Kansas has an unexpected history. It’s where Walt Disney started his first animation studio, the birthplace of the humble graham cracker, and, of course, home to Dorothy before she took off for Oz.
But beyond its famous past, Kansas offers valuable opportunities for real estate investors. However, securing a mortgage in the U.S. can be challenging for international investors, as many lenders require a domestic credit history or U.S.-based income. In this guide, we’ll walk you through everything you need to know about purchasing property in Kansas and securing the right financing to make your investment a success.
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.
Foreign nationals looking to invest in rental properties in Kansas can use debt-service-coverage-ratio (DSCR) loans. These focus on the property's rental income instead of your personal financial history, which is advantageous to those without U.S. based income or credit.
DSCR loans are different from traditional mortgages. These loans fall under the non-qualified mortgage (non-QM) category and they are popular with foreign investors who want to buy U.S. real estate without moving to America. Since approval is based on the property's cash flow, DSCR loans help international buyers navigate financial and legal barriers when entering the U.S. market.
For non-U.S. residents, DSCR loans can make it easier to purchase Kansas rental properties. Benefits include:
Understanding what lenders look for in a DSCR loan application can help streamline the process and improve your chances of getting approved1.
Most lenders: Many U.S. lenders prefer income earned within the country since it’s easier to verify. Foreign income often requires additional documentation, such as translated bank statements, proof of salary, and U.S. tax returns if available. Even with complete paperwork, approvals can be challenging due to differences in international financial systems.
Waltz: We understand that income sources vary. Whether your earnings come from the U.S. or overseas, we accept a range of documents, including foreign bank statements, employer pay slips, and rental income reports. We also consider the rental potential of your investment property to provide a more thorough evaluation.
Most lenders: Foreign investors typically need to put down 30-50% of the property's price. Some lenders also require extra cash reserves to cover unexpected expenses, making the up-front cost higher.
Waltz: We offer more flexible options. While a 30% down payment is standard, some qualified borrowers may be eligible for a lower 25% requirement. We also adjust reserve fund expectations based on your financial background and the property’s projected rental income.
Most lenders: A valid passport and visa are usually required for identification. Investors may also need to establish a U.S.-based LLC, which involves submitting business documents like an operating agreement.
Waltz: Unlike traditional lenders, we keep the process simple. All we need for identification is your passport. If an LLC is required, our Investor Toolkit provides clear, step-by-step guidance on forming one and obtaining an Employer Identification Number (EIN).
Most lenders: U.S. lenders rely on domestic credit scores, which can make financing difficult for foreign investors who haven’t built credit in the U.S., even if they have a strong credit history in their home country.
Waltz: We take a broader approach. Instead of requiring a U.S. credit score, we review your home country’s credit profile alongside other financial factors to ensure a fair and accurate assessment.
Find out how international investors have benefited from working with Waltz.
Kansas offers a variety of investment opportunities, with property types suited to different strategies. The right choice depends on your financial goals and lender requirements. Here are some common property types to consider:
Kansas may easily be overlooked in favor of states along the East and West Coasts, but there are several reasons investors may consider buying Kansas real estate. Here’s what you can look forward to about investing in Kansas:
Kansas City is unique as it's a large metro area split between two states: Kansas and Missouri. Missouri has the larger portion of the population, with over half a million residents, while Kansas City, Kansas, has around 150,000 people. Despite Kansas’ smaller share, the Kansas side of the city remains a vibrant real estate market with numerous investment opportunities. Housing prices on the Kansas side are particularly affordable, with the average price just over $180,000, reflecting a growth of more than 5% in the past year.
Located 20 minutes from the heart of Kansas City, Overland Park is known for its excellent school systems, abundant recreational opportunities (it has over 80 parks!), and abundant community amenities, Overland Park experiences steady demand for rental properties. The city also boasts a high median income of $100,876, reflecting a nearly 9% increase from the previous year. Overland Park was also ranked one of the best places to live in 2024 by Livability.com, making it a prime location for real estate investors.
Wichita, the largest city in Kansas, has a population of 389,000 and around 650,000 in the metro area. As a major industrial hub, it boasts a strong manufacturing sector, including several aerospace companies, along with a growing IT and tech presence. Its affordable housing market and steady job growth make it a prime location for foreign investors looking for long-term rental opportunities. With a thriving local economy and a steady influx of potential tenants, Wichita offers solid investment potential.
The state capital, Topeka, offers a stable real estate market influenced by government employment and educational institutions. The city's affordable property prices and ongoing development projects provide potential for appreciation and rental income. Topeka's community-focused atmosphere appeals to families and professionals alike, and its local school system is considered above average.
There’s a lot to love about Kansas real estate investing, but there are also a few considerations to keep in mind before you make a final purchase decision. Here are three things to consider:
Refinancing your Kansas investment property means replacing your existing mortgage with a new one. Whether you want to lower interest rates or access funds for new investments, the process typically involves:
This option allows you to adjust the terms of your mortgage, such as securing a lower interest rate or modifying the loan structure to align with your financial strategy. While lower monthly payments can improve cash flow, the total repayment amount over time may increase based on the new terms.
A cash-out refinance lets foreign investors tap into their property’s equity by borrowing more than the remaining loan balance. The additional funds can be used for property upgrades, purchasing more real estate, or other investment opportunities—offering a way to expand your portfolio without taking out a separate loan.
Kansas offers a range of real estate investment opportunities, from thriving urban centers to expanding rental markets. At Waltz, we make securing a DSCR loan straightforward. Here’s how the process works:
1. Find a profitable investment
Decide on your investment strategy—whether it's a long-term rental, a short-term vacation property, or a home you plan to resell. Choose a property that aligns with your budget and financial goals.
2. Gather essential documents
Gather important paperwork, including a valid passport, proof of income (such as bank statements or pay slips), and details about the property you’re buying. Having these ready can help speed up the approval process.
3. Select a lender experienced with foreign nationals
Choose a lender familiar with the challenges international buyers face. Waltz specializes in assisting foreign nationals with U.S. mortgage requirements, offering customized lending solutions.
4. Set up an LLC and U.S. bank account
Many investment properties require setting up a U.S.-based LLC and a local bank account2. This process is straightforward, and Waltz can guide you through LLC formation and obtaining an Employer Identification Number (EIN).
5. Submit your loan application
Once your documents are in order, submit your DSCR loan application. Double-check all forms for accuracy to prevent delays.
6. Perform due diligence
Before closing the deal, inspect the property, confirm its market value, and review loan terms carefully. Ensuring the investment meets your expectations is a crucial step.
7. Complete the purchase process
Once all conditions are met, sign the closing documents, transfer the necessary funds, and officially secure your Kansas investment property. Welcome to the world of real estate investing with Waltz!
