Most foreign investors search for a "foreign national mortgage" for a US rental they will hold in an LLC, because at home that is the word for any loan secured by property. In the United States the answer depends on who borrows and how the property is used. A foreign national mortgage through a US LLC, on a property held for rent or resale, is a business-purpose loan: it is made to the company, not to you, and it is underwritten on the property and the plan.
That is the only kind of financing Passy Capital arranges. If you or your family will live in the property, even part of the year, it is a consumer question and a different lender is the right door; the clarification page explains the line in detail.
Business-purpose mortgage through your US LLC vs a consumer loan in your own name
| Business-purpose mortgage to your US LLC | Consumer loan to you personally | |
|---|---|---|
| Who borrows | Your US LLC, which you own | You, in your own name |
| Use of the property | Investment only: rent, renovate and resell, or build | Can include personal use |
| US credit history | Not required | Usually central |
| What is underwritten | The property, its rent or its exit, your means to carry it | Personal income and credit file |
| Offered by Passy Capital | Yes, $1M to $5M | No |
The terms a foreign national gets
On our programs a non-US investor borrows on the same terms as a US investor, with no foreign-national rate premium and no cut in leverage for living abroad. The published maximums are the same for both.
| Program | Maximum leverage | Typical use |
|---|---|---|
| Bridge | Up to 80% LTV | Buy fast, refinance or cash out |
| Fix and flip | Up to 90% LTC | Purchase plus renovation, then resale |
| Ground-up construction | Up to 85% LTC | Spec homes and build-to-rent |
| Renovation | Up to 90% LTC | Renovate a property you keep or sell |
| DSCR (rental) | Up to 80% LTV | Long-term hold, qualified on rent |
How it works, step by step
- Send the deal: property, price, plan and the amount you want to borrow. Eligibility of your country is checked first
- Receive a term sheet in 24 to 48 hours, with leverage, pricing and the 1% to 2% fee paid at closing; nothing is paid upfront
- Form the US LLC and file for its EIN with IRS Form SS-4, without a Social Security number; see setting up a US LLC
- Open and fund the LLC's US bank account, and document the source of your funds
- Appraisal and title run in parallel; a clean file closes in about two weeks, signed remotely
What you do not need
No US credit score, no US tax returns, no US pay stubs, no Social Security number and no existing US bank relationship. The loan is secured by the US property and made to a US company, so the lender's protection is the asset and the structure, not your personal US file.
What you do need is a deal that stands on its own and the equity to carry it. For a rental, the rent has to cover the debt service; for a flip or a build, the budget and the exit have to be credible. The foreign national loans handbook covers the documents, taxes and timeline in full.
Before you sign a purchase contract
- Decide that the property will be held in a US LLC and never used by you or your family
- Start the LLC and the EIN the week you sign, since the EIN runs on its own clock
- Size your equity on the leverage line of the table that matches your plan
- Check that the property sits inside what we fund: 1 to 9 residential units, $1M to $5M