Foreign National Commercial Real Estate Loans — US Investment Guide

Yes. The stated income DSCR commercial loan structure is particularly well-matched to foreign national investors because the underwriting centers on what the property earns — not on the borrower's US income history, US tax returns, or US credit profile. A foreign national investor who has no Social Security number, no US credit history, and no US tax return can still qualify if the commercial property produces sufficient income to cover the proposed debt service.

Fundscape, Wexmoor's primary stated income commercial lender, explicitly covers foreign nationals on its DSCR commercial program. 30-year fixed rate. Stated income. DSCR to 0.75x. Loan sizes from $100K to $5M. No US tax return required. This is a purpose-built product for the international investor market, not an exception to a domestic program.

Requirements vary by lender, but the typical documentation package for a foreign national commercial loan includes: a valid passport from the borrower's country of residence, proof of foreign residence address, bank statements from a foreign institution showing liquid assets sufficient for the down payment and reserves, the property's financial documentation — rent roll, operating statements, or purchase contract — and a credit report from the borrower's home country if available.

Some lenders request a bank reference letter — a letter from the borrower's primary banking institution confirming the relationship and the account balance range. This is different from a credit report and is something most international banks can provide on request.

What is not required: a US Social Security number, a US credit report, US tax returns, or US employment documentation. The loan is structured around the property and the borrower's foreign financial capacity, not around the US documentation system.

Foreign national commercial loans typically require 30–40% down, compared to 25–35% for US citizen borrowers on the same product. The additional equity requirement reflects the additional documentation complexity and the lender's risk management for cross-border transactions. On a $2M commercial property, that is $600,000–$800,000 in down payment, plus closing costs and reserves.

Down payment funds must be sourced and documented. Lenders will require bank statements showing the funds in a verifiable account, wire transfer records if the money was moved from abroad, and in some cases a letter of explanation for large deposits or transfers. The funds must be the borrower's own — seller contributions, gifts from non-relatives, or undocumented transfers create complications that can kill a deal at closing.

Reserves — funds held in a bank account after close — are also required. Most programs require 6–12 months of mortgage payments in verifiable liquid accounts. This can be held in a foreign bank account as long as it is properly documented and the balance is easily verifiable.

Yes — and for most foreign national investors, purchasing through a US LLC is the preferred structure for both financing and tax efficiency. A US LLC provides liability protection, creates a clean ownership entity for the US real estate portfolio, and simplifies the ongoing management of the asset. The LLC is a US legal entity, which makes the loan application more straightforward than a foreign entity buying directly.

Most lenders that cover foreign nationals accept both individual and LLC ownership structures for commercial deals. The individual owner of the LLC typically signs a personal guarantee on the loan as well. Forming the LLC can be done quickly — Delaware and Wyoming LLCs can be formed in a day or two and then registered as a foreign entity in California if needed.

Work with a US attorney who handles cross-border transactions to set up the LLC structure correctly before closing. The structure matters for both financing and for FIRPTA withholding at the time of eventual sale.

China has historically been the largest source of foreign investment in California commercial real estate, particularly in the Los Angeles basin and the San Gabriel Valley. Canadian investors are active throughout the state, particularly in the Bay Area and coastal markets. Mexico-based investors are significant in Los Angeles and San Diego commercial markets. South Korea, Taiwan, and Iran each have strong investor communities in the greater Los Angeles area, particularly in multifamily and retail. Armenian, Israeli, and Indian investors are also active, particularly in the San Fernando Valley and Orange County markets.

The stated income DSCR commercial program covers investors from all of these countries. There are no country-of-origin restrictions on the Fundscape foreign national program.

FIRPTA — the Foreign Investment in Real Property Tax Act — is the primary tax consideration for foreign nationals in US real estate. When a foreign national sells US real property, the buyer is required to withhold 15% of the gross sale price and remit it to the IRS. This is a withholding mechanism, not a flat tax — the actual tax liability is determined by filing a US tax return for the year of sale, and any over-withholding is refunded. But the 15% withholding at close affects the net proceeds you receive at the time of sale.

Ongoing ownership also triggers US tax obligations. Rental income from US real property is taxable in the US, and foreign owners must file US tax returns reporting this income. The LLC structure simplifies this filing in most cases. Work with a US CPA who specializes in cross-border real estate transactions — the tax treatment of rental income, depreciation, and eventual sale has significant planning opportunities that are worth addressing before the first acquisition.

Wexmoor handles the financing structure. Tax strategy requires a qualified US CPA or tax attorney familiar with international real estate transactions.

International wire transfers for real estate down payments are common and straightforward if handled correctly. The key requirements are that the wire originates from an account in the borrower's name, the source of funds can be documented, and the transfer is made directly to the escrow or title company handling the closing — not to an intermediary.

Timing matters: allow at least five business days for international wire transfers to clear, and initiate the wire well before the scheduled closing date. Wire fraud is a significant risk in real estate transactions — always verify wire instructions directly with the escrow officer by phone before sending funds. Do not rely on email instructions alone.