Foreign National Loans
A Foreign National Loan is a mortgage designed for non-U.S. citizens who want to purchase or invest in property in the United States but do not have a Social Security number, U.S. credit history, or permanent residency. These loans are popular among international investors, business executives, and those who want a second home in the U.S.
Key Features of a Foreign National Loan
- No U.S. Credit History Required – Instead of a U.S. credit score, lenders assess foreign credit reports, bank statements, and financial references.
- Higher Down Payment – Typically 25-40% down is required, depending on the lender.
- Alternative Income Verification – Borrowers provide bank statements, foreign income documentation, and assets instead of traditional U.S. tax returns.
- Higher Interest Rates – Due to the increased risk, interest rates are usually higher than conventional loans.
- Limited Loan Terms – Loan terms may vary, but fixed-rate and adjustable-rate mortgages (ARMs) are available.
Eligibility Requirements
- Must be a non-U.S. citizen (with a valid foreign passport or visa).
- Provide proof of foreign income/assets (bank statements, employer verification, etc.).
- Open a U.S. bank account (often required for automatic payments).
- Have a valid U.S. visa or foreign residency documentation.
Benefits of a Foreign National Loan
✔ No U.S. credit score required
✔ Can be used for investment properties, vacation homes, or primary residences
✔ Flexible income verification options
Challenges of a Foreign National Loan
❌ Higher down payments & interest rates
❌ Fewer lender options compared to conventional loans
❌ Strict documentation requirements
