Tenant Representation – Pillars
April 12, 2025
Foreign Investments in RE
April 19, 2025This article focuses on loans tailored for real estate investors. As such, we will not cover loan products intended for primary residences, including Conventional, FHA, VA, or other owner-occupied financing options.
We are not loan specialists, financial advisors, CPAs, or tax attorneys. The information provided on this blog is for general informational purposes only and should not be construed as financial, legal, or tax advice. Before making any investment or financial decisions, please consult with a qualified CPA, financial advisor, or tax attorney for guidance tailored to your individual situation. For accurate and comprehensive details regarding loans, taxes, or financial matters, always seek advice from a licensed professional or contact the appropriate government agency for official guidance.
| Loan Type | Description | When to Use |
| Investment Loan - Personal Finances | A fixed-rate loan , depends on property income and borrower financials. Lowest rate between these options. | If you have good finances and personal guarantee. |
| No Docs (30-Year Fixed) | A fixed-rate loan requiring no income documentation, 30 yrs, Interest is above market rate | Suitable for real estate investors or self-employed borrowers who prefer predictable monthly payments over a long term. |
| DSCR Investment Loan (3-Year PPP) | Debt Service Coverage Ratio (DSCR), focusing on property cash flow rather than borrower income. Includes prepayment penalty structure.Interest is one of the highest. | Ideal for real estate investors purchasing income-generating properties where rental income covers debt obligations. |
| Bank Statement Loan (6/6 ARM) | Adjustable-rate mortgage qualifying borrowers based on bank statements instead of tax returns. Rate adjusts every six months after an initial fixed period.Based on LTV | Business/Self employed owners whose tax returns don’t reflect their full income. |
| Foreign National Loan (5/6 ARM) | Adjustable-rate mortgage tailored for non-U.S. residents with up to 70% loan-to-value (LTV). Initial rate fixed for five years, then adjusts every six months. Higher Interest rates than conventional. | Without needing U.S.-based income verification. |
Loans specifically designed for purchasing or refinancing investment properties. Approval often depends on property income and borrower financials. Ideal for real estate investors acquiring rental properties, multi-family units, or commercial assets.
No Docs (CDFI) -
- Loans offered by Community Development Financial Institutions (CDFIs) with no income documentation required. Typically for underserved communities or borrowers with unconventional financial profiles.
- Best for borrowers with limited credit history or unconventional income sources, such as self-employed individuals.
No Docs (30-Year Fixed)
- A fixed-rate loan requiring no income documentation. Interest rate remains constant for 30 years.
- Suitable for real estate investors or self-employed borrowers who prefer predictable monthly payments over a long term.
DSCR Investment Loan (3-Year PPP)
- Loan approval based on Debt Service Coverage Ratio (DSCR), focusing on property cash flow rather than borrower income. Includes a 3-year prepayment penalty structure.
- Ideal for real estate investors purchasing income-generating properties where rental income covers debt obligations.
- Bank Statement Loan (6/6 ARM) -Adjustable-rate mortgage qualifying borrowers based on bank statements instead of tax returns.
- Rate adjusts every six months after an initial fixed period.
- Best for self-employed borrowers or business owners whose tax returns don’t reflect their full income.
Foreign National Loan (5/6 ARM)
- Adjustable-rate mortgage tailored for non-U.S. residents with up to 70% loan-to-value (LTV). Usually initial rate fixed for five years, then adjusts every six months.
- Designed for foreign nationals investing in U.S. real estate without needing U.S.-based income verification.
- Suited when you have verifiable funds and can meet higher down payment requirements.
