Foreign National Mortgage

A foreign national mortgage is a loan to a borrower who is not a citizen or permanent resident of the country where the property sits. In the US, DSCR loans are a common route for foreign investors, because qualifying on the property's rent avoids the need for US tax returns or US income.

Foreign national DSCR programs usually ask for more equity and more reserves than domestic ones, and some accept borrowers with no US credit score. Terms vary by lender, so the LTV cap and minimum ratio need to be confirmed on each quote.

The ratio itself is calculated the same way: monthly rent divided by the full payment of principal, interest, taxes, insurance and dues. A smaller loan from a lower LTV cap means a smaller payment and a higher ratio, so foreign national deals often clear the DSCR minimum with room to spare and are limited by equity instead.

Further reading: Foreign National Mortgage on Wikipedia.