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If you have been living and working in America and you plan to set up home here for the foreseeable future, you might be considering buying your own property outright. You’ll be pleased to know that just because you aren’t a fully-fledged US citizen, homeownership is still within your grasp.
Providing you are living and working in the US lawfully, applying for a mortgage is just as straightforward as applications made by US citizens. The key is to make time to prepare all the relevant documentation to submit an acceptable mortgage application.
In the US, the average 30-year mortgage rate remains at its second-lowest on record at just 2.87% according to HousingWire. This suggests that now is as good a time as any to get involved in the American real estate market. It’s a similar case across the Atlantic in the UK, with the Bank of England’s base rate of interest rumored to be moving into negative territory. According to Trussle who compare the best mortgage deals in the UK, mortgage experts do not expect rates to rise after Brexit is concluded on 1st January 2021 either.
Your residency status
The ease with which you can complete a US mortgage application depends largely on your residency status. You are likely to fall into one of three camps:
- Permanent resident with a green card
- Non-permanent resident with a lawful work visa
- A “foreign national” with an overseas primary residence
It should be straightforward applying if you fall into one of the top two categories. It can be a little harder as a foreign national living overseas, with a larger down payment more likely to be required to sweeten the deal with most US lenders.
Credit history
With many established mortgage lenders, it’s not essential to have built up credit history in the US to successfully apply for a mortgage. Ideally, you will have a legitimate credit score overseas. An international credit report may be ordered to support your application.
Necessary documentation
There are several essential documents that you must provide to support your mortgage application as a non-US citizen. First and foremost, you’ll typically need to demonstrate 30 days of pay stubs, as well as two years’ worth of W-2s. Your lender will also need to see between two and three months of your most recent bank statements.
You may also be asked to provide two years of signed personal and business federal tax returns. A proof of deposit will, understandably, be needed for purchases. All foreign nationals will also have to provide a valid US visa and have two years of employment and residency history.
It ultimately boils down to knowing which hoops to jump through as a non-US citizen. If you are nervous about going through the application process alone, there are plenty of mortgage brokers out there that can lend an objective ear. Most brokers will be aware of those lenders that take a more inclusive view of mortgage applications from overseas nationals, and can help you on your way to making your “American dream” a reality.
