Foreign National Loans

Foreign national loans in Florida finance property for buyers with no US credit file, no social security number and no US income.

Key features of foreign national loans in Florida

• No US credit history
• No social security number
• No US income or employment
• Down payment from 25% to 30%
• Primary residence, vacation home and investment property
• Loan amounts above $3 million
• Foreign income and foreign credit references accepted
• You can hold title through an LLC

Plan the exit before you buy, because of FIRPTA

Financing is the straightforward part. The tax rule on the way out surprises far more buyers, and it is worth understanding on the day you purchase rather than the day you sell.

Under the Foreign Investment in Real Property Tax Act, when a foreign person sells US real property, the buyer must withhold a percentage of the gross sale price and remit it to the IRS. The standard rate is 15%. Note that it applies to the sale price and not to your profit, so a seller can face withholding on a transaction that made no gain at all.

The money is not lost. It is a prepayment against the tax you may owe, and you reclaim any excess by filing a US return. However, the refund arrives long after closing, so the cash is unavailable for months. Reduced rates or a withholding certificate can apply in some circumstances, particularly on lower-priced homes a buyer will occupy.

Therefore speak to a US tax adviser before you purchase. How you take title, whether individually or through an entity, affects both this and your annual filing obligations, and that decision is far easier to make at the start than to unwind later.

What lenders will ask for instead of a credit report

• A valid passport, and a visa where you hold one
• A credit reference letter from your bank at home, or an international credit report
• Proof of income from your own country, often translated
• Bank statements showing the down payment and reserves
• Funds seasoned in a US account before closing, which takes planning

Since documents may need certified translation, start gathering them early. That step alone frequently adds two weeks to a timeline nobody budgeted for.

Florida-specific notes

• Florida receives more international buyers than any other state, so lenders here handle these files routinely
• Miami, Fort Lauderdale, Orlando and Naples lead in foreign purchases, with Latin American and Canadian buyers the largest groups
• Because Florida levies no state income tax, rental income faces federal tax only, though you still file a US return
• If the property is a condo, association rules on renting matter as much as the loan; see the condo mortgage guide
• Buying to rent? Compare a DSCR loan, which qualifies on the property’s income

FIRPTA withholding is governed by Internal Revenue Code section 1445; see the IRS FIRPTA guidance. Rates, exemptions and certificate procedures change. This page is not tax advice; consult a US tax professional about your own position.