Foreign National Rate-and-Term Refinance for U.S. Owners
About the Foreign National Rate-and-Term Refinance Loan
Refinance an existing U.S. mortgage to pursue a lower rate, adjust the loan term, change loan structure, or improve payment stability without taking additional cash out. The new loan pays off the existing mortgage, and the loan amount is generally limited to the payoff balance plus allowable closing costs.
This option can help foreign national borrowers better align their mortgage with current market conditions or long-term investment plans. Common goals include lowering the interest rate, shortening or extending the term, moving from an adjustable rate to a fixed rate, or exiting an interest-only period before payments increase.
This option is well suited for borrowers who already own a U.S. property and want to improve the structure of their financing rather than access equity. Qualification may be based on the property's rental income (DSCR), bank statements, assets, or full documentation, depending on the program. Borrowers should compare the costs of refinancing, including closing costs and any prepayment penalty on the existing loan, against the expected savings or other benefits.
How This Program Works
Rate-and-term vs. cash-out
A rate-and-term refinance pays off your existing mortgage and, generally, allowable closing costs, but does not give you meaningful cash back. A cash-out refinance increases your loan to put equity in your pocket. Because rate-and-term does not increase your debt beyond the payoff, lenders often allow higher LTVs and offer slightly better pricing.
Common reasons to refinance
Lowering your interest rate when market rates have improved or your profile has strengthened; shortening the term to build equity faster, or extending it to lower payments; moving from an adjustable-rate mortgage to a fixed rate for predictable payments; exiting an interest-only loan before the payment increases at recast; and replacing a bridge or portfolio loan with a long-term program.
Calculating whether it makes sense
Compare the total cost of refinancing against the benefit. Divide total closing costs by your monthly savings to estimate a break-even point in months. If you plan to hold the property longer than the break-even period, the refinance may make sense. Remember to include any prepayment penalty on your existing loan, which is common on investor loans.
Qualification
You can qualify through rental income (DSCR), bank statements, assets, or full documentation, depending on the program. A new appraisal confirms current value, and your payment history on the existing U.S. loan helps demonstrate reliability.
Key Benefits & Ideal Borrower
Lower rate potential
Reduce your interest cost when conditions allow.
ARM-to-fixed stability
Lock in a predictable payment for the long term.
Exit interest-only
Refinance before your payment increases at recast.
Adjust your term
Shorten to build equity or extend to lower payments.
Often better pricing than cash-out
No additional equity extraction typically means less risk.
Eligibility & Documentation Checklist
Borrower & Financial Documentation
- Passport, plus international credit references where the program requires them
- Current mortgage statement, payoff, and note (for prepayment terms)
- Documentation for the qualification track
- Reserves 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. property currently owned with an existing mortgage
- New appraisal confirming current value
- Loan amount limited to payoff plus allowable closing costs
- Acceptable payment history on existing mortgage
- Current insurance, property tax, and HOA status
- Clear title apart from the lien being refinanced
Rate-and-Term Refinance FAQs
Program disclaimer: Final eligibility, documentation requirements, 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.