Foreign National Mortgage in California: Complete 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. Call (800) 239-1103.

I work with international buyers fairly regularly — mostly in Palm Springs, the Bay Area, and Marin County. Canadian buyers are the most common inquiry, but I also hear from buyers in the UK, Australia, China, and Mexico. The process isn’t as complicated as people expect once you know which lenders actually do these loans. Most banks don’t. The ones that do have their own paperwork requirements, and if you show up with the right documentation, you can close in California just like any other buyer.

This guide explains exactly how foreign national mortgages work, what lenders require, and what to expect on rates and timelines. Learn more: dscr loans san diego 2026.

What Is a Foreign National Mortgage?

A foreign national mortgage is a home loan made to a borrower who is not a U.S. citizen or permanent resident. These loans are also called non-resident alien mortgages or international buyer loans. They are offered by specialty lenders and mortgage brokers who work with non-traditional borrower profiles — and they operate outside the standard Fannie Mae and Freddie Mac guidelines, which generally require U.S. citizenship or permanent residency.

Who Qualifies as a Foreign National Borrower?

• A citizen of another country with no U.S. visa or immigration status
• A non-immigrant visa holder (B1/B2 tourist visa) who does not have U.S. work authorization
• A buyer who resides outside the U.S. and earns income in a foreign currency
• An investor purchasing a California property as a second home or rental from abroad

Note: Borrowers with H-1B, L-1, E-2, O-1, and TN visas may qualify for conventional or FHA loans instead, since they have legal work authorization and often have U.S. credit history. Learn more about H-1B visa mortgages in California.

Foreign National Mortgage Requirements in California

Down Payment

Most foreign national lenders require a minimum down payment of 25% to 40%. On a $1,000,000 California property, expect to bring at least $250,000–$400,000 to closing. The more you put down, the better your rate and the easier the approval.

Credit and Income Documentation

Since foreign nationals don’t have U.S. credit scores, lenders use alternative documentation:

• International credit report from your home country
• 12–24 months of bank statements showing income and reserves
• Bank reference letter from your home country financial institution
• Employment letter or CPA letter verifying income
• Asset documentation proving sufficient reserves for down payment, closing costs, and reserves

Passport and Identification

A valid passport from your home country is required. Some lenders also require an ITIN (Individual Taxpayer Identification Number) if you have U.S. income or tax obligations.

Foreign National Mortgage Rates in California

Foreign national mortgage rates run higher than conforming rates — reflecting the additional documentation review and the fact that these loans stay in lenders’ portfolios rather than being sold to Fannie Mae. Here’s what I typically see in this market:

• 30% down, strong documentation (24 months statements, bank reference, solid reserves): approximately 7.25–7.50%
• 25% down, good documentation: approximately 7.50–7.75%
• Thinner documentation or lower down payment: 7.75–8.25%+

On a $1.2M California property with 30% down ($360K), you’re financing $840,000. At 7.25%, that’s approximately $5,731/month. At 7.75%, it’s approximately $6,016/month. The $285/month difference usually comes down to documentation quality — a solid bank reference letter, 24 months of clean statements, and strong reserves can meaningfully move your rate. Rates change daily; call (800) 239-1103 for a current quote.

Popular California Markets for Foreign National Buyers

• San Francisco Bay Area — Tech investors and executives from Asia, Europe, and Canada are drawn to SF, Marin County, the East Bay, and Silicon Valley. I see a lot of Canadian buyers in Marin specifically — they like the lifestyle and the proximity to the city.
• Los Angeles — Entertainment industry connections attract buyers from the UK, Australia, Europe, and Latin America.
• Palm Springs and Coachella Valley — Canadian buyers have long favored Palm Springs as a winter retreat. Foreign national loans are extremely common here and I close these regularly.
• San Diego — Cross-border buyers from Mexico and European investors are active in San Diego’s coastal markets.
• Wine Country (Napa/Sonoma) — European buyers with an affinity for wine culture are drawn to Napa Valley and Sonoma County properties.

FIRPTA: What Foreign Buyers Need to Know

If you’re a foreign national purchasing real estate in California, you need to know about FIRPTA — the Foreign Investment in Real Property Tax Act. When a foreign national sells a U.S. property, the buyer is required to withhold 15% of the sales price and remit it to the IRS as a tax deposit. This can be reduced or waived in certain circumstances. Consult a U.S. CPA experienced in international real estate before closing.

The Foreign National Mortgage Process: Step by Step

1. Initial consultation — Speak with a mortgage broker experienced in foreign national loans to assess your options.
2. Document collection — Gather your passport, international credit report, bank statements, income documentation, and asset verification.
3. Pre-qualification — Your broker submits documentation to specialty lenders and obtains a pre-qualification letter.
4. Property search — With pre-qualification in hand, work with a California real estate agent to find a property and make an offer.
5. Underwriting — Foreign national loans may take 30–45 days to underwrite. Plan accordingly.
6. Closing — You can close in person or via power of attorney if you cannot travel to California for signing.