Foreign National Loans

A Foreign National Loan is a specialized mortgage program designed specifically for non-U.S. citizens who want to purchase property in the United States. These loans recognize that international buyers have different financial profiles and documentation requirements than U.S. residents. Unlike traditional U.S. mortgages, Foreign National Loans don't require U.S. credit history and accept various forms of international income and asset documentation.

Foreign National Loans are available to non-U.S. citizens without permanent residency in the United States. This includes foreign nationals with valid visas, international business owners, investors, self-employed individuals, and those with no U.S. credit history. Even individuals with recent visa approvals or temporary residency status may qualify, depending on the specific loan program and documentation provided.

You can finance various property types including single-family homes, condominiums, townhouses, and 2-4 unit multi-family properties. Both primary residences (if you plan to live in the U.S. part-time) and investment properties are eligible. However, certain property types like commercial properties, co-ops, or properties requiring extensive renovations may have additional restrictions or require different loan programs.

No, you do NOT need a U.S. credit score to qualify for a Foreign National Loan. These programs are specifically designed for international buyers who lack U.S. credit history. Instead, lenders evaluate your global financial profile through international credit references, banking relationships, income documentation from your home country, and asset verification. Strong international banking relationships and consistent income history can significantly strengthen your application.

The minimum down payment typically ranges from 25-40% of the purchase price, depending on the specific loan program and property type. Some programs offer options as low as 15% down for particularly strong applicants with excellent international credit and substantial reserves. Higher down payments (30%+) may qualify you for better interest rates and more favorable loan terms. The exact requirement depends on your overall financial profile and the property being purchased.

You'll need to provide proof of foreign income, which may include: foreign tax returns (translated to English if necessary), bank statements showing regular income deposits, employment verification letters from your international employer, business financial statements if self-employed, and proof of other income sources like investments or rental properties. All non-English documents must be professionally translated. The lender will convert your income to U.S. dollars using current exchange rates.

Yes, self-employed foreign nationals are absolutely eligible. You'll need to provide business financial documentation such as profit and loss statements, business bank statements, business tax returns (translated if necessary), and proof of business registration. Typically, lenders look for at least two years of self-employment history with consistent or growing income. Some programs may accept one year of self-employment with strong overall financials and substantial reserves.

You'll typically need to provide: 1) Valid passport and visa (if applicable), 2) Proof of foreign income (pay stubs, employment letter, or business financials), 3) Bank statements from your home country (usually 2-6 months), 4) Asset documentation (investment accounts, property deeds), 5) International credit references (if available), and 6) Proof of funds for down payment. Documents not in English will need certified translations. We recommend working with a professional translation service familiar with financial documents.

The Foreign National loan process typically takes 30-45 days from application to closing, which is slightly longer than traditional U.S. loans due to international document verification and potential translation needs. The timeline can vary based on: 1) How quickly you can gather international documents, 2) Whether translation is needed, 3) The complexity of your financial situation, and 4) Property appraisal scheduling. Starting with complete, organized documents can significantly speed up the process.

International fund transfers are common in Foreign National transactions. You'll need to: 1) Work with your international bank to initiate a wire transfer to the U.S. closing agent, 2) Ensure transfers are completed well before closing (allow 5-10 business days), 3) Provide documentation showing the transfer trail from your account to the U.S., and 4) Be aware of any currency conversion needs or transfer limits. We recommend establishing a U.S. bank account early in the process to simplify fund transfers.

Interest rates for Foreign National loans typically range from 7% to 9%, which is 1-3% higher than conventional U.S. mortgage rates. The exact rate depends on several factors: 1) Down payment amount (higher down payments often secure better rates), 2) Loan-to-value ratio, 3) Property type (primary residence vs. investment), 4) Your global financial strength, and 5) Current market conditions. While rates are higher than conventional loans, they're competitive within the international lending market.

Most Foreign National loans do NOT have prepayment penalties, allowing you to refinance or pay off the loan early without fees. However, some portfolio lenders may include prepayment penalties (typically 1-3 years at 1-5% of the loan amount) to protect their investment. Always ask about prepayment penalties before closing. If your goal is to refinance to conventional financing within 2-3 years, ensure your Foreign National loan has no prepayment penalty.

Absolutely! Many international buyers use Foreign National loans as an entry point, then refinance to conventional U.S. loans once they establish U.S. credit history. Typically, after 2-3 years of timely mortgage payments (which helps build U.S. credit), maintaining a good international credit profile, and potentially establishing other U.S. credit accounts, you may qualify for conventional refinancing with lower rates. The equity built in your property and improved U.S. credit profile can help you secure better terms.

In addition to the down payment and closing costs (typically 2-5% of the loan amount), you should budget for: 1) Professional translation services for non-English documents, 2) International wire transfer fees, 3) Currency exchange costs if transferring funds in a different currency, 4) U.S. property taxes and insurance (often required in escrow), 5) Possible higher interest rates than conventional loans, and 6) Potential need for additional reserves (3-6 months of mortgage payments).