Foreign National Mortgage Financing

I guess the best place to start is by defining what a foreign national is.  A foreign national is a non-US citizen that is a non-resident.  A permanent or non-permanent resident could be eligible for financing that any US citizen would be able to receive under Fannie Mae, Freddie Mac, and government guidelines contingent upon meeting their lending requirements. 

So why would you not want to be classified as a foreign national?  The reason is because these loans are not eligible for delivery under Conventional and government guidelines which will give a typical borrower lower down payment requirements and better interest rates.  A lender that offers financing to foreign nationals holds the loan in their portfolio (on their balance sheet) and services the loan because these types of loans are not eligible to be sold on the secondary market.

Every bank is different when it comes to foreign nationals but most require at least 30% down and a little more if you are buying a condominium.  There are banks that are doing fixed rate mortgages but typically most offer adjustable rate mortgages (ARMs).  For instance, one of my investors only allow ARM’s up to a maximum of 5 years and another that allows up to a 7 year ARM along with a 15 and 30 year fixed rates. 

The documentation that is required on these types of loans also varies from lender to lender but for the most part a copy of a valid Visa or Passport is required along with credit reference letters from a banking institution that they have had a relationship with for at least 2 years, a CPA letter showing income and employment history, 2 to 3 months worth of bank statements with a lot of reserves, a bank account opened in the US to hold the reserves, and making sure everything is translated into English and US dollars and originals of all.