Foreign National Loans

Foreign National Loans: Buying or Refinancing a Property in the United States as a Non-U.S. Citizen

Foreign National Loans enable non-U.S. citizens to purchase or refinance property in the United States, even if they lack a U.S. credit history, income documentation, or a Social Security number. At Gustan Cho Associates, we help foreign national borrowers qualify by using alternative paperwork and flexible guidelines, especially when traditional banks are unable to help.

The team at Gustan Cho Associates guide borrowers of Foreign National Loans through every step of the loan process: From the loan application to processing and underwriting, conditional loan approval, clear to close, and to the finish line: The Closing.

Borrowers will be involved in the mortgage process. The loan officer and staff members will explain the process, eligibility, and timelines in simple terms. Our support helps you make informed choices as you consider your loan options.  In the following paragraphs, we will cover Foreign National Loans,

What Are Foreign National Loans?

Foreign national loans is a type of non-QM mortgage designed for non-U.S. citizens who may reside abroad or have limited financial history in the United States. As more people from other countries look to buy U.S. real estate, many banks have not adjusted their requirements, so it is essential for foreign nationals to work with lenders who understand their unique situation.
Lenders assess risk in various ways.

Many lenders of Foreign National Loans will accept foreign credit references, international bank statements, proof of assets, and a larger down payment instead of relying solely on U.S. credit scores and tax documents.

The process for a foreign national loan includes applying, underwriting, approval, and closing. For these loans, lenders focus more on your assets, down payment, and ability to repay than on your credit history. Most foreign national borrowers obtain loans for a primary residence or for investment purposes. Some non-U.S. citizens buy homes to live in during work, family visits, or longer stays in the United States.

Can Work Visa Holders in The U.S. Get Approved For Foreign National Loans?

Can non-permanent investors of the United States, foreign national students, and foreign nationals with work visas qualify and get approved for Foreign National Loans? The answer is YES.  Foreign National Loans may require additional paperwork, and approval often depends on the property type, your intended use, and your financial reserves.

Lenders of Foreign National Loans will take the down payment, reserves, and the subject property cash flow, and use alternative non-traditional means in calculating the borrower’s income and debt-to-income ratio.

Eligible borrowers include non-U.S. citizens living abroad, non-permanent residents without a green card, people without a U.S. Social Security number, and international real estate investors. You can still qualify to buy property even if you do not have a U.S. credit report. Foreign National Loans is popular among foreign nationals who are real estate investors. Many foreign nationals have the knowledge, means, experience, and capital to pull the trigger on investing in investment properties. Gustan Cho Associates get many inquiries by foreign nationals inquiring the eligibility requirements and guidelines on Foreign National Loans.  Among the properties of choice are single-family homes, condos, and small multifamily buildings.

Non-Permanent Resident Without a Green Card

Borrowers are outside the U.S. on a visa, while others frequently travel back and forth. Depending on the loan program, you may need to provide specific documents. Your identity and paperwork must meet the program’s guidelines. Many foreign investors can qualify by making a larger down payment and showing strong reserves, even if all their income is earned abroad. National mortgage programs vary, but here are some of the most common underwriting categories:

Required Down Payment on Foreign National Loans

Foreign national loans typically require a larger down payment than standard loans. The amount depends on the property, loan size, and your profile. Lenders prefer borrowers with more equity because it lowers risk and makes approval more likely, especially if you have little or no U.S. credit history.

You will likely need to provide:

• Bank Statements (Any country)
• Liquid reserves after closing (additional remaining funds)
• Source of down payment (to show your funds are legitimate and traceable), so lenders can confirm your assets are available and have been in your account for a while.

Credit Requirements for Foreign National Loans

Most foreign national borrowers do not have a regular U.S. credit file. Depending on the loan program, lenders may accept the following:

• U.S. Credit Report, if available
• International Credit Report, if available

Other Credit References such as:

• Letters of reference from a bank
• Payment history for utilities or telecommunications (where accepted) that can be verified, your approval will depend on strong collateral and healthy reserves.
• Now, let’s look at the income documentation you’ll need as a foreign national borrower.
• This may include income verification for foreign employment or business.
• Bank statement income analysis (where applicable).
• High-net-worth borrowers’ assets.
• Rental income (especially for loans for investment properties).

What Are Mortgage Underwriters Looking For on Foreign National Loans

First and foremost, every lender has their own rules, regulations, and policies they have put in place to ensure the mortgage loan process meets local, state, and federal guidelines and law. There are internal as well as third party national public records search verification agencies to cross check information and data received by all during the intake and preparation step of the loan process. Bottom line is each lender streamlines the process to avoid any potential of fraud (Whether it is a mistake or it is intentional). The primary goal is to demonstrate that you can repay the loan by providing clear proof of your income.

Document verification typically includes:

• Valid passport.
• Applicable visa.
• Other secondary identification.
• Proof of foreign country address.

Documents Required on Foreign National Loans

If your documents are not in English, you will need to provide a certified translation. Certain property types, such as condominiums (especially condo hotels), may be restricted or subject to stricter policies under foreign national programs.

What Type of Properties Are Eligible on Foreign National Loans

• Unique or rural properties.
• Multi-unit properties.
• Properties with short-term rentals (Airbnb/VRBO), depending on program policies.
• The property you choose affects your eligibility and loan pricing.
• For foreign national loans, staying organized and following a clear process is important.

Down Payment Requirements on Foreign National Loans

• The amount of down payment depends on the property type
• The down payment required is a percentage of the down payment and the difference between the purchase price and loan amount
• Type and location of the property
• Borrower profile (country of residence, accessibility of documents)

Getting Qualified and Pre-Approved

The mortgage loan originator will work with a processor in going over the following to prepare your mortgage loan application and documents for the mortgage loan underwriter to get you approved; This step helps you avoid wasting time and ensures you are a good fit for the foreign national loan program.2: Document Collection and Strat. Foreign national loans depend on clear documentation.

We help you prepare a complete package that usually includes::

• Passport and ID
• Bank statements and proof of funds
• Credit,  credit references or credit report (if applicable)
• Income documentation (if applicable)
• Asset and liability verification
• Purchase contract (if you’ve already located a property)

Intake and Loan Application and Disclosure Process

Once your documents are ready, we begin processing your mortgage application, verify all requirements, and send out the necessary disclosures.

At this stage, you will also make important decisions such as:

• Choosing between a fixed or adjustable rate (if applicable)
• Selecting an interest-only option (if the program allows)
• Determining reserve strategy and calculating closing costs

Underwriting and Conditional Approval

Underwriting reviews your full profile and then may issue conditions. This is a normal part of the process and can include:

• Additional bank pages or explanations of transactions
• Updated proof of funds (if applicable)
• Clarifying letters for large deposits
• Verification of overseas employment or assets

Underwriting The Property: Appraisal and Title Work

• The mortgage underwriter will be underwriting the property.
• Underwriting will go over and review the appraisal checks the value and condition of the property.
• A title search examines the ownership history to ensure the transfer is free from legal issues.
• These steps occur simultaneously with underwriting to ensure a smooth process.

Clearing Conditions, Clear to Close, and Scheduling The Closing

When it comes to closing, there is more flexibility for overseas clients. Remote notarization is common if allowed, as are mobile notaries and couriered closing packages. We manage the closing process with title and escrow to ensure it goes smoothly, even if you are not in the United States.

The timeframes for qualification, approval, and closing a foreign national loan can vary widely depending on how prepared you are with your documents, the complexity of the property, and how quickly the appraisal is completed.

Each individual borrower and their mortgage loan application differs, There are many factors that can impact the closing date including but not limited to the individual borrower, the property, title, verification, clearing conditions, and issues and/or conditions that is dependent of the seller.

The following is the typical timeline on the closing process:

• Elements and ID ready, the process is simple and quick, mostly involving the review and verification of your documents.
• Approval can take longer if documents are provided slowly or if your file is more complex and needs extra paperwork.
• If translations or international checks are required, the process may take even longer. Well-organized borrowers with simple properties can close foreign national loans quickly.
• Fast closings depend on timely appraisals, title work, and gathering all final details.
• The more complete your file is, the faster it will be reviewed and closed.

Quality Control & Final Review Process on Foreign National Mortgages

The team at Gustan Cho Associates and its subsidiaries are experts in the mortgage application, processing, underwriting , and closing of Foreign National Loans. All of the potential qualification, eligibility, guidelines, potential issues we may encounter, and tentative closing has been looked at and signed off during the loan application step of the mortgage process.

The second step of the process on all Foreign National Loans is the Quality Control and Final Compliance Review, which is everything that has been signed off along the process is getting a second and final review so nothing has been overlooked.

A senior underwriting manager is the person responsible the clearance of the final review. Potential minor issues discovered is normally easily cleared. In the next few paragraphs, we will cover common typical attention is focused by the Quality Control and Review Underwriter and/or Specialist.

Quality Control and Final Review Prior to Clear To Close

If you do not have a U.S. credit score, we use alternative methods in determining your credit profile and risk tolerance. In the majority of cases, the underwriter builds your file around your assets, reserves, and other reliable asset based references.

Lenders use standard ways to convert balances into U.S. dollars. We help organize your documents so underwriters can easily check your balances.

The strength of the borrower is determined by underwriting each individual borrower based on their personal assets, the type of property and equity the lender is funding, and all second party verification and/or certification both the individual and property being financed is compliant and meets and passes proper protocols to insure both the property owner/borrower and the lender.

Comparison of Traditional Mortgage vs Foreign National Loans

Foreign national borrowers who own businesses abroad may need to provide additional documentation. We help organize income and business documents to complete your application package. USA

• International mortgage for U.S. property
• ITIN mortgage loans
• foreign national investment property loan
• non-QM foreign national loan
• U.S. mortgage for non-U.S. citizens
• mortgage without U.S. credit
• DSCR loan for foreign nationals
• foreign national refinancing

The Optimal Choice Foreign national loans require a lender who understands non-QM guidelines, alternative documentation, and can solve problems quickly. At Gustan Cho Associates, we are proud to get approvals that other lenders often cannot, especially for borrowers with unique profiles, foreign income, or non-standard documentation. If you told “no” because you do not have U.S. credit, have not filed U.S. tax returns, or your income comes from outside the country, we can likely help you.

Frequently Asked Questions People Ask About Foreign National Loans

If I Am Not a U.S. Citizen, Can I Get a U.S. Mortgage?

• Yes. Many lenders offer foreign national mortgage programs that let non-U.S. citizens buy or refinance U.S. property using alternative documentation.

Do I Need a Social Security Number to Qualify?

• No, you do not need a Social Security number for some programs. Some lenders allow you to apply without one, while others may require an ITIN, depending on the loan you choose.

Can Foreign Nationals Buy Investment Property in The U.S.?

• Yes, foreign nationals can obtain an investment property loan, which is commonly used for long-term rentals.
• Eligibility depends on your down payment, property type, and reserves.

Do I Need U.S. Credit History For Foreign National Loans?

• Not for all programs. Some do not require a U.S. credit history to qualify, and others can accept alternative credit references or focus only on your main assets and reserves.

What Down Payment is Required For Foreign National Loans?

• Down payment requirements vary, but for foreign national loans, they are usually higher than for conventional loans.

Can I Refinance a U.S. Property as a Foreign National?

• Yes, foreign nationals who meet the equity, documentation, and program requirements can qualify for refinance loans. efinance loans.

How Do Lenders Verify Income

• Overseas income can be verified with foreign employer documents, asset verification, or bank statements.ank statements.

Can I Close if I Am Outside The United States?

• Yes, you can close even if you are outside the United States.
• Most closings can be completed using remote signing or mobile notaries as needed.

Are Foreign National Loans The Same As Non-QM Loans?

• Most foreign national mortgage programs are considered Non-QM because they use alternative documentation and guidelines that differ from traditional agency lending.

What is The Fastest Way to Get Approved For Foreign National Loans?

• Having clear documentation helps expedite the underwriting process.
• Please have your passport or ID, bank statements, proof of down payment, and any available credit references ready for quick processing.

Get Pre-Qualified for a Foreign National Loan With Gustan Cho Associates

If you are a non-U.S. citizen looking to buy or refinance U.S. real estate, Gustan Cho Associates can help you find the foreign national mortgage options that fit your needs, whether you are buying a vacation home, relocating, or building a U.S. investment portfolio.
We will discuss your needs and recommend the best plan to help you qualify, get approved, and close your foreign national loan quickly and efficiently.