Most foreign national investors put 25% to 30% down on U.S. investment property. That’s higher than a U.S. resident with strong credit would put on the same property — and the reason is simple: the down payment is doing the work your U.S. credit file would normally do.
When a lender can’t score you on a U.S. credit history, your equity becomes the risk buffer. The more you put in, the more skin you have in the deal, and the more comfortable the lender is approving a borrower they can’t run through the usual U.S. checks. That trade — more down, fewer hoops — is the whole structure of foreign national financing.
What moves the number
The 25%–30% range isn’t arbitrary. Where you land inside it depends on the profile:
- Toward 25% — an international credit reference, healthy documented reserves, and a straightforward property like a standard single-family rental or small multifamily.
- Toward 30% or a bit more — a thinner profile, or a higher-risk asset like a condotel or a short-term rental, where lenders ask for a larger cushion.
A stronger down payment can also work in your favor beyond approval: more equity often means a better rate, since you’re a lower-risk borrower the day you close.
Beyond the down payment
Budget for two more things so nothing surprises you at the table:
- Reserves — most programs want several months of mortgage payments (principal, interest, taxes, insurance) sitting in the bank after closing. This shows you can carry the property through a vacancy.
- Closing costs — plan for roughly 2%–5% of the purchase price on top of your down payment.
Where the money can come from
Your down payment can come from your home-country accounts — it doesn’t need to sit in a U.S. bank first. What it does need is to be documented and seasoned: the lender verifies the source of funds as part of standard anti-money-laundering (AML) review, so keep clean records of where it came from and wire it with a clear paper trail.
A typical deal
A scenario I see often: an investor abroad buying a Florida rental priced in the mid-six figures, putting 25% down from their home-country bank, with a few months of reserves documented. The down payment plus reserves does the heavy lifting; the empty U.S. credit file never becomes the issue.
Ready to look at your deal?
The cleanest way to know your exact number is to run your specific property and profile. Tell us about your deal and we’ll tell you the down payment it takes — in English or Spanish.
By Andres Jara — Alpha Equity Lending (NMLS #1855083). 20+ years in real estate finance, an MS in Finance, and an active South Florida investor and landlord.
