Currently, there are more than 45 million foreign-born people living in the United States. While many have official resident status with a green card, millions are here as non-permanent residents on a work or student visa or as foreign nationals with a primary residence outside of the US. That might be you, or someone you know.
One major challenge for living in the United States if you’re a foreign national is just that: finding a place to live you can call your own. Securing a foreign national mortgage isn’t the same as a commonplace FHA loan, but it is possible.
Why a foreign national mortgage loan can be tricky
Often, cash flow isn’t the concern when you’re looking for a mortgage as a foreign national. With business holdings and personal wealth in their country of origin, there’s an ability to service the loan requirements, many times even for jumbo loans in the millions. Despite sufficient income, getting a loan in the US can prove elusive.
Lack of US credit history
For any lender, one of the main concerns is the risk that a borrower will default on the loan or mortgage. That’s the same for mortgages for foreign nationals, recent immigrants, and US citizens. If your primary residence is outside of the US, it likely means you don’t have a credit profile with the three major credit bureaus – Equifax, Transunion, and Experian.
Without credit history that proves you’ve been trustworthy with money you’ve borrowed in the past, traditional lenders often shy away from approving and funding a mortgage application.
Lower LTV ratio
Purchasing a home in the US as a foreign national requires a down payment, just like it does for residents. However, some of the low-down payment options aren’t readily available, and you may be required to pay a significant chunk of the property’s value as a down payment.
The lower loan-to-value threshold may pose a problem as funds may not be liquid, tied up in business or real estate holdings, or they may still be on foreign soil and tough to transfer into the US.
Documentation isn’t American
It stands to reason that a non-US citizen won’t have the same documentation as a US citizen. Employment history isn’t likely to be considered if it’s from a business outside of the United States, and there won’t be W-2s or tax returns available to show proof of income or historical earnings. It accentuates the risk profile.
MBANC offers Foreign National Mortgage Loans
However, mortgages are possible for foreign nationals that skip the hurdles most major lenders put up. At MBANC, we may be able to service the loan for your home purchase as a non-US citizen, cutting through all the red tape and helping you complete your real estate purchase.
At MBANC, we can fund a mortgage even if you don’t have a Social Security number, a green card, or proof of residency. With LTV ratios up to 70%, no credit score required, and a maximum DTI of 50%, our criteria for foreign national mortgage loans are easy and straightforward.
Investment properties, second homes, multi-unit buildings, and condos are all eligible with flexible terms available, and with loan amounts up to $30 million possible (for qualified applicants).
If you’re looking to find a home in the United States, let us serve you. Contact MBANC today to find out more about our foreign national mortgage solutions.