Can I use real estate as collateral to raise the required capital?

In the EB-5 program, using real estate as collateral to raise the investment capital is not automatically prohibited, but it requires careful attention. The sensitive point is not the collateral itself: what matters is meeting two core requirements of the program: the lawful and traceable origin of the capital and the fact that the funds must be available and ‘at risk’ in the project.

When funds come from a real-estate-secured loan, demonstrating compliance can become more complex. You must clearly document the path of the funds and dispel any doubt about whether they are genuinely available for the investment, as the EB-5 requires. A poorly structured arrangement can undermine precisely that traceability.

• Lawful origin and clear traceable path of the funds.
• Capital effectively available and ‘at risk’ in the project.
• Collateral structure that does not hinder the documentation.

Because this type of arrangement involves detailed financial and legal considerations, it calls for careful analysis and guidance from qualified specialists. Verify the current rules directly with USCIS and be wary of proposals that promise easy solutions.

About the author

Victoria Harper

Editor-in-Chief

Meet the author

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.