If you’re considering buying U.S. property as a foreigner — whether from Canada, Mexico, India, China, or elsewhere — traditional mortgage calculators won’t work for you. They assume you have a Social Security Number, U.S. credit history, and W-2 income. But as a foreign national, lenders use completely different rules based on your global income, down payment, and visa type.
This guide explains the real requirements used by U.S. lenders — so you can prepare your documents, set realistic expectations, and avoid costly surprises. Whether you’re buying a vacation home in Florida, an investment property in Texas, or a primary residence in California, understanding these rules is your first step toward success.
Why Standard Calculators Don’t Work for Foreign Buyers
Most online tools ask for “credit score” and “employment status.” But if you live abroad, you likely have no U.S. credit file — and that’s okay. Lenders treat non-residents as “non-permanent residents” and apply stricter criteria:
- Minimum Down Payment: 30–50% (vs. 3–5% for U.S. citizens)
- Interest Rate Premium: +0.5% to +1.5% above standard rates
- No DTI Rule: Instead, lenders use “asset depletion” models
- Income Proof: Must show tax returns, bank statements, or employment letters from your home country
- Reserves Required: 6–12 months of mortgage payments held in liquid assets
Lenders like Wells Fargo, Chase, New American Funding, and Union Bank specialize in foreign national loans — but their requirements are complex. This guide breaks them down for you. Keep in mind: policies vary by state, property type, and even the time of year.
How to Estimate Your Affordability Manually
You don’t need a special calculator. Follow these steps to estimate your buying power:
- Convert your annual income to USD — Use your gross income from tax returns or employment letters.
- Calculate 30–50% of the property value — This is your minimum down payment.
- Estimate monthly payment — Use a standard mortgage calculator with a rate 0.5–1.5% higher than current averages.
- Calculate reserves — Multiply your estimated monthly payment by 6 or 12.
- Check if your liquid assets cover down payment + reserves — If yes, you’re likely eligible.
This manual method helps you walk into a lender’s office prepared — no tool required. For a more detailed estimate, you can also use our international mortgage calculator to simulate different scenarios based on your country of origin and property type.
Real Example: Carlos, Engineer from Colombia Buying in Miami
Carlos earns $140,000 annually in Bogotá and wants to buy a $700,000 condo in Miami as an investment property.
| Metric | What Carlos Assumed | What Lenders Require |
|---|---|---|
| Property Value | $700,000 | $700,000 |
| Down Payment | 20% ($140,000) | 40% ($280,000) |
| Interest Rate | 6.2% | 7.3% |
| Monthly Payment (PITI) | $3,700 | $3,650 |
| Required Reserves | None | $219,000 (6 months of payments) |
| Total Cash Needed | $140,000 | $499,000 |
Carlos learns he needs $499,000 in liquid assets — saving him from spending $8,000 on appraisals and inspections only to be denied later. This example illustrates why understanding lender requirements upfront is crucial for international buyers.
Frequently Asked Questions
Can I get a U.S. mortgage without a Social Security Number (SSN)?
Yes — but you must have an Individual Taxpayer Identification Number (ITIN). Apply for an ITIN using IRS Form W-7 before applying. You’ll need to submit foreign tax documents and a notarized affidavit.
Do I need to be physically present in the U.S. to close on a property?
No — many lenders allow remote closings via Power of Attorney (POA). However, some states like California require physical presence. Always confirm with your lender or title company.
What documents do I need to prove my income as a foreign buyer?
You’ll typically need: 1) Last 2 years of foreign tax returns (translated into English), 2) Bank statements from your home country (last 3–6 months), 3) Employment verification letter, and 4) Proof of legal residency in your home country.
Can I buy investment property as a foreign national?
Absolutely. In fact, many international investors use U.S. real estate for rental income and long-term appreciation. Investment properties require higher down payments (usually 35–50%) and slightly higher interest rates.
Are there restrictions based on my country?
Sometimes. Buyers from countries under U.S. sanctions (e.g., Iran, North Korea, Syria) face limitations. Some lenders also avoid high-risk jurisdictions due to compliance concerns. Always check with a specialist lender before starting your search.
What You Need as a Foreign Buyer: Key Documents & Tips
Prepare for success with this practical checklist — no download needed. Note: Requirements may vary by lender and property type. Always confirm with your mortgage provider.
- Step-by-step document checklist by country — For Canada, UK, India, China, UAE: prepare 2 years of tax returns, 6 months of bank statements, employment letter, and proof of residency. Some lenders may accept alternative documentation.
- Lenders or broker networks for foreign nationals — Examples: HSBC Expat, Wells Fargo (select international programs), TD Bank (for Canadians), and specialized brokers offering non-QM or foreign national loans.
- IRS Form W-7 for ITIN — Required if no SSN. Submit with notarized passport copy and foreign tax documents. Processing time: 7–11 weeks.
- Translation services — Use certified translators (look for ATA members in the US). Never use Google Translate for official documents.
- Avoid scams — Never wire money without title company verification. Use escrow services like Escrow.com. Verify agent licenses via state websites. Consult your attorney before transferring funds.
For a quick estimate of your potential monthly payment, try our international mortgage calculator. It’s designed to help you model different down payment and interest rate scenarios — no personal data required.
Explore all our free financial tools on our homepage to support your international investment journey.
Disclaimer: The information provided in this guide is for general informational purposes only and does not constitute financial, legal, or tax advice. Mortgage rules, interest rates, and eligibility criteria vary by lender, state, and individual circumstances. Always consult a licensed mortgage professional, attorney, or financial advisor before making any decisions related to property purchase or financing.
