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What are the Down Payments for Foreign National Mortgage Loans?
This article discusses the down payments required across the spectrum of loans used by non-U.S. citizens to finance residential real estate in the...
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Ted Spradlin : Jun 12, 2023 10:30:00 AM
Interest rates on a foreign national mortgage depend on a number of factors, including the lender, the type of loan, the borrower’s credit score (or lack thereof), and the amount of the down payment.
The general rule of thumb is to expect that interest rates will be approximately 1.00% higher on a foreign national mortgage than that for a natural U.S. citizen. In general, interest rates for foreign national mortgage loans are 0.875% to 1.00% higher than interest rates for loans to U.S. citizens.
There are several reasons foreign national mortgage loans have higher interest rates:
When applying for financing, expect the interest rates on a foreign national mortgage to be approximately 1.00% higher than for U.S. citizens. Lenders underwrite foreign national mortgages by factoring in the added risks listed above that could impact the future loan performance. Mortgage companies use the interest rate to price the credit risk for foreign national borrowers.
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