The United States (U.S.) is a country that offers ample opportunity regardless of where you are from, and this is at the heart of the American Dream. This is especially true when investing in U.S. property, which requires obtaining a foreign national mortgage.
A foreign national loan program is specifically designed for foreigners interested in purchasing property in the U.S. Still, many people have questions about this loan program. Here are the most frequently asked questions:
Foreign National Mortgage FAQs
Can a Foreign National Buy Property in the U.S.?
In short, yes. Foreign nationals can purchase property in the U.S. with minimal restrictions if they satisfy the requirements. Still, purchasing property in the U.S. is significantly easier for foreign nationals who are lawful residents.
Can I Use a Foreign National Mortgage to Purchase a Home?
Borrowers can only use a foreign national loan to purchase investment properties or vacation homes. Foreign buyers cannot use these loans to purchase primary residences.
Purchasing a primary residence requires obtaining a conventional mortgage, which requires being a permanent or non-permanent U.S. resident.
Do I Need a U.S. Credit Report for a Foreign National Mortgage?
You do not need a U.S. credit report to qualify for a foreign national loan, though it can help. Still, without a U.S. credit record, you need a credit record from your home country or other documents verifying your creditworthiness.
What Documents Do I Need for a Foreign National Mortgage?
Acquiring a foreign national loan requires presenting different kinds of documentation, and the documents depend on your circumstances. Documents to gather before applying to streamline and ease the process include:
- A valid passport
- A work permit or green card
- Proof of income
- Proof of creditworthiness
- History of employment
- History of residency
Does it Take Longer to Buy with a Foreign National Mortgage?
Obtaining a foreign national loan can take longer for foreign nationals who are not physically in the country, and added requirements and regulations can also elongate the process.
However, if you work with a premier specialty lender like mbanc, this process should not take much longer than it would if you were applying for a conventional loan, and things like no U.S. credit record requirements can make it go even faster.
Does a Foreign National Mortgage Have a Higher Down Payment and Interest Rate?
A foreign national loan often requires a higher down payment than a conventional loan because of the risk the lender incurs. Ultimately, the down payment hinges on the borrower’s financial circumstances but typically hovers around 30%.
Many people will claim that these programs also have a higher interest rate, but this is a misconception. Interest rates on a foreign national loan are just as competitive as rates on a conventional mortgage.
Is it Better to Work With an Organization that Specializes in Foreign National Mortgages?
We advise working with a lender that specializes in foreign national loans. Companies that don’t specialize in these loans lack essential experience. Ultimately, the process will be significantly less efficient, which prolongs it and adds unnecessary stress.
Learn How mbanc Can Help You Obtain a Foreign National Mortgage
A foreign national loan is a great way to purchase an investment or vacation property in the U.S. Many borrowers often have questions about this program, and we are more than happy to answer them and quell any uncertainty they may have.
Fortunately, partnering with a specialty lender like mbanc can streamline this process and minimize stress. We don’t just finance mortgages; we finance your American dream. To learn more about how we can help, talk with our team today.
