Foreign National Mortgage: Everything You Must Know

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—as per the National Association of REALTORS®, 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 mortgages—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 Florida (or in any other part of 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 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:

Passport

Foreign Bank Reference Letter

Tax Identification Number

U.S Bank Account

Proof of asset’s that is verified by a reputed financial institution

While international buyers may pay a higher interest rate when compared with that paid by U.S. residents, historically larger down payments and lower interest rates imply that a borrower may get mortgages with annual interest rates that are still below 5 percent.

For this reason, getting foreign national loans is one of the best options for international real estate buyers in the U.S. (Note: 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.)

For more information visit

http://www.parkwestcapital.com/commercial-real-estate-loans-for-foreign-nationals/