Non-Resident Citizen Exploring Investment Options – Need Your Advice!

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Non-Resident Citizen Exploring Investment Options – Need Your Advice!

Yuval Manor
Member since 2024 · 4 posts · 1 vote

Hi BiggerPockets Community!

I'm a U.S. citizen who has lived my entire life abroad, but I still submit my tax returns annually. I'm diving into U.S. real estate and debating between two strategies: buying new single-family homes directly from contractors to build a portfolio, or going the BRRRR route.

For both options, I’m looking at markets in the Sun Belt region. I’d love to hear your thoughts on the following questions:

  1. 1. Is it possible for a non-resident citizen like me to get a 30-year fixed-rate loan? What are the current rates, and what’s the minimum down payment?
  2. 2. Can I secure the same loan for both scenarios—buying a new house from a contractor or refinancing in the BRRRR method?
  3. 3. If I purchase a property with cash, can I still obtain a mortgage later?
  4. 4. How easy is it to find banks/lenders that offer cash-out refinancing with short or no seasoning periods?

Looking forward to your insights! Thanks in advance for your help!

Best,

Yuval

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  • Charles Carillo
    Rental Property Investor · North Palm Beach, FL · Member since 2018 · 2k+ posts · 1k+ votes
    2y

    @Yuval Manor

    We have partners who are foreign investors. DM me, and I will send you contacts for attorneys, lenders, and accountants they have previously used. It is important that you hire professionals who have experience working with foreign investors.

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  • John Mason
    Member since 2024 · 1k+ posts · 351 votes
    1y

    Welcome to Bigger Pockets ! 

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  • Noah WrightBusiness Member
    USA, Nationwide · Member since 2024 · 158 posts · 86 votes
    1y
    Quote from @Yuval Manor:

    Hi BiggerPockets Community!

    I'm a U.S. citizen who has lived my entire life abroad, but I still submit my tax returns annually. I'm diving into U.S. real estate and debating between two strategies: buying new single-family homes directly from contractors to build a portfolio, or going the BRRRR route.

    For both options, I’m looking at markets in the Sun Belt region. I’d love to hear your thoughts on the following questions:

    1. 1. Is it possible for a non-resident citizen like me to get a 30-year fixed-rate loan? What are the current rates, and what’s the minimum down payment?
    2. 2. Can I secure the same loan for both scenarios—buying a new house from a contractor or refinancing in the BRRRR method?
    3. 3. If I purchase a property with cash, can I still obtain a mortgage later?
    4. 4. How easy is it to find banks/lenders that offer cash-out refinancing with short or no seasoning periods?

    Looking forward to your insights! Thanks in advance for your help!

    Best,

    Yuval




    Hey Yuval,

    Great to see you diving into U.S. real estate! Since you're a U.S. citizen living abroad, non-QM (non-qualified mortgage) programs designed for foreign nationals might be an ideal solution for your situation. Here’s a breakdown to address your questions:

    1. 30-Year Fixed-Rate Loan for Non-Residents: While traditional 30-year fixed-rate loans might be harder to qualify for as a non-resident citizen, non-QM lenders offer flexible options. These loans typically don't require the same strict income verification as conventional loans, and they focus more on your assets and property income. Rates will generally be higher than conventional loans—typically in the 7-9% range—depending on your profile and market conditions. Expect a down payment of 25-35%.
    2. Loan Eligibility (New Build vs. BRRRR): Non-QM loans are flexible, so whether you're purchasing a new build or going the BRRRR route, they can work for both. However, lenders may have slightly different terms for a new purchase versus refinancing a property after renovations. It's important to make sure the lender offers both options so you can transition smoothly if you go with the BRRRR method.
    3. Cash Purchase & Mortgage Later: Yes, non-QM lenders offer a product called "delayed financing," which allows you to buy a property with cash and refinance later. This is common among investors who want to act quickly and unlock liquidity from a property after closing.
    4. Cash-Out Refinancing & Seasoning Periods: Non-QM programs typically offer more lenient or even zero seasoning periods, meaning you can refinance or pull out cash shortly after buying or rehabbing the property. This is perfect if you're using the BRRRR strategy and want to access equity sooner rather than later.

    Working with a lender that specializes in non-QM loans for foreign nationals can help you get favorable terms and streamline the process. Working with a broker helps you save time shopping, unlocking access to the hundreds of different lenders without all the market research. This allows you to spend more time focusing on your investment. Let me know if you need help executing this transaction ---

    Best of luck with your investments!


    [email protected]737-773-3717
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