Private luxury La Jolla home with mortgage documents.

Anonymous Beverly Hills & La Jolla Home Buying Guide

Q: What is a foreign national mortgage program?

A lender's seasoning period is a mandatory waiting time after you purchase or refinance a property before you can access the full after-repair value (ARV) for a cash-out refinance. Most DSCR lenders require a seasoning period of 6 to 12 months. Refinancing before the seasoning period concludes typically means the lender will base the loan amount on your original purchase price plus rehab costs, which severely limits the amount of equity you can cash out. Waiting until after the period allows you to borrow against the full market value you created through your renovations.

Q: How can foreign buyers get a home loan without a U.S. credit score?

To justify a higher appraised value, you should provide the appraiser with a detailed and organized renovation packet. This packet removes guesswork and provides concrete evidence of the work performed. It should include: a cover letter summarizing the major upgrades, a detailed scope of work document itemizing all improvements, compelling before-and-after photos showing the property's transformation, copies of paid invoices and receipts for materials and labor, and copies of any official building permits that were issued for the work.

Q: What documents are needed to verify foreign income and assets?

No, LTV limits for cash-out refinances vary significantly among different DSCR lenders, as each has its own guidelines and risk tolerance. While purchase loans may reach 80% LTV, cash-out refinances are often capped at 70% or 75% LTV. The specific LTV offered to an investor is influenced by several factors, including: Credit Score (higher scores typically qualify for higher LTVs), DSCR Ratio (a stronger income-to-debt ratio may result in a better LTV offer), Property Type (a single-family home might receive a higher LTV than a multi-unit property), and Loan Amount (some lenders may offer different terms based on the size of the loan).

Q: What are the key differences between buying a property in an LLC versus a trust?

Your property's monthly rental income is the foundation of a DSCR loan approval. The formula is: DSCR = Gross Rental Income / Total Monthly Housing Payment. A higher rent results in a higher DSCR. This proves to the lender that the property can comfortably support a larger loan payment, which in turn allows you to qualify for a larger loan amount and maximize your cash-out.

Q: What is the typical down payment requirement for a non-U.S. buyer?

Yes, it is often possible to pay for closing costs with the proceeds from your new loan, meaning you don't need to bring cash to closing. However, these costs are not added on top of your loan limit. Instead, the closing costs are subtracted from the total cash-out funds available to you after your existing mortgage is paid off. The total loan amount, including these costs, cannot exceed the lender's maximum LTV limit based on the property's appraised value.

Q: Can a foreign national secure a mortgage based only on assets without showing income?

Investors can make several avoidable errors that reduce their available cash-out funds. The most common mistakes include: Poor Documentation (failing to provide an appraiser with a thorough renovation packet can lead to a conservative and lower valuation), Refinancing Too Soon (not waiting for the lender's seasoning period to expire is a costly mistake that forces the loan to be based on cost rather than value), Lacking a Tenant (attempting to refinance a vacant property is less favorable, as lenders prefer the security of a signed lease over estimated market rents), and Ignoring Lender Differences (accepting the first loan offer without comparing options can mean missing out on better LTV limits or shorter seasoning requirements from other lenders).

Q: How does the FIRPTA law affect a foreign buyer of U.S. real estate?

The ideal time to begin the refinance process is 30 to 45 days before your lender's seasoning period expires. This allows you to gather all necessary documentation, secure an appraisal, and complete underwriting so that you can close immediately once the seasoning requirement is met. Crucially, by this time, the property should also be 'stabilized,' which means you have a qualified tenant in place with a signed lease and have collected at least the first month's rent.

June 9, 2026

Specialized In Jumbo Loans, Investor Loans, DSCR Loans, Non-QM Financing, Commercial Mortgages, and Tax-Informed Lending Strategies

Published By

David Ghazaryan

Owner / Broker / Banker

Contact Me At

(702) 766-3744

NMLS 1486726

Let's Connect

TL;DR

This guide explains how high-net-worth international buyers can acquire luxury homes in California, such as in Beverly Hills or La Jolla, while maintaining privacy. Key points include:

Specialized Financing: Lenders provide jumbo loans tailored for foreign nationals, evaluating applicants based on their global income and assets rather than U.S. credit scores. They utilize alternative methods to verify creditworthiness.
Private Ownership Structures: To protect personal identity from public records, buyers can use legal entities. An LLC offers strong liability protection, while a trust provides advantages for estate planning and may be easier to finance.
Unique Requirements: The process involves providing specific types of foreign documentation, making a larger down payment, and understanding U.S. tax laws like FIRPTA that affect the transaction.

What is a foreign national loan program for a luxury home in Beverly Hills?

A foreign national loan program is a specialized mortgage product designed for non-U.S. citizens who do not have a green card, U.S. credit history, or social security number. When purchasing a high-value property in an area like Beverly Hills, these programs are essential. Unlike conventional loans that rely heavily on FICO scores and U.S.-based income verification, foreign national loans are underwritten based on a different set of criteria tailored to international buyers.

Lenders who offer these programs understand the complexities of global finance. They are equipped to evaluate foreign assets, international income streams, and alternative forms of creditworthiness. These are typically portfolio loans, meaning the lender holds the loan on its own books rather than selling it on the secondary market. This gives them more flexibility in setting qualification guidelines.

Key features often include:

Higher Down Payments: To mitigate risk, lenders require more significant equity from the buyer.
Focus on Global Assets: The lender's primary focus is on the borrower's worldwide assets and income.
Interest Rate Structure: Rates may be slightly higher than conventional jumbo loans, and Adjustable-Rate Mortgages (ARMs) are common.
Property Type: These loans are almost exclusively used for luxury residential properties, not commercial ventures.

What types of foreign income and asset documentation do lenders accept?

Lenders need to build a comprehensive financial profile of a foreign national borrower. Since standard U.S. documents like W-2s and IRS tax returns are unavailable, they accept a range of international equivalents. All documents not in English must be accompanied by a certified translation.

Income Verification

To prove a stable and sufficient income stream, lenders typically request a combination of the following:

Letter from Foreign Employer: A letter on company letterhead detailing your position, salary, length of employment, and bonus structure. This must be written in English or professionally translated.
Foreign Tax Returns: Two to three years of tax returns filed in your country of residence.
CPA Letter: A letter from a certified public accountant (or equivalent in your country) outlining your income for the past two years, especially if you are self-employed.
Profit & Loss Statements: For business owners, audited profit and loss statements are crucial to demonstrate business stability and personal income derived from it.

Financial documents for a foreign national loan application

Asset Verification

Assets are critical for both the down payment and demonstrating financial reserves. Lenders will want to see:

Bank Statements: At least two to twelve months of statements from your foreign banking institutions, showing a consistent balance and the source of funds for your down payment.
Brokerage or Investment Statements: Documentation of stocks, bonds, and other liquid investments from well-established international financial institutions.
Proof of Other Real Estate Holdings: Evidence of properties you own in other countries can help demonstrate financial strength.

How can I get a mortgage in La Jolla without a United States credit score?

Securing a mortgage for a luxury property in La Jolla without a U.S. credit score is a standard challenge for foreign buyers. Lenders specializing in these loans use alternative credit verification methods to assess your creditworthiness. They are not looking for a FICO score but rather a documented history of meeting your financial obligations.

Acceptable forms of alternative credit documentation include:

Letters of Reference from Financial Institutions: A formal letter from a foreign bank where you have a long-standing relationship, attesting to your good standing and history.
Proof of Timely Rental Payments: At least 12 months of statements or receipts showing consistent, on-time rent payments to your current landlord.
Utility Bill History: A history of timely payments for utilities like electricity, water, and gas from recognized providers.
International Credit Reports: Some lenders can access credit reports from specific countries, which can be used as a substitute for a U.S. report.
Evidence of Insurance Payments: Proof of consistent payments for life, auto, or property insurance.

A substantial down payment also plays a significant role. By contributing more equity, you reduce the lender's risk, making them more comfortable proceeding without a traditional credit file.

Is it better to purchase the property in a trust or a limited liability company?

For buyers prioritizing privacy, purchasing a property under your personal name is not an option, as property records are public. The choice between an LLC and a trust is critical and depends on your goals for privacy, liability protection, and estate planning. It is essential to consult with a qualified attorney and tax advisor before making this decision.

Luxury home in Beverly Hills purchased via a trust or LLC

Purchasing with a Limited Liability Company (LLC)

An LLC is a U.S. business structure that separates your personal assets from the company's assets. When you buy a home through an LLC, the company's name appears on the title, not your own, providing a strong layer of anonymity.

Pros:
- Anonymity: The owner's identity is shielded from public property records.
- Liability Protection: Your personal assets are protected from any lawsuits or claims related to the property.
Cons:
- Financing Complexity: Obtaining a mortgage for an LLC can be more challenging and may come with higher interest rates and fees. Not all lenders will finance a property held in an LLC.
- Corporate Formalities: You must maintain the LLC by filing annual reports and keeping finances separate.

For example, an international investor buying a $12 million oceanfront home in La Jolla might form 'Pacific Crest Holdings, LLC' to hold the title, ensuring their personal name is not publicly associated with the asset.

Purchasing with a Revocable Trust

A trust is a legal arrangement where a 'trustee' holds and manages assets for a 'beneficiary'. When you purchase a home in a trust, the trust's name is on the deed.

Pros:
- Privacy: The beneficiary's name (your name) does not appear on the public title. The trustee's name does, which can be an attorney or a professional trustee for enhanced privacy.
- Estate Planning: A trust allows the property to bypass the lengthy and public probate process upon your death, passing directly to your heirs.
- Easier Financing: Lenders are generally more comfortable financing properties held in a revocable trust compared to an LLC.
Cons:
- Limited Liability Protection: A trust does not offer the same robust shield from lawsuits as an LLC.

What are the typical down payment requirements for non-United States buyers?

For foreign national buyers, the down payment is significantly higher than for U.S. citizens. Lenders require this larger capital investment to offset the perceived risks associated with a lack of U.S. credit history, the complexity of verifying foreign documents, and potential difficulties in recourse should the borrower default.

Typically, the minimum down payment for a foreign national loan ranges from 30% to 50% of the purchase price. (The data, information, or policy mentioned here may vary over time.) The exact amount depends on several factors:

Loan Amount: Larger jumbo loans often require a higher percentage down.
Property Type: A primary residence might have slightly more lenient terms than an investment property.
Borrower's Financial Profile: A borrower with exceptionally strong liquid assets may be able to secure a loan with a slightly lower down payment.

For instance, on a $7 million home in Beverly Hills, a lender would likely require a down payment between $2.1 million (30%) and $3.5 million (50%).

How does the Foreign Investment in Real Property Tax Act affect my purchase?

The Foreign Investment in Real Property Tax Act (FIRPTA) does not impose a tax on buying property. Instead, it is a federal law that ensures the U.S. government can collect capital gains taxes when a foreign person or entity sells U.S. real estate. It directly impacts the seller, but as a buyer, you are responsible for ensuring the law is followed.

Here's how it works: When you buy a property from a foreign seller, the law generally requires you, the buyer, to withhold 15% of the gross sales price and remit it to the IRS within 20 days of closing. The escrow company typically handles this withholding.

This amount is not a final tax; it's a prepayment against the seller's potential capital gains tax liability. The foreign seller must then file a U.S. tax return to report the sale, calculate the actual tax due, and either receive a refund of any overpayment or pay any additional amount owed. There are certain exemptions, and the seller can apply for a 'withholding certificate' from the IRS beforehand to reduce or eliminate the withholding amount.

What is the process for wiring funds internationally for a down payment?

Transferring a large sum of money internationally requires careful planning to ensure the funds arrive on time and are properly documented for your lender and the escrow company.

Notify Your Bank: Inform your foreign bank well in advance about the upcoming transfer, its amount, and its destination. Ask about their specific procedures, daily limits, and any required documentation.
Gather Escrow Information: Your escrow officer will provide you with the necessary wiring instructions. This includes the receiving bank's name and address, ABA routing number, SWIFT/BIC code, escrow company's account number, and a specific reference number for your transaction.
Account for Fees and Exchange Rates: Be aware of wire transfer fees and the current currency exchange rate. It's wise to send a slightly larger amount to cover any fluctuations or fees to ensure the full required amount arrives.
Initiate the Wire and Get a Receipt: Go to your bank to initiate the transfer. Double-check all numbers before finalizing. Obtain a detailed receipt of the transaction for your records and to provide to your lender.
Allow for Processing Time: International wires are not instant. They can take 3-5 business days to clear. Plan accordingly to meet your closing date.

Can I secure a loan using only my assets without showing any income?

Yes, this is possible through a product known as an asset-based loan, sometimes called an asset depletion or asset dissipation loan. This program is an excellent solution for high-net-worth individuals who have substantial liquid assets but may not have a traditional, easily documentable income stream, such as retirees or entrepreneurs.

Instead of verifying employment or income, the lender qualifies you based on your total verified assets. They use a formula to calculate a 'deemed' monthly income. For example, the lender might take your total liquid assets (stocks, bonds, cash) and divide them by a set number of months, such as 120 (10 years). (The data, information, or policy mentioned here may vary over time.) The resulting figure is treated as your monthly income for qualification purposes.

Example: An investor wants to buy a home in La Jolla and has a verified investment portfolio of $15 million. The lender could divide this amount by 120 months, resulting in a qualifying monthly income of $125,000, which is more than sufficient to qualify for a multi-million dollar mortgage without ever needing to provide a pay stub or tax return.

Understanding the unique requirements for a foreign national mortgage is the first step. When you're ready to take the next, our specialists are prepared to guide you through the process. Apply now to begin securing your financing.

Author Bio

David Ghazaryan is the expert mortgage strategist and founder behind iQRATE Mortgages. With a mission to fund home loans that traditional banks won't touch, David specializes in helping clients with unique financial situations, including those recovering from foreclosure or bankruptcy. He expertly crafts smart, strategic, and stress-free mortgages by leveraging a vast network of over 100 lenders to secure competitive rates for investors and homebuyers alike. Praised for exceptional customer service, David has helped hundreds of families with a 97% satisfaction rate, guiding them to the mortgage they deserve.