• Nadlan Capital Group – USA Real Estate Financing for Foreign Nationals and Residents

  The Surprising Reality: Why a Foreign National With No Credit May Get Approved

  Posted by Nadlan Group on May 15 at 22:06

  🧠 The Surprising Reality: Why a Foreign National With No Credit May Get Approved Faster Than an American With Low Credit

  It may sound ironic, but in the world of real estate financing, no credit is sometimes better than bad credit. Here’s why:

  ✅ Foreign National Borrowers (No U.S. Credit):

  • Considered a blank slate by many lenders

  • Evaluated based on liquidity, asset profile, and property income

  • Can qualify under Foreign National DSCR programs

  • No negative credit history to flag underwriting systems

  ❌ U.S. Citizens With Low Credit:

  • Trigger red flags with late payments, high utilization, collections, or past foreclosures

  • Often automatically disqualified from DSCR programs

  • Must switch to full-doc loans that require income verification, tax returns, etc.

  • Sometimes need a guarantor with high credit to proceed

  📉 Why This Loan Was Delayed

  Despite strong property income and documentation, Gilad’s low credit score and the appearance of pre-foreclosure flags on his report forced the lender to pause the process.

  The borrower was advised to:

  • Fix his credit by lowering utilization and resolving derogatory accounts

  • Find a co-signer with a score above 660

  • Possibly switch to a full-doc loan, which is less favorable for investors with limited W2 income

  📅 Timeline Highlights:

  • 2/12–3/1 – Leases, bank statements, and appraisal ordered

  • 3/5 – Appraisal received, underwriter questions begin

  • 3/12 – Credit report returns: 618 score with red flags

  • 3/21–4/30 – Borrower delays decision, trying to fix credit

  • 5/7 – Partial credit improvements reported

  • 5/14 – Final lender response: Will not proceed unless a guarantor is added or credit score exceeds 640

  🔁 Final Status

  As of now, Loan #1290 is on hold. The Nadlan Capital team is actively monitoring the situation, offering to assist in:

  • Finding a guarantor through community forums

  • Re-running credit as improvements are made

  • Replacing the lender if necessary once conditions are met

  💡 Takeaway for Investors

  If you’re a U.S. citizen with a low score, you may be at a disadvantage compared to a foreign national. Clean slates win over red flags.

  👉 Lesson learned: Before applying for a DSCR loan, check your credit. If it’s below 640, either raise it fast or partner with someone who can carry the score.

  🤝 Need Help?

  Whether you’re a foreign national or U.S. investor looking to refinance, reach out to Nadlan Capital Group for personalized financing strategies and access to over 3,000 lenders.

  🔗 http://www.nadlancapitalgroup.com

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  #DSCRLoan #RealEstateFinancing #CreditScoreMatters #ForeignInvestorLoans #AmericanInvestor #CreditRepair #NadlanCapitalGroup #CashOutRefinance #RealEstateInvesting #Loan1290 #PennsylvaniaRealEstate #DSCRvsFullDoc #InvestorTips #MortgageBrokerUSA #FinancingTips #BadCreditIssues

  

  Nadlan Group replied 1 month ago 1 Member · 0 Replies

  • Credit Score
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