When people think of America, they often think of New York. Believe it or not, there’s more to the state than Times Square, skyscrapers, and delicious pizza. In fact, there’s a whole state beyond New York City with lots of opportunities. It’s no wonder foreign investors choose to invest in New York real estate. However, obtaining a mortgage in New York as a foreign national can be more complex than for a U.S. citizen. This guide provides a clear understanding of foreign national mortgages in New York, helping you navigate the requirements, benefits, and considerations for investing in the state.
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.
New York's real estate market offers several advantages for foreign investors. The state’s varied property landscape—from urban apartments in New York City to suburban homes in Westchester and vacation properties in the Hamptons—caters to different investment goals.
Data has shown that real estate in New York often appreciates steadily, as the data shows that the state is 5th from the bottom when looking at large cities with the most home price growth over the last decade.
This offers potential for rental income and long-term gains. Owning property in a globally recognized market like New York can also be a prestigious addition to any investor's portfolio. With its economic stability and constant real estate demand, New York is an attractive investment option.
A foreign national mortgage is designed for individuals who are not U.S. citizens or permanent residents but wish to buy property in the United States. These loans cater specifically to foreign investors, providing them with the financial means to purchase New York investment properties such as single-family homes, condos, or small multi-family buildings.
Unlike traditional mortgages, foreign national mortgages often have unique terms. This includes higher down payments and specific documentation requirements. Understanding these differences is essential for anyone looking to invest in New York's real estate market.
Foreign national mortgages have specific eligibility criteria that differ from standard U.S. home loans.
Most lenders require the following:
Furthermore, here are some challenges foreign nationals should consider when it comes to investing in New York Real Estate:
Exchange rate fluctuations: Changes in exchange rates can affect the cost of the mortgage and overall property expenses.
Higher interest rates: Foreign national mortgages often have higher interest rates than traditional U.S. mortgages due to increased risk for lenders.
Tax implications: U.S. property ownership can have complex tax implications, which vary depending on the investor's home country and any applicable tax treaties.
Waltz is not a traditional lender. We’ve unlocked the secret to making a challenging process fast and simple for foreign nationals.
Waltz specializes in a loan product called a Debt-service coverage ratio (DSCR) loan. Unlike traditional mortgages that heavily rely on a borrower's personal income and credit, DSCR loans focus on the property's ability to generate income.
By focusing on the property's income-generating potential rather than the investor's personal finances, DSCR loans eliminate the traditional hurdles often faced by international buyers.
All you need to get started with Waltz are:
Since DSCR loans can only be made to a company, we even help you set this up as part of our Investor Kit. It includes:
Looking to invest in New York real estate? These cities should be on your radar:
New York City remains a coveted destination for real estate investors. With consistently high rental demand and steady property appreciation, the Big Apple has something for everyone, including cozy studio apartments with stunning views, high-rise luxury condos, and thriving commercial spaces. Manhattan, in particular, has witnessed substantial real estate value growth, often exceeding 100% over the past two decades. This is further helped by the fact that 69% of households rent their homes, meaning there is a tonne of opportunity for investors.
To highlight the potential, here is a look at some of investment opportunities for a few of NYC boroughs:
The Bronx: It is the northernmost borough— well known for its vibrant culture, artistic scene, and large green spaces. The Bronx offers more affordable rents compared to other areas like Manhattan and Brooklyn, thereby attracting young professionals and families looking for value without sacrificing city access.
Brooklyn: Known for its trendy lifestyle as well as a thriving arts scene, Brooklyn appeals to young professionals and creatives. It has become a hub for tech companies and startups. This has resulted in increased demand for both residential and commercial real estate. This rapid appreciation in property values and a stable rental market make it a solid investment option.
Manhattan: This is often referred to as the heartbeat of NYC, located in New York County. With high property values and consistent demand due to a number of startups and corporate offices, Manhattan remains a premium investment destination. Its world-class amenities, business districts, and vibrant lifestyle in new areas such as Hudson Yards attract both local and international investors. Despite high entry costs, appreciation potential and rental returns remain substantial.
Queens: This is the largest borough and the most ethnically diverse county in the United States, home to a range of communities such as Latinx, Asians, African Americans and more! With ongoing infrastructure improvements, proximity to major airports, and a growing interest from young professionals and families, it presents a strong rental market and an affordable entry point for investors.
Staten Island: Situated in Richmond County, Staten Island offers a quieter, suburban feel, all while maintaining easy access to Manhattan via the Staten Island Ferry. It is important to highlight that it is known for its green spaces such as High- Rock Park, family-friendly neighborhoods, and relatively affordable property prices. This means that it appeals to those seeking a balanced lifestyle and makes a strategic choice for rental properties and single-family homes.
Home to Niagara Falls, a growing tech scene, and a dozen colleges, there’s a lot going on in Buffalo, New York. The city has recently undergone a significant transformation through a $1 billion renovation project. This has driven job growth in the area, as over the past year, private sector jobs in the region grew by 5,100 (1.0%), reaching 541,500 in September of this year. As a result, there has been increased interest in the demand for rental properties as new residents move to the area for employment.
These signs show that you can appeal to visitors with short-term rentals, tech employees with modern urban housing, and college students with communal-style spaces in Buffalo. Furthermore, no matter what you buy, you can purchase in the area with the comfort of knowing that home values have appreciated 7.3% over the past year.
Known for its stable economy and affordable housing, Rochester offers solid real estate investment opportunities. Rochester is the third-largest metropolitan area in New York with over one million residents. The city is also home to many well-known American companies, including Kodak, Paychex, and Wegmans Food Markets, making it an attractive destination for individuals at all career stages. This creates a steady demand for rental housing, making Rochester a solid investment choice for residential properties.
As the state capital, Albany boasts a mix of government, healthcare, and education jobs, creating a steady demand for housing. The current home value is $303,138, which is up 6.7% over the last year. Incredibly, homes in Albany close in just 8 days, indicating a competitive market that is a perfect fit for foreigners who want to get in on the action.
Looking for a bargain? With revitalization efforts underway, Syracuse is becoming an increasingly attractive market for both commercial and residential investors looking for growth potential and affordable home prices. Syracuse real estate has an average value of $195,746, which is up 12.4% since 2023. Much like Albany, Syracuse also has a short closing time frame, making it a great option for investors who want to strike quickly and start making rental income soon.
Potential investors and foreign nationals can access a variety of mortgage products in New York, each with its own benefits:
Choosing the right lender is crucial for foreign nationals seeking a mortgage in New York. Not all banks offer foreign national mortgage programs, so working with lenders specializing in these loans is essential. Many lenders in New York have teams dedicated to international buyers and can provide tailored advice on the best mortgage options. A lender experienced in foreign national mortgages ensures a smoother, more transparent process aligned with your financial needs.
Make your New York investment dream a reality
Investing in New York real estate as a foreign national can be both exciting and rewarding. We finance the following property types for foreign nationals investing in New York real estate:
Waltz specializes in providing tailored mortgage solutions for each of these property types, helping foreign investors succeed in New York's real estate market.
Ready to make your dream of investing in New York real estate a reality? Contact Waltz today to get started!
