Can you qualify for a home mortgage, reverse or forward, if you are not a US citizen? Getting home loan financing for aliens can be a long and challenging road, though it’s not necessarily impossible.
Even if someone is not a U.S. citizen but has a green card and a work visa, they may be able to get a mortgage in the U.S.
These individuals can get loans from FHA, Fannie Mae, and Freddie Mac, backed and sponsored by the government, on the same terms as citizens.
FHA and conventional loans are the most common financing for permanent and non-permanent residents. These programs do have special requirements. However, usually lenders only need a few additional documents for these loans, mostly proof of legal U.S. residency.
To get a mortgage, U.S. citizens and permanent resident aliens are practically the same, with one subtle difference: the permanent resident alien needs a green card to validate their citizenship authenticity in the U.S. If you have a Social Security number, permanent work stability, can provide a copy of your Green Card, and copies of two years' worth of federal U.S. tax returns, you should be good to go in most cases.
If you are a non-permanent resident alien, the answer is yes, so long as you can support a three-year continuance of income, have a valid Social Security number, and have an eligible work visa.
Undocumented aliens have a more challenging road to travel to get financing, but it is not impossible.
When is the ideal time to submit an application for a home loan?
When applying for a mortgage loan, timing is everything and plays a critical role in your mortgage experience.
If you are a non-permanent resident alien, the best time to apply for a mortgage loan is after 2 years. Most financial institutions require a minimum work and credit history of 2 years in the United States.
However, you must consider your employment and your financial situation as well before you apply for a mortgage loan as a non-citizen.
There is paperwork
Obtaining a mortgage requires a lot of paperwork and documentation. You’ll be required to submit a copy of your social security number, a driver’s license, and your signature so that the lender can pull a credit report.
For the pre-approval and the actual mortgage lending, many more documents are necessary. Be prepared to facilitate whatever the lender seeks so that the whole mortgage process goes smoothly.
Immigrants in the United States have equal access to mortgage financing compared to citizens. They can live and own a house in the United States just like their friends and coworkers who are natural-born or naturalized citizens.
Having enough U.S. credit history to qualify is a big problem for permanent and non-permanent residents.
All applicants must have a valid Social Security Number and enough credit history in the U.S. to generate a credit report and credit score.
Most lenders also want a minimum number of trade lines on a credit report. A trade line is a credit account, like a credit card, auto loan, or personal line of credit.
Sometimes, the lender can ask for a credit report and credit score using account history from other accounts, such as water, electricity, cell phone, and cable TV. This report would be a non-traditional credit report, and some lenders are okay with it.
Documenting the mortgage applicant's two-year salary is vital to the lender. A lender must also show a borrower has adequate cash for the down payment and closing charges.
Loan applicants with foreign income and assets are not disqualified.
The lender usually chooses a third party to translate paystubs, bank statements, and other papers.
The bank or lending firm staff will utilize websites to convert international assets and income into USD at current rates. The lender then considers income and assets in USD.
Borrowers who do not have a long-term visa or green card may still be able to obtain a loan. Still, it will most likely be supplied by particular banks and lenders specializing in loans for foreign visitors wishing to purchase a holiday home or rental. These loans generally referred to as foreign national mortgages, are readily available.
We have options for you on a case-by-case basis, especially if you have family members living in the United States. What’s the best solution? Give us a call, and let's discuss it together.