Financing Options for Foreign Buyers in Scottsdale

Thinking about a seasonal or lock-and-leave home in Scottsdale but unsure how to finance it as a non-U.S. buyer? You are not alone. The good news is you have clear options, each with its own requirements, timelines, and costs. In this guide, you will learn the main financing pathways, what lenders expect, typical down payments and fees, key tax and legal points, and a practical checklist to keep your purchase on track. Let’s dive in.

Your financing pathways in Scottsdale

Cash purchase

A cash purchase is the simplest route for many international buyers. You can often close in 1 to 3 weeks, depending on escrow, title clearance, and wire releases. You avoid mortgage documentation and present a strong offer in competitive situations. This is common for buyers prioritizing speed and a smooth lock-and-leave setup.

U.S. lender foreign-national programs

Many U.S. banks, credit unions, and mortgage brokers offer foreign-national mortgage programs. These accept foreign income and credit with extra verification. Expect larger down payments, stronger cash reserve requirements, and sometimes a pricing premium compared with U.S. citizen loans. Loans are often jumbo or portfolio products, especially for higher-priced Scottsdale homes.

International bank or cross-border lending

Some international banks with U.S. operations can use your home-country banking relationship to underwrite your loan. This can streamline approvals if your assets and income are primarily abroad. You will still coordinate with a U.S. title and escrow company, so start planning early with your bank relationship manager.

Co-borrower or U.S. entity structures

Some buyers add a U.S. citizen or resident co-borrower to access more favorable terms. Others purchase through a U.S. LLC or corporation. These structures can affect underwriting, rates, and documentation. If you consider an entity for estate or tax planning, coordinate with lenders and cross-border tax counsel in advance.

What lenders expect from foreign buyers

Identification and tax ID

You will need a valid passport and any U.S. visa or immigration documents if applicable. Lenders may ask for a Social Security Number if you have one, or will accept an ITIN for some programs. Confirm early whether your target lender works with ITIN loans.

Proving income and assets

Plan to provide recent pay stubs, an employment letter, or business documentation if self-employed. Lenders commonly request two years of income history. Bank and investment statements are required to verify assets and the source of funds. For large transfers, be prepared to show the lawful origin of funds, such as a property sale or business proceeds.

Credit and reserves

If you have a U.S. credit history, lenders will pull a report. If not, many will accept international credit reports or alternative credit proofs, often with certified translations. Lenders may require 6 to 12 months or more of mortgage payments plus property expenses in liquid reserves. These verification steps can extend underwriting timelines.

Property and process documents

Expect to share the purchase contract, HOA documents if applicable, and property management agreements if you plan to hire a manager. If you will not attend closing, a notarized power of attorney may be used. Some documents must be translated into English and notarized or apostilled.

Underwriting differences you may see

Foreign-national loans are verification-heavy with more detailed KYC and AML checks. Many lenders apply a rate premium of about 0.25 percent to 1.0 percent or more compared with a similar U.S. borrower. The extra due diligence can lengthen underwriting, so it pays to prepare documents early.

Down payment, rates, and costs

Typical down payments

• 20 to 30 percent may be possible for very well-qualified buyers on select programs, but this is less common.
• 30 to 50 percent is more typical for many foreign-national programs, especially for non-residents or if the property is an investment or short-term rental.
• If a U.S. citizen co-borrower is on the loan, down payment and pricing may be more favorable.

Rates and loan types

Foreign-national loans are often jumbo or portfolio products due to price points and documentation needs. Many lenders price these loans higher than comparable loans to U.S. citizens. Rate differences vary with market conditions and the strength of your profile, so compare multiple quotes when possible.

Closing costs and ongoing expenses

• One-time costs: Plan for roughly 2 to 5 percent of the purchase price for origination, appraisal, title, escrow, recording, and lender fees. Foreign-national loans may add document verification or courier fees.
• Ongoing costs: Maricopa County property taxes, homeowner’s insurance, HOA dues where applicable, utilities, and property management if you want a lock-and-leave setup.
• PMI: Private mortgage insurance usually does not apply because many foreign-national programs require at least 30 percent down.
• Currency and wire fees: International transfers can add cost and time. Ask your bank about holds on large incoming funds.

Timelines and how to stay on track

Cash purchases

You can often close in 1 to 3 weeks with clear title and funds in escrow. The release of international wires can add several days. Coordinate wire timing with your bank and the escrow company.

Financed purchases with U.S. lenders

Plan for about 45 to 75 days from contract to close. Typical steps include:

• Pre-approval: 1 to 7 days if documents are complete. Longer if translations or international verifications are needed.
• Appraisal: Often 7 to 14 business days, longer for unique or high-value properties.
• Underwriting: 2 to 4 weeks or more due to foreign-national documentation and source-of-funds reviews.

How to streamline the process

• Obtain pre-approval before shopping to strengthen your offer.
• Line up certified translations and notarizations early.
• If you will not be in Arizona, confirm power of attorney and remote signing requirements with the title company ahead of time.
• Open a U.S. bank account if possible and confirm wire procedures to avoid delays.

Tax and legal essentials for non-U.S. buyers

FIRPTA at sale time

FIRPTA is a federal rule that generally requires buyers to withhold a portion of the sale proceeds when the seller is a foreign person. Even if you are buying now, knowing FIRPTA helps you plan for a future sale. Work with your escrow and tax advisors to determine exemptions or certificates when you eventually sell.

U.S. tax on rental income

If you plan to rent your Scottsdale home, nonresident owners must file U.S. tax returns. Withholding can be 30 percent of gross rental income unless you elect net-income taxation. Many owners hire a U.S. tax preparer to handle elections and deductions.

Estate tax exposure

U.S.-situs real estate owned by nonresident noncitizens may be subject to U.S. estate tax with a much lower exemption than for citizens or residents. This is a material consideration for high-value properties. Cross-border estate planning counsel can help you evaluate structures like U.S. LLCs and understand treaty effects.

Arizona closing, title, and escrow

Arizona uses title insurance and escrow companies to close transactions. Expect standard title and recording fees rather than a state-level documentary stamp tax common in some other states. Always coordinate wiring and source-of-funds documentation with the escrow team.

Short-term rental and HOA rules

Lenders classify occupancy as primary, second home, or investment. Short-term rental activity can push a loan into the investment category, which usually means higher down payments and stricter underwriting. Many Scottsdale neighborhoods and HOAs have short-term rental restrictions, so verify rules before you buy.

Practical checklist for a smooth Scottsdale purchase

• Choose your financing path early: cash, U.S. foreign-national mortgage, international bank, or co-borrower.
• Open a U.S. bank account if possible and confirm your foreign-exchange and wire plan.
• Secure your passport and any visa documentation; apply for an ITIN early if you need one.
• Assemble income, asset, and source-of-funds documents. Prepare translations and notarizations.
• Identify lenders experienced with foreign-national loans and obtain pre-approval.
• Review property-specific items: HOA rules, short-term rental restrictions, utilities, and management for lock-and-leave living.
• Engage a cross-border CPA or attorney for income tax, FIRPTA planning at sale, and estate tax considerations.
• Coordinate with your title company on power of attorney, remote signing, and wire instructions.

Why a process-driven local advisor matters

International transactions move smoothly when every step is planned. You benefit from a team that understands foreign-national lending, Scottsdale escrow practices, HOA and rental restrictions, and the documentation that keeps underwriting on schedule. A disciplined, checklist-driven approach helps you avoid avoidable delays and protects your timeline and terms.

If you want a precise, concierge-level plan for your Scottsdale purchase, connect with Miki Nakajima. You will get boutique advisory rooted in rigorous process, local market expertise, and global reach.

FAQs

What is the typical down payment for a foreign buyer in Scottsdale?

• Many foreign-national programs require about 30 to 50 percent down, with 20 to 30 percent possible for very strong profiles on select programs.

Can I get a U.S. mortgage without a Social Security Number or U.S. credit?

• Some lenders accept ITINs and international credit or alternative credit proofs, often with translations and extra verification.

How long does closing take for a foreign-national mortgage?

• Expect roughly 45 to 75 days from contract to close, depending on appraisal timing, underwriting, and document preparation.

Are short-term rentals allowed if I buy a Scottsdale condo or home?

• Rules vary by neighborhood and HOA, and lender classification may change to investment if you rent short term, which can affect terms and down payment.

Do I need to be in Arizona to close on my home?

• Not necessarily. Many buyers use a properly drafted, notarized, and sometimes apostilled power of attorney, subject to title company approval.

What ongoing costs should I budget for as a nonresident owner?

• Plan for Maricopa County property taxes, homeowner’s insurance, HOA dues if applicable, utilities, and property management for lock-and-leave living.