If you want to buy a home in the US; but you are not a US citizen Foreign National Loan is the right program for you. This is a great option for those who want to buy investment property in the U.S.
Read the following guideline to learn about the key factors in relation to this program.
In order to qualify for a foreign national loan, non-US citizens have to prove that they are not going to move into the home permanently. Moreover, they have to prove that their income comes from another country. The foreign national loan is made so non-US citizens can rent out the property and; earn extra income or they just simply want a vacation home. The foreign national loan program is also used to refinance your current home.
The requirements for this loan are different from the Federal Housing Administration Loans (FMA). Even though this program offers competitive interest rates; there are private lenders who offer mortgages to foreigners. However, they ask for higher interest rates as a result, you will need a larger down payment to qualify for this program. At least 20% of the purchase price of the property is needed compared to U.S citizens who can easily qualify with 5%.
Lenders have the possibility to order non-traditional credit reports for those who lack credit data. Records such as rental history and utility payments are required for this type of report. It is important to say that childcare and; personal loans accounts are useful for trade lines. It is essential to know that a foreign national loan program is able to finance up to 75% loan-to-value.
Homeowners have to pay annual real estate taxes depending on their home’s value. Insurance escrows are also required, therefore, foreign buyers who are interested in buying real estate in Florida must withhold 10% of the gross sale price. Nevertheless, there may be some exceptions to this tax, it is recommended to consult with a real estate specialist.
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You don’t have to be a citizen to get a US mortgage, but there are banks that don’t offer foreign national loans; however, some international banks do. It is necessary to find the right lender so that the buyer can shop around in order to get the best rate. Buyers are able to borrow up to $700,000 per property but;
Refugees or immigrants who were granted asylum can obtain financing if they are able to prove their status.
Loans are manually underwritten and there are multiple fixed rate terms available. In fact, the mortgage application process for permanent residents is very similar to US citizens if they have their green card. If they only have a social security number, they can produce a work permit.
Also, please check 6 Common Home Loan Types to learn more about loans in the US.
If you need financial advising or you want to schedule a call, please contact us, we are ready to help you today.