can student visa foreigners buy homes in US? financing?

[Jennifer Lee]

hi BP

I need your collective experience.

I have a potential client asking if she can buy a house holding a student visa? and can she obtain financing 20% down?

she claims her friends in other states can... so asking my advise.

thanks in advance

[Account Closed]

CASH or 50% DOWN is the usual expectations of foreigners with little/no credit in the USA, as an individual or shareholder. some credit references will STILL be required for underwriting, as for a loan there must be some level of creditworthiness established in absence of FICO scores.

check into Bank of the Internet and other lenders that lend to foreign nationals.

[Frank Jiang]

In addition to the 50% down mentioned by Neil, there is also typically a minimum loan amount for foreign nationals.  BoA sets minimum loan for foreigners @ 300k

[Jennifer Lee]

@Frank Jiang

hi frank,

would she need to show credit, she said she has a credit score and card... I'm meeting her tomorrow to get details in person

[Frank Jiang]

Yes she would need to show credit history.  Some banks may even be open to accepting credit reporting from your client's native country.

Here's some more info on the subject:

http://themortgagereports.com/foreign-national-len...

[Jennifer Lee]

@Frank Jiang

thank u, that was helpful, the articel was helpful too

[Account Closed]

You could also advise her to look into FIRPTA. I'm not sure how long term her plans are but if she doesn't become a US citizen at some point, it is possible that FIRPTA will apply one day when she sells the place. A CPA can advise in which circumstances FIRPTA would apply and or you can search the internet for some helpful articles.

[Sam Van Horebeek]

hi Jennifer

there are no visa or legal requirements for any foreigner to buy a property in the US. We are dealing with many foreigners who do not have a visa/greencard for the US and they can purchase one or multiple properties. Of course, visiting the property or staying there will require a valid visa.

Concerning financing, we have noticed only a few US banks that will provide financing to foreigners who do not have an employment history/credit history. Foreigners typically do not have any credit history in the US so the bank will look for other documentation such as rent history in the home country, credit card payment in the home country, etc.

[Account Closed]

anyone know of any institution (not private lender) that offers financing for foreign nationals with less than 50% down?

 i would think that once the foreign nation has a Taxpayer ID, and some credit history with the credit bureaus, it would make things a bit easier. 

However it would be interesting to see how US lenders open to foreign nationals consider income, given that the golden standard is 2 years of US tax returns and foreign nationals unless with the work visa (ie H1B1?) would have ZERO legal income from within USA, but who knows, they could be filthy rich royalty back home!

[Sam Van Horebeek]

Neil

HSBC in US provides financing for foreigners with less than 50% down - I believe they require 35% down. Clearly, there are requirements for the foreigner to have a job and income in his/her home country, tax documents of his/her home country, bank statements, etc.  

[Jennifer Lee]

@Account Closed

thank u, 

Wendy: I did ask, they are staying long term, maybe but not looking for investment migration. just thinking buying cheaper than renting.

Sam and Neil, with this post I am now looking into finding lender locally

[Account Closed]

Kudos to your student client, hope all goes well and maybe even gets offered an H1B1 if that is also of interest as is investing in a..second residence (or is it an investment) in USA?

Around here, so cal, foreign nations are sending agents -sometimes their children - in droves! to buy properties and even entire portfolios for them to generate streams of income to export back to their motherland as well as reinvest more and more in US.

Apparently in some countries, ie, China, it's unlawful to own more than one's primary residence and even in that case if I understand correctly, the land remains property of the socialist/communist government anyways.

So its understandable money is welcome from most anywhere in the world to invest in Corporate America - not a democracy - but at least a Constitutional Republic.