New Jersey is home to some of the most densely populated cities in the U.S. That’s what makes it so special – a unique blend of urban and suburban opportunities.
For foreign investors looking to secure funding to purchase property in the U.S., New Jersey stands out as a potential destination. With its strong economy and proximity to major cities like New York and Philadelphia, New Jersey offers a wide variety of real estate options.
This guide will walk you through everything you need to know about investing in New Jersey real estate. From understanding mortgage options to picking the best property for your goals, we’ll help you make the most of your investment journey in New Jersey.
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.
Many real estate investors use debt-service-coverage-ratio (DSCR) loans. DSCR loans are tailored to foreign investors looking to buy income-generating properties.
Unlike traditional loans, DSCR loans do not rely on the borrower’s personal income. Instead, they focus on the cash flow the property generates.
DSCR loans are usually considered non-qualified (non-QM), meaning they don’t follow the strict rules that come with traditional mortgages. As long as investors meet specific financial and legal requirements, they can qualify for a mortgage and invest in U.S. real estate. This option opens the door for foreign nationals to own property in high-demand areas like New Jersey.
DSCR loans provide tailored solutions to simplify your investment process. Here are the key benefits:
DSCR loans allow international investors to build profitable real estate portfolios with ease, so you can lock down that New Jersey investment property in weeks, not months.
Explore DSCR loan options.
When navigating the mortgage process as a foreign national, understanding how lenders evaluate applications is crucial. While every lender has their own set of requirements, here are the key factors you’re likely to encounter as an international investor:
Most lenders: U.S.-based lenders often prioritize domestic income because it’s easier to verify. Foreign income, on the other hand, typically faces stricter guidelines, requiring detailed documentation like translated bank statements, proof of salary, and U.S. tax returns (if you have them). Even with all the proper paperwork, delays and rejections are common due to lenders’ unfamiliarity with international financial systems.
Waltz: We recognize the global nature of income. Whether your income comes from the U.S. or overseas, we consider a wide range of financial records, including local bank statements, employer-issued pay slips, and rental income from your existing properties. We also focus on the rental income potential of the property you’re purchasing, ensuring that unconventional financial situations are assessed fairly.
Most lenders: Foreign nationals are often required to make significant down payments, typically ranging from 30–50% of the property’s value. Lenders may also require reserve funds to cover potential expenses like repairs, vacancies, or other contingencies, adding to the upfront financial burden.
Waltz: We believe in offering flexibility. While a 30% down payment is common, qualified buyers may be eligible for as little as 25%. Additionally, our approach to reserves is more accommodating, based on your unique financial situation and the property’s potential performance.
Most lenders: Lenders usually require valid U.S. identification, such as a passport and visa. For investment properties, loans often need to be processed through a U.S.-based LLC, which means borrowers must handle legal and administrative tasks like setting up the LLC and providing its operating agreement.
Waltz: We simplify this process for international investors. A valid passport from your home country is all we need for identification. And if you need to establish a U.S.-based LLC, our Investor Toolkit makes it quick and easy by providing an LLC and Employer Identification Number (EIN) in minutes.
Most lenders: Traditional mortgage approvals heavily rely on U.S. credit scores. For foreign nationals without a U.S. credit history, this can create a major barrier—even for those with strong credit in their home country. As a result, delays or denials are common without a well-established U.S. credit profile.
Waltz: We understand how challenging it can be to establish U.S. credit as an international buyer. That’s why we assess your creditworthiness using your home country’s credit history. This ensures a fair evaluation of your financial reliability without penalizing you for lacking a U.S.-based credit score.
Find out how international investors have benefited from working with Waltz.
Choosing your ideal property type is key to ensuring stable rental income and returns. Different property types come with their own advantages and maintenance demands. Additionally, lenders often have preferences that can impact your financing options, so it’s important to factor that into your decision.
Here are the key property types in New Jersey to consider:
Just across the Hudson River from Manhattan, Jersey City attracts investors with high rental demand and its status as a more affordable alternative to NYC. Its luxury waterfront developments, growing tech industry, and major employers like Kuehne+Nagel, Farm Credit System, and Verisk Analytics make it a prime location for investment. The city also offers cultural events, like the Jersey City Art and Studio Tour, and recreational opportunities along the Hudson River.
Newark, New Jersey’s largest city, is in the midst of an exciting transformation with major investments reshaping its future. Projects like the $190 million renovation of Newark Penn Station, the $570 million AirTrain Newark Replacement (starting in 2025), and a $110 million pedestrian bridge to the station are breathing new life into the city. Combined with its proximity to Newark Liberty International Airport, Newark is quickly becoming a prime spot for rental and investments.
Known for its historic brownstones and lively nightlife, Hoboken is a top choice for young professionals and families looking for easy access to New York City. With a near-perfect walkability score of 99 and a strong sense of community, the city maintains high property demand. Its higher standard of living makes it ideal for investors seeking luxury properties with strong rental income potential. Additionally, the Stevens Institute of Technology draws thousands of students annually, ensuring a steady demand for rental housing.
With its iconic boardwalk and thriving casino and entertainment scene, Atlantic City presents excellent opportunities for short-term rental investments. Recent redevelopment efforts are also drawing long-term residents and businesses to the area. Tourists flock to the Jersey Shore for its dining, shopping, and relaxation options, including spas, golf courses, and sports courts. With so much appeal, investing in a rental property here is a smart and promising move.
As New Jersey’s capital, Trenton enjoys the stability of a strong government job market and offers affordable real estate options, making it an attractive choice for investors seeking high returns with lower upfront costs. Recently ranked #10 on a list of the best cities to live in the United States, Trenton is gaining recognition as a promising location for both residents and investors alike.
New Jersey has much to offer real estate investors, but there are several key factors that you should evaluate before purchasing property in this state.
Refinancing your New Jersey investment property involves strategically replacing your existing mortgage with a new one. This allows you to tap into the equity of your property to fund new investments.
Waltz provides thorough and efficient solutions to streamline this process for New Jersey real estate investors. Our expertise ensures that you can confidently and effectively optimize your real estate strategies in New Jersey. The refinancing process for foreign nationals typically includes:
For foreign investors looking to expand in the New Jersey market, this option can be an appealing option. It provides the opportunity to adjust the terms of your current mortgage, which may result in a better deal on your home loan. However, it’s essential to keep in mind that refinancing an existing loan at a lower interest rate may still lead to higher total finance charges over the life of the loan.
Cash-out refinancing allows you to access your property's equity— allowing you to borrow more than the current mortgage balance (based on the original equity).
For those interested in New Jersey real estate investments, the additional funds can be utilized for various personal objectives, such as home upgrades, debt consolidation, or a down payment on another property. This provides you with cash at closing for a range of needs, broadening your investment opportunities while leveraging the best investment property mortgages New Jersey has to offer.
Learn more about refinancing.
1. Find a profitable investment
Keeping your ultimate goals in mind – are you looking for steady rental income, a vacation home, or a future flip? – locate a property that fits your plans and budget.
2. Gather essential documents
You’ll need a valid passport, proof of income (like pay stubs or bank statements), and details about the property you want to buy. Having these ready to go will make everything go more smoothly later on.
3. Select a lender experienced with foreign nationals
Work with a lender who understands the unique needs of foreign buyers, like Waltz. They’ll know how to guide you through the process and offer solutions tailored to your situation.
4. Set up an LLC and U.S. bank account
If you’re buying an investment property, you’ll need a U.S.-based LLC and a local bank account to handle transactions. Fortunately, this doesn’t have to be a complicated process. Waltz can set up your LLC and Employer Identification Number (EIN) in no time.
5. Submit your loan application
Once everything’s in place, it’s time to submit your loan application. Make sure all your paperwork is complete and accurate to keep things moving quickly.
6. Perform due diligence
Before sealing the deal, take a closer look. Get a property inspection to check its condition, make sure the value aligns with your loan, and review all the terms to ensure you’re happy with everything.
7. Complete the purchase process
This is the big moment! Once everything checks out, sign the paperwork, transfer the funds, and make it official.
