Lending to a Non-US resident

Lending to a Non-US resident

Rental Property Investor · Chicago, IL · Member since 2017 · 17 posts · 5 votes

Hi all! 

I am new to the BP community and looking for some advice from you friendly people! First, let me quickly give you some background. I am British and have been working in the US for almost 2 years. I am currently on a work visa (L1B to be exact) and at the start of the employer sponsored green card process. 

My plan is to house hack a small 3/4 unit multi-family next spring/summer, preferably with a 5% down conventional loan along with some PMI (assuming the figures work). Why the wait? 2.5 reasons (1) I want to learn as much as possible before diving in i.e. research, building out a local network & team etc. (2) I am at the start of my green card process so I want to ensure that it is well underway beforehand! (2.5) I am tied into a lease until next summer (I could easily sublet).

My questions for you are:

1) Is it possible to attain a conventional loan on a work visa (I believe it is after some research but I wanted to check with the community) and does anyone have experience in doing so?

2) What can I do in the meantime to increase my chances of the bank saying "yes" when the time comes (if different to a US resident)? Generally, will 2.5yrs of US credit history be enough in my specific case (assuming everything else is in check)?

Thank you in advance!

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  • Specialist · Toronto, Ontario · Member since 2012 · 2k+ posts · 891 votes
    8y
    @George Bailey I spoke to a bank and they said a visa is ok but I mentioned that the visa may require renewal every 5 years so they offered balloon before expiry. Not bad for certain strategies..
  • Rental Property Investor · Chicago, IL · Member since 2017 · 17 posts · 5 votes
    8y

    @Hai Loc thanks for your reply. Interesting, so you have the option to pay off the principal every five years? Do you think the rate you received was competitive with the rates for US residents or do you think it was slightly higher?

  • Specialist · Toronto, Ontario · Member since 2012 · 2k+ posts · 891 votes
    8y
    @George Bailey This was just a conversation with a lender. I would only consider if my strategy was a 4 year play or less..
  • Rental Property Investor · Chicago, IL · Member since 2017 · 17 posts · 5 votes
    8y

    Got it. OK thanks for the info @Hai Loc

  • Harjeet BhattiPro Member
    Lender · Glenview IL- CDLP NMLS#230554 · Member since 2015 · 2k+ posts · 747 votes
    8y

    @Geroge Bailey  You can get a loan on work visa. The Guidelines are same as long its under confirming loan limit.  2 years history is good enough  but lenders can accept working history from other county which can be verify by paper trail.  

  • Mike B.Pro Member
    Chicago, IL · Member since 2017 · 33 posts · 8 votes
    8y

    my co-worker is from Canada and was working in the US for over 3 years on a visa before buying his condo. he had no debt and had strong salary history - however, he couldn't qualify for a traditional mortgage because he didn't have any credit history in the states. When applying for mortgages, all of his accounts were still at RBC and so the credit history remained abroad, as opposed to if he had switched his banking to Chase (which he did after he purchased). He did get the property but it required him putting a lot down, iirc nearly 40%?

  • Rental Property Investor · Chicago, IL · Member since 2017 · 17 posts · 5 votes
    8y
    @Harjeet Bhatti that’s great to hear, thanks for the info! I can also provide my UK history too if they find it helpful
  • Rental Property Investor · Chicago, IL · Member since 2017 · 17 posts · 5 votes
    8y
    @Mike B. Ah I see. I should be good because I have been banking with Chase and had credit cards open in the US for almost 2 years. 40% down is a big chunk of equity! Hope everything worked out for him
  • Harjeet BhattiPro Member
    Lender · Glenview IL- CDLP NMLS#230554 · Member since 2015 · 2k+ posts · 747 votes
    8y

    @Gerorge Bailey Yes that will cover your 2 year history of employment. Make sure you get all the documents. 

  • Rental Property Investor · Chicago, IL · Member since 2017 · 17 posts · 5 votes
    8y
    @Harjeet Bhatti ok thanks Harjeet!
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