Where To Find Property Loans For Foreign Nationals
Property loans for foreign nationals might be easier to get than they have in years, but where is the best place to get them from?
As with investment property loans, foreign national mortgage has become increasingly easier to obtain. Some may even complain that in some ways loans are easier to obtain for investors and foreign nationals that other home buyers and owners. What has held most back is not knowing where to look, or what to expect from property loans for foreign nationals.
Categories of Foreign National Mortgage:
There are three main categories of financing sources for foreign nationals wishing to purchase or refinance properties in the United States.
- Financing abroad in the home country of the individual
- International brokers located in a third country
- Mortgage financing on the ground from US based mortgage lenders
The one advantage of financing abroad is that some borrowers may be able to leverage equity in their overseas properties. Although this could be accomplished by a separate cash out refinance, and then using cash to apply to a US property purchase. International mortgage brokers may be handy for financing properties in the Caribbean or other locales where there isn’t a large local mortgage marketplace. However, today most foreign nationals will likely find the best foreign national mortgage deals from US based lenders who are familiar with the local market.
Most US banks, mortgage lenders, and brokers have purchase mortgage and refinance property loans for foreign nationals. Most are highly competitive with conventional loans for American citizens.
The differences in terms and qualification processes are generally divided by the loan purpose and status of the individual. For example; is this a primary residence, second home, or investment property? Is the borrower a permanent resident, on a temporary visa, or simply investing from abroad? For some investing in US property can be a path to progressing their residency status too.
While there are international credit reports, some documents may need to be translated, and global information sharing is becoming easier, foreign nationals can benefit from the divide. Often they are subject to less grilling and documentation due to their status.
In summary; it may be far easier to finance property in the US than most expect. Still it is important to talk to a mortgage loan officer or broker and find out how the process may be different here and what to expect from loans for foreign nationals in order to enjoy a smooth transaction.