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Santa Monica draws international buyers for its beachfront location, strong rental market, and proximity to tech and entertainment centers. Foreign nationals compete with domestic buyers in a market where coastal properties command premium prices.
Most conventional lenders won't touch foreign national deals. You need specialized lenders who price for international income verification and currency exchange risk. Expect 30-40% down minimums and rates 1-2% above conventional programs.
The city's rental demand makes investor financing more accessible than owner-occupied for foreign nationals. Lenders price DSCR and cash flow, not your offshore employment documentation.
You don't need US citizenship, permanent residency, or a Social Security number. Lenders verify identity through passport and require proof of offshore income or liquid assets. Most programs accept properties as investment rentals, not primary residences.
Credit evaluation uses international credit reports when available, or alternative documentation showing payment history. Minimum 680 credit score if you have US credit; higher asset reserves if you don't. Expect 12-24 months of property reserves required at closing.
Down payment requirements start at 30% for condos and single-family homes. Luxury properties over $2M may require 35-40% down. Cash reserves beyond down payment typically equal 12-18 months of mortgage payments.
Fewer than 20 lenders in our network write true foreign national programs. Most price based on property type, loan size, and your country of origin. UK and Canadian borrowers get better terms than buyers from higher-risk regions.
Portfolio lenders hold these loans instead of selling them to Fannie Mae. That means each lender sets their own rules for income documentation and currency exchange. Some accept property collateral alone, others require full income verification from your home country.
Jumbo foreign national loans above $1M move faster than smaller deals. Lenders make more money on larger loans and price the risk differently. Santa Monica's median price point actually works in your favor here.
Structure these as investment properties even if you plan to use the home when visiting. Lenders underwrite to rental income, not your offshore employment. The approval path is clearer and down payment requirements often lower.
Currency exchange documentation kills more deals than credit issues. Have your accountant prepare a letter explaining income sources in English. Bank statements need certified translation if they're not in English. Plan 60-90 days for full underwriting.
Some lenders cap at 70% LTV regardless of down payment size. Others go to 75% for properties under $3M. The difference on a $2M purchase is $100K in required cash. Shopping lenders matters more on foreign national deals than any other program.
ITIN loans require US tax history, foreign national loans don't. If you have two years of US tax returns filed with an ITIN, those programs offer better rates. If you're a first-time US property buyer, foreign national is your only path.
Asset depletion loans work for wealthy foreign nationals who keep significant US bank accounts. You qualify based on domestic assets, not offshore income. These hit 65% LTV maximums versus 70-75% for income-verified foreign national programs.
DSCR loans focus purely on rental income from the property. Foreign nationals use DSCR programs for Santa Monica investment properties because tenant income is easier to verify than employment from Hong Kong or Dubai. Rates run similar but DSCR allows 80% LTV on strong cash flow.
Santa Monica's strict rent control affects DSCR underwriting for foreign nationals buying rental properties. Lenders discount projected rents by 15-20% to account for rental income caps. This lowers your qualifying loan amount on multifamily properties built before 1979.
Condos in full-service buildings near the beach appraise well but face condo certification hurdles. Foreign national lenders require buildings to be Fannie Mae approved even though they're portfolio loans. Expect 45-60 days for condo review before you get full approval.
Short-term rental restrictions in residential zones limit Airbnb income for qualification. If you're buying near the beach and plan to rent it short-term, understand most lenders won't count that income. They underwrite to long-term rental comps only.
Yes, most lenders allow remote closing through mobile notary or embassy signing. You'll need a US bank account to fund down payment and receive rental income if it's an investment property.
Foreign national rates currently run 7.5-9.5% depending on down payment and property type. Rates vary by borrower profile and market conditions. Larger down payments and stronger credit earn lower rates.
Yes, rental income from US property is taxable regardless of citizenship. You'll need a tax identification number and likely owe 30% withholding unless you elect treaty benefits or file returns showing lower tax.
You need to convert to USD and wire to a US bank account before closing. Lenders require paper trail showing the wire came from your verified foreign account, not a third party.
You bear currency risk between application and closing. Budget an extra 5-10% cushion in your down payment to cover rate fluctuations during the 60-90 day process.
Most carry 3-5 year prepayment penalties to protect lender yield. You can negotiate lower penalties with higher rates, but expect some restriction on early payoff or refinancing.
Foreign National Loans in Santa Monica