A buyer in São Paulo or Toronto can find the right Florida property and still get turned away by a U.S. bank. The property is rarely the problem. Banks underwrite around a Social Security number, a FICO score and U.S. tax returns, and a foreign investor often has none of them.
Foreign national hard money loans in Florida work on a different basis. A private lender starts with the property, the equity and the exit plan, then reviews the borrower’s documents. This post covers what that review usually looks like and how to prepare for it.
Why U.S. Banks Struggle With Foreign Borrowers
Conventional underwriting runs on a U.S. credit file. A borrower with income and assets overseas has no file, so the bank’s model has nothing to score. The deal can be sound and still fall outside the checklist.
Asset-based lenders skip that model. Community Capital has funded 280 loans totaling more than $530M in nine years, and our underwriting stays in-house. Unusual and foreign-national transactions get a real look.
Hard Money Loan With No U.S. Credit History: What Lenders Review Instead
Without a credit score, the deal itself carries the decision. Lenders look at the property’s location, condition and value, and at whether the numbers support the loan amount. They also look at how much cash the buyer puts in.
The exit plan matters just as much. A lender wants to know how the loan gets repaid at the end of the term, whether through a sale or a refinance into long-term financing. Prior real estate experience, in the U.S. or abroad, helps show the plan is realistic.
Our hard money loan requirements guide covers these factors for any borrower.
Documents Foreign Borrowers Typically Prepare
Lenders still need to know who is borrowing and where the money comes from. Expect to provide a valid passport, proof of funds for the down payment and reserves, and an explanation of the source of those funds. [CONFIRM: ComCap’s exact document list]
Many foreign investors buy through a U.S. limited liability company. In that case the lender reviews the entity documents and the individuals who own it. [CONFIRM: entity requirements]
Overseas bank statements may need translation, and international wires take planning. A complete package up front shortens the review. After we receive a complete loan package, a term sheet typically follows within 24 to 48 hours.
How Terms Can Differ for Foreign Nationals
When a lender cannot pull a U.S. credit file, it often adjusts elsewhere. That can mean a lower loan-to-value, more cash into the deal, or a closer look at the exit. [CONFIRM: whether ComCap adjusts terms for foreign borrowers]
As general guidelines, our loans start around $400,000, with up to 60% loan-to-value and 60% loan-to-cost on terms of 12 to 24 months. We may exceed these benchmarks on a case-by-case basis depending on deal strength. Every loan is subject to underwriting.
Plan the Exit Before You Close
Most foreign buyers exit through a sale or a refinance. If you plan to refinance, talk to your mortgage broker early about what long-term lenders require from a foreign borrower. Some borrowers look at non-qualified mortgage programs for that step.
A short-term loan like this works best when the takeout is mapped before funding. A bridge loan follows the same logic.
Working With Attorneys, Brokers and Advisors
Foreign investors usually work with a U.S. real estate attorney, a mortgage broker or an accountant. We work directly with those professionals, and our model protects broker relationships. See how we work with mortgage brokers.
Tax and entity structure questions belong with your own attorney and CPA. We evaluate the loan. They advise on everything around it.
Frequently Asked Questions
Can a foreign national get a hard money loan in Florida?
Yes. Private lenders make hard money loans to foreign nationals, and approval depends on the property, the equity and the exit plan, subject to underwriting.
Do I need a U.S. credit history or Social Security number?
Hard money underwriting centers on the asset, so a U.S. credit score is typically not the deciding factor. Lenders usually ask for passport identification and proof of funds in its place. [CONFIRM: SSN or ITIN requirement]
Can I borrow through an LLC?
Many foreign investors do. The lender reviews the entity documents and the owners behind it, and your attorney can advise on structure.
How fast can a foreign national loan close?
A term sheet typically comes within 24 to 48 hours of a complete loan package. Closing time depends on title, appraisal, fund transfers and documentation.
Send Us the Deal
If you are buying Florida property from abroad, or you represent a client who is, send the details to Community Capital. We will review the property, the equity and the exit, and tell you where the deal stands. Contact our team to get started.
