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What is A Foreign National Mortgage?
As the U.S. dollar is becoming stronger and the home values are also on the rise, foreign buyers, now, have a real incentive when it comes to purchasing properties. Plus, the U.S. economy, too, has an incentive, foreign buyers invested more than USD 99.2 billion in the country’s residential real estate within 12 months (which ended on March 2014).
The scenario for international buyers:
The options can be few for all those international buyers looking forward to investing in properties in the U.S. while continuing to live abroad. They will stand ineligible without a credit score, a domestic social security number, proof of residence, or an U.S. employment history.
These buyers can pay in cash; however, with low rates that are available nationwide, the capacity to finance properties is preferred by every buyer. Now, here is where a foreign national mortgage loan comes into play.
Foreign national mortgage—in a nutshell:
The foreign national mortgage loans are available for every non–U.S. citizen who is looking to buy domestic property. However, not every lender provides these loans; and their requirements vary from one lender to another.
For those lenders offering a foreign national mortgage in the U.S., the down payments start nearly at 30 percent of the purchase price. This down payment can even be as high as 50 percent, which depends on several factors such as:
The loan’s size
The property type
The bank’s comfortableness with the borrower’s profile
Applying for a foreign national mortgage loan:
If the borrower does not have to pay large amounts of down payments, then applying for foreign national loans is as simple as the process of acquiring a domestic loan. For building a borrower’s profile, any lender will need the person’s:
Foreign Bank Reference Letter
Tax Identification Number
U.S Bank Account
Proof of asset’s that is verified by a reputed financial institution
Getting foreign national mortgage loans is one of the best options for international real estate buyers in the U.S.. This loan type is the best way to get a mortgage for those who are looking not only to invest but also to stay in the U.S.