Navigating the U.S. mortgage market as a non-citizen can seem daunting, but it’s entirely possible to secure a home loan even if you’re not a U.S. resident or citizen. Whether you’re an expat, a foreign investor, or a non-resident looking to buy or refinance property in the United States, this guide will walk you through everything you need to know about qualifying for a U.S. mortgage. By the end of this article, you’ll have a clear understanding of how to get a USA mortgage as a non-citizen, the requirements, and the steps to take to make your dream of owning property in America a reality.
Can Non-Citizens Get a Mortgage in America?
Yes, non-citizens can get a mortgage in America! The U.S. real estate market is open to foreign nationals, and lenders such as America Mortgages only offers mortgage programs specifically designed for non-citizens. However, the process and requirements may differ slightly from those for U.S. citizens. The key is understanding the eligibility criteria, documentation, and loan options available to you.
How to Qualify for a U.S. Mortgage as a Non-Resident
Qualifying for a U.S. mortgage as a non-resident involves meeting specific criteria. Here’s a breakdown of the key factors that will determine your eligibility:
1. Visa Status and Residency
- Work Visa (H-1B, L-1, etc.): If you’re in the U.S. on a work visa, you’ll have an easier time qualifying for a mortgage. Lenders view this as a stable income source.
- Permanent Residency (Green Card): Green card holders are treated similarly to U.S. citizens and have access to a wide range of mortgage options.
- Non-Resident Foreign Nationals: As long as you hold a passport for a non-sanctioned country you can qualify for a U.S. mortgage loan.
2. Credit History
- U.S. Credit Score: If you have a U.S. credit history, America Mortgages will use your credit score to assess your eligibility. A score of 620 or higher is typically required for conventional loans.
- No U.S. Credit History? If you don’t have a U.S. credit score, America Mortgages accept an international credit report or alternative credit data (e.g., rental payments, utility bills).
3. Down Payment Requirements
- Non-citizens often face higher down payment requirements compared to U.S. citizens. Depending on the loan type and your residency status, you may need to put down 25% to 30% of the purchase price or 65/75% of the value for a refinance and/or cash-out equity release.
- U.S. Expats that maintain U.S. credit can qualify up to 80% of the purchase price and/or refinance.
4. Income and Employment Verification
- If you’re a U.S. expat and living and working abroad, America Mortgages will want to verify your income and employment status. If you’re employed in the U.S., you’ll need to provide pay stubs, W-2 forms, and tax returns, however, as a U.S. citizen working outside of the U.S., we do not require a W2 and foreign earned income is allowed. This makes America Mortgages very unique and why it’s the number one choice for U.S. expats obtaining a U.S. mortgage loan.
- If you’re a non-resident, you may need to provide proof of income from your home country, such as bank statements, employment contracts, or tax documents.
- America Mortgages also offers a common sense loan program based on DSCR (debt service coverage ratio) – that simply means you can qualify for a U.S. mortgage loan not using any personal income documents, but qualifying on the cash flow of the rental property. It’s common sense underwriting and just makes sense. What makes America Mortgages unique is we offer a 1:1 ratio for DSCR giving the investor more options, more flexibility and better pricing/rates. Excellent loan for a self employed borrower.
5. Loan Types for Non-Citizens – Foreign Nationals and U.S. Expats
- Conventional Loans: Available to non-citizens with a valid visa or green card. These loans typically require a higher down payment and a good credit score.
- DSCR Loans: Loans that qualify on the cash flow of the investment property. No personal income is required.
- Portfolio Loans: Own multiple properties and want the convenience of one loan? America Mortgages offer portfolio loans specifically for non-residents. These loans may have more flexible requirements but often come with higher interest rates.
Steps to Get a U.S. Mortgage as a Non-Citizen
1. Determine Your Budget
- Calculate how much you can afford to spend on a property, including the down payment, closing costs, and monthly mortgage payments.
2. Choose the Right Lender
- Not all lenders work with non-citizens, so it’s important to find one that specializes in mortgages for foreign nationals. Look for lenders with experience in international transactions.
3. Gather Required Documentation
- Proof of Identity: Passport, visa, or green card.
- Proof of Income: Pay stubs, tax returns, or employment contracts.
- Proof of Assets: Bank statements, investment accounts, or property ownership documents.
- Credit History: U.S. credit report or international credit report.
4. Get Pre-Approved
- A mortgage pre-approval will give you a clear idea of how much you can borrow and show sellers that you’re a serious buyer.
5. Work with a Real Estate Agent
- A knowledgeable real estate agent can help you find properties that meet your needs and guide you through the buying process.
6. Close the Deal
- Once your offer is accepted, you’ll go through the underwriting process, sign the final paperwork, and close on your new home.
Tips for Success
- Build a U.S. Credit History: If you plan to buy property in the U.S., start building your credit history as soon as possible. Open a U.S. bank account, apply for a credit card, and make timely payments.
- Save for a Larger Down Payment: A larger down payment can improve your chances of approval and help you secure better loan terms.
- Work with a Mortgage Broker or Lender: A mortgage broker or lender who specializes in non-citizen loans can help you navigate the process and find the best lender for your situation. America Mortgages ONLY focus is U.S. mortgages for non U.S. residents, but you can also shop around. Although there may not be companies with only one focus, there may be options to compare.
Frequently Asked Questions (FAQs)
1. Can I get a U.S. mortgage without a Social Security Number?
- Yes, is you are a U.S. expat, some lenders offer mortgages to non-citizens without a Social Security Number. You’ll need to provide an Individual Taxpayer Identification Number (ITIN) instead. If you are a non U.S. resident foreign national you do not need a social security number of ITIN.
2. What interest rates can I expect as a non-citizen?
- Interest rates for non-citizens are typically higher than those for U.S. citizens, especially if you’re a non-resident with no U.S. credit history. If you’re a U.S. Expat America Mortgages loan programs are identical to if you were living in working in the U.S. If you are a foreign national non-resident then you can expat to pay .50-.75% higher than a U.S. citizen rate. When you take into account that this is with no U.S. credit history, this is a fantastic rate and option for international investors buying U.S. real estate.
3. Can I buy property in the U.S. as an investment?
- Yes, many non-citizens purchase U.S. property as an investment.
4. How long does the mortgage process take for non-citizens?
- The process can take anywhere from 30 to 45 days, depending on your documentation, lender requirements, and the complexity of your financial situation. You do not need to travel to the U.S. to open your mortgage application or sign the closing documents. This can all be done from outside of the U.S. making the process easier.
Final Thoughts
Securing a U.S. mortgage as a non-citizen is entirely achievable with the right preparation and guidance. By understanding the requirements, gathering the necessary documentation, and working with experienced professionals, you can successfully navigate the U.S. mortgage market and achieve your goal of owning property in America.
Whether you’re searching for “how to get a USA mortgage as a non-citizen,” “how to qualify for a U.S. mortgage as a non-resident,” or “can non-citizens get a mortgage in America,” this guide has you covered. Start your journey today and take the first step toward owning your dream home in the United States!
- Speak with a U.S. loan specialist 24 hours a day, 7 days a week: +1 845-583-0830
- Schedule a convenient time to speak to one of our U.S. loan specialists
- Visit www.AmericaMortgages.com
