What do the Indianapolis 500 – Indiana’s world-famous car race – and real estate investing have in common? Both take strategy, good timing, and knowing when to make a move.
If you’re a foreign investor looking to buy property in the U.S., figuring out financing and finding the right lender can feel like a big first step. Indiana offers affordable housing relative to many states in the U.S., a strong job market, and a low cost of living. Whether you're interested in a single-family home or a multi-unit property, there are plenty of options.
In this guide, we’ll break down everything you need to know about investing in Indiana real estate, from property types to financing options that work for foreign buyers like you.
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.
Debt-service-coverage-ratio (DSCR) loans are a common option for foreign nationals who’d like to invest in Indiana real estate.
A DSCR loan makes it possible for investors to purchase rental properties in Indiana without needing to live there. Unlike traditional mortgages, these loans don’t depend on the borrower’s personal income. Instead, approval is based on the property's cash flow.
With more flexible documentation and qualification requirements, DSCR loans can be a great option for foreign investors looking to buy property in Indiana or other states. This financing method streamlines the process compared to standard home loans.
DSCR loans offer a streamlined way to invest in Indiana real estate. Here’s why they stand out:
With DSCR loans, foreign investors can overcome common financing hurdles and take advantage of Indiana’s affordable and growing real estate market.
Explore Waltz's DSCR loan options.
When applying for a real estate investment loan in Indiana as a foreign national, it's important to know that each lender has different requirements.1 Some are more open to working with international investors than others, so understanding what to expect can help you choose the right option.
Here’s a look at what most lenders require compared to the more flexible options available through Waltz, a lender that specializes in helping foreign investors:
Most lenders: U.S. income is usually easier to verify than foreign income. Lenders often ask for proof of U.S. earnings or extensive financial records from your home country, such as tax forms, business income, and bank statements. Sometimes, this requires a U.S. bank account.
Waltz: We consider both U.S. and international income but make the process smoother by asking the right questions upfront. Unlike many lenders, we focus more on the rental income the property will generate rather than just your personal finances.
Most lenders: Foreign investors often need to put down 30% to 50% of the property's price. Some lenders also require extra savings in reserve to cover potential vacancies or unexpected costs. Because of these high requirements, many investors choose to pay in cash instead of getting a loan.
Waltz: We typically require a 30% down payment, sometimes as low as 25%. Depending on your financial situation and the property you’re buying, we may not require reserve funds.
Most lenders: You’ll need to provide proof of identification and your current address. If you’re taking out an investment property loan, the lender may also require you to set up a U.S.-based LLC with you as the guarantor.
Waltz: We verify your identity using your passport, no matter where you’re from. Since we specialize in investment property loans, we also require that the mortgage be in an LLC’s name. To make things easier, we provide an Investor Kit, which includes an LLC, an Employer Identification Number (EIN), and a U.S. bank account, streamlining the process for you.
Most lenders: Many require a U.S. credit score of at least 640. If you don’t have one, it can be difficult to secure a mortgage.
Waltz: About half of international investors pay in cash because getting a loan without a U.S. credit score has traditionally been tough. That’s not the case with Waltz. We don’t require a U.S. credit score for foreign investors. Instead, we may review your international credit history or evaluate your assets to determine eligibility.
Find out how international investors have benefited from working with Waltz.
Choosing the right type of property is key to a successful real estate investment. Different property types come with unique benefits, risks, and levels of demand. The Indiana market, particularly in cities like Indianapolis and college towns like Bloomington, offers a mix of investment opportunities that can generate strong rental income.
By selecting a property that fits your investment goals, you can take advantage of Indiana’s growing real estate market and set yourself up for long-term success.
Here are some property types to consider:
Interested in investing in Indiana real estate? Fill out this form to get started.
Indiana offers several advantages for international investors looking to invest in U.S. real estate. Here are a few key reasons to consider Indiana:
As the state capital and largest city, Indianapolis offers a strong real estate market with steady demand for rental properties. The city boasts a diverse economy, low cost of living, and a growing population, which is expected to increase by nearly 20% between now and 2050. Home to major employers like Eli Lilly and Co., Simon Property Group, and the NCAA, Indianapolis attracts both recent graduates and seasoned professionals, ensuring a steady pool of renters.
Fort Wayne, Indiana's second-largest city and a hub for manufacturing, healthcare, and education, is quickly becoming a top destination for real estate investors. Recently named the most affordable city to live in for 2024 by U.S. News & World Report, Fort Wayne boasts an affordable housing market, low property taxes, and ongoing downtown development projects. The city's ranking highlights its appeal for renters seeking a high quality of life at a lower cost, making it an ideal location for landlords to capitalize on growing rental demand.
Bloomington, home to Indiana University, offers a strong rental market fueled by a steady influx of students and faculty. In Fall 2024, the university welcomed a record-breaking 48,424 students, many of whom rely on off-campus housing. With a vibrant arts and culture scene, Bloomington is also an appealing location for investors interested in university rentals or short-term stays.
Located 30 miles from downtown Chicago, Highland is quickly becoming one of the U.S.’s most sought-after areas for real estate investment. Highland recently snagged the number 9 spot on Realtor.com's annual list of "America’s Hottest ZIP Codes.” Highland’s real estate market is on the rise, with the median home price sitting at just over $256,000. Highland is also home to highly-rated schools and its close-knit, small-town community adds to its appeal for families.
Indiana’s business-friendly environment and central location make it an attractive place for investors. Here are three key factors to consider:
Refinancing your Indiana investment property means replacing your existing mortgage with a new one that better fits your financial goals. For foreign nationals, the refinancing process typically involves:
This option allows you to adjust your mortgage terms—potentially securing a lower interest rate or changing the loan duration. Keep in mind that even if your new loan has a lower rate, the total cost of borrowing over the loan’s lifetime may still be higher.
Cash-out refinancing lets you access your property's equity by replacing your current mortgage with a new one that has a higher loan amount.
For Indiana real estate investors, the additional funds can be used for property upgrades, debt consolidation, or a down payment on another investment. By providing cash at closing, this option expands your financial flexibility and investment opportunities.
Securing a DSCR mortgage in Indiana as a foreign investor may seem complex, but with Waltz, it can be a smooth process. Here’s what you need to do:
1. Find a profitable investment
Start by researching Indiana properties with strong rental income potential. Focus on locations that align with your investment goals and financial strategy.
2. Gather essential documents
Prepare essential paperwork, including a valid passport, proof of income (such as foreign bank statements or business financials), and property details. Some lenders may also require proof of assets or a credit report from your home country.
3. Select a lender experienced with foreign nationals
Work with a lender who understands the unique challenges foreign investors face, such as verifying foreign income and navigating the absence of a U.S. credit history. A lender familiar with DSCR loans for foreign nationals can make the process much smoother.
4. Set up an LLC and U.S. bank account
Most lenders require foreign investors to form a U.S.-based LLC to qualify for a DSCR loan. You’ll also need a U.S. bank account for financial transactions.2 If you don’t already have an Employer Identification Number (EIN), setting these up may take time, so plan accordingly.
5. Submit your loan application
Before applying, consult with a loan specialist who can guide you through the process and ensure you have all the necessary documentation. This includes property details, financial records, and rental income projections. Having everything in order will help streamline approval.
6. Perform due diligence
This step includes property inspections, appraisals, and fulfilling any additional lender requirements to verify the property’s condition and value. Be sure to carefully review your term sheet before moving forward.
7. Complete the purchase process
Once due diligence is complete and your loan is approved, it’s time to close the deal. Sign the required documents (remote closing options may be available if you're outside the U.S.) and transfer the funds. Congratulations, you now own a rental property in Indiana!
Take the first step toward owning an investment property in Indiana. Apply for a DSCR loan today!
