Mortgages for Non-U.S. Citizens

Because of the economic stability and affluence of the United States, the demand for real estate in this country is always strong.  A foreign national who is not a resident in many cases may seek to purchase property and have it financed through a U.S. mortgage company via a foreign national loan.  This special product helps non-citizens buy investment properties or second homes, if for example, they wish to buy a home for their children to reside in while attending a U.S. college or graduate school.

Incredibly, with no paystubs or U.S. tax returns, with no residency status and zero ties to the U.S., property may still be purchased!  Foreign national guidelines allow for the following:

Employment: employment stability and income are still central factors but the income may come from inside or outside the U.S.  Documentation that is printed in non-English language, will need to be translated by a Translation Service Company.

Income: Debt/income ratio can be as high as 50%

Down Payment: There are programs with as little as 20% down, but in most cases, the traditional down payment is a minimum of 25% – compared to minimums as low as 3.5-5.0% for U.S. citizens.

Credit – Many lenders do not require a social security number, FICO score, or U.S.  credit report.  Even if a credit report cannot be obtained from the home country or does not have enough data, a credit reference letter from a bank or financial institution may suffice.

Assets – To avoid having to go through translation of bank accounts and source large deposits, the buyer may consider transferring foreign funds into a U.S. bank account 3 months in advance in order for it to be properly seasoned. 

Both fixed and adjustable products are available, and for loan amounts as high as $15 million!  The interest rate will be notably higher, usually more expensive than your standard investment property loan.  For most foreign buyers, however, the appreciation upside and relative safety of the real estate market more than outweighs the additional interest and paperwork burden with a foreign national loan.