Mortgage for International borrowers are available for certain types of property in some cases and while the availability of this specialized product has vastly improved since the Great Recession, they require very specific knowledge and not all mortgage lenders, brokers or banks will entertain them.
What does that mean if you are considering one? It simply means that you should find a mortgage professional local to the area that you are considering purchasing real estate and one who is highly specialized in mortgages for Non US Residents - That's you if you don't have a green card, citizenship and / or do not live in the USA.
Here are 5 tips from Melissa McGlinchey, Branch Manager at ACM Home Loans and a veteran within the mortgage industry with 20+ years of such specialty.
1. Expect to pay at least 2% higher than a standard US mortgage - You may see extremely low rates published on various websites, unfortunately if you are a Non US Resident, you will not be eligible for these programs.
2. Know that the lower amount of down payment equates to a higher rate. There are programs that require as little as 25% down, however the rate for that will be much higher than putting 35% down.
3. Expect to need a US Bank account opened for automatic payments to be taken out of, you may need to be physically present to do this
4. The normal time frame if all documents are in English is approximately 40 days. If documents need translation, expect closing to take around 60 days - Unfortunately this is not something that you can rush and it is far less stressful for all parties if there are realistic expectations in regards to time.
5 Most of all, have patience as financing concepts are much different in the US than in other countries - Feel free to ask as many questions as you need.
Non US Resident or Foreign National mortgages are a fantastic tool to assist with residential property investment in the USA but remember that the mortgage broker / lender is also bound by very strict rules and the best advice is to be very thorough and complete with everything asked of you. There is very little wiggle room to get around the requirements so if you realize that you cannot meet the sometimes rigid requirements of the program suggested by the mortgage professional, tell them! Do it early so that they can try to find another option.
Can I get a mortgage as a non US resident, US Mortgages for foreigners, Buying in the US, Tips for getting a mortgage in the US, non-domestic financing, Overseas property financing