Foreign National Loans
What are Foreign National Loans?
Foreign national loans are designed for non-U.S. citizens who want to buy property in the United States. These loans are for people who aren’t permanent residents or don’t have a green card. They help foreign nationals navigate the U.S. mortgage system. These loans often have different requirements compared to regular mortgages. Lenders may need additional documentation, like a passport or visa. Interest rates and terms can vary depending on the lender and the borrower’s financial situation. It’s important for foreign nationals to understand the specific terms and conditions of these loans before applying.
Foreign National Loan Benefits
- Competitive interest rates make our Foreign National Loan program appealing.
- Borrow up to $750,000 per property, with a minimum of $100,000.
- Choose from various fixed-rate terms like 10, 15, 20, 25, and 30 years.
- Adjustable-rate terms also available, including 5/1, 7/1, and 10/1.
- Use the loan to purchase a new home or refinance your current one.
- Debt-to-income ratios are set at 50% with the "Assets for income" option.
- No pre-payment penalties mean you can pay off your loan early without extra charges.
- Finance up to 75% loan-to-value, giving flexibility based on your property's worth.
- Eligible property types include single-family homes, condos, and townhouses.
- Each loan undergoes manual underwriting for careful consideration.
- Self-employed foreign nationals can also benefit from this program.
- Seller concessions are allowed, with a maximum of 6% up to 65% LTV.
- Taxes and insurance escrows are required for smoother management.
What are the Foreign National Loan Requirements?
Down Payment Requirements:
- Foreign national loans usually demand a larger down payment, typically between 30% to 50% of the property's purchase price.
- This necessity arises due to the perceived elevated risk linked with lending to individuals who are not U.S. citizens.
Income Verification:
- Self-employed borrowers need a letter from an independent Accountant/Auditing firm verifying income for the last two years.
- A year-to-date income figure is required, preferably with a business website. If unavailable, printed business materials or brochures are accepted.
- Additional reference letters from past employers may be requested.
Salaried Employees:
- Provide a letter from the employer stating current monthly salary or a valid pay stub.
Financial History:
- One letter of reference from a banking or financial institution showing at least 24 months history and relationship status.
- Borrowers must demonstrate the ability to maintain payments in the U.S. and maintain their lifestyle in their home country.
- Liquid assets must align with financial statements and income level. Gift funds are not acceptable.
Residency Proof:
- Submit two utility bills or any document from the home country containing the borrower's name and address to prove residency. .
- Provide a copy of the borrower’s passport and visa if applicable
