Mortgage Loans for Foreign Nationals

This program is available to foreign nationals and non-permanent resident aliens without diplomatic immunity who seek to to purchase a second home or investment property in the United States.  Eligibility for the program is subject to the restrictions established and administered by the Office of Foreign Assets Control (“OFAC”).  Submission of income and credit documentation for underwriting review is recommended prior to entering into a purchase money contract.

Some items that Service must consider include:

◾ TIN or SS# is mandatory before funding

◾ Visa or Passport allowing entry into the US is required for each borrower

◾ Second Home & Non-Owner occupancy available. Second home must be in a vacation or resort area

•             Second Home: rate adjustment applies

•             Investment Property

◾ 50% max LTV for Non-Owner occupied

Basic Guidelines

•             Debt to income ratio cannot exceed 40%, including PITI on foreign REO and foreign installment and   revolving accounts showing on bank statement payment history

•             If borrower is married, add her/him to loan application if full value of joint asset accounts is needed to   qualify. Otherwise, only 50% of the asset balances can be used for joint accounts

•             Three year residence and job history is required on 1003.

Credit Report

•             US credit report is required if borrower already has a TIN or SS# - no credit score is acceptable

Assets

Most recent 2-months personal bank statements, with all pages included (no screen shots allowed). Foreign asset accounts must be approved by Underwriting for down payment and reserves.

•             Convert all foreign assets to US Dollars on the application. Service Mortgage uses assets as a key qualifier - the more provided the better.

•             Not allowed: Deposits that cannot be properly sourced.

•             Foreign Real Estate Owned: 12 months PITI in reserves is required for each property owned

Income: As described below, with 40% DTI max:

•             Wage Earner: Most recent year’s W-2 equivalent, and pay stub dated within the last 30 days showing YTD income

•             Self-Employed: Prior two years personal and business tax returns, plus a current YTD Profit & Loss statement. CPA summary translation to English and US Dollar equivalents are required.

•             Written Verification of Employment: must be translated to English

•             Foreign REO rental income may be considered on an exception basis with 6 months cancelled checks and a current lease agreement (must be translated to English and Dollars). Use 75% of rental income received as gross rental income on 1003.

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Disclosure;  Loan program requirements frequently change and so the guidelines identified are general guidelines applicable at the time this webpage was created and may change from time to time. Service Mortgage Services LLC reserves the right to modify the requirements or to discontinue the program at any time


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