Foreign National?Welcome to California Real Estate

A foreign national loan is a mortgage designed for non-U.S. citizens who want to purchase property in the United States but do not have permanent residency status. These loans fall into the non-QM (non-qualified mortgage) category since they do not meet the standard documentation requirements of conventional loans. Foreign national loans are typically portfolio products, meaning lenders keep them on their own books rather than selling them to government-sponsored entities like Fannie Mae or Freddie Mac. This gives lenders flexibility to work with international borrowers who may not have U.S. credit history, Social Security numbers, or domestic employment. These programs accommodate a range of borrowers including international investors, business professionals who travel to the U.S. frequently, and individuals purchasing vacation homes in California. The property types can include single-family homes, condos, and multi-unit investment properties. Because lenders take on more perceived risk with foreign national borrowers, you can expect higher down payment requirements (typically 25-40%) and interest rates compared to conventional loans. However, for many international buyers, this represents the only path to U.S. property ownership without establishing permanent residency first.

Foreign national loans are available to non-U.S. citizens who do not hold green cards or permanent resident status but wish to purchase property in the United States. Qualification depends on several factors including your legal entry status, financial capacity, and ability to document income and assets. Most lenders require proof of lawful U.S. entry at the time of purchase, typically verified through a valid passport and visa documentation. You do not need a work visa specifically; tourist visas (B-1/B-2), business visas, and other non-immigrant visas can qualify. Your home country matters less than your ability to demonstrate financial stability and provide verifiable documentation. Green card holders and permanent residents are treated similarly to U.S. citizens for mortgage purposes, so they typically qualify for conventional loans rather than foreign national programs (more on this distinction later if relevant to your situation). Work visa holders (H-1B, L-1, etc.) who have established U.S. credit history may also qualify for conventional financing. The foreign national loan category is specifically for those without U.S. residency status or credit history. Self-employed individuals, business owners, and investors from abroad can qualify by documenting income through bank statements, business financials, or rental income from the property itself using DSCR (Debt Service Coverage Ratio) qualification.

Foreign national loan requirements are more stringent than conventional mortgages due to the additional risk lenders take on with international borrowers. Here are the key requirements you should expect. Down payment is typically the most significant requirement, ranging from 25% to 40% of the purchase price depending on the property type and lender. Investment properties and higher loan amounts generally require larger down payments. A U.S.-based bank account is required to facilitate payments and verify your funds for closing. You will need to establish this account before applying and show adequate reserves, typically 12 months of mortgage payments in liquid assets. Documentation requirements include a valid passport from your home country, visa documentation showing legal U.S. entry, and proof of income. Income verification can be accomplished through employment verification letters, bank statements showing consistent deposits, business financial statements for self-employed borrowers, or CPA-certified profit and loss statements. Credit requirements vary by lender since most foreign nationals lack U.S. credit history. Some programs accept international credit reports from your home country, alternative credit documentation like utility and rent payment history, or no credit score requirements when using asset-based or DSCR qualification. Property restrictions often apply, with many foreign national programs limited to non-owner-occupied investment properties, though some lenders do offer primary residence options for borrowers who spend significant time in the U.S.

No, you do not need a Social Security number to obtain a foreign national loan in California. This is one of the primary advantages of these specialized mortgage programs. Lenders offering foreign national loans understand that non-residents typically do not have SSNs and have designed their underwriting processes accordingly. There are two main paths depending on your situation. If you have an Individual Taxpayer Identification Number (ITIN), you may qualify for ITIN loan programs. The IRS issues ITINs to individuals who need to file U.S. tax returns but are not eligible for a Social Security number. ITIN loans often have slightly more favorable terms than true foreign national programs because borrowers have established some U.S. tax history. If you do not have an ITIN or SSN, foreign national loan programs can still work for you. These programs qualify you based on your passport, visa documentation, international credit history, and verified assets and income from your home country. Keep in mind that while an SSN is not required, you will still need to provide substantial documentation to verify your identity and financial capacity. Lenders may require certified translations of foreign documents and verification of international income sources. Some lenders may ask you to obtain an ITIN before closing, which you can apply for through the IRS using Form W-7. This is a straightforward process that your lender can guide you through if needed.

Applying for a foreign national loan in California starts with finding a lender experienced in international borrower programs, since not all mortgage companies offer these specialized products. Here is the process you can expect. First, gather your documentation before applying. You will need your valid passport with at least six months validity remaining, visa or entry documentation, proof of income (employment letters, bank statements, or business financials), asset statements showing your down payment and reserves, and any international credit documentation available. Contact a lender who specializes in non-QM and foreign national programs to discuss your situation. During the initial consultation, we will review your specific circumstances, property goals, and timeline to determine the best program fit. Pre-approval involves verifying your income, assets, and documentation. Because foreign national loans involve international verification, this process may take slightly longer than conventional pre-approval. Once pre-approved, you can shop for properties with confidence. After finding a property and making an offer, the formal loan application process begins. The lender will order an appraisal, verify all documentation, and work toward final approval. California has a robust market for international real estate investment, particularly in areas like Los Angeles, San Francisco, San Diego, and Orange County. Working with professionals familiar with foreign national transactions, including real estate agents and title companies experienced with international buyers, helps ensure a smooth closing process. Timeline from application to closing typically ranges from 30 to 45 days depending on documentation complexity.