Foreign National Mortgages in California: A Guide for International Buyers

I’m Michael DiVita — DRE #01372066 | NMLS #241655, DiVita Home Finance (DRE #01818285 | NMLS #323700), Tiburon, CA. I’ve been in California mortgage lending since 2000 and founded DiVita Home Finance in 2007. I’m known as a creative mortgage broker: when a bank says no, I find the lender and the loan structure that can say yes. Call (800) 239-1103.

A foreign national mortgage is a non-QM home loan for a buyer who lives outside the U.S. and has no U.S. credit history or Social Security number. Specialty lenders qualify you on your passport, foreign bank statements and income documents, and a sizable down payment — commonly 25%–40% — and these loans are typically used for second homes and investment properties. Rates are higher than conventional loans, and you’ll need to plan for U.S. and California tax rules such as FIRPTA withholding when you eventually sell.

I work with international buyers regularly — often Canadians buying in Palm Springs and the Coachella Valley, and buyers from Asia, Europe, and Latin America buying in the Bay Area and Southern California. Most banks don’t make these loans. The lenders that do have their own documentation rules, and when you show up with the right file, closing in California is very doable. This guide covers who qualifies, what lenders require, how the loans compare with ITIN loans, and what international buyers should plan for.

Foreign National, ITIN, or Visa Holder? Start Here

The right loan depends mainly on where you live and what documents you have:

One important 2025 change: FHA no longer insures loans for non-permanent residents (for FHA case numbers assigned on or after May 25, 2025), so visa holders and DACA recipients now generally look to conventional, jumbo, or non-QM financing instead.

ITIN loan vs. foreign national mortgage

What Foreign National Lenders Require

Down payment and reserves

Expect roughly 25%–40% down depending on the lender, property type, and loan size; investment properties and larger loans usually need more. Lenders also want reserves after closing — commonly several months to a year of payments — held in verifiable accounts. On a $1,000,000 purchase, that means $250,000–$400,000 for the down payment alone, plus closing costs and reserves.

Documentation

• Valid passport (and U.S. visa, if you have one)
• Foreign bank statements, typically 2–12 months or more depending on the program, translated into English where required
• Proof of income: employer letter, business documents, or a letter from a licensed accountant
• Credit: an international credit report where available, or reference letters from your banks
• Source of funds for the down payment, with a clear trail as the money moves to the U.S. — wire it early; last-minute international transfers are a common cause of closing delays

Property and use

Most programs are for second homes and investment properties, including condos (lender project rules apply). Some investors buy in an LLC; LLC vesting is available on many investor programs. Short-term rental income can sometimes be used to qualify on a DSCR loan — check local STR rules first.

Rates and terms

Because these loans aren’t sold to Fannie Mae or Freddie Mac, pricing is set by each lender and is higher than conventional pricing. A larger down payment, stronger reserves, and cleaner documentation all improve the rate. Loan amounts vary by lender. I’ll price your scenario across the lenders that actually do these loans.

No U.S. Credit History? You Still Have Options

Lack of a U.S. credit score is the most common roadblock for international and newly arrived borrowers — but it isn’t a dead end.

• Foreign national programs skip the FICO score entirely.
• ITIN and some non-QM programs accept alternative credit — 12 months of on-time rent, utilities, insurance, or phone payments.
• Agency loans: FHA and Fannie Mae have limited paths for borrowers without a credit score using nontraditional credit, with restrictions on property type and loan terms.
• Asset-based qualification: borrowers with substantial liquid assets can sometimes qualify through asset depletion instead of employment income.

Building U.S. credit: if you’ve moved here, a secured credit card, a credit-builder loan, or being added as an authorized user on a family member’s card can generate a score within about six months. A longer on-time history gives you more — and cheaper — loan options.

Where International Buyers Are Active in California

• Palm Springs and the Coachella Valley: long a favorite of Canadian buyers. Check whether the property sits on Agua Caliente tribal leased land — much of Palm Springs does — because lease terms affect financing. See Palm Springs leased-land mortgages and Coachella Valley mortgages.
• San Francisco Bay Area: Silicon Valley, San Francisco, and Marin. Many condo buildings need project review, and some are non-warrantable — see non-warrantable condo loans.
• Los Angeles and Orange County: second homes and rentals.
• San Diego: cross-border buyers and coastal second homes.
• Lake Tahoe and wine country: vacation homes; local short-term rental rules vary widely.

Taxes Every Foreign Buyer Should Plan For

• FIRPTA when you sell. When a foreign person sells U.S. real estate, the buyer generally must withhold 15% of the amount realized and send it to the IRS. There are exceptions and reductions — for example, no withholding if the buyer will use the home as a residence and the price is $300,000 or less, and 10% if the buyer will live there and the price is $300,000–$1,000,000. You can also apply to the IRS for a withholding certificate to reduce it.
• California withholding. California generally requires withholding on sales by nonresident sellers too, separately from FIRPTA, unless an exemption applies.
• Rental income. If you rent the property, you’ll generally need an ITIN and to file U.S. (and California) tax returns.
• Property tax. Prop 13 applies to everyone: roughly 1% of the purchase price plus local bonds and assessments. See the Prop 13 guide.

Work with a U.S. CPA experienced in cross-border real estate before you buy, not just before you sell.

The Process, Step by Step

1. Consultation: we confirm which program fits — foreign national, DSCR, ITIN, or conventional — and what documents you’ll need.
2. Documents and funds: gather passport, statements, income letters, and start moving funds to a U.S. account early.
3. Pre-approval: I submit your file to specialty lenders for a pre-approval your agent can use.
4. Offer and appraisal: once in contract, the lender orders the appraisal and underwrites the file. Plan for about 30–45 days to close.
5. Closing: you can sign in California, at a U.S. embassy or consulate, or through a power of attorney if the lender and title company approve it in advance.

Frequently Asked Questions — Foreign National Mortgages in California

Can a non-U.S. citizen buy a home in California?

Yes. Foreign nationals can buy residential real estate in California, and specialty lenders offer financing to buyers with no U.S. credit history or Social Security number.

Do I need a Social Security number to get a foreign national mortgage?

No. Foreign national programs use your passport and foreign documentation. You may later need an ITIN for U.S. tax filings, for example if you rent the property.

How much do I need to put down?

Commonly 25%–40%, depending on the lender, property type, and loan size, plus closing costs and reserves in verifiable accounts.

What’s the difference between an ITIN loan and a foreign national mortgage?

An ITIN loan is for people who live and work in the U.S. and file taxes with an ITIN, usually for a primary residence. A foreign national mortgage is for people who live abroad and are buying a second home or investment property, and it usually requires a larger down payment.

Can I get a foreign national mortgage for a primary residence?

Generally no — foreign national programs are designed for second homes and investment properties. If you’re moving to the U.S., ask about ITIN, visa-holder, or conventional options.

Can Canadians get a mortgage in California?

Yes. Canadian buyers commonly use foreign national or DSCR programs, especially for second homes in Palm Springs and the Coachella Valley. Canadian credit reports and bank statements are accepted by many foreign national lenders.

What is FIRPTA?

The Foreign Investment in Real Property Tax Act requires the buyer to withhold, generally, 15% of the price when a foreign person sells U.S. real estate. Lower rates or exemptions can apply, and you can apply to the IRS to reduce withholding. California has its own withholding rules for nonresident sellers.

How long does a foreign national mortgage take to close?

Plan for about 30–45 days. Having documents translated and funds already in the U.S. before you go into contract helps the most.

Related Resources

• ITIN Mortgages in California
• H-1B and Visa-Holder Mortgages
• DSCR Loans for Investors
• Non-QM Mortgages
• Second Home Mortgages
• Palm Springs Leased-Land Mortgages
• Préstamo Hipotecario en California