Here’s an interesting observation from the National Association of Realtors – they estimate that 60% of homes purchased by international buyers were all-cash transactions, as opposed to just one-third of domestic sales.

Secondarily, did you know that many lenders are willing to extend credit to non-citizens – sometimes without a credit history in the United States? Non-citizens can even qualify for government-insured mortgages, which have the advantage of requiring low down payments.

One point to keep in mind is that the requirements for getting a home loan depend in large part on one’s residency status. Most borrowers tend to fall within one of the following groups:

  • Permanent residents with a green card (Form I-551)
  • Non-permanent residents with a valid work visa (E1, E2, H1B, H2A, H2B, H3, L1 and G1-G4)
  • “Foreign nationals,” whose primary residence is not in the U.S.

Source: Getting A Mortgage For Non U.S. Citizens | Investopedia

Target this important segment: Foreign Nationals & Non US Citizens

Lending to foreign nationals and non-US citizens is regulated under the Ability to Repay or QM laws – depending on the buyer and property type.  But just because the buyer does not fulfill the conventional and FHA guidelines does not mean they can’t obtain approval for a mortgage.

Non-QM products are a great option in this situation. These products certainly have different guidelines and interest rates compared to conforming loans.  But remember, you are dealing with a very different buyer as well.  These buyers understand and expect different guidelines.  The agents who are successful in this niche understand these mortgage products and develop specific marketing goals to grow this lucrative segment.

In many cases, approvals are not difficult – and here are a few notes for some foreign national specific mortgages:

  • Up to 75% LTV
  • No US Credit required
  • 12 months reserves required
  • Loans up to $750,000
  • DTI up to 50% considered
  • 7/1 ARM and 30-year options available

The point is this – these Foreign National loans allow any reasonably qualified buyer access to capital for purchasing the home of their dreams.  Serious agents and lenders must have command of these mortgage products.

Knowing Your Options

Having command of these products also includes marketing strategies focused on serving the needs of these important buyers.  I spend a lot of time working with real estate agents talking about various marketing tools, product education, and compliant co-branded marketing strategies designed to grow our business.  Please feel free to call, email, or text anytime if you would like to discuss some of these strategies as well.

The views expressed are my own and do not necessarily reflect those of American Financial Network, Inc.