Everyone dreams of owning their own home. While the process is complex and often daunting for the average American citizen, the challenges are often greater for non US citizens. This is where foreign national loans come in to save the day. These loans are intended to give non US citizens opportunities that were previously only afforded to locals.
What are Foreign National Loans?
Foreign national loans are home or mortgage loans for foreigners. These loans apply to foreigners who have not acquired US citizenship, are aliens or have work permits. Self employed foreigners may also qualify for these loans. Contrary to popular belief, not all foreign national loans have high down payment requirements and most financial organizations that are offering these loans offer competitive rates. The amount that the foreigner will qualify for all depends on the financial institution from which they are taking out the loan. While some companies may choose to offer up to 90% financing, others may vary between 50 to 80%.
The Process of Qualifying for a Foreign National Loan
You will first need to complete an application form (also referred to as a 1003) with the financial organization from which you wish to borrow. This will consist of several sections. Next, you will need to confirm employment. This step still applies if you are self employed and requires a letter from the employer verifying employment. You will then need to provide proof of assets. This is done to verify that you do indeed have the down payment. The bank or institute will most probably ask you for bank statements to confirm. Verification of identity is what you will have to provide, next. This can be in the form of a passport, visa and also a business card. You will be asked for credit references. Some institutes may ask for a credit reference from an existing loan, insurance policy or credit card that you may have. In other cases, you will be asked for an international credit report. If you are buying a house, you should also be able to produce the purchase contract. A checking account is usually requested and in most cases, you will have to open one with the lending company. You will then have an auto-debit for your installments going off this account, regularly. The last step will be the signing of loan documents. Once you have completed and submitted all supporting documentation, you should expect to wait between 30 to 45 days for your foreign national loan to come through.
It is also possible for foreigners who do not reside in the US to qualify for these loans. Some people choose to buy property for investment purposes and not necessarily to live in it themselves. These individuals do not have to be in the country during the closing of the transaction. They are free to elect a representative with power of attorney and this person may proceed with the next steps on their behalf.
Although, local banks grant foreign national loans to many foreigners, they do require a previous long term relationship with the bank. In cases where the foreigner has no previous relationship with the lender, they are required to hold a $100 000 deposit with the lender.
Everyone may now live the American dream. There are a variety of banks, financial organizations and lenders that are willing to go the extra mile to see that you have the joy of owning your own home. Interest rates are reasonably priced and repayments options are flexible, so you can rest assured that you are making the right choice for both yourself and your family.