Fun fact: Illinois is fondly called the "Land of Lincoln," honoring Abraham Lincoln’s deep ties to the state, with over 250 landmarks commemorating the 16th president. But Illinois isn’t just rich in history—it’s also an intriguing state for real estate investment. This comprehensive guide will explore everything you need to know about investing in Illinois real estate, including mortgage eligibility requirements, available property types, and popular areas to buy property.
We are providing the following discussion to you for informational purposes only. All investments, including real estate, involve risk, and we encourage you to invest carefully. The information in this article is not intended to replace or serve as a substitute for any legal, real estate, tax, or other professional advice or service. You should consult with a professional in the respective legal, tax, accounting, real estate, or other professional area before making any decisions or entering into any contracts relating to a rental property.
A foreign national mortgage is a loan designed for individuals, not U.S. citizens or permanent residents. These mortgages are tailored to address international buyers' unique challenges, such as the lack of a U.S. credit history or Social Security number.
Unlike traditional loans to qualify U.S. citizens, foreign national mortgages rely on alternative ways to assess borrowers' financial stability. These loans may use international credit reports and documentation of assets and income from the borrower’s home country. Foreign national mortgages cater to a wide range of investment strategies, from those purchasing vacation rental properties to list on AirBnb to those looking to build rental property portfolios focused on long-term rentals.
Obtaining a mortgage as a foreign national involves meeting certain eligibility requirements that differ from those of traditional U.S. loans. Lenders typically look for the following:
Most lenders: Lenders will require proof of identification along with your address. You may be eligible for specific primary or secondary home loans, depending on your residency status. For investment property loans, it’s common for lenders to require that the loan be issued to an American LLC, with you acting as a personal guarantor.
Waltz: All it takes for us to confirm your identity is a valid passport– it doesn’t need to be from the U.S., either! Since we focus on investment property loans, we also require that mortgages be taken out in the name of an LLC. With our Investor Toolkit, you get a U.S. bank account and an LLC with an EIN , which could take months if done independently. This helps foreign nationals streamline the process and avoid time-consuming extra steps.2
Meeting these criteria demonstrates your financial responsibility and reduces the lender's risk.
Read more: Discover inspiring customer success stories and see how our streamlined process can work for you.
Illinois offers various property types, each catering to specific investment strategies and preferences. Here's an overview of the main property types available for purchase, their appeal to investors, and recent statistics related to Illinois:
When considering an investment in Illinois real estate, aligning the property type with your investment goals, management preferences, and market trends is essential. Staying informed about current statistics and market conditions will aid in making well-informed decisions.
Illinois offers many advantages for real estate investors, making it a preferred location for international buyers. Here’s why Illinois real estate investment stands out:
1. Strong rental demand: Illinois, particularly its major urban center Chicago, maintains a robust demand for rental properties, ensuring a steady cash flow for landlords. As of 2021, approximately 54.2% of Chicago households were renters, reflecting a stable rental market. Additionally, the median rent for all property types in Chicago was $1,900 as of November 2024, indicating a healthy rental income potential. These contribute to a consistent and reliable income stream for property owners in the region.
2. Diverse economy: The state’s economy spans industries such as finance, technology, manufacturing, and agriculture, offering stability even during market fluctuations. Major employers like AbbVie Inc., Allstate, Caterpillar Inc., John Deere, and Walgreens Boots Alliance contribute significantly to the state’s economic resilience, making it an attractive destination for real estate investment. These factors create a dynamic and robust market for local and international investors.
3. Affordable prices: Compared to states like California and New York, Illinois offers more affordable property prices, especially in suburban and smaller metropolitan areas. These factors make Illinois a lucrative option for foreign nationals looking to grow their wealth.
If you’re a non-U.S. resident looking to secure a mortgage in Illinois, Waltz offers a straightforward and efficient process. Here’s how Waltz can help you navigate each step with ease:
1. Find the right lender
Not all lenders cater to foreign nationals, but Waltz specializes in working with international investors. Our team connects you with lenders who offer tailored foreign national mortgage programs.
2. Identify a property that meets your goals.
Choose a property that aligns with your investment objectives, whether for rental income, long-term appreciation, or both. While you and your real estate agent are looking for investment opportunities, Waltz helps ensure that the property meets requirements such as being a cash-flowing asset.
3. Compile required documentation
With Waltz, documentation is streamlined. We guide you through gathering essentials like your passport, proof of income, and international credit references, ensuring everything is in order.
4. Establish an LLC and open a U.S. bank account.
Waltz’s Investor Toolkit sets up your LLC and U.S. bank account, streamlining the process and saving you weeks of effort.
5. Apply for a loan
Waltz ensures your pre-approval process is efficient, helping you understand your borrowing capacity while managing lender communication.1
6. Conduct due diligence
From property appraisals to inspections, Waltz supports you through the due diligence phase, ensuring the property meets your expectations and the lender’s standards. At this point, you’ll also review your term sheet.
7. Finalize the purchase
Waltz works with you through the closing process, collaborating with your real estate agent and attorney to ensure a smooth and successful transaction.
Partnering with Waltz simplifies the mortgage process and avoids unnecessary delays. Let us help you achieve your Illinois property investment goals.
Debt-service-coverage-ratio (DSCR) loans present an option for foreign nationals eyeing Illinois real estate. These loans focus on the property's income potential, making them particularly appealing to international investors navigating the U.S. real estate market. Here’s why DSCR loans are a game-changer:
DSCR loans eliminate many barriers typically associated with securing U.S. financing for foreign nationals. By focusing on the rental income potential, these loans provide an efficient pathway to tapping into Illinois’s thriving real estate market.
Work with Waltz
At Waltz, we simplify U.S. real estate investment for foreign nationals by breaking down barriers and offering expert support tailored to your needs. Here’s how we can make your investment journey in Illinois effortless and successful:
At Waltz, we’re more than a lender—your trusted partner in building a successful U.S. real estate portfolio. Let us help you unlock the full potential of Illinois’s real estate market without the hassle of traditional lenders.
