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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...
2 min read
Ted Spradlin : Jun 12, 2023 8:45:36 AM
In this article, I'll delve into the pros and cons of foreign national loans. These loans offer great benefits for non-U.S. citizens investing in real estate. But they also come with disadvantages for foreign nationals that simply don’t exist for natural citizens of the United States.
Below are some of the benefits and drawbacks that I’ve seen and heard from foreign national borrowers during my more than 20-year mortgage career.
To mitigate the challenges of obtaining a foreign national mortgage, collect and organize all your important documents and label as PDFs to your computer or cloud account so you can quickly send out upon request. You'll of course need identification (driver’s license, visa, passport, etc.). More time-consuming will be collecting your financial documents, including: work authorization; two year’s tax returns (foreign and domestic); most recent paystubs; bank statements; investment account statements; profit & loss documentation, along with a balance sheet if you’re self-employed. Also, inform your banker from your home country that you’re applying for a mortgage in the United States, and that you may need their help verifying your assets and other information.
Conclusion
In this article, I've given an honest accounting of the common pros and cons of foreign national loans in U.S. real estate. I believe the advantages outweigh the disadvantages. You have the opportunity to acquire property in a country where there are established laws that protect the rights of real estate owners. The drawbacks? It'll cost you a little more time and money than for a U.S. citizen.
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