Foreign National Loans

A Foreign National is: a non-resident alien who is not authorized to live or work in the U.S. A Foreign National may periodically visit the U.S. for various reasons including vacation and/or business. To be eligible, the borrower must live and work in another country and be a legal resident of that same country. They may not purchase property intended for use as a primary residence or second home. The property must be an investment purchase or refinance cash-out.

A foreign national borrower must evidence of their primary residence for the country issuing their Passport. Foreign National borrowers may not occupy the subject property as a primary residence.

A Foreign National can purchase an investment property with no social security number, no income, no employment, no tax return. If you have money to cover the down payment and reserves you have a good chance to qualify. The loan is approved based on the projected rental income of the purchasing property to cover the mortgage payment on the new loan.

Example: New Loan Mortgage payment $3000 / Projected Monthly Rental Amount $3000 (Based on a Comparative Rent Schedule 1007. The lender uses this form to obtain the market rent for a conventional single-family investment property from the appraiser).

A debt service coverage (DSCR) loan is one that qualifies borrowers through an investment property's cash flow rather than the borrower's income. DSCR loans — also known as investor cash flow loans — are frequently used by real estate investors to qualify for mortgages and buy investment properties.

Down Payment Options:

• 25% Down Payment + 6 Months of Reserves
  2 Months Asset Statements must be provided to show the account has 6 months of the full mortgage payment covered. This includes the Principal/Interest/Tax/Insurance/HOA total.

Foreign National Basic Checklist:

Loan Application – No Credit Score, No Employment or Income is needed

Photo ID

2 Months of Asset Statements for the Down Payment and Reserves– All Pages (must be translated if applicable)

6 Months of reserves are required

Qualifying US Credit for Foreign National Borrowers:

For foreign national borrowers with a valid Social Security number, a credit report should be obtained. Restrictions when qualifying with U.S. credit:
o Minimum Credit Score: 680
o Investment Properties Only
o Non-occupant Co-borrowers not allowed

Housing History Foreign National Loan in Texas:

A housing history for the borrower’s primary residence is not required. Refinance transactions (including cash out) require the most recent 12-month housing history for the subject property.

Assets Held in Foreign Accounts:

Assets held in foreign accounts may be used as a source of funds to close and to meet applicable reserve requirements. These funds must be transferred to a U.S. domiciled account in the borrower’s name at least ten (10) days prior to closing.

Verification of Residency Status:

The following visa types are allowed as Foreign Nationals:

 B-1and B-2

 H-2 and H-3

 IJ-1 and J-2

 O-2

 P-1 and P-2

Copies of the borrower’s passport and unexpired visa must be obtained. Acceptable alternative documentation to verify visa classification is an I-797 Form (Notice of Action) with valid extension dates and an I-94 form (Arrival/Departure Record). Borrowers unable to provide evidence of lawful residency status in the U.S. are not eligible for financing.

If a non-U.S. citizen is borrowing with a U.S. citizen, it does not eliminate visa or other residency requirements. Individuals in possession of spouse or family member visas are to qualify as co-borrowers only. Canadian citizens are not required to provide a valid visa. An unexpired passport is acceptable.

• LLC or Personal Vesting
• $500k Cash in Hand
• 1-8 Units, Condotels, Mixed-Use, Non-Warrantable Condos
• Loan amounts as high as $2m (>$2m on an exception basis)