Loans for Foreign Nationals
The question comes up, more often than not, if we can do loans for a person who is not a naturalized citizen of the United States in which they live, also known as a foreign national? For many owning real estate is a part of the “American Dream” and foreign nationals want to partake in that dream but fear their status makes them ineligible to get a mortgage loan.
It is probably due to the lack of financing available for deals that fall outside the box that the bank loans must fit into.
The main issue to getting any bank mortgage for a foreign national is proving to the bank that you are worthy of taking a risk on. That typically means providing certain documentation. Such as your employment history, credit report and proof of income. For U.S. citizens, this is a pretty easy process, because most have obtained and built credit starting from a young age and have years of w-2’s and tax returns.
You can see how providing this documentation can present problems for someone who hasn’t been in the country all that long or doesn’t live in the U.S. most of the time. For example, how do you prove to a United States mortgage bank that you have good credit, or credit at all, if you don’t have a credit report from Equifax, TransUnion and Experian, the 3 companies that lenders use to assess your credit worthiness?
You have an advantage if you have an existing relationship with an international bank with branches in the U.S. It will have a record of your finances already, so it may be more willing to take a bet on you, even without an American credit report. Fortunately, the mortgage industry is dominated by large, global banks, so there’s a good chance you’ve had accounts with one of them in the past.
Also, some lenders may be willing to order international credit reports as a substitute for the three major U.S. bureaus. However, this can be an expensive process.
The fact is that there are a lot of people who have money and want to invest in real estate when it is at or near the bottom of the market and you have a need for things like providing foreign national loans.
Now to answer the question, yes, we can do loans for foreign nationals as long as the rest of the deal makes sense. This goes for anyone who either doesn’t have a social security number or who doesn’t have any credit at all.
As full disclosure, anyone who gets a loan must be able to provide identification that complies with the Patriot Act:
At least two (2) forms of identifying documents for review; at least one (1) of the identifying documents must be an unexpired government-issued document bearing a photograph f the named individual. Other identifying documents not specifically listed below must, at a minimum, bear the individual’s name. Examples of other acceptable identifying documents include:
Current government issued visa, medicare card, student identification card, voter registration card, recent property tax or utility bill, most recent w-2 or signed federal or state tax returns, bank statements, and proof of car/house/renters insurance coverage.
Don’t worry about learning all the requirements yourself. You can always contact us and we can help you figure out if you or your client have the documentation needed. Most people do.