How To Get Mortgages For Non-U.S Citizens

Many new immigrants eventually want to buy a home instead of renting an apartment.

Can non-U.S. citizens get a mortgage in the U.S? 

In this blog, “How to Get Mortgages for Non-U.S Citizens,” we will discuss the difficulties, requirements, and options for non-U.S citizens who want to own a home in the US.

Can People From Other Countries Get A Mortgage In The United States?

The good news: it’s true! A mortgage can be obtained in the U.S

Non-U.S. citizens can own a home just like U.S. citizens can. Foreign nationals can get loans through different programs.

To help non-U.S. citizens get a mortgage, they need to meet certain requirements. 

Let’s dive into this.

The Key Requirements To Get A U.S. Mortgage As A Non-U.S. Citizen.

Non-U.S. citizens who want to get a mortgage in the U.S. should know the following requirements from most lenders.

Residency Status 

Most mortgage lenders will ask a foreign national’s residency status to see if they are eligible to borrow money. Because a mortgage is a long-term loan, they want to make sure that everyone who gets it can stay in the U.S. for a long time. Here are some of the most common residency types that can get U.S. mortgage loans.

Permanent Residents :

Permanent residents, also called Green Card holders, can get a mortgage easily. Lenders generally treat them the same way they treat U.S. citizens when they apply for a mortgage.

Non-immigrant Work Visas

Non-U.S. citizens who have valid work visas, like H1-B, L1, or other non-immigrant work visas, can also get mortgages. Lenders usually want proof of employment and income stability, which can be shown through employment verification letters, pay stubs, or other relevant documents. 

Non-permanent residents may need to provide additional documentation, like a visa, employment contract, or Employment Authorization Document (EAD) to support their mortgage application.

F-1 /J-1 Students

F-1 or J-1 students may be able to apply for a mortgage in the U.S. Lenders will consider the cosigner’s income and credit history during the loan application, which will help the student’s mortgage application. 

Foreign Investors & Non-residents

People from other countries who want to invest in the U.S. can use loans called Debt-Service Coverage Ratio (DSCR) With a DSCR loan, the property’s income is the main factor for qualification, so investors can get financing without having to fill out a lot of paperwork. This easy way helps foreign investors invest in U.S. real estate, even if they don’t live there.

Credit History

Mortgage lenders also look at credit history to see how risky borrowers are.

People who have lived in the U.S for a long time will usually have more mortgage options and better rates. 

Non-U.S. citizens who don’t have a U.S. credit history should look into mortgage options specifically designed for people with no or thin U.S. credit. These loan programs use international credit reports from the borrower’s home country to figure out if the loan is worth it. This process is often done by a manual process of getting reports from international credit bureaus.

Income & Employment Requirements

The income requirement for non-U.S citizens to get a mortgage in the U.S can vary depending on the lender, type of visa, and mortgage program. 

Lenders check if a borrower can pay back their mortgage by looking at their debt-to-income (DTI) ratio. This measures how much they owe on their mortgage each month compared to how much they earn. A lower DTI ratio is usually preferred to make sure the borrower can manage their debt comfortably.

Non-U.S citizens usually need a stable job history for at least two years to get a conventional mortgage or government-sponsored loan.

But there are other mortgage options for foreign nationals that may accept less work experience.

Cash Reserves

Having enough cash reserves can help non-U.S. citizens who want to get a mortgage in the U.S. They make sure that people can pay their mortgage and pay for living expenses, even if they don’t have good credit in the United States.

Other Requirements

Lenders need either a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN) to report taxes and verify identity. Some lenders will accept an ITIN in place of an SSN. 

Find out how to get an SSN or ITIN here.

Additional Documentation: Some lenders might ask for more financial records, like proof of rental history or utility bills.

Co-borrowers or Guarantors: You can get a mortgage without a co-borrower or a guarantor. But having someone else who has good credit in the U.S. can help you get a mortgage.

U.S. Mortgage Options for Non-U.S. Citizens

Non-U.S citizens can get a mortgage depending on their residency status, credit history, and other factors.

Non-U.S. Citizens Mortgage Options with U.S. Credit History

Conventional Mortgages:

Conventional mortgages are home loans that the government doesn’t insure or guarantee. They are backed by private lenders and follow the rules set by the main government-sponsored enterprises. Conventional mortgages usually have lower risk tolerance, so they can offer good interest rates and terms for approved applicants.

Residency Status: Permanent residents and non-permanent residents may be able to get conventional mortgages. You need to live in the U.S. to get this loan. Global investors can’t get this loan.

Financial Requirements: Lenders usually need proof of good credit and steady income. The minimum down payment for eligible borrowers is 3%.

Conventional Loans at United 1 Mortgage

United 1 Mortgage proudly offers conventional loans, providing borrowers with competitive rates and personalized service. Our expert team is dedicated to guiding you through the loan process, ensuring a smooth and efficient experience. With United 1 Mortgage, you can confidently secure the financing you need to achieve your homeownership goals.

FHA Loans 

A Federal Housing Administration (FHA) loan is a mortgage that is insured by the government and issued by a bank or other lender that has been approved by the FHA. These loans are meant to help low-to-moderate-income homeowners, like first-time buyers, by offering more flexible credit requirements and down payment options.

Non-U.S citizens must show proof of permanent residency in the United States and meet other FHA guidelines. These loans are backed by the government, which gives lenders extra security. Like conventional mortgages, you must live in the U.S. to get this loan.

To get an FHA loan, you need to have a good credit score of 500 to 580 and only pay 3.5% down. FHA loans usually have the cheapest interest rates. 

FHA Loans at United 1 Mortgage

At United 1 Mortgage, we are proud to be an FHA-approved lender, offering FHA loans to help you achieve your homeownership dreams. Our dedicated team provides personalized service and expert guidance throughout the loan process, ensuring you get the support you need every step of the way. Choose United 1 Mortgage for a smooth and efficient FHA loan experience.

Mortgage Options For People Who Don’t Have U.S. Credit.

Foreign national mortgages:

Some lenders offer mortgage programs specifically for non-U.S. citizens who don’t have a credit history in the U.S. These programs are known as “foreign national mortgages.” 

Residency Status: Foreign national mortgages are often the most flexible in terms of residency status because they are made for non-U.S citizens.

Financial Requirements:  Lenders check credit reports from other countries to see if people can pay back loans. This helps them give loans to people who don’t have good credit in the United States. The amount you need to put down, how much you make, and how much you pay back can vary, but some loans may need more money upfront and more paperwork. 

Who Offers Foreign National Mortgages? 

 United 1 Mortgage offers specialized programs for foreign nationals, ensuring you have access to the financing you need regardless of your U.S. credit history.

Debt-Service Coverage Ratio (DSCR) loans:

DSCR loans are specifically designed for investment properties and look at the income potential of the property rather than the borrower’s credit history. This means that the borrower’s credit history is not important anymore. Non-U.S. citizens can get a mortgage without having good credit.

Residency Status: Residency status does not matter for these loan types, so global investors and immigrants can get an investment mortgage.

Financial Requirements: Most lenders require a DSCR ratio of 1 or higher and a down payment of 20-25% For foreigners, a good credit score may not be necessary because lenders may change other terms, such as down payment and interest rates, to make up for the risk.

DSCR Loans at United 1 Mortgage

United 1 Mortgage offers DSCR (Debt Service Coverage Ratio) loans to help you finance your investment properties. Our experienced team provides personalized service and expert guidance to ensure a seamless loan process. Choose United 1 Mortgage for competitive rates and dedicated support tailored to your unique financial needs.

The Bottom Line

Non-U.S. citizens can become homeowners by understanding the requirements for residency and paperwork, meeting the requirements, and exploring different mortgage options. With the right guidance and preparation, non-U.S. citizens can make their dream of owning a home in the United States come true.

If you just moved to the U.S, you may want to apply for a credit card before you apply for a mortgage. Over time, this credit history will open up more mortgage options at better rates.

United 1 Mortgage understands the unique challenges faced by non-U.S. citizens and offers mortgage solutions to help you reach your homeownership goals as soon as you arrive.

They provide comprehensive information on “How to Get Mortgages for Non-U.S. Citizens,” ensuring you have the knowledge and support needed to navigate the mortgage process.

United 1 Mortgage wants to make it easy for you to get a mortgage and help you buy a home in the US.