This has allowed fewer people to take advantage of the benefits that come with owning a home. Recent developments, however, have seen foreign citizens and non-permanent residents become more welcome within the mortgage industry, with lenders now offering mortgage products specifically designed for these individuals. This article looks at how foreign citizens and non-permanent residents can access the US mortgage market and outlines some tips and considerations when looking to secure home financing.
Before 2008, foreign citizens and non-permanent residents hoping to purchase a home in the US were largely excluded from the mortgage market. Many lenders were unwilling to take the risk associated with lending to a non-resident or foreign citizen, or were simply unaware of the various regulations which apply in these cases. Since the financial crisis of 2008, however, lenders have become more comfortable offering mortgage products to foreign citizens and non-permanent residents, provided that certain criteria are met.
The most important of these criteria is residency status. Borrowers must prove that they have a valid green card or visa, as well as proof of residency in the US. They must also be able to show that they have held a job for at least two years, and provide documentation of their income. Additionally, lenders may require a credit score of 660 or higher in order to approve a loan. Once these criteria have been met, applicants can begin their search for a suitable lender and mortgage product.
When deciding on a mortgage product, foreign citizens and non-permanent residents should consider whether they are eligible for an FHA loan, as these loans generally offer more favorable terms than other types of mortgages. They should also be aware of any restrictions, such as a maximum loan amount, that may apply in their case. Additionally, borrowers should understand the various costs associated with obtaining a loan, including closing costs, appraisal fees, and interest rates.
In summary, foreign citizens and non-permanent residents are now increasingly able to access the US mortgage market, provided they meet certain requirements. In order to get the most advantageous terms, borrowers must take into consideration factors such as their credit score, loan amount, and any costs associated with their loan. With the right preparation, foreign citizens and non-permanent residents can now access the same mortgage products as permanent residents and take advantage of the benefits that come with owning a home.
This article was contributed on Sep 23, 2023
