Hard Money Options for Non-Citizen Investor?

Question

Hi everyone — I’m a real estate investor with a 10-unit portfolio in the metro Detroit area. I recently shifted from a pure buy & hold strategy into doing BRRRRs and flips now that I’m full time in the business.

I’m a non-citizen living in the U.S. on a valid visa, and I’ve been speaking with several hard money lenders. What I’m finding is that many won’t lend to non-citizens/visa holders at all, and the ones that will are offering pretty tough terms.

Examples of what I’ve been quoted so far:

- 25–30% of the purchase price as down payment

- Loan amounts upto only 65–70% of ARV

- One lender quoted a 3% origination fee plus a $1,600 underwriting fee

I’m wondering if this is just the reality of the market for non-citizen investors right now, or if there are lenders out there with more competitive terms. Would love any recommendations or experiences from others in similar situations.

Thanks in advance! 😊

Mike Klarman · Answer

Detroit is tough because of property value and neighborhood grades.  But the non us lending can be tricky.  It is not as simple as "just underwrite the deal" and who cares about the borrower.  I've never seen a lender act like that and I've closed with 15+ different outfits over the years.

Some lenders have an "FN" program, or Foreign National, program.  There is always a leverage cut, rates a little higher, origination more.  These are the riskiest loans for a lender.  When they look at their default summary, the worst performing loans are the FN bridge loans.  So when the economic status, and rates call for shrinking guidelines and programs, the FN program is the first to go or get frozen.

Remember, most of these loans are securitized and packaged and sold to investment groups that invest money for unions, hedge funds, money managers.  So if they say, "Hey, we don't want Non US loans right now, then the lender has no choice but to suspend.

Ryan Thomson · Answer

Hard money is actually one of the more accessible loan types for non-citizens because lenders are underwriting the deal, not the borrower. The collateral does most of the heavy lifting.

Here's what typically comes up:

ITIN works for most hard money lenders in place of an SSN. If you don't have one yet, it's worth getting. Takes a few months but opens a lot of doors.

US bank account is usually required for wire transfers and ACH payments. Most foreign nationals open one through a US bank before they start investing. Some lenders will work around it with alternative arrangements but it's friction you don't want.

LLC ownership simplifies a lot of this. A US-formed LLC (Wyoming or Delaware are common choices) can borrow as the entity, and the citizenship question becomes less central. Many lenders will lend to the LLC with a personal guarantee, but some won't require one for strong deals with sufficient equity.

For lenders who actually do this: Lima One, Kiavi, and RCN Capital have foreign national programs. Local private money lenders are often the most flexible since they're making judgment calls on individual deals rather than underwriting to a fund's written policy. Find those through local REI meetups or REIA groups.

The real friction shows up if you try to exit with conventional financing later. That's where being a non-citizen gets expensive. Worth thinking about your exit before you buy.

What's your visa status and do you have a US entity set up? That changes which lenders are realistic.

Vijay Friedman · Answer

@Darshni Vora

That is fairly common for non-citizen/visa-holder investors, but it does not mean every lender will price it the same way.

A lot of hard money lenders will add overlays for visa status, especially around down payment, max ARV leverage, liquidity, and entity/guarantor requirements. The terms you quoted are not shocking, but I would still shop them given you already have a 10-unit portfolio and investor experience.

I’d compare lenders based on:

• Visa type and remaining validity
• U.S. credit/FICO
• LLC/entity structure
• liquidity/reserves
• prior rental ownership and exit history
• LTC vs ARV leverage
• points, fees, and draw process

With your portfolio experience, you may be able to get better terms than a true beginner, but the lender will still underwrite immigration/residency risk differently.

Matthew Bernal · Answer

You’re not imagining it, immigration status does affect how some hard money lenders price risk, even if the deal itself looks solid. A lot of lenders view visa holders as higher execution risk, not necessarily credit risk, so they compensate with lower leverage, higher points, or both.

That said, 65–70% of ARV and 3 points isn’t unheard of in today’s market, but the 25–30% down is on the more conservative side unless it’s a first-time relationship. Lenders that specialize in investor clients (especially those focused on asset-based underwriting) tend to be more flexible once they understand your track record and exit strategy.

Are these bridge-only loans for flips, or are you planning to refi into DSCR afterward? And how many completed projects do you have under your belt in the last 24 months? That usually makes a difference in leverage discussions.

Mike Klarman · Answer

Yes, the FN programs are the least favorable in terms of leverage/rate.  They are the riskiest performing loans that's why.  The FN program is the first to get paused or stopped altogether when guidelines tighten up.

The most I've seen is 70% on a refi, maybe 75% on a purchase.  The rate is always higher as well and the criteria for project cost to ARV and experience are above other programs.

Ethan Haigler · Answer

@Darshni Vora if interested in Cleveland area, I have a great private lender that will lend to non US citizens

Scott Chilton · Answer

What you are running into is pretty common for investors who are not citizens. Lenders see more risk when they cannot easily verify long term residency or credit history, so they protect themselves by asking for bigger down payments, lower leverage, and higher fees. It is not that your deals are bad, it is that the lender wants extra cushion in case something changes with your visa status.

Here is what you can do to make the situation work better for you. First, keep building strong relationships with local banks and credit unions. They sometimes have more flexibility than national hard money lenders, especially if you can show consistent rental income from your 10 units. Second, consider private lenders or joint venture partners. These are individuals who care more about the deal itself than your immigration status, and they may offer terms that are easier to manage. Third, remember that every dollar you put down is equity you control. While higher down payments feel heavy, they also mean you own more of the property and reduce your risk of being overleveraged.

What is in it for you if you explore these options is simple. You may find funding sources that look past your visa status and focus on the strength of your deals. That can open doors to scaling faster without giving away too much in fees or interest. It also helps you build a track record with lenders who will be more willing to work with you in the future.

Out of curiosity, have you already tried approaching local banks or credit unions to see if they would look at your rental income history instead of just focusing on your visa status?

Reginald Truss · Answer

You’re not crazy — what you’re being quoted is very common for non-citizen / visa-holder borrowers at the hard money level.

A few realities of the current market:

• Many hard money lenders are balance-sheet driven and simply won’t take visa risk, regardless of experience.
• The ones that do lend to non-citizens usually offset that risk with:Higher cash in (25–30%)Lower leverage (65–70% ARV)Extra fees (underwriting / legal / compliance)
• Higher cash in (25–30%)
• Lower leverage (65–70% ARV)
• Extra fees (underwriting / legal / compliance)

• Higher cash in (25–30%)
• Lower leverage (65–70% ARV)
• Extra fees (underwriting / legal / compliance)

That said — those are “default” terms, not always the best terms.

Where I’ve seen better outcomes for investors like you:

• Strong existing portfolio + documented exits
• Clean entity structure (US LLC with operating history)
• Deal-by-deal underwriting vs blanket borrower rules
• Short rehab timelines with conservative ARVs

In the right structure, I’ve seen visa holders do higher leverage and cleaner fee stacks, but it’s very case-specific.

Happy to take a quick look at one of your deals and tell you straight whether the terms you’re seeing are market-accurate or just lazy lending. Feel free to DM.

Stacy Raskin · Answer

There are loan possibilities for DSCR loans for non citizen and non Green card holders. For hard money loans, I haven't seen any competitive programs that will actually fund for foreign nationals or people who don't fit into the above category. DSCR and hard money loans are not regulated the same way as conventional loans so you want to make sure you're working with a recommended or very well researched mortgage broker or lender as they can legally change terms or fees all the way up to closing date and some will do so.

Hard money loans are expensive loans even for U.S. citizens and permanent residents. It's typically to pay on the lending side for underwriting, an origination fee of some sort and also the rate will be higher compared to DSCR loans.

Erik Estrada · Answer

This sounds about right. The origination fee might be based on the size of the deal. If you have an SSN with a U.S. Credit score at 700 or higher you could push it to 85/100 up to 75% LTARV as long as it is a moderate to light renovation.