Mortgage Financing for International Buyers in Miami & New York

Financing for U.S. Citizens and Permanent Residents

U.S. citizens and green card holders have access to the full range of conventional mortgage products with the most favorable terms. Qualification is based on standard underwriting criteria: credit score (typically 680+ for jumbo loans), debt-to-income ratio, employment verification, and documented reserves.

Down Payment Requirements by Loan Amount

Luxury properties in Miami and Manhattan often exceed conforming loan limits, requiring jumbo financing with higher down payments:

Closing typically takes 30–45 days. Pre-approval letters can be issued within 1–2 weeks with complete documentation.

Foreign National Mortgage Programs: Miami & New York

Foreign nationals—non-U.S. citizens without permanent residency—can absolutely obtain mortgage financing for U.S. real estate. According to the National Association of Realtors, international buyers purchased 78,100 U.S. homes between April 2024 and March 2025, a 44% increase from the previous year, with total transaction volume reaching $56 billion.

Miami and New York are among the most active markets for foreign buyers, and specialized lenders have developed programs specifically designed for international clients who lack U.S. credit history or income documentation.

Standard Requirements for Foreign National Mortgages

• Down Payment: 25–30% minimum (some programs require 35% for condotels or non-warrantable condos)
• Maximum LTV: 70–75% loan-to-value
• Reserves: 12–36 months of mortgage payments in liquid assets
• Loan Amounts: Typically $150,000 to $5 million (super jumbo loans available up to $25 million)
• No SSN Required: Valid passport and visa documentation accepted
• No U.S. Credit History: Many programs do not require a U.S. credit score
• Closing Timeline: 45–60 days (some digital platforms close in 14–30 days)

Documentation Typically Required

1. Valid passport (unexpired)
2. Visa or visa waiver documentation
3. Foreign bank statements (typically 2–3 months)
4. Proof of income from country of residence (employment letter, tax returns, or business ownership documents)
5. Proof of funds for down payment and reserves
6. U.S. bank account (may be opened during the process)

Note on ITIN: An Individual Taxpayer Identification Number (ITIN) is not required for all programs but may be needed for certain lenders or if you plan to rent the property and file U.S. taxes.

DSCR Loans for Foreign Investors: Investment Property Financing

DSCR (Debt Service Coverage Ratio) loans have become one of the most popular financing options for foreign nationals purchasing investment property in Miami and New York. These loans qualify borrowers based on the property's rental income rather than personal income—making them ideal for international investors who cannot provide U.S. tax returns or employment verification.

Is a DSCR Loan a Commercial Loan?

No. Despite the terminology, DSCR loans are residential investment property loans, not commercial loans. They're used for 1–4 unit residential properties including single-family homes, condos, townhouses, and small multifamily buildings.

The confusion arises because "DSCR" as a metric is traditionally used in commercial lending. However, in the residential mortgage context, DSCR loans are non-QM (non-qualified mortgage) products designed for real estate investors—they're still residential mortgages with typical 30-year terms, recorded against residential property.

Key distinction:

• DSCR loans: 1–4 unit residential properties (condos, houses, small multifamily)
• Commercial loans: 5+ unit buildings, office, retail, industrial, hospitality
  
  

How DSCR Qualification Works

DSCR measures whether a property's rental income covers its debt obligations. The calculation is simple:

DSCR = Monthly Rental Income ÷ Monthly Mortgage Payment (PITIA)

PITIA includes Principal, Interest, Taxes, Insurance, and HOA fees. Most lenders require:

• DSCR of 1.0 or higher: Property income covers the mortgage payment
• DSCR of 1.25+: Qualifies for best rates and terms
• No-ratio DSCR programs: Available for value-add properties or below-market rents
  
  

DSCR Loan Requirements for Foreign Nationals

Advantages for Foreign Investors

• No U.S. income documentation: No W-2s, tax returns, or pay stubs required
• No U.S. credit history: Qualification based solely on property performance
• Works for short-term rentals: Airbnb and vacation rental income accepted
• LLC ownership: Property can be titled in an entity for liability protection
• Faster closing: Less documentation means streamlined underwriting (30–45 days)
• Cash-out refinancing: Available to access equity for portfolio growth

Miami Condo Financing: Building Approval Challenges

Financing a condominium in Miami presents unique challenges that buyers—especially foreign nationals—should understand before making an offer. Following the 2021 Champlain Towers collapse in Surfside, lenders have significantly tightened their building approval requirements. Many condos that were previously financeable are now considered non-warrantable and ineligible for conventional financing.

Why Banks Reject Miami Condo Buildings

Lenders now conduct detailed reviews of HOA financials and building conditions. Common reasons for financing denial include:

• HOA delinquencies: If more than 15% of units are 60+ days delinquent on HOA fees, most lenders will decline the building
• Reserve shortfalls: Buildings must have adequate reserves (typically 10% of annual budget). Underfunded reserves signal future special assessments
• Pending litigation: Lawsuits against the HOA, developer, or involving building defects can make a property unlendable
• Special assessments: Ongoing or anticipated large assessments raise red flags about building condition and owner financial strain
• Structural issues: Failed milestone inspections, deferred maintenance, or engineer reports citing concrete deterioration
• Insurance problems: Insufficient master policy coverage or inability to obtain hazard insurance at reasonable rates
• Owner-occupancy ratio: Some lenders require minimum owner-occupancy (often 50%+); investor-heavy buildings may not qualify
• Single-entity ownership: If one owner holds more than 10–20% of units, Fannie Mae guidelines disqualify the building
  
  

Florida's New Condo Safety Requirements

Following the Surfside tragedy, Florida enacted SB 4-D (2022) and subsequent legislation requiring milestone structural inspections for buildings 3+ stories that are 30 years old (or 25 years if within 3 miles of the coast). Buildings must also maintain fully funded reserves for structural components by 2025—no more reserve waivers for roofs, structural systems, waterproofing, and other critical items.

These requirements have led to a wave of special assessments across Miami's older condo inventory as buildings scramble to fund deferred maintenance and meet reserve mandates. Buyers should carefully review HOA documents for any pending or anticipated assessments before purchasing.

Financing Options for Non-Warrantable Condos

If your desired building doesn't qualify for conventional financing, options still exist:

• Non-QM lenders: Specialize in non-warrantable condos; higher rates (typically 1–2% above conventional) but flexible approval criteria
• Portfolio lenders: Local banks that hold loans in-house rather than selling to Fannie/Freddie; can make exceptions for strong borrowers
• Private banks: Relationship-based lending with more flexibility on building approval for high-net-worth clients
• DSCR loans: Some DSCR lenders have less restrictive building requirements for investment properties
• Cash purchase: In some cases, paying cash and refinancing later (if building issues are resolved) is the only path forward

Tip: Before making an offer on any Miami condo, request the HOA's condo questionnaire (Form 1073) and most recent reserve study. Your lender will require these documents, and reviewing them early can prevent surprises during underwriting. We can help you interpret these documents and identify potential financing obstacles before you're under contract.

NYC Co-op Financing: Board Approval and Financial Requirements

Manhattan's housing stock is approximately 75% co-ops, making them unavoidable for many buyers. However, co-op financing presents unique challenges—particularly for foreign nationals—that differ significantly from condo purchases.

Co-op vs. Condo: A Critical Distinction

When you buy a condo, you own real property and receive a deed. When you buy a co-op, you're purchasing shares in a corporation that owns the building, plus a proprietary lease granting you the right to occupy your unit. This structure has major implications:

• Board approval required: The co-op board must approve every purchase—and they can reject buyers for almost any reason (except legally protected classes)
• Financing restrictions: Many co-ops limit how much you can finance (some require 50% down or all-cash purchases)
• Financial scrutiny: Boards review your complete financial profile—income, assets, debt, employment, references, and tax returns
• Sublet restrictions: Most co-ops limit or prohibit subletting, making them unsuitable for investment purposes
• Foreign buyer restrictions: Some co-ops explicitly prohibit foreign ownership; others require U.S.-based income or additional reserves
  
  

Typical Co-op Financial Requirements

Co-op boards set their own financial standards, which often exceed lender requirements. Common thresholds include:

• Debt-to-income ratio: 25–30% maximum (stricter than the 43% lenders typically allow)
• Post-closing liquidity: 1–2 years of mortgage + maintenance payments in liquid assets after closing
• Down payment minimums: 20–50% depending on the building; some luxury co-ops require all-cash
• Income verification: Stable, documentable income from employment or verifiable investments
• Reference letters: Personal and professional references; some boards conduct interviews
  
  

Flip Taxes and Transfer Fees

Most Manhattan co-ops charge a "flip tax" when units sell—typically 1–3% of the sale price, paid by the seller (though this is negotiable). Some buildings calculate flip taxes based on profit rather than sale price, or charge flat fees. This doesn't affect your financing directly, but impacts your total cost of ownership and eventual resale.

Co-op Financing for Foreign Nationals

Foreign nationals face significant hurdles with NYC co-ops:

• Many boards reject foreign buyers outright: Particularly if income is earned abroad or the buyer won't be a primary resident
• All-cash often required: Even boards that accept foreign buyers may require cash purchases to reduce risk
• Limited lender options: Fewer banks offer co-op share loans to foreign nationals compared to condo mortgages
• Higher reserves required: Boards may require 2+ years of post-closing liquidity for international buyers

Our recommendation: For foreign national buyers seeking Manhattan real estate, condos are typically the more straightforward path. Condo boards have limited approval rights (usually just a right of first refusal), no financing restrictions, and welcome international investment. If a specific co-op is your target, we'll research the building's history with foreign buyers and financing requirements before you invest time in an application.

State Restrictions on Foreign Ownership: What You Need to Know

While the United States generally welcomes foreign real estate investment, several states have enacted laws restricting property purchases by nationals of certain countries. These restrictions are particularly important for buyers from China, Russia, Iran, North Korea, Cuba, Venezuela, and Syria.

Florida SB 264: Restrictions on Chinese Nationals

Effective July 1, 2023, Florida Senate Bill 264 significantly restricts property purchases by Chinese nationals (as well as nationals from Russia, Iran, North Korea, Cuba, Venezuela, and Syria). This law directly impacts Miami's real estate market.

Key provisions:

• General prohibition: Chinese nationals who are not U.S. citizens or permanent residents (green card holders) cannot purchase real property in Florida
• Limited exception: Non-permanent resident visa holders may purchase ONE residential property up to 2 acres, but NOT within 5 miles of any military installation or critical infrastructure
• Severe penalties: Buyers face up to 5 years in prison and substantial fines; sellers who knowingly violate face up to 1 year in prison and $1,000 in fines
• Registration requirement: Chinese nationals who owned Florida property before July 1, 2023 must register with the state

Important: This law applies based on citizenship/nationality, not residency. A Chinese citizen living in the U.S. on a work visa would still be restricted. However, Chinese nationals who have obtained U.S. permanent residency (green card) or citizenship are not subject to these restrictions.

New York: No Current Restrictions

As of 2025, New York has not enacted similar restrictions on foreign property ownership. Chinese nationals and other foreign buyers can freely purchase real estate in Manhattan and throughout New York State, subject to standard co-op board approval processes (which evaluate financial qualifications, not nationality, though some boards may have practical concerns about foreign income verification).

Other States with Restrictions

More than 20 states have enacted or are considering legislation restricting foreign ownership, primarily targeting agricultural land and property near military installations. States with active restrictions include Texas, Montana, Utah, Virginia, and others. If you're considering property outside of Miami or New York, we recommend consulting with local counsel to verify current restrictions.

China Capital Controls: Moving Funds for Purchase

Beyond legal restrictions in the U.S., Chinese nationals face practical challenges moving funds out of China. The Chinese government limits individuals to $50,000 USD equivalent per year in foreign exchange. Buyers typically navigate this through:

• Accumulating funds over multiple years in offshore accounts
• Pooling quotas from family members
• Using funds already held outside mainland China (Hong Kong, Singapore, etc.)
• Business-related transfers with proper documentation

Lenders will require documentation of fund sources — any mortgage underwriter will want to verify that funds are legally sourced and properly transferred. Work with a lender experienced in foreign national transactions to ensure compliance.

Options for Affected Buyers

If you're a Chinese national interested in U.S. real estate but affected by Florida's restrictions, consider:

• New York: No ownership restrictions; Manhattan condos remain fully accessible to Chinese buyers
• Immigration pathway: Obtaining a green card removes all restrictions; EB-5 investor visas remain an option
• Family members: U.S. citizen or permanent resident family members can purchase property
• Legal consultation: An immigration attorney can advise on specific circumstances and potential pathways

Note: This information is current as of late 2025, but legislation in this area is evolving rapidly. We recommend consulting with a real estate attorney before proceeding with any purchase if you have questions about eligibility.

Recommended Lenders for Miami & New York

The following lenders specialize in foreign national mortgages and have active programs in Florida and New York:

Private Banks: Best Rates and Lowest LTVs for High-Net-Worth Buyers

For foreign nationals with significant assets, private banks often offer the most competitive mortgage rates—sometimes matching or approaching rates available to U.S. citizens. The tradeoff is that private banks require a banking relationship, typically involving $1 million or more in assets under management (deposits, investments, or a combination).

Private bank advantages include lower interest rates (often 0.5–1% below non-QM lenders), higher LTV allowances (up to 80–90% in some cases, meaning as little as 10% down), flexible underwriting that considers global assets, and access to relationship pricing that improves with deeper engagement. Many ultra-high-net-worth buyers find that establishing a private banking relationship pays for itself through better mortgage terms alone.

Private banks active in Miami and New York foreign national lending:

• HSBC Private Banking: Strong foreign national programs; Premier relationship ($75K+ deposits) or Private Banking ($1M+ assets)
• Citi Private Bank: Competitive rates for clients with $5M+ in investable assets; global relationship consideration
• J.P. Morgan Private Bank: $10M+ minimum; exceptional terms for UHNW clients with comprehensive wealth management
• BNY Mellon Wealth Management: Custom lending solutions for clients with existing investment relationships
• East West Bank: Specializes in Asian clientele; "Bridge to Home" program requires no U.S. tax returns or citizenship; multilingual staff (10+ languages); can underwrite based on foreign assets; available in NY (not FL)

Tip: If you're purchasing property above $3 million and have liquid assets of $1 million or more, a private bank relationship is worth exploring before defaulting to non-QM lenders. However, many private banks like JP Morgan and Citi require $10M of investable assets to have a direct relationship with their private banks. As private banks mostly give the same rates to foreigners as they do to locals, the rate savings on a large mortgage can be substantial over the life of the loan.

Non-QM & Specialty Lenders

• HSBC Bank USA: Up to 75% LTV for foreign nationals; requires $25,000+ deposit relationship
• Griffin Funding: DSCR and foreign national programs; loans up to $5 million
  
  

Miami-Based Specialists

• Bennett Capital Partners: Miami-focused foreign national mortgage broker; works with 130+ lenders
• Lending Bankers Mortgage: 25% minimum down; residential and commercial foreign national programs
• DAK Mortgage: Super jumbo loans up to $25 million; DSCR and bridge loan specialists
  
  

Frequently Asked Questions

Can foreigners get a mortgage in the USA without a Social Security Number?

Yes. Many lenders offer foreign national mortgage programs that do not require an SSN. You'll need a valid passport, visa documentation, and proof of income from your home country. Some programs may require an ITIN (Individual Taxpayer Identification Number), which can be obtained through the IRS.

What is the minimum down payment for a foreign national mortgage?

Most programs require 25–30% down for foreign nationals. Higher-risk property types (condotels, non-warrantable condos) or larger loan amounts may require 35% or more. Some lenders offer 20% down for borrowers with substantial banking relationships.

Do I need U.S. credit history to get a mortgage?

No. DSCR loans and many foreign national programs do not require U.S. credit history. Qualification is based on property income (for DSCR) or verified foreign income and assets. Some lenders may request an international credit report or reference letters from foreign banks.

What's the difference between a DSCR loan and a conventional mortgage?

Conventional mortgages qualify borrowers based on personal income, credit score, and debt-to-income ratio. DSCR loans qualify based on the property's rental income relative to the mortgage payment. DSCR loans typically have higher interest rates (0.5–2% above conventional) but require no income verification, making them ideal for self-employed borrowers and foreign investors.

Can I use a DSCR loan for a primary residence?

No. DSCR loans are strictly for investment properties—properties you will rent out. They cannot be used for primary residences or owner-occupied homes. For a primary residence, foreign nationals need a traditional foreign national mortgage program with income verification.

Can I close remotely without traveling to the U.S.?

Yes. Many lenders now offer remote closings using notary services at U.S. embassies or consulates abroad. Digital platforms like Waltz specialize in fully remote transactions. Some states (including Florida) allow Remote Online Notarization (RON), eliminating the need for in-person appearances entirely.

Are mortgage interest payments tax-deductible for foreign investors?

Yes. If you rent out the property and file U.S. taxes on the rental income, mortgage interest is deductible as a business expense. Foreign investors should work with a U.S. tax advisor familiar with FIRPTA (Foreign Investment in Real Property Tax Act) and non-resident tax obligations.

How long does it take to close a foreign national mortgage?

Traditional foreign national mortgages take 45–60 days. DSCR loans can close in 30–45 days due to streamlined documentation. Some digital platforms advertise closings in as few as 14–21 days with complete documentation submitted upfront.

Do I need a U.S. bank account?

Generally, yes! Most lenders require a U.S. bank account for ACH payments (automatic mortgage payments). Some lenders require the account to be open for 30+ days before closing. However, it is not a requirement as your NYC or Miami attorney can handle the escrow for payments regarding the purchase and an investor can engage a property management company to collect rent and make payments for the apartment.  Reach out to us for contacts in this regard. 

Can I finance a new development or pre-construction condo?

Yes, but with limitations. Most foreign national financing requires the building to be complete and have a Certificate of Occupancy. During construction, buyers typically pay deposits (20–50%) directly to the developer. Permanent financing is arranged upon completion. Some portfolio lenders offer construction-to-permanent loans for qualified foreign nationals.

What is FIRPTA and how does it affect foreign buyers?

FIRPTA (Foreign Investment in Real Property Tax Act) requires buyers of property from foreign sellers to withhold 15% of the purchase price for potential capital gains taxes. This affects you when selling, not buying. When you eventually sell your U.S. property, the buyer (or their title company) will withhold 15% unless you obtain a withholding certificate from the IRS. Work with a tax advisor to plan for this.

Should I pay cash or finance?

Financing offers several advantages even for buyers who can pay cash: preserve liquidity for other investments, potential tax benefits on mortgage interest, leverage to amplify returns, and protection against currency fluctuation (lock in today's exchange rate). However, all-cash offers are more competitive in bidding situations and eliminate interest costs. The right choice depends on your investment strategy, opportunity cost of capital, and tax situation.

Get Started

Ready to explore financing options for luxury real estate in Miami or Manhattan? Contact Manhattan Miami Real Estate for a confidential consultation. We work with all major foreign national lenders and can connect you with the right financing partner for your purchase.

Email: anthony@manhattanmiami.com

Phone: 1-646-376-8752
Schedule a consultation to discuss your financing needs.