What are the Down Payments for Foreign National Mortgage Loans?

This article discusses the down payments required across the spectrum of loans used by non-U.S. citizens to finance residential real estate in the United States. Each program and lender is different, and so is the percentage of the down payment. The typical range generally hovers between 15% to 50% of the purchase price.

Down payment requirements fluctuate with program availability, loan amount, income, credit scores (or lack thereof), depository relationships (for bank portfolio loans), and many other factors.

Below are the foreign national down payment requirements I’m seeing across the different loan types:

Conforming Mortgages

• 20% for owner-occupied loans
• 25-30% for investment properties

Conventional Mortgages

NonQM Loans

• 15% for NonQM owner-occupied loans (includes bank statement programs)
• 20% for NonQM investment property loans (aka bank statement loans)
• 25-30% for NonQM DSCR rental property loans

Jumbo Mortgages

• 30-35% for jumbo owner-occupied loans
• 35-50% for jumbo residential investment property loans

Bank Portfolio Loans

• 40-50% for owner-occupied, second homes, and investment property loans
• Note: A depository relationship is almost always required with bank portfolio loans. 

Hard Money Bridge Loans

• 35-50% on business purpose loans for investment properties

The advantage of paying a larger down payment on an amortizing foreign national mortgage is you can pay it down faster and quickly gain more equity. The disadvantage is that you'll need to invest more in the property at once, tying up more of your capital. Overall, expect a down payment that falls within 15% to 50% of the purchase price.