GUIDE
Using Foreign Income and Assets for a U.S. Mortgage
Some mortgage programs can consider salary, business income or rental income earned outside the United States, and funds held in foreign bank accounts.
Which income counts, how it must be documented and how translations are handled depend on the lender and program. If you are buying a rental property, some DSCR programs look at the property's rent instead of your personal income. Approval is never guaranteed.
Reviewed by Onur Kasar, Principal L.O. · NMLS #373002 · Florida MLO License #LO23047 · In the mortgage industry since 2005
Why Lenders Look at Income and Assets Separately
Income shows whether you can keep up with the monthly payment. Assets are the money you use for the down payment, closing costs and, where required, reserves.
U.S. residents usually prove income with U.S. tax returns and pay stubs. If you earn and save abroad, your documents come from another country, and some Foreign National programs are designed to review them.
Can Foreign Salary Income Be Used?
In some programs, yes. A lender may ask for:
- An employment and salary letter from your employer
- Recent pay slips
- Statements for the account your salary is paid into
- English translations where needed
Can Business or Self-Employment Income Be Used?
Business owners often need more detail. Depending on the lender, you may be asked for:
- Proof that the business is active
- A letter from your accountant or financial statements
- Business and personal bank statements
- Tax documents, depending on the program
The accepted format and time period for accountant letters and financial statements differ between lenders. Asking before you prepare them saves time.
Does Rental Income Abroad Count?
Rent from property you own outside the U.S. may be considered in some programs. Expect to show the lease and statements proving the rent is paid regularly.
Using Foreign Bank Accounts and Other Assets
Foreign checking, savings, foreign-currency and certain investment accounts may be accepted, depending on the program. Lenders usually want statements and an explanation of any large recent deposits.
Some account types may be counted at less than full value. Reserves, when required, are generally funds that remain in your own account after closing; they are not a lender fee.
What Does Source of Funds Mean?
Source of funds means showing where your down payment and closing money came from, such as savings, the sale of a property or a distribution from your company.
Before wiring money into the U.S., ask which transfer records the lender will need, so the path of the funds is easy to document. You are responsible for following banking, tax and reporting rules in both countries.
Currency Conversion and Translations
Income and balances in another currency are usually converted to U.S. dollars using a method the lender chooses. Because exchange rates move, the dollar value can change during the process.
Documents not in English usually need translation, and some lenders require certified translations.
When DSCR Is the Better Fit
DSCR stands for Debt Service Coverage Ratio: how well a property's rent covers its monthly loan payment.
If you are buying a Florida rental and documenting foreign income is difficult, some DSCR programs qualify mainly on the property's rent. See DSCR Investment Property Loans and the DSCR calculator.
Tax and Legal Questions
This guide covers mortgage financing only. For tax obligations in either country, reporting of transfers or ownership structures such as an LLC, speak with a tax advisor or attorney.
Related Pages
Frequently Asked Questions
View All FAQsSome programs accept foreign income. Documentation and translation rules vary by lender, and approval is not guaranteed.
Lenders may ask for an accountant letter, financial statements and bank statements. Check the accepted format before preparing them.
In some programs, with a lease and statements showing regular payments.
It is usually converted to U.S. dollars using a method the lender sets. The result can change as exchange rates move.
Eligible foreign funds may be used, depending on the program. Statements and transfer records are usually required.
No. When required, reserves are generally funds that stay in your own account after closing.
For a rental property, some DSCR programs look at the property's rent rather than your personal income.
No. Please speak with a tax advisor or attorney about tax and legal matters.
Programs and requirements vary by lender, property and borrower profile. This page is general information only; it is not a loan offer, an approval, or legal or tax advice.
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