Foreign investors spend billions on properties in the United States.
This presents a significantly untapped and often-overlooked opportunity to add foreign national loans to your pipeline. This mortgage niche makes up nearly $55 billion of annual purchase volume. That’s a big opportunity, and LendSure can help you take advantage.
These borrowers usually have high net worth and pay their bills on time. Most are affluent, self-employed individuals living in other countries who own a home free and clear and seek to buy a second home or an investment property in the United States. Many don’t realize they can finance purchases in the United States because transactions in their home countries cannot be financed affordably, or must be paid in full with cash.
1. What is a foreign national loan?
A foreign national loan is a specialty type of mortgage made to people who aren’t residents or citizens of the United States. These types of borrowers aren’t eligible for loans purchased by Fannie Mae or Freddie Mac or backed by the FHA, VA, or USDA. Foreign national loans are a type of non-QM loan.
LendSure’s foreign national loans are available for single-family homes and condos. Loan amounts are as high as $1,000,000 and cash out as high as $500,000, although exceptions made for higher loan amounts can be considered.
2. Who can qualify for a foreign national loan?
Foreign nationals are individuals who cannot permanently reside in the United States. Many people fall into this category, including homebuyers who have a foreign passport and don’t have a U.S. green card, whose income is derived from abroad, or who come to this country for vacation or minor work-related purposes. However, individuals paid in U.S. funds on U.S. soil are generally not foreign nationals.
Foreign national borrowers can be based just about anywhere. Only a few countries are restricted from this program. A good portion of foreign investors just haven’t been made aware of the opportunities to finance in the United States. Their home countries simply don’t have the advanced mortgage markets we take for granted in the United States. When you help them realize the opportunity to finance second homes or investment properties here, many are stunned and pleased.
3. What do I need to submit for a foreign national loan?
Although the foreign national documentation required is different than standard loans, your LendSure team can help you understand and collect the required documentation.
Income for the past two years can be verified via a CPA/Income Letter. If it’s a property investment loan, then we would review the property cashflow. If the documentation is provided in another language, they it would be translated using an independent third-party certified translator.
From there, foreign credit must be verified. Borrowers must have three active trade lines with a two-year history. Trade lines may be documented in various ways, including a U.S. credit report, an international credit report, or verified and translated credit reference letters. A domestic credit score is not required.
All that can be daunting, but we assure you that it’s possible to navigate the documentation requirements. Our experienced team members are on hand to guide you through the details, such as documenting funds in foreign bank accounts. Most foreign national loans require a down payment and at least six months of reserves. Gift funds may be acceptable, but only if transferred to a U.S. account in the borrower’s name within 30 days before closing. Business accounts are eligible to be used as reserves. Funds used for closing must be transferred to a U.S. account in the borrower’s name within 30 days before closing, and assets must be verified in U.S. dollar equivalency at the current exchange rate.
The LendSure Way
It’s simple. We make loans that make sense. We’re not in-the-box lenders. Of course, there are numbers and ratios, and data to consider, but we know that behind every file, there’s an individual with a unique circumstance seeking a loan. We work hard to offer our commonsense take on lending to borrowers seeking funding for the home of their dreams, another addition to their investment property portfolio, or refinancing of a currently-owned property.
Are you ready to grow your business? Conforming loan approval guidelines can be restrictive, but we want to offer our mortgage broker partners the education, tools, support, and guidance they need to say “yes” to more of their clients. This ensures happy borrowers and opportunities for bottom-line growth. What are you waiting for? Let’s get started!
Are you ready to benefit from a commonsense approach to lending? Contact us today to learn more about non-QM loans and how partnering with LendSure Mortgage Corp. can help grow your bottom line.