FHA Mortgage - Foreign-Owned Property Disqualifier?

Question

Hi,

My wife and I are researching properties and are hoping to qualify for a First-Time Home Buyer FHA-insured Mortgage.

There's one potential problem: her parents put their apartment in her home country in her name for inheritance reasons. Will this disqualify her if we apply together?

We're considering selling the apartment to help us with the down payment since her mom will be moving to the USA. What if she transfers the apartment back to her mom's name and then her mom sells it? Will this make a difference?

My wife is a resident of the USA but not a citizen. Her salary is significantly higher than mine and I don't think I will be able to qualify alone.

Thank you!

Lien Vuong · Answer

Unlikely the lender will be able to see international properties owned. Additional FHA is NOT a loan that used just once but rather can be repeated so not dependent on your first time buying a home so you're fine for that.

Joe Splitrock · Answer

I doubt the lender will have any visibility to foreign owned property, unless you disclose it. If you plan to use proceeds from the sale as a down payment, you will need to disclose source of those funds, unless they have been in your bank account for a period of time, at least two month. As far as transferring back to her mother, it is probably more a question of taxes in the country where the property is located. I have a coworker who sold a property in France after living/working in the US for 20 years. His tax burden was substantial in France. Every country is different. If your mother in law gave you money for a down payment, that would be gifted funds. Non citizen resident is fine if you are working here and have social security number for credit verification. I would sit down with a mortgage broker and have them prequalify you and your wife. It sounds like you will be fine.