Foreign National Cash-Out Refinance on U.S. Property
About the Foreign National Cash-Out Refinance Loan
Tap the equity in an existing U.S. property to fund new investments, renovations, reserves, or other financial goals. The new loan replaces the existing mortgage, and the borrower receives the difference between the new loan amount and the payoff balance as cash at closing.
Depending on the program, foreign national borrowers may access substantial cash-out proceeds while keeping ownership of the property and repositioning equity for future opportunities. The amount available generally depends on the property's appraised value, the existing loan balance, and the lender's maximum loan-to-value limits for the property type and use.
This option is well suited for investors who want to fund a down payment on another property, renovate or improve an existing asset, build cash reserves, or consolidate financing. Qualification may be based on the property's rental income (DSCR), bank statements, assets, or full documentation, depending on the program. Borrowers should weigh the cost of a new loan, including closing costs and any change in rate or term, against the benefit of the cash received.
How This Program Works
How cash-out proceeds are calculated
New Loan Amount − Existing Payoff − Closing Costs = Net Cash to You
The maximum new loan is set by the lender's loan-to-value (LTV) limit. For example, on a property appraised at $800,000 with a 65% maximum LTV, the largest new loan is $520,000. If your existing payoff is $300,000 and closing costs are $15,000, your estimated net cash is $205,000. LTV limits vary by program, property type, and occupancy.
Illustrative example only. Actual ratios, limits, and terms vary by lender and program.
Strategic uses for cash-out
The most common use is acquiring additional properties, using the proceeds as a down payment on the next investment. Others include renovating or improving the property to raise rents and value, building cash reserves, paying off a higher-cost bridge loan, or consolidating financing.
Qualification options
You can qualify through the property's rental income (DSCR), bank statements, verified assets, or full documentation, depending on the program. Many lenders require a minimum ownership period, often called seasoning, before allowing cash-out based on the new appraised value. Properties recently purchased or renovated may be limited to cost basis until that period has passed.
Strategic trade-offs
Cash-out increases your loan balance and usually your payment, which can lower your DSCR. Cash-out pricing is often slightly higher than rate-and-term pricing, and you will pay closing costs on the new loan. If your existing loan has a prepayment penalty, factor that in. Weigh the full cost against what the cash will achieve.
Key Benefits & Ideal Borrower
Access equity without selling
Keep the property and its future appreciation.
Fund your next acquisition
Use proceeds as a down payment on another U.S. property.
Finance improvements
Renovate to raise rents and property value.
Strengthen reserves
Build liquidity for vacancies, repairs, or opportunities.
Exit bridge debt
Replace short-term financing with long-term debt and cash back.
Eligibility & Documentation Checklist
Borrower & Financial Documentation
- Passport, plus international credit references where the program requires them
- Current mortgage statement and payoff for the existing loan
- Documentation for the qualification track (lease, deposits, assets, or income)
- Reserves after closing as required by the program
- Certified translations (full-doc and lite-doc files) and USD conversion
- LLC documents if the property is held in an entity
Property & Transaction Requirements
- U.S. investment property, second home, or eligible condo you currently own
- New appraisal establishing current value
- Maximum LTV for the property type and occupancy
- Ownership seasoning period met for value-based cash-out
- Current insurance, property tax, and HOA status
- Clear title with no unresolved liens beyond the loan being paid off
Cash-Out Refinance FAQs
Program disclaimer: Final eligibility, documentation requirements, maximum loan-to-value, and terms vary by program and are subject to lender review.
Disclaimer
Legal & Licensing Disclosure: All loans are subject to credit approval and property qualification. Foreign national programs are non-QM portfolio loans with lender-specific overlays; down payment, LTV, reserves, and documentation requirements vary by borrower category, program, and property. Government-backed loans (FHA, VA, USDA) are not available to true foreign nationals. Rates and programs subject to change without notice. Equal Housing Lender. © 2026 1st Florida Lending Corp. All rights reserved.