Can I use mortgage financing on my U.S. property for the EB-5?

In the EB-5, all invested capital must come from the investor’s own resources and be genuinely ‘at risk’ within the project, meaning it cannot be guaranteed or protected by a repayment obligation. For this reason, using mortgage financing to raise the funds can run into obstacles.

The sensitive point is that funds obtained through a mortgage are, by definition, third-party resources tied to a repayment obligation. Depending on how the loan is structured and what is pledged as collateral, that money may not qualify as ‘at risk’ capital for program purposes, which undermines a central requirement of the EB-5.

• The capital must be genuinely exposed to the project’s risk.
• Funds that are merely borrowed and secured by third parties tend to be questioned.
• The origin and nature of each funding source are analyzed on a case-by-case basis.

Because each financial situation has its own nuances, document the origin of the funds precisely and confirm current requirements with USCIS and a qualified specialist before structuring the investment around financing.

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Victoria Harper

Editor-in-Chief

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As a journalist and lead editor at Visto n’ Visa, Victoria helps ensure that immigration topics are covered in a clear, trustworthy, and easy-to-understand way. Her focus is on delivering useful, human, and relevant content for people exploring new paths abroad.