How Much Down Payment Does a Foreign National Need to Buy a Home in Delaware in 2026?

Down Payment Requirements for Foreign National Buyers

Q: What down payment should I plan for as a foreign national buyer in Delaware?
Foreign nationals purchasing with U.S. financing should plan for a minimum down payment of 20% to 30% of the purchase price. Some foreign national loan programs require 25% to 30% down, particularly for buyers without U.S. credit history. Cash purchases require no down payment at all and eliminate most financing complexity.

On a Bethany Beach home between $500k and $1M, a 25% down payment means bringing $125,000 to $250,000 to closing before fees. For buyers exploring Wilmington homes under $500k as a lower entry point, the down payment is proportionally more manageable.

I'm Bob McCranie, Broker Associate at HomeSmart and a 24-year veteran of Delaware real estate with over 1,150 homes sold. I recommend every international buyer have their financing strategy clearly defined before touring properties. Knowing whether you are a cash buyer or a financed buyer shapes every negotiation.

Foreign National Mortgage Programs: What Is Available

Q: Can I get a U.S. mortgage without a Social Security number or U.S. credit score?
Yes. Portfolio lenders — banks that hold loans in-house rather than selling to Fannie Mae or Freddie Mac — offer the most flexibility for foreign national buyers. Private banks and some international institutions with U.S. operations also offer these programs. Instead of a U.S. credit score, these lenders evaluate international credit reports, 12 to 24 months of bank statements, proof of assets, and a reference letter from your home country bank.

You will need a U.S. Individual Taxpayer Identification Number (ITIN) rather than a Social Security number. An ITIN is issued by the IRS and is straightforward to obtain before closing.

Q: Are interest rates higher on foreign national loans?
Generally yes — typically 0.5% to 2% above standard U.S. mortgage rates. For buyers purchasing Rehoboth Beach homes between $500k and $1M or Lewes homes between $500k and $1M, many buyers find the rate premium manageable relative to the long-term value of the investment.

Reserve Requirements and the Cash Purchase Advantage

Q: What financial reserves will lenders require beyond the down payment?
Most foreign national mortgage programs require proof of 12 to 24 months of mortgage payments in liquid reserves, held in a verifiable account. This reserve requirement exists because lenders cannot verify foreign income as easily as domestic income.

Cash purchases eliminate lender requirements entirely, make offers more competitive, and simplify the closing timeline. The Bethany Beach housing market report gives real sold data to help international buyers plan their budget accurately.

"Cash buyers have a meaningful advantage in any market. For international buyers who have the option, simplifying the transaction often leads to a better purchase price and a smoother closing." — Bob McCranie, Broker Associate at HomeSmart, 45 five-star Google reviews

Buyers exploring Bethany Beach condominiums, Wilmington condominiums, or Rehoboth Beach new construction will find a range of options well suited to international buyers at different budget levels.