By Sagi GliksmanForeign Investors2 min readUpdated
How Much Down Payment Does a Foreign National Need for a U.S. Rental?
Foreign nationals buying a U.S. rental need at least 30% down, plus closing costs and reserves. Worked examples at three price points.
Key takeaways
- At least 30% down: foreign-national loans go up to 70% LTV on a purchase (as of November 2026)*.
- Closing costs and reserves come on top. Reserves are typically 6-12 months of the payment (PITIA).
- Already own the property? A cash-out refinance goes up to 65% LTV to fund your next purchase.
- U.S. residents reach 85% LTV. For foreign nationals, lower leverage offsets the missing U.S. credit history.
The down payment is the biggest check in a foreign national's first U.S. purchase.
Know the number before you look at properties.
The short answer: at least 30%
Foreign-national loans go up to 70% of the purchase price, so the minimum down payment is 30%.
At three price points (as of November 2026)*:
- $300,000 purchase: $90,000 down (30%), $210,000 loan
- $500,000 purchase: $150,000 down (30%), $350,000 loan
- $750,000 purchase: $225,000 down (30%), $525,000 loan
- * Subject to underwriting
What else to budget for
- Closing costs: title, appraisal, lender fees and LLC formation
- Reserves: typically 6-12 months of the payment (PITIA), in an account in your name or your LLC's
- Currency conversion: plan the timing and the exchange rate
Why foreign nationals put more down than U.S. residents
Lenders can't check a U.S. credit history or reach assets held abroad as easily. Lower leverage offsets that.
U.S. residents borrow up to 85% LTV on a rental purchase. Foreign nationals go up to 70%.
Ways to get more out of your capital
- Cash-out refinance: pull out up to 65% LTV on a property you own to fund the next purchase.
- Short-term financing: fix and flip (hard-money) and bridge loans are open to foreign nationals.
- Portfolio growth: add properties as equity and rental income build.
Your exact down payment and terms, the same day.
Foreign National programFrequently asked questions
Can a foreign national put 20% down?
No. Foreign-national loans max out at 70% LTV, so the minimum down payment on a purchase is 30%.
Can the down payment be a gift?
It depends on the lender. Some accept documented gifts, some do not, so ask before you count on one.
A gift needs a gift letter and bank records showing where the money came from.
Does the down payment have to be in a U.S. bank account?
It has to be documented and in an account in your name or your LLC's before closing.
Many investors move it to the LLC's U.S. account ahead of closing.
How much do I need in reserves?
Typically 6-12 months of the payment (principal, interest, taxes, insurance and any HOA), depending on the file.