Definition of a Foreign National for Financing Purposes
- A foreign national is a legal resident or citizen of another nation.
- They buy a second home or a vacation home here in the U.S. for personal use.
- The foreign national lives in the US property only on a short-term basis (may rent the property when not occupying).
- He or she could be here on business, or while on vacation or holiday.
- Foreign nationals primarily have income, employment, credit, and residency in a country other than the US.
But a Foreign National Can Also Be:
- A foreign buyer who is purchasing investment property to rent out or lease.
- A buyer purchasing commercial property such as hotels, office buildings, apartment buildings or warehouses
- A borrower with an ITIN (Individual Taxpayer Identification Number)
- Someone with a certain class of work visa, other than the B-1/B-2 visitor visa.
- International borrowers.
- US citizens who work abroad and earn income overseas.
Loans to Foreign Nationals
We match foreign national borrowers with lenders that provide financing to foreign nationals and borrowers with visas and ITINs. This is a complex mortgage niche that we specialize in. We also have specialty loan programs for high net worth and affluent clients. Our Adjustable Rate Mortgages (ARMs) are offered at industry-leading interest rates and terms. We have worked with foreign nationals for over 10 years, and have earned a reputation for broad product selection, low rates, and top-notch advice by personal bankers and certified liability advisors.
Mortgage financing has changed – and with it, the easy availability of money is also gone. This is true for both US borrowers and foreign nationals but especially in the foreign national mortgage market. We close Florida jumbo and super jumbo loans the big banks will never approve and at jumbo rates that the big banks could never offer.
A Brief History of Foreign National Financing and “The Pendulum”.
In 1995 and 1996, foreign national loans, if they could be found at all, required 35% to 40% down with fixed rates in the 9%-10% range. However, by 2000, 80% financing became the industry standard. Interest rates fell as low as the 5%-6% range, both fixed and variable rates. 90% financing was also available.
Now, the pendulum has swung the other way. In 2006 and 2007, we noticed a tightening of underwriting guidelines. Some banks dropped out of the foreign national market entirely. By 2008, most lenders required 40% to 50% down.
Loans for Foreign Nationals – The Foreign National Mortgage Solution
- Our financing sources provide 50-70% LTV foreign national loans in all counties of Florida, on all property types for foreign national borrowers from all countries with up to 90% LTV financing by using our pledged asset feature to offset up to 40% of the normal down payment.
- Our minimum loan amount is $150,000 so this makes our minimum purchase price $215,000 unless using the pledged asset feature.
- All income and assets MUST be verifiable and from legal sources. This is a serious loan program for well-qualified, high-income earners and high net worth foreign nationals and US citizens.
- Foreign nationals must have or obtain a TIN from the IRS. We can assist with the process of registering and obtaining a TIN.
- Cash assets required to close must be wired in US dollars from a US based financial institution.
- Assets for any/all required reserves must be kept in a known, verifiable institution. All documents must be translated to English before submission.
- Foreign Nationals must have a valid passport and second form of ID to be approved for a foreign national mortgage. A visa or green card is not required.
- Purchase AND Cash Out Refinance Available. No set time guideline for seasoning on cash out refinance.
- We allow for title to be vested directly to an entity such as a Trust, LLC or Corporation.
We can use assets to document (not actually produce) more verifiable income (for qualification purposes) using our Asset Depletion Feature which basically annuitizes liquid assets at a 5% annual ROR over a 10-30 year period to document a monthly income stream from these assets. This feature allows clients who have lots of assets but not necessarily a large amount of regular, monthly earned income.
We provide access to foreign national mortgage loans in all Florida counties and cities such as Tampa, Miami, Ft. Lauderdale, Palm Beach, Jacksonville, Naples, Ft. Myers, Sarasota, Dunedia, Tallahassee, Pensacola
Our partners can provide foreign national financing for Trump Towers in Palm Beach Florida. Our foreign national mortgages are perfect for professional athletes, diplomats and foreign businessmen looking to acquire a Florida luxury home while leveraging 50% or more of the purchase price with borrowed funds at extremely low rates.