DSCR for foreigners - What's the real down payment required?

Question

Hi everyone,

I've seen a lot of different numbers floating around regarding down payment requirements for foreign investors looking to qualify for a DSCR loan in the U.S.

What is the real down payment typically required? Is it 35% down (65% LTV), or is it higher in most cases?

Thanks in advance for clarifying!

Ron

Joyce Ann Magallanes · Answer

Hi Ron,

There are programs available for foreign investors with as low as 25% down, but it really depends on factors like income documentation, reserves, and the type of asset.

Deborah Wodell · Answer

There are lots of programs now for foreign nationals, most DSCR lenders typically offer up to 65%–70% LTV, meaning you’d need around 30%–35% down, sometimes more depending on the deal, property type, and market.

Some lenders may go lower on LTV if credit, reserves, or documentation is limited. But if you can show strong reserves or use a U.S. LLC with solid cash flow, you might get more flexibility.

Jake Yuskaitis · Answer

@Nick Belsky i've never seen no penalty for FN borrowers on the private money side. which firms provide that?

Nick Belsky · Answer

@Ron Amshalom

Are you working with a broker?  There are programs out there that do NOT penalize you as a foreign national at all with DSCR.  I have several clients we close with at 75/80LTV on purchases and rates right there with US citizens pricing.

Cheers!

Jake Yuskaitis · Answer

i have a few programs for this

35% down and low 7s

25% down in high 7s low 8s

can possibly get 20% with strong qualifications

Derek Brickley · Answer

Yep for all the foreign nationals we've worked with before, we see a 25% down minimum.  Typically only US citizens can take advantage of the 15 or 20% down option.

Vincent Jacobbi · Answer

Hi Ron - 75% LTV is as high as we can go on our end.

Devin Peterson · Answer

You will find DSCR lenders that offer 15% down, be ready for higher rates. 9-10% range. You will find the most aggressively priced DSCR loans would be at 20% down, currently in the 6-7% range.

I would shop out with an experienced broker who can help you compare the best terms of lenders!