Is it possible to buy a property in Miami or South Florida without being a resident? The answer is yes; however, the process is not the same for everyone. If you are considering entering the real estate market, you should be aware that there are various types of mortgage loans in the United States specifically designed for foreign nationals.
Specifically for Latin American entrepreneurs like you, who value legal security, professional support, and clear opportunities, we have prepared a complete guide on the subject. In this guide, we present the landscape as it is, with concrete data, clear criteria, and tangible advantages.
Types of mortgage loans in the United States: a general overview
To begin, a general classification exists for the types of mortgage loans in the United States. This categorization, in turn, provides a solid foundation for understanding how they adapt to the needs of international investors (Oficina de Protección Financiera del Consumidor [CFPB], 2025; Gracey & Yale, 2025).
1. Fixed-rate mortgages: stability for international investors
These are another of the types of mortgage loans in the United States. In this case, the interest rate can change periodically after an initial fixed period. For example, a “5/1 ARM” means that the rate is fixed for the first 5 years and then adjusts every year.
- Advantages. They usually offer a lower initial interest rate than fixed-rate mortgages in the United States. Additionally, they are helpful if you plan to sell before the adjustment or if you expect market levels to drop in the future.
- Disadvantages. The primary drawback is the uncertainty about future payment amounts. If rates rise, your monthly payments will also rise, inevitably affecting your budget. These mortgages typically have caps on the rate’s allowable increase or decrease at each adjustment and throughout the life of the loan.
The most common terms for these types of mortgage loans in the United States range between 15 and 30 years. For instance, a 30-year mortgage offers lower monthly payments. On the other hand, a 15-year mortgage allows you to pay less interest eventually and pay off the debt faster.
2. Adjustable-rate mortgages: flexibility with caution
These are another of the types of mortgage loans in the United States. In this case, the interest rate can change periodically after an initial fixed period. For example, a “5/1 ARM” means that the rate is fixed for the first 5 years and then adjusts every year.
- Advantages. They usually offer a lower initial interest rate than fixed-rate mortgages in the United States. Additionally, they are helpful if you plan to sell before the adjustment or if you expect market levels to drop in the future.
- Disadvantages. The primary drawback is the uncertainty about future payment amounts. If rates rise, your monthly payments will also rise, inevitably affecting your budget. These mortgages typically have caps on the rate’s allowable increase or decrease at each adjustment and throughout the life of the loan.
3. Conforming vs. non-conforming loans
These types of mortgage loans in the United States comply with the size limits and guidelines of Fannie Mae and Freddie Mac. These two government-sponsored enterprises buy and securitize the majority of U.S. mortgage loans.
- Conforming. They meet certain limits and guidelines. Likewise, they usually have lower interest rates because they are less risky for lenders.
- Non-conforming (Jumbo Loans). They exceed the conforming loan limits and are typically associated with high-value properties. In addition, they have stricter qualification requirements and slightly higher interest rates due to their increased risk. For luxury real estate investments, indeed, this is a frequent type of mortgage loan.
Non-qualified mortgage (Non-QM) loans
These are also known as non-qualified mortgage loans. Essentially, they are an alternative for borrowers who do not meet the strict requirements of traditional mortgages. This type of loan offers greater flexibility in assessing repayment capacity. Lenders can consider non-conventional income sources, alternative documentation, and higher debt-to-income ratios.
These loans are particularly suitable for individuals with unique financial circumstances. For example, self-employed individuals, foreign investors, or those who have an irregular credit history.
Government-backed loans
These types of mortgage loans in the United States are backed by government agencies, including the Federal Housing Administration (FHA), the Department of Veterans Affairs (VA), and the U.S. Department of Agriculture (USDA). Below, we outline the advantages and disadvantages:
- Advantages. They offer more flexible conditions, low or no down payments (VA), and less strict credit requirements.
- Disadvantages. Unfortunately, they are generally not available to foreign investors. They require you to be a U.S. citizen or permanent resident and meet specific criteria (for example, being a veteran for a VA loan). They are primarily aimed at primary housing projects for citizens or toward primary-residence buyers.
Types of mortgage loans in the United States: tailored options
So, what are the alternatives available to foreigners? In the following lines, we will explain them in detail (Gracey & Yale, 2024; Gratton, 2025; Stanek & Conde, 2025).
1. Loans for non-resident foreign nationals
Lenders target this product at foreign investors who are not citizens or permanent residents of the U.S. These loans are designed for individuals with significant income and assets in their country of origin.
- Common requirements:
- Down payment. This is higher than for residents, typically ranging from 25% to 40% of the property value. This is a way to offset the lack of a U.S. credit history.Income and assets. You need solid proof of economic stability in your country. Similarly, you will need to present recent bank statements and tax returns, which demonstrate your ability to cover the mortgage and other expenses.Bank references. You must provide documentation from banks in your home country that supports your financial history.Passport and visa. You need valid identification.ITIN: Although not always mandatory, it is recommended for financing applications, declaring rental income, and fulfilling tax obligations.
- International credit history. Some lenders consider it.
- Advantages. These loans allow you to finance the investment without needing to liquidate assets in your home country. Moreover, they increase your purchasing power within the U.S. real estate market.
- Disadvantages. Interest rates may be slightly higher than for residents, due to the higher perceived risk. On the other hand, the documentation processes are more rigorous.
2. Types of mortgage loans in the United States: portfolio
Banks retain these loans in their portfolios, without selling them to the secondary market, such as Fannie Mae or Freddie Mac.
- Advantages. The lenders who offer them have more flexibility in their approval criteria. Therefore, they are a good option if your financial situation does not meet the strict requirements of conforming or non-resident financing.
- Disadvantages. They may have higher interest rates and fees due to the greater risk the lenders assume.
3. Seller financing: direct option between parties
Although less common, in some cases, the seller may be willing to finance part of the purchase.
- Advantages. This option offers greater flexibility in terms and fewer requirements than a traditional bank.
- Disadvantages. It is not always available and may require a considerable down payment. Also, the conditions are sometimes less favorable than those of a bank loan.
Types of mortgage loans in the United States: the right choice
Moreover, finding the right loan depends on your goals, financial situation, and objectives (PFS Realty Group, 2024).
1. Types of mortgage loans in the United States: investor profile
Ultimately, depending on your investor profile or financial goals, different options may suit you:
- Long‑term vs. short‑term: If you plan to hold a property for many years, a fixed-rate mortgage offers stability. If your strategy is short- to medium-term (under 7–10 years), an ARM may be more convenient due to lower initial payments.
- Risk tolerance. Fixed-rate is best for certainty. If you accept some risk for an initial rate advantage, an ARM may work.
- Cash flow: Align loan structure with your monthly budget.
2. Types of mortgage loans in the United States: property type
Mostly, depending on property use, type, or location, different options may apply:
- Location: Local market conditions in Miami or South Florida can affect loan availability and terms.
- Property type: single-family home, condo, townhome, and certain mortgage types have restrictions based on property class.
- Usage: owner-occupied vs. rental will affect requirements and rates. Indeed, investment properties usually have higher interest and down payment requirements than primary residences.
3. Types of mortgage loans in the United States: additional costs
In addition to the down payment and installments, there are other costs associated with mortgage loans in the United States that you must consider:
- Closing costs. These include loan origination fees, attorney fees, insurance, registration taxes, and related expenses. They can range from 2% to 5% of the loan value.
- Mortgage insurance. If the down payment is low (less than 20%), some types of mortgage loans in the United States may require private mortgage insurance (PMI). This increases the monthly payment; however, for foreigners with higher down payments, this is less common.
- Property taxes. You must consider this annual expense in your budget.
- Association fees. If you purchase a condominium or a house in a community with an HOA, you will be required to pay monthly or annual fees.
Types of mortgage loans in the United States: how to apply
At Avanti Lending, we simplify the process of acquiring mortgage loans in the United States for foreigners. Therefore, our goal is to simplify your investment journey, making it as straightforward and manageable as possible. Here are the steps to follow:
- Step 1. Prequalification & Strategy: We review your financial information and recommend suitable types of mortgage loans in the United States, tailored to your specific needs and financial situation. We also provide an estimate of how much you may qualify for and advise you from the start.
- Step 2. Gather and submit documents: We assist you in collecting all necessary documents, from bank records to tax documents. Indeed, being organized and efficient at this stage can significantly accelerate the mortgage application process.
- Step 3. Loan approval: We work with lenders to secure approval and provide a formal offer. Once approved, you will receive a commitment letter detailing the loan terms.
- Step 4. Closing: We coordinate signing and funding, and, furthermore, we collaborate with you so that you clearly understand all loan terms. You will sign documents, funds are disbursed, and all U.S. mortgage terms are explained to you.
Avanti Lending: your trusted mortgage partner
Investing in the U.S. does not have to be overwhelming. With the right ally, for instance, the process can become more efficient and structured. Overall, Avanti Lending walks with you from start to finish. Our holistic service accompanies you at every stage. We offer:
- Proven expertise in mortgage loans in the United States for foreigners.
- A reliable network of banks ready to work with non-residents. Access to banks and financial institutions willing to collaborate with you.
- Clearly explain every detail, including tax obligations related to your investment.
- We use innovative technology to speed up procedures and make your experience smooth and comfortable.
Your hard-earned capital deserves to grow in a stable, profitable environment. Let us help you make that happen. Whatever your real estate investment goal, we are here to assist you in achieving it.
Your next U.S. investment is possible
Despite the apparent complexity, thankfully, there are financing solutions designed specifically for non-residents, which open up numerous opportunities. Achieving a favorable outcome, in fact, depends on meticulous planning, a thorough understanding of the requirements, and, above all, the support of an expert ally.
Do not let language barriers or a lack of knowledge of the system hold you back. The next excellent investment you undertake in the U.S. real estate market is within your reach. Contact us today and start building the solid and prosperous future you have longed for. Contact us today and begin your U.S. real estate journey. Visit Avanti Lending to learn about the types of mortgage loans in the United States and explore all your financing options as a foreign buyer. With the support of our specialized team, you will have access to transparent, secure, and tailored financing options that align with your wealth-building goals in South Florida.