Are There Mortgage Loan Programs Available for Foreign Nationals?

This questions comes up more often than you would expect.  Many people come to our site because they were turned down for traditional real estate financing.  Some of those applicants were turned down because they don’t have an established relationship with this country.  That means they’re either new to the States or for whatever reason they haven’t been able to document a lengthy employment and credit history.  In that case their odds of There are mortgage loan plans that do exist for foreign nationals who want to buy a home. These loans offer some great borrowing opportunities, and it’s important that you learn as much as possible about them before going forward.

Credit is Not an Issue

Foreign national hard money loans do not require non-American citizens to have good credit at all. Those who aren’t citizens of the country obviously don’t have a credit score, so it’s a non-issue. Applicants will, however, be required to submit detailed information about the property they wish to purchase. These lender take a close look at the potential income that will be generated by the property when deciding whether or not to approve applicants. The more potential value your property has, the easier it will be to get your loan.

Down Payment

While you might not be required to have a credit history or official documents to get a hard money loan, you will be required to make a down payment. The size of the down payment you will be required to make will depend on the amount you wish to borrow as well as the lender. It’s always a good idea that you ask each lender how much money you will need to pay down to get the loan. Usually you will have to put down anywhere from 20-30% of the total loan.

Paperwork Requirements

You will be a lot more likely to get a private money loan if you can submit some sort of proof that you will be in the country for at least as long as the loan period lasts. This can be difficult for some people to do, but it will go a long way towards increasing your chances of approval. verification requirement for direct lenders By doing this you will be giving the lender peace of mind. They will be a lot less likely to view you as such a liability if they know you are going to be in the country for a while. You will be required to show your passport to get a private money loan though, so make sure you have it on hand. It’s always best to stay on top of the latest requirements when it comes to your ID and passport.   Please check out the most recent State Department Guidelines for photo ID and passport requirements.  You absolutely cannot get one of these loans without a valid passport as any lender or financial institution would need to verify your identity.

Benefits of Foreign National Hard Money Loans

There are lots of benefits associated with getting a hard money loan if you are a foreign national. These loans are given out by private lenders, which means that you won’t need to submit any documents proving residency at all. If your property has enough potential value and you’re able to put down enough money, you should be able to get your money fast. These loans are known for dispersing funds a lot faster than banks and other financial institutions.

Those who are not legal citizens of the country but want to purchase a home for the purpose of flipping it should make a point of exploring this option before making a final decision. These lenders are willing to work with most everyone with regards to repayment plans. You should be able to work something out with a private lender so you can pay off your loan on time and without any issues.

Finding a Lender

Some of the private lenders in the HardMoneyList database will work with Non US Citizens that are looking for fast funding.  As these companies are not held to the same regulations as banks, you will need to choose the one you borrow from carefully. Same goes if you’re looking for a cash out refi or commercial real estate loan.  When you take the time to research some of your lender options, you should be able to choose the right one to meet all of your needs. There are a lot of these lenders out there, and you definitely don’t want to rush into this kind of decision.

Paying Back Your Loan

You will have anywhere from 1-5 years to pay back the hard money loan you take out. One of the great things about these loans is that they usually don’t come with any prepayment penalty fees. This means that you will actually be able to pay off your loan early if you can, and there won’t be any additional expense whatsoever. Keep in mind that you have to be purchasing an investment property to get one of these loans as a foreign national.

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