FOREIGN NATIONAL LOANS

Obtaining a loan for a real estate in USA for Foreign Borrowers

Mortgages are approved for terms up to 30 years. It usually takes from 30 to 45 days to close. In order to obtain a mortgage – 35% down payment of the purchase price typically is required. Mortgages may also be issued to a U.S. Corporation or LLC as well as to an individual.

Items required to obtain a mortgage loan

• An account with an American Banking Institution with sufficient funds for the down payment and closing costs. Foreign bank account acceptable for Reserve requirements.
• A recommendation letter from your bank, it is required that your account is open at least two years.

• Borrower must have sufficient funds in their home country relative to their income.
• A letter indicating your income should be provided from the following: (1) if you are a self-employed business owner, a letter from an independent accountant or auditor that is not related to your business in any way.

• Additionally, it would be advantageous if the business has an Internet web page; if you do not have a web site then it will be necessary to provide company marketing material such as brochures or catalogs. (2) If you are an employee, a letter from your employer is required.

• You will also need to provide copies of utility bills from your country which indicate your name and address of your residence. For example: rent, telephone, water, electric or gas bill.

• Prior to processing your mortgage loan file, it will be necessary to pay for the cost of an appraisal (Property Evaluation), document translation to English if necessary. This will cost between $350 and $1500 depending upon the purchase price of the property.

Frequently Asked Questions

1. What is a foreign national mortgage loan?
   These loans offer buyers who meet the legal definition of a bona fide “foreign national” the opportunity tofinance real estate in the United States.
2. Who is eligible for a foreign national mortgage loan?
   A foreign national is defined as someone who lives in another country and visits the United States for brief periods for business or vacation. In order to be eligible, you have to be a legal resident of another country and live and work there.
3. Do I need a green card?
   No, a green card is not required. You will need a valid foreign passport and may need a visa (depending on your country of origin).
4. What if I have a temporary work visa in the U.S.?
   That’s okay!
5. Will I be able to get U.S. credit?
   Simply yes; because U.S. banks automatically report all mortgage payments made to the three largest credit reporting agencies you will automatically establish U.S. credit even though you do not have a U.S. social security number. Congratulations!
6. How much will I have to pay as a down payment?
   Down payment requirements range between 30% and 40%.
7. What are reserve requirements?
   Reserve requirements refer to the additional amount of funds above the down payment and transactional costs that a Foreign National investor must have in a US bank in order to qualify for a mortgage. The amount of reserves required varies on the particular program. A good rule of thumb is 12 months of mortgage payments plus tax and insurance payments in addition to your down payment and closing costs.
   Please note: THESE FUNDS ONLY NEED TO BE KEPT IN RESERVE UNTIL YOU CLOSE; THE NEXT DAY YOU MAY USE THESE FUNDS ANY WAY YOU WISH.