Foreign National Mortgage Guidelines On Home Purchases

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This BLOG On Foreign National Mortgage Guidelines On Home Purchases Was PUBLISHED On March 23rd, 2019

Gustan Cho Associates offers Foreign National Home Loans for owner occupant homes and investment properties.

  • Foreign National Loans are non-conforming loans
  • The borrower’s ability to repay is taken into account on each mortgage file
  • Every loan may be unique so every loan is underwritten on a case by case scenario
  • There are exemptions that are allowed on each loan scenario
  • Compensating factors is taken into account when mortgage underwriters need to take exemptions into considerations
  • There are two types of  Foreign National Loan Programs for non-residents
  • Full documentation and asset-based mortgages

In this blog, we will discuss the various Foreign National Mortgage Loan Programs we have available at Gustan Cho Associates Mortgage Group.

Types Of Foreign National Mortgage Programs

There two types of foreign national mortgage loan program.

  • The first foreign national mortgage program is the full documentation program
  • The second foreign national mortgage program is the asset-based foreign national mortgage program
  • Income and employment are not required on the asset-based program
  • Debt to income ratio is not taken into consideration with the asset-based foreign national mortgage program

One of our loan programs is borrowers putting 25% down payment on investment property, no credit scores and no income is required. They are for investment property loans only.

Full Documentation Foreign National Mortgage Guidelines

There are two types of full doc foreign national loans.

  • The first type is for a foreign national working for a U.S. Company and/or its subsidiary working in the United States
  • The foreign national can purchase a home in the United States if they are working full time and are working towards getting their green card
  • No credit score requirements
  • Need to put 20% down payment
  • Can purchase a single-family home, townhouse, condo, or two to four unit multi-family
  • The second loan program is for someone who has a primary residence in another country and wants to purchase a vacation home and/or rental unit in the United States

The borrower will be a legal resident of another country. No credit scores are required. Loans up to $3 million. Loans over $3 million can be down with additional down payment.

Down Payment Requirements

Our portfolio loan programs require a 20% to 25% down payment. Funds need to be sourced and seasoned for 60 days. One year reserves on the subject property and all other financed real estate properties are required. Borrowers can use liquid investment accounts such as securities and retirement accounts for down payment and reserves. 1031 tax exchange funds are allowed for the down payment on investment properties.
 A copy of the Wall Street Journal’s conversion table is required when converting foreign funds to U.S. dollars.

  • Checking, savings, and money market account – 100% cash value can be used as qualified funds
  • Public stocks and bonds – 90% cash value can be used as qualified funds on stocks, bonds, and mutual funds
  • 80% of the cash value on retirement accounts can be used as qualified funds

Borrower Eligibility Requirements

Here are the borrower’s eligibility requirements on Foreign National Mortgage Loans:

  • Need a valid passport, visa, work visa, visitor visa
  • The borrower needs to be from a country participating in the VISA Waiver Program
  • WVP is not required to provide a VISA
  • No prior landlord experience required on second/vacation homes, and investment properties
  • For Canadian and Mexican borrowers, the following is acceptable and allowed:
    • A laser VISA card.
    • NAFTA treaty VISA
    • IRS form W-8 Ben certificate with foreign status needs to be filed with the Internal Revenue Service

Foreign real estate investors puting 25% down payment on an investment property that does not require income, credit scores, experience. It is solely income-based. Please contact us at Gustan Cho Associates at 262-716-8151 or text us for a faster response. Or email us at gcho@gustancho.com. We are available 7 days a week, evenings, weekends, and holidays.

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