Did you know the world’s largest woolly mammoth remains have been found in Nebraska? This prehistoric creature has ties to the state, which offers a beautiful, recreation-friendly environment. But that’s not all – investors also love Nebraska for its high quality of life, tenant-friendly lifestyle, and affordable property prices.
Despite these advantages, foreign investors often face challenges getting approved for mortgages in the U.S. due to complex property ownership regulations. Fortunately, Waltz was created with foreign investors in mind, and we’re proud to take a different approach. Keep reading to learn more about our investment philosophy and everything you need to know about investing in Nebraska real estate.
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.
If you're looking to invest in Nebraska real estate, a debt-service coverage ratio (DSCR) loan can be a great financing option.
DSCR loans focus on a property's rental income rather than the borrower's personal financial history, making them an ideal choice for investors without a U.S. income or credit history. Unlike traditional mortgages, which rely on debt-to-income ratios and other financial criteria, DSCR loans offer more flexibility. These loans are especially popular among international investors seeking to purchase U.S. real estate without the need to relocate.
If you’re a non-U.S. resident interested in Nebraska rental properties, DSCR loans are beneficial for several reasons:
Understanding lender requirements can make the DSCR loan process smoother and improve your chances of approval. Here’s what you need to know:
Most lenders: U.S. lenders prefer income earned within the country since it’s easier to verify. Foreign income requires additional documents, such as translated bank statements and salary proof. Even with full paperwork, approval can be challenging due to differences in financial systems.
Waltz: We understand that income sources vary. Whether your earnings come from the U.S. or overseas, we accept multiple forms of proof, including foreign bank statements, employer pay slips, and rental income reports. We also consider your property’s rental potential for a more complete review.
Most lenders: Foreign investors typically need to put down 30-50% of the property’s value. Some lenders also require additional cash reserves, increasing the upfront cost.
Waltz: We offer more flexible terms. Qualified borrowers may secure a loan with as little as 25% down. Reserve requirements depend on your financial situation and the property’s expected rental income.
Most lenders: A valid passport and visa are usually required. Many lenders also ask investors to establish a U.S.-based LLC, which involves filing business documents.
Waltz: We simplify the loan process. All you need is a passport for identification. If an LLC is required, our Investor Toolkit provides step-by-step instructions for setting one up and obtaining an Employer Identification Number (EIN).
Most lenders: U.S. lenders rely on domestic credit scores, making it difficult for foreign investors without one, even if they have strong credit in their home country.
Waltz: We take a broader approach. Instead of requiring a U.S. credit score, we consider your home country’s credit history alongside other financial details to ensure a fair and accurate assessment.
Find out how international investors have benefited from working with Waltz.
Montana offers a variety of real estate investment opportunities, with property types suited to different strategies. The best choice depends on your financial goals and lender requirements. Here are some common property types you might consider:
Nebraska is considered a very good place to live, creating demand for rental properties. Here are a few reasons why:
As Nebraska's largest city, Omaha boasts a metropolitan area population of approximately 1.5 million residents. While figures have fluctuated over the years, the population has been on the rise in the greater Omaha area for a while, particularly in the “exurbs,” or areas that are further out of city limits but not as far as the suburbs. Notably, Omaha is home to Berkshire Hathaway, led by Warren Buffett. The city is also home to the University of Nebraska Omaha and its 15,000 students, providing a consistent demand for student housing. With so many pros about living in Omaha, it’s easy to see why it’s a leading rental market in Nebraska.
Lincoln, Nebraska’s state capital, was named the best city for renters in America by Forbes. The city offers a strong rental market, with options ranging from downtown apartments to suburban homes. Anchored by the University of Nebraska, with nearly 25,000 students, Lincoln ensures steady rental demand. Its economy, supported by top employers in the education, healthcare, and technology sectors, along with its affordable living, high quality of life, and job growth, make it a prime location for investors.
As Nebraska's third-largest city, Bellevue combines a rich history with modern growth. It is strategically located near Omaha, benefiting from the larger city's economic activities while maintaining its own unique community feel. Bellevue's economy is bolstered by defense, technology, and manufacturing sectors. The city offers a variety of rental properties, appealing to a diverse demographic. This demographic includes military personnel, given its proximity to Offutt Air Force Base, which is home to the U.S. Strategic Command.
Like other U.S. states, Nebraska has unique considerations important for investors. These include:
Refinancing your Nebraska investment property means swapping out your current mortgage with a different one. This can help lower your interest rate or free up funds for other investments. The process usually involves:
This option changes your mortgage terms, such as lowering the interest rate or adjusting the loan structure to fit your financial plan. Lower monthly payments can improve cash flow, but the total repayment amount may increase depending on the new terms.
A cash-out refinance lets investors borrow more than their remaining loan balance, using the property’s equity. The extra funds can go toward property upgrades, buying more real estate, or other investments. This makes it easier for you to grow your portfolio without being forced to take out a separate loan.
If you’re interested in buying a rental property, Nebraska offers many compelling options. When you’re ready to pursue a DSCR loan, Waltz makes the process as painless as possible. Here are the steps you’ll take:
1. Find a profitable investment
What’s your investment strategy? Maybe you’d like to lock in a long-term rental or buy something to flip it and make a profit. Whatever it is you’d like to do, choose an investment property that fits your budget and financial goals.
2. Gather essential documents
Prepare important paperwork, including a valid passport, proof of income (such as bank statements or pay stubs), and details about the property you want to buy. Having these ready can speed up approval.
3. Select a lender experienced with foreign nationals
Save yourself time and frustration by working with a lender who understands the challenges international buyers like you face. Waltz specializes in helping foreign nationals navigate U.S. mortgage requirements with customized lending solutions.
4. Set up an LLC and U.S. bank account
Many investment properties require forming a U.S.-based LLC and opening a local bank account2. This process is simple, and Waltz can guide you through setting up an LLC and obtaining an Employer Identification Number (EIN).
5. Submit your loan application
Once your documents are ready, submit your DSCR loan application. Double-check everything to avoid delays.
6. Perform due diligence
Before finalizing the deal, inspect the property, confirm its market value, and review the loan terms carefully. Make sure this investment meets your expectations.
7. Complete the purchase process
Once all conditions are met, sign the closing documents, transfer the required funds, and officially secure your Nebraska investment property. Congratulations – you now own property in Nebraska!
