Current US mortgage rates are lower than the historic national average. What does this mean for foreign nationals? This is a prime opportunity to purchase US property.
Still, for foreign buyers without established credit, traditional lenders are often not a viable option. Fortunately, premier foreign national mortgage lenders like mbanc Worldwide offer concierge services and an entry point to living the American Dream. Here is how to find the right lender:
What is a Foreign National Mortgage Lender?
Non-citizens can obtain a mortgage in the USA, but the process differs from acquiring a traditional loan. Foreign national mortgage lenders provide mortgages to foreign buyers.
Lenders craft these mortgages specifically for foreign nationals who want to purchase any kind of property anywhere in the United States. However, not every lender offers these mortgage programs.
What Do Foreign National Mortgage Lenders Offer?
Foreign national mortgage lenders offer several key benefits for foreign buyers that facilitate this process.
Foreign nationals can still pursue traditional loans, but traditional lenders are often wary of lending to foreign nationals, which is why these programs are so essential to consider. Key offerings and benefits of these programs include:
- Loan Amounts up to $2 Million
- Max LTV up to 75%
- Max DTI of 50% (if qualifying with income)
- Min 680 FICO to qualify for Foreign Nationals with U.S. Credit
- U.S. Credit: Min 2 reporting tradelines for 24-months or 3 reporting tradelines for 12-months
- Without U.S. Credit
- 2 credit reference letters must be provided from companies that have extended credit to the borrower
- 1 Bank Reference Letter
- Assets held in foreign accounts may be used as a source of funds to close. These funds must be transferred to a U.S. domiciled account in the borrower’s name at least 10 days prior to closing (On occasion exceptions are made for no seasoning)
- 30 Year Fixed Interest Only (10 Year Fixed Interest Only which then converts to a 20 Year amortization term of the same fixed rate), 40 Year Fixed, 30 Year and 15 Year Fixed all available
- Available for Purchase and Refinance Transactions
- Max cash in hand $500,000
- Occupancy Available – 2nd Home, and Investment Properties
- All Programs Available to Foreign Nationals – DSCR, Bank Statement, 1099, Asset Utilization
Still, exact requirements and offerings vary from organization to organization, and different lenders can accommodate different needs. Understanding the ideal solution for your circumstances requires expert guidance, which partnering with mbanc Worldwide offers.
What Foreign Buyers Should Consider When Choosing a Foreign National Mortgage Lender
Unless you are well-versed in US mortgage financing, navigating foreign national mortgage lenders can feel like a minefield and easily overwhelm foreign buyers.
First, consider the documents you do have or can acquire. These documents will dictate the lender you choose. For example, if you do not have a social security number or green card, this will significantly impact your choice. Also, consider things like:
- Closing costs
- The range of mortgage options
- One-off taxes
- The application and buying process
- Local taxes and property rates
- Currency exchanges
- Maintenance and security costs
Moreover, if you have a “permanent resident alien” status, consider a foreign national mortgage through the FHA, and always consider what you can afford and how much you can put down as a down payment. These lenders often require a higher down payment.
Obtaining pre-approval will also greatly help throughout this process. Just as importantly, while most lenders do not require a US credit report, you will likely still need a credit report from your home country.
Lastly, consider whether or not you have a TIN (tax identification number). Most foreign national mortgage lenders do not require providing a TIN, but if you have one, this could be an asset and qualify you for ITIN home loans.
If you need help finding the right lender for your financial situation, at mbanc Worldwide, our passion is helping borrowers find the perfect financing solution for them.
Learn Why mbanc Worldwide Is A Foreign National Mortgage Lender that Can Help You Live Out Your Happily-Ever-After
For foreign buyers hoping to purchase property in the US, obtaining financing can be daunting, but it is far from impossible. Still, when choosing a foreign national mortgage lender, finding the perfect option for your situation and avoiding predatory lenders can be difficult without the expertise and experience of a specialty lender or broker. Fortunately, partnering with mbanc Worldwide avoids these costly mistakes.
We don’t just finance mortgages; we finance your American Dream. To learn more about how we can help, talk with our team today.