Case Study: Foreign National DSCR Short-Term Rental Closed at 6.99% in Kissimmee
Updated: Oct 24
This one came down to structure, timing, and getting the rate locked before the market moved.
The borrower was a foreign national purchasing a short-term rental in Kissimmee, Florida. The property had to qualify using DSCR, the borrower was vesting in an LLC, and the financing needed to work without traditional U.S. income documentation.
As we watched the 10-year Treasury yield move higher, Bear VII was able to lock the borrower at 6.99% on a 45-day lock before rates moved higher. That lock became an important part of protecting the transaction.
Deal structure
Purchase price: $397,500
Loan amount: $278,250
LTV: 70%
Loan type: Foreign National DSCR
Rental strategy: Short-term rental
Rate: 6.99% fixed
Rate lock: 45 days
Seller credit: $3,000
Vesting: LLC
Lender: ARDRI
The short-term rental income was the key
The property was being purchased as a short-term rental, so the rental analysis mattered just as much as the rate. The file needed a lender that could recognize the property’s short-term rental potential and structure the DSCR calculation correctly.
No traditional U.S. employment income was needed. Qualification was based primarily on the property and the lender-approved rental income.
Why the rate lock mattered
Mortgage pricing can move quickly when Treasury yields change. A deal that works at one rate can look very different several days later, especially on a DSCR loan where the monthly housing expense directly affects the qualifying ratio.
We had been comparing lender options during the process. ARDRI ultimately gave us the structure that worked for this borrower, and locking at 6.99% on a 45-day lock before rates moved higher helped protect both the payment and the approval.
The lesson on this file was simple: getting a deal approved is only part of the job. You also have to keep watching the market, understand how the rental income is being calculated, and be ready to lock when the numbers make sense.
The result: the borrower closed on the Kissimmee investment property with 70% financing, short-term rental income used for qualification, a $3,000 seller credit, and the rate protected before the market moved against the deal.
Foreign National DSCR financing
Foreign national DSCR loans can be a strong option for overseas investors purchasing U.S. rental properties, but guidelines vary significantly by lender. Short-term rental income, reserve requirements, LLC vesting, signing requirements, property type, and pricing all need to be reviewed before the loan is submitted.
Bear VII Equities works with real estate investors, foreign nationals, and borrowers who need financing for DSCR loans, short-term rentals, non-warrantable condos, and other investment properties that do not always fit traditional lending guidelines.
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Rate shown reflects this closed transaction and is not a current rate quote. Pricing and eligibility vary by borrower, property, program, and market conditions.
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