International investors have always been drawn to U.S. real estate. What's changed recently is how many of them are specifically targeting short-term rentals instead of traditional buy-and-hold properties, and running into the same financing wall that trips up domestic investors, compounded by a second problem unique to them: no U.S. credit history.
Here's how foreign nationals are structuring financing to purchase and qualify Airbnb and vacation rental properties in the U.S., without a U.S. credit score, tax returns, or domestic income documentation.
Why Foreign Nationals Are Targeting Short-Term Rentals
For international investors, U.S. real estate has traditionally meant a long-term hold: a property purchased for appreciation, occasional personal use, or steady long-term rental income. Short-term rentals shift that calculus in a few specific ways that make them attractive to foreign capital:
Higher income potential per property. A single well-located Airbnb can generate significantly more monthly income than the same property rented on a 12-month lease, which matters for investors weighing U.S. real estate against other markets and asset classes.
Personal-use flexibility. Unlike a long-term rental locked into a lease, an STR can be blocked off for the owner's own use during visits to the U.S., a meaningful draw for investors who travel to the country periodically.
Asset diversification in a stable currency and legal system. U.S. real estate remains a preferred store of value for many international investors specifically because of dollar-denominated stability and established property rights.
The obstacle has never been investor interest. It's been financing access.
The Two Problems Foreign National STR Investors Face
Problem 1: No U.S. credit score. Most conventional and even many investor-focused loan programs are built around a domestic credit profile. Without one, a foreign national buyer is often pushed toward an all-cash purchase, which limits scale and ties up significantly more capital than necessary.
Problem 2: Lenders that don't recognize STR income. Even among programs that accommodate foreign nationals, many still qualify the property using long-term market rent rather than the property's actual short-term rental income, understating what the property can support and forcing a larger down payment or outright decline.
A Foreign National DSCR program built specifically to accommodate short-term rental income solves both problems at once.
How Foreign National STR Financing Works
Total Quality Lending's Foreign National DSCR program qualifies international borrowers based on the property's income, not the borrower's personal credit, income documentation, or tax filings.
Key program details:
- No U.S. credit score required. Foreign nationals with no FICO qualify at the same maximum LTVs on purchase (75%) and rate/term refinance (65%) as borrowers with a qualifying score.
- Cash-out refinance is the one exception. Loans at or below $1M with a DSCR of 1.00 or higher cap at 70% LTV with a 680 score, versus 65% with no score.
- Minimum 680 FICO when a credit score is available.
- Loan amounts from $150,000 to $1.5 million.
- No income documentation, no DTI calculation. Qualification is based entirely on the property's cash flow.
- Short-term rental income accepted (Airbnb/VRBO), up to 70% LTV on purchase and 65% LTV on refinance.
- First-time investors welcome. No prior landlord or STR experience required.
- Interest-only options available, alongside 15, 30, and 40-year fixed terms and 5/6, 7/6, and 10/6 ARMs.
Reserves of 6 months PITIA are required, and Florida purchases require a foreign-entity affidavit (FLTA) at closing. The program excludes rural properties, OFAC-sanctioned countries, and properties in Puerto Rico, Guam, and the U.S. Virgin Islands.
This STR income allowance mirrors how TQL's Investor Hybrid Program qualifies domestic borrowers, using projected Airbnb income at up to 85% LTV. The Foreign National program applies the same underlying principle, adjusted for the LTV and documentation differences that come with international borrower status. Full program terms for both are available on TQL's lender profile.
Don't Let Financing Kill Your Deal
Most banks don't understand short-term rentals. These lenders do.
Finding and Evaluating the Right STR Property as an International Buyer
Financing is only half the equation. The other half is identifying a property and market that actually supports the projected income used to qualify for the loan in the first place.
This is where real market data matters more for a foreign national buyer than almost any other investor profile. Without the ability to easily visit multiple markets or rely on local market familiarity, international investors need reliable, property-level revenue data rather than general assumptions about "good tourist areas." Rabbu surfaces projected revenue, seasonality, and comparable performance data for specific properties and submarkets, which is what makes it possible to evaluate a deal from another country.
Worth keeping separate, though: research and underwriting are different steps. For qualification purposes, short-term rental income must be supported by one of the following:
- An appraiser's short-term rental analysis
- A 12-month property management statement
- 12 months of bank statements
- A third-party rental projection report (purchases only)
In other words, use market data to decide whether a property is worth pursuing, then plan on providing one of the documentation sources above when the file goes to underwriting.
Before committing to a specific property, confirm three things regardless of investor residency:
- STR legality at the specific address. Regulations vary block-to-block in many U.S. cities, and this applies equally to domestic and international buyers.
- Realistic, data-backed projected income, not an estimated nightly rate multiplied by 365 days. Our guide on how to analyze an Airbnb deal walks through this process step by step.
- A full understanding of financing terms available as a foreign national, since LTV, documentation, and reserve requirements differ from domestic investor programs.
Frequently Asked Questions
Can a foreign national buy a short-term rental in the U.S. without a credit score?
Yes. Total Quality Lending's Foreign National DSCR program does not require a U.S. credit score. Borrowers without a score qualify at the same maximum LTVs on purchase and rate/term refinance as those with a qualifying score. Cash-out refinance is the exception, where a 680 score allows a higher LTV than a no-score file.
Can foreign nationals use Airbnb income to qualify for financing?
Yes. Short-term rental income is accepted for qualification, with financing available up to 70% LTV on a purchase and 65% LTV on a refinance.
Do foreign nationals need U.S. tax returns to buy an Airbnb property?
No. This program does not require income documentation or a debt-to-income (DTI) calculation. Qualification is based entirely on the property's projected income.
What credit score do foreign nationals need for STR financing?
A minimum credit score of 680 is required when a credit score is available. Borrowers with no U.S. credit history are not penalized for the absence of a score.
Can a first-time investor who is a foreign national qualify for STR financing?
Yes. There is no requirement for prior landlord or short-term rental experience.
Where can international investors find reliable Airbnb revenue data before buying?
Rabbu provides property-level and market-level projected revenue data based on actual comparable listings, which is more reliable for research purposes than estimating from a desired nightly rate.
What documentation is accepted to support short-term rental income on a loan application?
Accepted sources are an appraiser's short-term rental analysis, a 12-month property management statement, 12 months of bank statements, or a third-party rental projection report on purchase transactions. Confirm current requirements with the lender before submitting a file.
Are there U.S. locations where foreign national STR financing isn't available?
Yes. The program excludes rural properties, OFAC-sanctioned countries, and properties in Puerto Rico, Guam, and the U.S. Virgin Islands. Florida purchases require a foreign-entity affidavit (FLTA) at closing.
Ready to Finance a U.S. Short-Term Rental?
Whether you're evaluating your first U.S. property or expanding an existing portfolio, Total Quality Lending can walk through what financing looks like for your specific scenario.
View TQL's lender profile and submit a scenario
Total Quality Financial, Inc. | NMLS #1933377. This communication is intended for informational and educational purposes only and is not a commitment to lend or an offer to extend credit. Loan products, rates, terms, qualification requirements, and program availability are subject to change without notice and underwriting approval. Not all applicants will qualify. Equal Housing Lender. For licensing information, visit www.nmlsconsumeraccess.org.
