Non-US Resident Mortgage Loan: Your Ultimate Guide

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Non-US Resident Mortgage Loan: Your Ultimate Guide

There is a common misconception about buying houses in the US. People falsely believe that you can purchase a property only if you are a US resident.

Well, non-US residents can also buy a property through a Non-US resident mortgage loan. It is a type of loan a resident without permanent residency can apply for and buy a propertyOf course, there are various elements to consider before you can get such a loan. Non-US resident mortgage loan: your ultimate guide.

Defining Non-Us Resident Status

Defining Non-Us Resident Status

Before you do anything, you need to know your residential status. Even if there is a broad classification of non-US residents, they differ. For example, you may fall into the category of non-US resident even with several documents that refer to your residency. However, you may also fall in the same category, even with a work VISA.  Here an immigrant lawyer and mortgage brokers are your best friends. Consider paying them as a part of the total cost of the property purchase. 

Non-US Resident With Documents 

The difference between non-US residents with documents is that they are in a better position. The whole point of having documents as a non-resident is the proof of wishing to become a permanent resident. The documents you want to get are: 

  • Work VISA 
  • Green Card 
  • Work permit of any type 
  • Social security number 

Among these documents, you want to get your social security number first. Then, supplement it with either a VISA or a Green card. With that, you have a higher chance of getting a mortgage loan and buying a property. 

Non-US Resident Without Documents 

Non-US residents without documents refer to residents that are in similar status to people on vacation. Their intention of staying in the country is unclear and lacks any proof of commitment. 

When loan lenders and mortgage services look at that, they are reluctant to issue a loan. The reason for this is obvious since they have no way to ascertain you will return the loan. Of course, there are several ways to bypass this hurdle. 

But, if you are serious about buying a home, ensure that you get at least a work permit and a social security number. With that, you can move on to the core issue of getting a mortgage loan for your purchase.  

Credit History and Credit Score 

Credit History and Credit Score

A credit score is the heart of any financial move you want to make. A good credit score opens up the path for better deals and deals that lead to wealth. Even as a person living outside of the States, you are not exempt from having a credit score. 

There are several factors to consider when looking at the credit score of foreign nationals. Luckily, all of them are available through your credit reports.    

Credit History

Lenders want to know about your credit history. Credit history is a set of documents or reports that showcases your past credit score. 

In those documents, lenders and brokers want to look at: 

  • Debt-to-income ratio
  • Number of credit accounts 
  • Income statements 
  • Payment consistency 

In essence, they want to know whether or not you could clear debt and remain debt-free in the past.  

Current Credit Score 

Then, they want to look at your credit score. As a foreign national or person with semi-residency, the higher the credit score, the better. As a non-resident, you need a higher credit score than a regular resident. 

For example, a resident may get a conventional loan with a credit score of 500. However, for a non-resident to get the same loan, they need a higher credit score and additional financial security.  

Proof of Employment 

For the final proof of your credit score, you need proof of employment. Usually, that is proof that you are working on American soil with an American employer. 

The best thing here is that an American employer has to issue you a work permit. At least, they have to provide you with a document of some sort to pay taxes and legally operate. Make sure that you have a work permit before you do anything.  With your credit score in check, you may proceed to work on the mortgage loan.  

Non-Us Resident Mortgage Loan

Non-Us Resident Mortgage Loan

To apply for the non-US resident mortgage loan, you want to find a mortgage broker first. When you find a mortgage broker, supplement the following documents: 

  • Proof of income
  • Proof of assets 
  • Residency proof (Necessary documents) 

With that, a mortgage broker can find an optimal mortgage loan to help you buy a property.  

Proof of Income 

Proof of income is a part of the credit score report that states that you can pay off a mortgage debt. It lists all streams of income that you have. Mortgage brokers use it to consider whether or not it is viable to pay off the property in 30 years. 

Again, you want a higher income rate to get the loan. Still, you can make it with a regular job and a few benefits. Here, having any assets is crucial for loan approval.  

Proof of Assets 

Assets may include other properties, savings accounts, a financial portfolio of sorts, and other assets. In this case, an asset may be in another country and still count as an asset. It should help to show that you have something to leverage for the mortgage loan. 

Here, having a savings account and money for a downpayment is crucial. Even before you get a mortgage broker, make sure that you have at least six months’ worth of mortgage loan money.  

Necessary Documents

These documents refer to residency documents. Even with the documents, there is no guarantee you are getting a loan. But, they do significantly increase the chance of getting loan approval. 

The best document to have is a Green card. So work on getting one, if not, consult with a mortgage broker to get another proof of residency.  

Types of Non-Us resident Mortgage Loans  

There are 3 types of loans you can look for as an immigrant. These are FHA loans, conventional loans, and jumbo loans. 

FHA loans are the easiest to get and require the least down payment. They are the first choice for non-residents with a good credit score. The downside of FHA loans is that they require you to pay mortgage insurance roughly for 10-11 years. That adds in additional costs over the years. 

Conventional loans are a tad harder to get but are more affordable in the long run. They do require more documentation and proof but offer a better paying structure. Apply for only 2 years of residency, proof of employment, and a good credit score. 

Jumbo loans are hard to get for non-residents. These loans allow you to borrow over $500.000 (usually more than $850.000). Yet, these loans require that you are at least 5 years in the states, and have a recorded employment history of at least 3 years. And, you need to pay a down payment of 30% of the property value.  

Developing a Purchase Plan 

Developing a Purchase Plan

With everything set, prepare the purchase plan. At this stage, you look at the facts and your financial situation to make your choice. 

When you reach this point, you can only work on your credit score. Everything else is upon the mortgage broker and your combined ability to find the right property. 

Duration of Residency 

The common recommendation is to apply for a mortgage loan with at least 2 years of documented residency. Anything less than that lowers your chances of getting a loan. 

If possible, wait until you are at least 3 years in the States before applying for the loan. By that time, you can apply and get several documents as proof of residency. 

So, if you want to come, work, and live in the US, plan. And, start by planning your finances first.  

Work on Credit Score 

The credit score is your financial priority. You can calculate anything through credit reports. Even more so when you want to move to another country. Stay aware that credit score and credit score calculations differ from country to country. 

Each country has its set of metrics to measure a credit score. Before you move to the US check for those differences. Calculate your credit score by American standards. Then, clear out all debt you may have in your home country. 

With a clean slate and reasonable income, move to the States and start building your credit score there. That is what you should do in the ideal scenario. 

Finances and people’s lives come with many peculiarities and hardships. Take those into the account and find the best solution for your particular scenario. Then, it is time to look for properties.  

Find a Property

Before looking at properties consult with a mortgage broker first. They can help you get a clear understanding of your purchase power and options. You may approach a mortgage broker with an idea of what you want to buy. 

In reality, you may not qualify for such a loan, and therefore such a purchase. If possible, do a financial projection and try to evaluate your credit score for the next few years. Then, find out what type of loan you can apply for and possibly get. 

Now that you know what kind of loan you can get, look for properties that fit that loan. From there, check the properties and complete the purchase 

Buy a Home as Non-US Resident 

Certainly, buying a home as a non-US resident is quite a hassle. It takes a lot of preparation and paperwork. But, it is far from an unachievable feat. 

Additionally, you can speed up the process by getting a professional mortgage broker. With them to guide you through the process, everything becomes a better bargain. 

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