repay.
Certain loan programs allow borrowers to occupy the subject property as a borrower’s primary residence, second home, or investment loan.