Can you apply for a mortgage and buy a house in the U.S. as a foreigner? the answer is YES !!!
Foreign National Loan is designed for foreign nationals who want to purchase a home in the United States. If you are a citizen from another country, you can still have the opportunity to get a mortgage loan to buy a house in the United States. Foreign National Loan is for non-resident borrowers. The property can become a second or vacation home while staying in America. It can also be an investment property.
General requirements
The requirements may differ for different lenders since there are different loan programs for non-resident foreign borrowers.
For the DSCR (Debt service coverage ratio) program:
– Maximum LTV (Loan to Value) of 70%
– Minimum loan amount of $75,000
– Maximum loan amount of $1.5 million
– Downpayment min. 30%
– DSCR program with a 1:1 ratio on cash flow
– 12 months reserves required and deposited in a United States bank
– Assets sourced and seasoned for 60 days
– Assets must be in a U.S. FDIC-insured bank for a minimum of 30 days
– ACH auto-payment is required
– No Foreign or U.S. credit report is needed
– Borrower can not reside in the United States
– Must have an eligible Visa: B-1, B-2, H-2, H-3, I, J-1, J-2, O-2, P1, P2 or from a visa waiver country
– No sanction-listed countries allowed
Who are the candidates?
The Foreign National loan is for the borrower that has one of the following visas: B-1, B-2, H-2, H-3, I, J-1, J-2, O-2, P-1, P-2 or resides in a Visa Waiver Country
The borrower must live and work in a foreign country, and cannot live or work in the United States.
How does Foreign Notional Loan work?
The Foreign National Loan is for foreigners who are not residing in the United States but want to purchase a property in the United States. Need to have a valid visa or from visa waiver counties. Only for Non-owner occupied property. Some Foreign National loan programs do not require income verification, it’s based on your current asset and liabilities ( such as the DSDR program). Some loan programs require your income, job, and banking references with verification.
The application process is similar to other loan applications, some lenders can work and close the loan remotely, but if you think you are not able to be present during the closing, you need to check with your lender and escrow company if you need to notarize any documents at an American Consulate.
Foreign National Loan v.s. ITIN loan? What is the difference?
Both loan programs are dedicated to foreign nationals, so what is the difference? The major difference is about the residency. The first one is for those who are not living in the United States, and the ITIN loan is for those who live and work in the United States.
Foreign National Loan is for non-residents with valid visas (B-1, B-2, H-2, H-3, I, J-1, J-2, O-2, P1, P2) borrowers. Only available for people who are not living or working in the United States, the target property will be a second home, vacation home, or investment property.
ITIN loan is for foreign nationals who live or work in the United State with an ITIN number (Individual Tax Identification) regardless of their immigration status. The property has to be the primary residency only.
Foreign National Loan is a great choice for non-U.S. residents who visit the United States frequently with their valid visas and like to have a vacation home or are interested in an investment property in the United States. With Foreign National Loan for non-U.S. residents, you can definitely apply for a home loan even if you are a foreigner from another country.
Contact me if you want to learn more about Foreign National Loan for non-U.S. residents
