Mortgage Broker Beverly Hills | Unlocking the Mystery of Foreign National Loans: A Comprehensive Guide
Here at Mortgage Broker Beverly Hills, we work with many international buyers from all over the world. This blog post has been created to educate and answer many questions about foreign national loans.
How often do foreign nationals use foreign national loans to purchase their home in the United States?
Most foreign buyers pay in cash, but those who don’t come to us because we specialize in foreign national loans and are unique in that we have a lot of experience funding foreign national loans.
Why do foreign nationals use foreign national loans?
Foreign nationals typically use foreign national loans to purchase vacation homes. Most of the time, the home they buy in the United States is their second, third, or fourth home, so it is not their main home.
Do you have to file tax returns in the US?
The IRS does not require an ITIN (International Tax Identification Number) to purchase a home with a foreign national loan. If you decide to sell your property, you must obtain an ITIN number to file a tax on the sale of that property, because the IRS requires capital gains tax to be paid if you made a capital gain.
What exactly is a foreign national loan?
Foreign national loans are a type of mortgage loan that helps people from outside the United States buy property in the United States.
If I am not buying an investment property, but rather a second home, will I use a foreign nation loan?
Yes, it is defined as an investment property, not a second home, because the loan is based on the investor’s cash flow. The loan itself is based on the appraised market rent, indicating that this is an investment property. You have your new mortgage payment, also known as PITI (principal, interest, taxes, and insurance), and if the market rent on the appraisal covers your new mortgage, you are good to go.
What kind of documentation does the foreign national loan require?
- Application
- Visa
- Passport
- Assets in a United States Bank
- 25%-30% down payment
What countries are part of the visa waiver program?
Countries such as Canada, Europe, and Ireland participate in the visa waiver program, and you don’t even need a visa, just a valid passport.
What if your country is not on the visa waiver program?
A country that does not participate in a visa exemption program would then require a foreign national visa. A B1B2 is the most common one we see.
What countries are on the sanctions list?
We cannot lend to Venezuela, Iran, Iraq, or any other sanctioned country.
What is not required to qualify for a foreign national loan?
- Job
- Income
- Social Security Number
- Credit Report
How do the rates compare to loans for US citizens?
Please remember that rates with this product will be slightly higher.
Can foreign nationals with an American bank account go to their bank for a loan?
For whatever reason, most brick-and-mortar banks, such as Bank of America, Chase, or Wells Fargo, do not offer these types of loan programs. They do not serve the international market.
Is it hard to get a foreign national loan?
Foreign national loans are among the most straightforward loans to fund and purchase a new home.
To get answers to other frequently asked questions visit our website and blog section: Mortgage Broker Beverly Hills and Mortgage Broker Beverly Hills Blog