If you’re a foreign national interested in investing in the US real estate market, you have a few mortgage loan options to choose from. Here’s a summary of some of the most common options in home loans for foreign nationals:
- Non-Resident Alien (NRA) loans: These loans are designed specifically for foreign nationals who don’t have a green card or permanent resident status. Borrowers are typically required to put down a larger down payment (usually 30% or more) and have a higher credit score.
- International Income Verification (IIV) loans: Like NRA loans, IIV loans are also for foreign nationals and require a larger down payment and high credit score. However, these loans also require verification of the borrower’s income in their home country, and may require a US-based co-signer.
- Foreign National Mortgage: This is a subcategory of the Conventional loan and similar to the International Income Verification loan, but is backed by Freddie Mac and Fannie Mae, resulting in less strict credit score and down payment requirements.
It’s worth noting that many foreign nationals opt to purchase property using all cash.
It’s crucial to remember that mortgage regulations vary by state and it’s best to consult with a lender who has experience working with foreign national borrowers to determine the best loan option for you. The lending rules and guidelines for foreign nationals can also change based on the political and economic climate, so it’s important to stay up-to-date.
Additionally, foreign nationals should also consider other regulations such as taxes, immigration laws, etc. while buying property in the US. (Source: NAR – National Association of Realtors)