Are we eligible for convenient loan?

Question

Hello BP, and greetings from Switzerland.

Simple question, not so easy background:

Will we be eligible for a conventional loan (Freddy Fannie)?

Background: my wife and I are currently living in Switzerland. She is US citizen, I am Swiss. She is self-employed with tax optimized income. I work for a big IT company on a salary. While she has a great credit score, I do not have one at all, as I never lived in the USA.

When we invested in the past from abroad, we were only able to qualify for an asset-backed commercial loan.

Now we are planning to move to the states within the next 12 months and would love to purchase a triplex or four Plex on a conventional loan for House Hacking, as soon as we arrive in the US.

Will banks be willing working with us when I have the regular income and she has the great credit score (combined we are the ideal candidate) or will the look at us as individuals hence refusing working with us?

Looking forward to your qualified opinion.

Kai Kopsch · Answer

Opening a Bank account in the US is possible without an SSN or ITIN most Banks require in person with a valid foreign passport. As Darnell stayed adding you as an authorized user is the best way to establish credit fast. For example, Chase doesn't require an SSN for an authorized user. There are some credit cards in the US available that don't require a credit score or SSN, like TomoCredit or AMEX if you have already a relationship with them abroad

Alain Haug · Answer

@Darnell Lockett thanks for sharing your thoughts. We will contact the banks checking if that‘s an option.

Alain Haug · Answer

@Kai Kopsch thanks for this advise. We will reach out to the banks to check if we are able to already do this (perhaps apply for a TIN) or if we have to wait until I am in possession of a SSN.

Darnell Lockett · Answer

Hi Alain. Can your wife add you as an authorized user on one of her credit cards? I'm a Mortgage Broker, and have seen this help individuals in similar situations. It's just a thought, since you say her credit score is excellent.

Doug Smith · Answer

Typically, if someone is a signer on the loan, we'll be using the lowest middle score of the borrowers on the loan. With a Foreign National, however, scores aren't really as relevant unless there are negative trade lines.

Kai Kopsch · Answer

@Alain Haug  I'm not a mortgage broker, but I moved from Germany to Florida; there is no way to qualify for a conventual loan without you having an SSN and credit score and paying taxes in the US. Many foreign national loans are available that allow your Swiss income; most of them require a minimum of 20% down. If you plan on selling your future FL home, the IRS requires 15% of the sales price to be withheld on the sale of United States real property interests by foreign persons. To avoid this, get a green card as soon as possible to get an SSN. Open a US Bank Account together with your wife as soon as possible to get US credit cards to get into the US FICO system(takes a minimum of 6 Months)

Alain Haug · Answer

Hi @Doug Smith, thanks a lot for your swift reply. We are considering to move to FL but ultimately it depends on where I can relocate to with my company. However, it will be definitely in the south and on the ocean. If my wife and I buy a property together, will we be able to use her credit score and my income?

Doug Smith · Answer

Hello @Alain Haug, Welcome to the US! Our mortgage laws really tightened up after the 2007-2008 crash where showing income became mandatory for consumer loans. The government regulators are less strict on what they deem to be commercial loans, which is why you see a lot of loans on here that are made to entities instead of individuals. If you occupy the property, it's considered a consumer loan and is subject to heavier regulation. That being said, there are a handful of programs where income is waived, but you have to have a higher credit score and you have to put a significant amount down on the property (20%-25% or more). You fall into a category that we call "Foreign National" in the US. They usually require a bit more of a down payment while rates and terms tend to be more conservative. In the US, lenders are licensed in each State for consumer loans. Some cover multiple states while others, like us, only are on one state for consumer loans (we're in FL for consumer loans and nationwide for investor/commercial). Depending upon where you are planning to purchase, you'll want to find a lender that is licensed in that particular state if you're living in the property. What State did you plan on moving to? There are many factors that go into underwriting a loan for someone in your situation. I think a lender would need to better understand your income situation in order to fully answer your question, but we have many on here that are happy to help. Welcome to the US! We're glad you're coming!

Are we eligible for convenient loan?

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