Did you know Oklahoma has more miles of Route 66 than any other state? Over 400 miles of this iconic highway that starts in Chicago and ends in Los Angeles stretch across Oklahoma. Oklahoma offers more than just highways–real estate investors flock to Oklahoma for its affordable property prices, growing economy, and strong rental demand. With that said, foreign investors often face challenges when it comes to securing U.S. mortgages due to complex property ownership rules.
As a foreign investor, Waltz can help you refinance existing property in Oklahoma. Keep reading to learn more about refinancing and an in-depth look at Oklahoma 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.
Many real estate investors use debt-service-coverage-ratio (DSCR) loans, which make it easier to buy income-generating properties as a foreigner. In Oklahoma, this can be used as a mortgage refinance option for existing real estate investments.
A DSCR loan is based on a property’s income performance, assessing the rental income relative to the monthly mortgage payment. Unlike traditional mortgages that rely on personal income, DSCR loans focus solely on the property as an asset. These loans are a type of non-qualified mortgage (non-QM), offering a flexible solution for foreign nationals seeking investment property financing.
DSCR loans provide solutions that simplify your investment process. The key benefits of these loans include:
Each lender has its own guidelines, but there are some common requirements that most follow. Here are examples of criteria that many lenders use:
Most lenders: U.S. lenders usually prefer to verify domestic income because this is an easier process. Income from abroad may be analyzed more heavily, and approval might be delayed or denied. Lenders often ask for extensive documentation, including U.S. bank statements, pay stubs, U.S. tax returns, rental income reports, and other financial documents to prove income stability. This can pose a challenge for a foreign investor who does not have U.S.-based financial information.
Waltz: We recognize that income documentation varies depending on your country of origin. We consider both U.S. and international financial records, such as bank statements and pay slips, when assessing your eligibility. While we take your personal income into account, the rental income potential of the property is the key factor in our evaluation.
Most lenders: Many lenders require a 30-50% down payment, sometimes even higher, and may also ask you to maintain a certain reserve in your bank account to cover potential vacancies or repairs.
Waltz: We’re proud to offer more flexible terms, and some buyers may qualify for as low as 25%. We may waive the reserve requirement on a case-by-case basis, depending on specific factors related to the buyer.
Most lenders: Lenders generally ask for a passport and visa, and for investment property loans, they may require the loan to be made through a U.S.-based LLC, with you as the guarantor. The LLC's operating agreement may also be required.
Waltz: For investment loans, establishing proof of identity (KYC) is standard. All we need is a valid passport, even if it’s from your home country. If you don't have an LLC, we can assist in setting one up through our Investor Toolkit, which provides an LLC and Employer Identification Number (EIN) in just minutes.
Most lenders: Credit scores play a crucial role in the approval process. If you don’t have a U.S. credit history, this can pose a big problem, even if you have a solid credit history in your home country.
Waltz: We understand that foreign nationals may not have a U.S. credit score. Instead of checking your credit score, we evaluate your creditworthiness using your home country's credit history and other factors.
Find out how international investors have benefited from working with Waltz.
There are many different types of properties available for purchase in Oklahoma. Choosing the right property is important for generating returns and ensuring steady rental income. Here are the most popular options:
There are several reasons why Oklahoma is attractive to potential real estate investors. Here are our top three:
Oklahoma City is the state’s capital and largest city, with over 1.4 million people in its metro area. Its economy is booming, thanks to major industries like aerospace, energy, healthcare, and technology, which keep jobs plentiful and attract new residents. The city also draws renters with its strong educational presence, including the University of Oklahoma Health Sciences Center and Oklahoma City University. Revitalization efforts are underway, too. In 2025, construction will start on the $1.6 billion Boardwalk at Bricktown, a massive mixed-use space that could feature the tallest building in the nation. With a growing population and exciting development on the horizon, it’s clear to see why Oklahoma City stands out.
Tulsa’s affordable living and growing economy make it a great place for real estate investment. Major industries like aerospace, finance, manufacturing, and oil and gas keep the job market strong, with the unemployment rate below the national average. The city’s cost of living is 12% lower than the national average, attracting young families and professionals looking for a more affordable place to live. Tulsa is also a popular retirement spot, offering a unique rental market for older adults who no longer want the hassle of homeownership.
Home to the University of Oklahoma and its 30,000+ students, Norman provides a built-in demand for rental properties. Beyond student housing, the city has a strong job market in education, technology, and research, attracting young professionals and families. Norman consistently ranks as one of the best places to live in Oklahoma, thanks to its high quality of life, cultural attractions, and affordable housing market.
A fast-growing city just north of Oklahoma City, Edmond is known for its excellent schools, low crime rates, and high quality of life. The city attracts families and professionals, offering a strong rental market for both single-family homes and apartments. The University of Central Oklahoma, with over 14,000 students, adds to rental demand. With continued economic growth and increasing property values, Edmond presents a compelling opportunity for real estate investors.
There are several advantages to investing in Oklahoma, but there are also a few things you should keep in mind if you want to make the most of your investment.
Refinancing your Oklahoma investment property involves replacing your current mortgage with a new one. This allows you to tap into your property’s equity to fund new investments. Waltz provides comprehensive solutions to streamline this process for Oklahoma real estate investors. The refinancing process for foreign nationals typically includes:
Rate-and-term refinancing can be an appealing option for foreign investors in the Oklahoma market. It allows you to modify the terms of your current mortgage, potentially securing more favorable loan conditions. However, keep in mind that even with a lower interest rate, your overall finance charges could be higher over the life of the loan.
A cash-out refinance lets investors tap into their property’s equity, borrowing more than the current mortgage balance. The extra funds can be used for purposes like home upgrades, debt consolidation, or a down payment on another property, offering more flexibility and investment opportunities. Take advantage of Oklahoma’s top foreign national mortgage options to broaden your real estate portfolio.
Securing a DSCR mortgage as a non-U.S. resident in Oklahoma can feel overwhelming, but with Waltz, it's a smooth process. Follow these seven straightforward steps:
1. Find a profitable investment
Begin by finding a property with solid rental potential in Oklahoma. Focus on areas that meet your investment goals.
2. Gather essential documents
Collect essential documents such as a valid passport, proof of income (foreign bank statements or business financials), and property details. Lenders may also request proof of assets or a credit report from your home country.
3. Select a lender experienced with foreign nationals
Look for a lender experienced with the unique needs of foreign investors. They should be knowledgeable about challenges like verifying foreign income and managing the absence of a U.S. credit history. Waltz specializes in foreign national loans and will guide you through every step.
4. Set up an LLC and U.S. bank account
To qualify for a DSCR loan, most lenders will require you to establish a U.S.-based LLC. You’ll also need a U.S. bank account2 for financial transactions. If you don’t have an Employer Identification Number (EIN) yet, both steps might take time. However, with our Investor Toolkit, you can set up your LLC and U.S. bank account instantly, saving you from months of delays.
5. Submit your loan application
Before applying, consider consulting an account executive to clarify any questions and help you navigate the process. They’ll ensure you’ve gathered all required property details, financial documents, and proof of the property’s income potential. Once everything is in order, your application will be quick and easy to submit!
6. Perform due diligence
This step involves inspecting the property, securing an appraisal, and submitting any additional documents requested by the lender to confirm the property’s condition and value. Be sure to also review your term sheet.
7. Complete the purchase process
Once due diligence is completed and your loan is approved, it’s time to close the deal. Sign the necessary documents (which can sometimes be done virtually if you're abroad), transfer the funds, and you'll own your rental property in Oklahoma!
