Foreign National Loans!

I want to start today's blog by introducing Danielle Pearson, our new Business Development and Marketing Manager, who joined my team last week. Danielle will be working with me to strengthen our relationships with real estate agents, help create new business opportunities, and find new ways to help our partners grow.
I want you to lean on me and my team more. Danielle is another resource to help with marketing ideas, relationship building, and events. She will also be a great resource for brainstorming new ideas and finding creative ways to strengthen partnerships and generate more business for all.
Our goal is simple. We don't just want to help you close your next loan. We want to help you build a great business.

I got a referral for a Foreign National loan yesterday, and this is always a YES vote on my behalf because these loans are much easier than most people think! These programs are designed primarily for people from other countries who want to purchase investment property here in the United States, and here is what makes them so interesting:

• No U.S. credit score required
• No U.S. income required
• No Social Security number required
• No U.S. tax returns required
• 25% down is generally the minimum down payment
• Assets can be used to document the down payment, closing costs, and reserves.
• These are generally DSCR loans, meaning we are looking primarily at the income generated by the property, not the borrower’s personal income.
• In many ways, this is about as close as we get today to an old-fashioned stated-income/stated-type investment loan.
• The borrower can be earning their income and holding their assets outside of the United States
• The property can begin generating income for the borrower here in the U.S. even though they are not a U.S. citizen
• Depending on the program, borrowers may be able to purchase in their personal name or through an eligible U.S. entity such as an LLC
• Purchase transactions are available, and many programs also allow rate-and-term and cash-out refinances
• Single-family homes, condos, townhomes and certain 2 - 4 unit investment properties can potentially qualify depending on the lender and program

How Does the Loan Qualify? Most of these loans are done using Debt Service Coverage Ratio (DSCR). Instead of asking how much money the borrower makes, we ask how much rent this property will generate compared with the monthly housing payment. We typically use the property’s market rent or actual lease income and compare that with the required mortgage payment and other applicable housing expenses. That is why these loans can work without traditional U.S. employment or income documentation.

What Do We Usually Need?

• Valid passport
• Acceptable visa or other eligible residency documentation
• Verification of assets
• Documentation showing the source of the down payment
• Funds for closing costs
• Required reserves after closing
• Property appraisal
• Market rent analysis or lease information
• Documentation necessary to satisfy U.S. banking, identity and compliance requirements

We verify what matters for this type of transaction: identity, assets, the property, and the property’s ability to support the debt.

Several visa classifications may be acceptable, depending on the individual lender and program. Let me know if you have a foreign national looking, and I can look up their visa type and confirm it will work.
Interest rates are generally a little higher than a traditional conventional mortgage, but they are not necessarily dramatically higher. As a general example, with the programs we are seeing 25% down is approximately 0.75% higher than a comparable conventional-type rate, and 30% is approximately 0.50% higher. As the borrower puts more money down, pricing can continue to improve.

We just added a weapon into your magic toolbox! Now let’s all make a goal to find 1-2 more Foreign National buyers this year so we can have a great Christmas!

 Interest Rates
Don't read beyond this line if you have a weak stomach!  We are on a five-day losing streak and the 10-year treasury broke 4.80% for the first time since January of 2025. I have no words for what is going on and I am actually a little baffled.

Loan Programs Snapshot

• Government loans (FHA/VA/USDA): in the 6s –
• Conventional (≤ $832,750): mid to high 6s
• High-balance: mid to high 6s
• Jumbo: Mid to high 6s
• Bridge Loans  7.75-7.99

Additional options:

• Bank statement loans (10% down+)
• P&L loans (20% down, no bank statements)
• 0% down options (620+ score)
• DSCR loans (15% down)
• Buydowns Available (3/2/1, 2/1, 1/0)
• Private Money loans – Hard Money
• Construction Loans
• 203K loans
• Commercial Loans
• Fix and Flip Loans

Rates subject to change without notice.

Condo Update

Good news:
Nothing this week!

Bad news:
No news this week!

We love your Non-Warrantable Condo loans!!
Need help checking a condo? Call me, and we can look it up in real time.

Also:
Full California “naughty list” available here:

https://mikemeena.com/non-warrantable-condos/

If you or your clients, friends, or family need guidance, I'm here.

📞 661-291-2222 (Direct)

📞 661-714-6258 (Cell)

📞 661-260-2970 ext. 2222 (Office)

📧 Mike@AugustaFinancial.com

Sincerely,