Nadlan Capital Group – USA Real Estate Financing for Foreign Nationals and Residents
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Case Study: Loan 1359 – Roy | Purchase | New York | Lender #2486
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Case Study: Loan 1359 – Roy | Purchase | New York | Lender #2486
🏡 Case Study: Loan 1359 – Roy | Purchase | New York | Lender #2486
When navigating a DSCR purchase loan as a foreign national investor, some requirements might feel unfamiliar. Roy’s case helps illustrate two of the most critical conditions that come up often in these transactions:
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✉️ The Personal Financial Statement (PFS)
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🏢 Why self-management is not allowed for foreign nationals
📈 What Is a Personal Financial Statement (PFS) and Why Is It Required?
A PFS is a comprehensive overview of your personal financial position. Unlike a bank statement, which only shows your liquid funds, the PFS shows the full picture:
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Assets (real estate, investments, accounts)
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Liabilities (mortgages, credit cards, loans)
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Monthly income and expense summary
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Net worth calculation
Why the lender asks for it: In a DSCR loan, even though the underwriting is property-income-based, the lender still needs to verify the sponsor has enough net worth and liquidity to cover closing, reserves, and risk.
In Roy’s case, a bank statement was uploaded initially, but this was not sufficient. The lender requested the official PFS form, which must be filled and signed. You can find more details here: What Is a PFS and Why It’s Required
🛍️ Why Foreign Nationals Cannot Self-Manage Their Investment Properties
In DSCR financing, foreign national borrowers must work with a U.S.-based property management company. This is a strict condition by nearly all lenders.
Why lenders require this:
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Remote management is considered high-risk.
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There must be a U.S.-based point of contact for rent collection, tenant issues, and emergencies.
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Property management ensures professional handling and verifiable income flow.
In Roy’s case, although family members were helping manage the property, the lender did not accept self-management, and requested two additional documents:
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📄 Property Management Agreement
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📃 Property Management Questionnaire
Both forms are mandatory for compliance and must be filled out completely.
📋 Additional Key Notes From Roy’s File
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Appraisal was ordered and paid for promptly ($695)
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Insurance contact provided: Dan Gueli (Allstate)
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Title company confirmed: LandStar Title Agency Inc.
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Purchase agreement was missing an expiration date
🔎 Summary: Lessons from Roy’s Purchase Loan
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✅ A bank statement is not a substitute for a PFS
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✅ Foreign nationals must work with licensed U.S. property managers
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✅ Templates for PFS, PM Agreement & Questionnaire are available in the Nadlan Loan Portal
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✅ Clear document submissions = faster underwriting
By addressing these items quickly, Roy positioned his file for fast underwriting once the appraisal is received.
🌎 Tags:
DSCR Loan, Foreign National, Personal Financial Statement, Property Management, Refinance, NY Purchase, Appraisal, Real Estate Financing, Nadlan Capital Group
📍 Hashtags:
#DSCRLoan #PFS #ForeignInvestorLoan #RealEstatePurchase #NYRealEstate #PropertyManagement #LoanDocuments #NadlanCapitalGroup #RefinanceTips #DSCRRequirements
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1 Reply
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🎯 Case Study: When a Credit Score Isn’t Enough – Moshe’s DSCR Refinance Journey
Loan 1292 – Moshe | Refinance with Cash Out | 1B | Pennsylvania | Lender 2713
Status: Searching for new lender due to foreclosure red flag
🏡 Background:
Our borrower, Moshe, reached out for a DSCR refinance loan for a property in Pennsylvania. The deal looked promising — rental income, documentation, and structure all aligned. However, a major hurdle stood in the way: his credit score.
🔍 Phase 1: The Credit Repair Journey
When Moshe first applied, his credit score was too low to meet DSCR loan criteria. Rather than give up, he rolled up his sleeves and got to work. Over the next three months, he:
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Added himself as an authorized user on reporting accounts
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Submitted rent rolls, leases, security deposit breakdowns
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Worked through entity ownership clarifications (Moshe vs. JOnas)
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Provided bank statements, personal financials, and updated REO data
By June 12, 2025, he had increased his score by over 70 points — finally putting him in qualifying territory for most DSCR lenders.
⚠️ Phase 2: The Unexpected Red Flag
Just when everything seemed greenlit, a background credit check by lender ID 2713 revealed a pre-foreclosure record tied to Moshe. Despite the improved score, the lender declined the loan due to this risk factor.
🚩 What is a pre-foreclosure record?
A pre-foreclosure appears when a borrower has missed multiple mortgage payments, and the lender has started the foreclosure process — even if the property hasn’t been sold or repossessed.
The presence of this flag caused lender 2713 to immediately disqualify the file, regardless of the new score or the property’s rental strength.
🔁 Phase 3: What Happens Next?
Our auction team has now reopened the loan request to find a new lender that:
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Accepts borrowers with resolved or aged pre-foreclosure records
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Reviews Moshe’s strong income from rent and updated 699 credit score
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May offer non-DSCR options or allow a co-signer with high credit
Moshe is now fully engaged, and our team continues to guide him through what may be a second lender match — without losing the already completed appraisal and momentum.
🗂️ Loan Summary:
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Borrower: Moshe
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Loan Type: Refinance with Cash Out
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Location: Pennsylvania (1B unit)
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Original Lender: ID 2713
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Status: Declined due to credit background / pre-foreclosure
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Next Steps: Auction reopened to locate lender with more flexible guidelines
🧠 Final Thoughts:
This case highlights a common but underestimated risk in DSCR lending — assuming a strong mid-score is enough. In reality, lenders often dig deeper, especially into housing-related delinquencies.
If you’re a borrower with past foreclosure records, don’t just focus on the score — talk to a broker who understands which lenders will look at the full picture.
🔖 Hashtags:
#DSCRloan #RefinanceWithCashOut #RealEstateInvesting #CreditRepair #Foreclosure #RealEstateFinancing #NadlanCapitalGroup #CreditScoreTips #InvestorLoans #RealEstateCaseStudy
📞 Need financing with a complex credit background?
Our team works with over 3,000 lenders and can auction your loan request to the best offers.
➡️ Visit Nadlan Capital Group and get matched today.
nadlancapitalgroup.com
Nadlan Capital Group - Financing For Foreign Investors in the US Market
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