Foreign National Rates 3.75%
3.94%APR 60%LTV $500000 Min
3/1ARM 25yr Amortized Term
USDA/VA scores down to 580
USDA-100%LTV Some Work Visas
95% $424101 & up 700 credit
5/1ARM starts as low as 4.25
5.64%APR US/Green Card Only
   

Judy Hamblen
NMLS #370943
FL LO #7421


1st United Funding
LLC NMLS #371752


12323 SW 55th St
Suite #1002
Cooper City
FL 33330

 
 

Historically, the mortgage definition of a foreign national is understood to be an overseas buyer of U.S. vacation homes and U.S. rental properties.For this borrower, 2016 may well be the best year since 2008.

Sure, some mortgage approvals are harder to secure, down payments have increased, and documentation requirements are stricter. But with more thorough underwriting comes the foundation of a safer housing market, and owners who can and will pay the monthly mortgage. This protects the neighborhood from the actions of an unfortunate few. Property values, then, continue to rise at a reasonable pace, albeit self-sustaining increases. No crazy highs and plunging lows.

And lower interest rates do make home prices more affordable. 30 year fixed rates are still at generational lows. Foreign nationals do pay a risk premium in interest rates, a point or two above U.S. borrowers. Still, current fixed rates are now 2.25% lower than their 20 year moving average, going back to January 1996. With each 1% drop in interest rates, a homebuyer qualifies for about 10% to 12% more home value for the same monthly mortgage payment.

What’s new in mortgage lending for foreign nationals?

  • Some LTVs, once at 50% and 60%, are back at 70% and in some cases, at 75% LTV.
  • Work visa holders are eligible for up to 97% financing though 80% to 90% LTV is more common.
  • Financing L-1 series; H-1B series; E-1, E-2, E-3; G-1 through G-4; O-1, P-1, R-1, TN-NAFTA; and J-1 and J-2. Some visas up to 97% LTV, others at 80% to 90% LTV; J series currently 75% LTV.
  • Foreign Nationals can buy in an LLC.
  • Foreign nationals can buy 2-4 units, such as duplexes, triplexes, 4-plexes.
  • Under certain guidelines and in most areas of Florida, foreign nationals can take title in a trust, limited partnership, offshore or shell corporation, in addition to the more common LLC.
  • Foreign Nationals may finance apartment buildings at 70% in certain counties, and at 60% to 65% LTV in other areas.
  • Foreign Nationals may finance hotels/motels, student housing, shopping centers, office buildings, and other commercial real estate properties.
  • New and various ways to qualify on rental property mortgages including cash-flow mortgages, asset depletion and monetization (using the income stream on assets and bank balances).
  • Some foreign nationals are eligible for 10-20 properties, depending on if how they qualify.
  • New programs are based on cash-flow of rental properties, not the tax returns from overseas.
  • Minimum loan amounts now at $75,000 and $100,000.
  • Financing for E-2 visa holders. Financing J-1 and J-2 visa holders, still more difficult but doable.
  • Generally, every foreign national has 2 or 3 different loan programs to qualify for, no matter where they buy or what they buy.
  • We will provide a side by side comparison of down payments, LTVs, documentation requirements, minimum loan amounts, and a range of rates, to help the borrower decide.
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