Foreign National DSCR Financing Up to 80% LTV

1st Capital Group has expanded its foreign national DSCR financing options through its correspondent lending channel. Eligible international investors may qualify for up to 80% loan-to-value on a U.S. investment-property purchase or rate-and-term refinance.

How Foreign National DSCR Qualification Works

A debt service coverage ratio loan evaluates the rental property’s ability to support its monthly housing obligation. Qualification focuses primarily on property cash flow rather than the borrower’s U.S. employment income or personal tax returns.

A ratio of 1.00 indicates that qualifying rent equals the applicable monthly housing obligation. This program may consider a DSCR as low as 0.50. When the DSCR is below 1.00, the maximum available LTV is reduced by 10 percentage points. An otherwise eligible transaction with a DSCR below 1.00 would therefore not qualify for the program’s maximum 80% LTV.

Program Highlights

• Up to 80% LTV for eligible purchases and rate-and-term refinances
• Standard loan amounts from $150,000 to $1.5 million
• Additional loan tiers subject to enhanced asset review
• DSCR qualification as low as 0.50, with an LTV adjustment below 1.00
• Long-term and qualifying short-term rental properties
• AirDNA income projections for eligible vacant or unleased short-term rentals
• Consideration of borrowers without an established U.S. credit history
• First-time and experienced U.S. real estate investors
• Foreign funds for the down payment, closing costs, and reserves
• Eligible digital assets considered for reserves, subject to verification
• U.S.-based LLC vesting for eligible transactions

Cash-out refinances are reviewed separately and may require lower leverage, additional documentation, or other restrictions.

No U.S. Credit History May Be Acceptable

An eligible foreign national without a U.S. credit file may be considered without creating an artificial U.S. credit score. The lender will still evaluate the applicant’s identity, residency, sanctions-screening results, assets, liquidity, and other required risk factors.

When a borrower already has an established U.S. credit profile, a minimum credit score of 680 generally applies under this program. No U.S. credit requirement does not mean no financial review. Every application remains subject to complete documentation and underwriting.

Foreign Assets and Reserve Requirements

Borrowers must generally document at least 12 months of post-closing PITIA reserves. Eligible funds may remain in established foreign financial accounts and may be used for the down payment, closing costs, and reserves, subject to acceptable statements, currency conversion, ownership verification, and sourcing requirements.

Certain verifiable cryptocurrency or digital assets may be considered for reserves without being liquidated. Eligibility, custody, valuation, and any applicable discount are determined during underwriting.

Short-Term Rental Properties

Qualifying short-term-rental income is permitted for eligible properties. When a property is vacant or does not have sufficient operating history, an acceptable AirDNA report may be considered to project market rental income.

This does not guarantee that every projected rental figure will be accepted. The lender and appraiser determine the qualifying income according to the property, market, report, and current guidelines.

Eligible Property Types and Locations

Rural properties and properties in Puerto Rico, Guam, or the U.S. Virgin Islands are not eligible. All borrowers, entities, funds, and transactions remain subject to applicable sanctions screening and state-specific requirements. Florida transactions involving a foreign entity may require an applicable foreign-entity affidavit at closing.

U.S. LLC Ownership

A U.S.-based LLC is strongly encouraged and may be required for certain transactions. Entity documents, ownership, authorized signers, and guarantors must satisfy the applicable program requirements. Required owners representing at least 51% of the entity must execute the applicable loan documents.

Borrowers should consult qualified legal and tax professionals about entity formation, ownership, taxation, and reporting. 1st Capital Group does not provide legal, immigration, accounting, or tax advice.

Who May Benefit?

Request a Foreign National DSCR Scenario Review

For a useful preliminary review, provide the property state and type, purchase price or estimated value, requested loan amount, expected monthly rent, transaction purpose, borrower’s country of citizenship and residence, and proposed individual or LLC ownership.

For broader background, review the foreign national mortgage guide, the foreign national DSCR guide, and the existing 80% LTV foreign national financing page.

Frequently Asked Questions

Can a foreign national receive 80% financing?

Eligible purchase and rate-and-term refinance transactions may qualify for up to 80% LTV. The final LTV depends on the DSCR, property, liquidity, loan amount, transaction, documentation, and underwriting results.

Is U.S. employment income required?

The program generally qualifies the investment using property rental income rather than the borrower’s U.S. employment income. Complete borrower, asset, and property documentation is still required.

Can a borrower qualify without U.S. credit?

Eligible borrowers with no established U.S. credit history may be considered. If the borrower has an existing U.S. credit profile, program minimums generally apply.

Are short-term rentals eligible?

Qualifying short-term-rental properties may be eligible. AirDNA projections may be considered for certain vacant or unleased properties.

Is this available for an owner-occupied home?

No. This DSCR program is intended for eligible non-owner-occupied investment properties.