What Are Foreign National Loans?
American citizens looking to purchase a home in the United States can sometimes find it difficult to get approved for a traditional loan. Foreign National Mortgage Loan programs are available from some lenders, and they work like other loans. The biggest difference is that the down payment amounts are typically larger, about 30%.
wishing to avoid a higher down payment?
For those wishing to avoid a higher down payment, a niche lender might offer other solutions. When applying for a mortgage, if you hold something other than US citizenship, other documents might be required to determine what your residency status is.
Lack of Credit History is Typically a Roadblock With Traditional Lenders for Foreign Nationals
One of the hardest parts of obtaining a loan for foreign nationals is that they might not have a credit history in the US. Or if they do, it isn’t substantial enough to qualify for a traditional loan. A specified foreign national loan uses different types of credit and documentation to lend.
Advantages of Foreign National Loans
- Higher debt-to-income ratio than traditional loans
- No W2s, tax returns, or pay stubs necessary
- High loan amounts
- Can be used on primary residences, second residences, and investment property
Disadvantages of Foreign National Loans
- Increased interest rates
- Not offered by most traditional lenders
- Large down payments