By Dustin R Burke, Adonai Financial
Foreign Nationals are individuals from other countries who purchase or refinance property in the United States. The property can be a commercial property or a residential property. Domestically the foreign national market has grown due to the weakened US dollar. The cheaper dollar makes US property very attractive to individuals from abroad.
Can a foreign national still get a dollar mortgage for a property the desire to purchase or refinance in the US? Yes, and it is easier than one may think.
Residential mortgages for foreign nationals are available on terms similar to the terms available to those with legal status in the US. Both fixed rate mortgages and adjustable rate (variable rate) mortgages are offered to citizens abroad. Interest rates are competitive starting as low as the high 5’s on some programs.
The documentation required on residential mortgages will vary from bank to bank and bank program to bank program. The larger the down payment the less documentation that may be required. The minimum down payment required is typically 20 – 25% and requires proof of employment, income, assets, etc.
If an individual prefers they may choose a program that does not require documentation of employment, income, assets or even a credit report. These loans are called state, limited, reduced, or no documentation loans. These loans facilities typically require a down payment of 30% or more (rarely more than 40%). Down payment and documentation requirements can even depend on the type of property (house, condo, etc.) and even the specific neighborhood. An area that is considered a “soft market” may require a higher down payment.
As you can imagine there is a lot more information available than can be placed here. If you would like to get more information or have any specific questions on loans for foreign nationals, or any residential mortgage loan, please feel free to contact me -- I’d be glad to answer any questions you have.
Contact our office at 863-680-2700 or send me an email to dustin.burke@adonaifinancial.com.
"Adonai Financial, your friends in the mortgage business!"
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Copyright © 2008 Dustin R Burke | All Rights Reserved
Portions Copyright © 2008 Adonai Financial Corporation | All Rights Reserved
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Adonai Financial Corporation
http://www.adonaifinancial.com/
---The content of this blog is my opinion---
Dustin R. Burke
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This was an interesting post Dustin. It does make sense that there would be more interest from foreign investors as the dollar has weakened. It's helpful to know the parameters which determine a loan in this situation and to be aware of the fact that despite tightened credit, loan options are still available. Thank you.