Can Foreigners Apply for a Mortgage Loan in the US

Foreigner Apply for a US Mortgage Loan

Every year there are thousands of non-US based foreign nationals that purchase an investment property in the United States. Many other international investors may have wanted to although the lack of financing options may have halted their plans.

Mortgage lenders sometimes refuse to finance real estate deals outside their home country blocking the investor’s American dream. Financing in the American real estate market for foreign nationals could have been difficult, costly, and at times unavailable.

As the years have advanced, new options and opportunities to receive a mortgage loan have opened up. Home loans in the USA for foreigners can still be demanding at times but there are several factors that can help. This can assist investors reach their dream of owning a property in the United States and make property more accessible.

There are a few basic factors that can make your US mortgage loan application successful even if you are a foreigner. 

A Solid Credit History

A good credit report and a solid track record of positive credit history can do a lot of good with lenders. The higher your credit score is, the more likely your loan application will be approved. Even then some lenders in the USA may be skeptical of a foreign credit report.

Typically, they may ask for additional documentation and information including bank statements from your local banking authority. This is the first step in getting approved for a home loan in the USA.

Property in Your Home Country

Owning a property in your home country can make a difference when applying for a mortgage loan in the USA. This is especially true if the property has been considered to have a high resale value. While US banking authorities may still view overseas properties with some skepticism, it does increase the chances of a foreign national mortgage loan getting approved.

A Stable Source of Income

A reliable source of income is key for a mortgage provider to consider an application. The source of funds can vary, as long as it is stable and shows the investor can afford the monthly payments it should suffice. This can include a salary pay-slips, a fixed deposit, monthly returns from investments, and retirement funds. Even with a stable source of income and a strong credit history, some mortgage lenders in the USA may be wary of international investors.

Your Personal Demographic Data

Age tends to play a big part for many lenders and financial institutions. Typically a mortgage broker is more likely to approve a loan application for a younger applicant than an older one. 

Mortgage applicants over the age of 50 may face even more difficulties, even if they are permanent residents. You may want to shorten the mortgage period  and consider a larger down payment to get approved if you are over 50.

Mortgage Down Payment

Down payments are a big part of getting a mortgage approved in the United States. While the requirements tend to be lower in America than other parts of the world, it is a big factor for lenders. 

The average down payment in the USA tends to be 12% of the borrower’s loan value. This can vary based on credit scores, however. Non residents may want to consider a larger down payment amount relative to the loan amount when purchasing an investment property in the US. A higher down payment also tends to lead to lower monthly mortgage payments.

Geographic Location

The location of the asset may play a part in getting a mortgage approved. Most lenders require a connection to a main road essential to even applying for a mortgage.

Typically the closer the property is to an urban hub the better. It will increase the chances a lender or financial institution will approve a mortgage. This is because the volume of real estate deals tends to be  higher in urban and suburban areas as opposed to rural ones. This lowers the risk from the side of the lender and increases a real estate investor’s chances of approval.

Purchase Price & Type of Asset

The purchase price and type of a real estate asset may play a part in getting approved for a mortgage. Certain types of properties such as mobile homes, prefabricated homes, and tiny-houses may face lower approval rates for home loans or mortgages by lenders.

Additionally properties with a low market value may also face extra scrutiny by mortgage providers. The general minimum market value of a property required to obtain a standard mortgage by most providers tends to hover around $100,000.

Avoid impasses, hire professional mortgage lenders

Mortgage lenders such as quickly and efficiently process your application. The initial steps are almost automatic and take place seamlessly. Further down the line, our consultants use insider information to find the best loans for you. They also assist you in making your application strong and formidable.

To apply for a mortgage loan for foreigners, contact us today and we will be glad to make your dreams come true.

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