Anyone, regardless of citizenship, may purchase real estate in the United States. However, rising home prices and a strong dollar can make it difficult for non-U.S. citizens to pay cash for homes in major cities such as New York, Miami, and San Francisco. As a result, more𒁏 foreign buyers 🐷are financing residential real estate purchases.

Securing a mortgage is where things can get more complicaꦡted for such shoppers, compared to the process for U.S. citizens. This can include additional lender requirements, higher borrowing costs, and a more arduous approval process. 

It may help foreign buyers of U.S. real estate to know what's involved before they start the purchase process. So, read on to learn more.

Residency Status Matters

As a non-U.S. citizen who wants to buy real estate but who doesn't plan to move to the U.S., you may only qualify for a foreign national loan. These can require higher down payments and have higher interest rates. You may also need to obtain an individual identification taxpayer number (ITIN).

If you work legally in the U.S., even on a temporary work visa, or are a permanent resident with a green card, you can qualify for Fannie Mae, Freddie Mac, or FHA loans. You may need to supply additional information to the lender to prove your status or that your work visa will be extended.

Loan Guarantees

These organizations back mortgages originated by private lenders, thereby encouraging lenders to make more loans. They will guarantee mortgages to U.S. citizens and non-U.S. citizen🌱s alike, as outlined below.

By purchasing mor🐎tg♚ages, these organizations also ensure liquidity for the lending market.

Federal Housing Administration (FHA)

🐈FHA loa💖ns are guaranteed by the U.S. Department of Housing and Urban Development.

As a non-permanent resident, you can qualify for an FHA loan if your goal is to buy a home for your primary residence. But you'll need to prove your residency and work status with visa, employment, and tax documentation.

Permanent residents can qualify ﷽for an FHA loan in the same way that U.S. citizens do.

Federal National Mortgage Association (FNMA)

澳洲幸运5开奖号码历史查询:Fannie Mae is a 澳洲幸♏运5开奖号码历史查询:governm🐻ent sponsored enterprise (GSE) that guarantees mortgages.

Fannie Mae's mortgage guarantee applies to mortgages for non-citizens who are lawful permanent or non-permanent U.S. residents. These loans can be made according to the same terms available to U.S. citizens. 

Financial institutions can make these loans to foreign borrowers who are legally present in the U.S. and can prove it. Relevant documentation for this includes a Social Security number or ITIN, as well as documents that verify employment status and immigration status.

Foreign applicants also must meet all the loan eligibility requirements that apply to U.S. citizens, e.g., documentation of income anꦦd its continuation.

Federal Home Loan Mortgage Corp (FHLMC)

澳洲幸运5开奖号码历史查询:Freddie Mac is also a GSE that purchases, guarantees, and securitizes home loans. These loans are usually boꦍught𒁏 from smaller financial institutions.

According to Freddie Mac, it can purchase a mortgage issued to a non-U.S. citizen who is a lawful permanent or non-permanent resident alien. You can apply for that mortgage under the same terms as those for a U.S. citizen.

However, Freddie Mac cannot purchase a mortgage provided to a non-U.S. citizen who has no lawful U.S. residency status.

Higher-Priced Mortgages

Many banks, including some big-name institutions, will lend to foreign nationals who live outside the U.S. but instead of providing conventional mortgages, they may offer 澳洲幸运5开奖号码历史查询:non-conforming loans with their own underwriting guidelines and often 𓆏a highe🗹r interest rate.  

A Bigger Down Payment 

Foreign buyers can be a greater credit risk for U.S. lenders because they may not have a U.S. credit history or one that is easily accessible. Therefore, lenders may require a much higher 澳洲幸运5开奖号码历史查询:minimum down payment before extending a loan. 

A Tougher Approval Process

As indicated above, i🌄ncome and credit verification is more complicated for non-U.S. citizens withou🍌t U.S. tax returns or a U.S. credit history.

So, as part of the loan approval process, lenders will usually ask for bank statements and tax returns filed in the applicant’s home country. In lieu of a 澳洲幸运5开奖号码历史查询:credit report, they may require se🍌veral months’ worth of credit card statements to probe borrowing habits. 

Longer Wait Times 

The mortgage approval process can take quite a bit longer for non-U.S. citizens. To speed up the underwriting process, apply for a mortgage at a global bank that has a presence in your home country as well as the U.S. In some cases, you may also qualify for a l🉐ower interest rate at such a bank.

Taxes

As a foreign buyer, you should consider the 澳洲幸运5开奖号码历史查询:tax laws of the U.S. and y🍃our home country. Different countries have ꦕdifferent tax treaties with the U.S.🀅 

If/when you sell your U.S. property, you'll be subject to U.S. 澳洲幸运5开奖号码历史查询:capital gains taxes. The U.S. Internal Revenue Service꧂ (IRS) will automatically withhold a percentage of the gros🃏s purchase price and then make any necessary adjustments when you file your U.S. tax return. 

The Bottom Line 

For foreign buyers, the process of getting a mortgage may involve added cost and take extra timeℱ, extra effortไ, and a great deal of patience. But these hurdles are not insurmountable for most people.

You can always pay cash if the loan process isn't an option. Should property prices in your first-choice location be too high, consider buying a residence in nearby, and more affordable, areas.