+1 vote
Hello ,

I'm and Foreign Investor from Europa (no US Citizenship or US Residence) .
I'm planning  purchase a rental for buy-to-let  in Mid west (with more than 10% ROI).

Can you please let me know of financing options.

asked Dec 26, 2017 in General Financing by Vlado

2 Answers

+1 vote
Standard US programs backed by the government, Freddie Mac or Fannie Mae all require some sort of legal residency to finance foreign national -- either permanent or non-permanent. However, other lenders that keep their loans on their own books (portfolio lenders) may be able to help.

In most cases, foreign buyers pay cash because it's just easier. However, lenders having a relationship with the borrower, like your own bank's US affiliate, may be willing to finance you if you qualify. Understand that these purchases, combining investment property, hard-to-trace credit histories, and difficulties tracking the applicant's income can spook lenders used to working with plain vanilla American programs.

In most cases, the lender will want a previous relationship with the borrower. However, your real estate agent, if he or she has a "go-to" lender for these kinds of transactions, can help you. Expect to put at least 30 percent down and you'll need a valid visa and / or passport. Other options include owner financing or so-called "hard money," which is private lending based on the value of the property. Expect higher rates, larger down payments, increased fees and less consumer protections for these transactions.

Thank you for writing, and please get back to us if you have additional questions.
answered Dec 26, 2017 by GinaPogol (47,650 points)
0 votes
There are various Foreign Nationals Loan Programs. If you are looking for an owner occupant home purchase, and you are employed by a US company or a subsidiary company, then our Foreign Nationals Loan Programs offer 20% down payment on purchase 30 year adjustable rate mortgages (ARM). If you are a foreign national with no employment by a US company or a subsidiary company, then most lenders will require 50% down payment.  Most investment properties require minimum loan amount of $300,000

Gustan Cho NMLS 873293
Gustan Cho Associates
Branch Manager
answered Feb 10, 2018 by GustanCho (106,540 points)

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