What visa types are eligible for a U.S. mortgage?
When seeking a U.S. mortgage, your eligibility is closely tied to your legal status in the country. Lenders need assurance that you have a stable and legal right to reside in the U.S. for the foreseeable future, ensuring you can repay the loan. There are generally two categories of non-citizens that lenders consider.
Permanent Resident Aliens
If you hold a 'Green Card' (Form I-551), you are treated almost identically to a U.S. citizen in the mortgage process. You have the legal right to live and work permanently in the United States. As long as you can provide proof of residency, a Social Security number, and meet the standard income, asset, and credit requirements, you can apply for any type of mortgage, including conventional, FHA, VA, and jumbo loans. The data, information, or policy mentioned here may vary over time.
Non-Permanent Resident Aliens
This category includes individuals in the U.S. on specific work visas. Lenders who offer Foreign National loans will finance borrowers in this group, but they are more selective about the visa type. They are looking for visas that indicate stable employment and a longer-term presence in the country.
Commonly accepted visa types include:
- H-1B: For specialty occupations, common in tech and finance.
- L-1A/L-1B: For intracompany transferees (managers or those with specialized knowledge).
- G-Series (G-1 through G-5): For individuals working for international organizations like the World Bank or United Nations.
- E-1/E-2: For treaty traders and investors.
- O-1: For individuals with extraordinary ability or achievement.
The data, information, or policy mentioned here may vary over time.
Lenders will typically require a copy of your visa, passport, and documents proving your authorization to work in the U.S., such as an Employment Authorization Document (EAD) or a Form I-797 approval notice. They may also want to see that your visa has been renewed at least once or has significant time remaining before expiration. Visas with a short duration or those intended for tourism, like a B-1/B-2 visa, are generally not eligible for mortgage financing.
Why is my lack of a U.S. credit score a problem for jumbo loans?
A U.S. credit score, specifically a FICO score, is the primary tool lenders use to assess your risk as a borrower. This three-digit number, typically ranging from 300 to 850, summarizes your history of managing debt in the United States. It tells a lender how likely you are to repay your debts on time based on your past behavior with U.S. credit cards, car loans, and other financial obligations.
For a standard conforming loan, an automated underwriting system (AUS) uses your FICO score as a critical input. For jumbo loans, which are for amounts exceeding the limits set by Fannie Mae and Freddie Mac, the scrutiny is even higher. Because these loans cannot be sold to government-sponsored enterprises, the lender assumes all the risk.
Here’s why the absence of a U.S. credit score creates a significant hurdle:
- Automated Rejection: Without a FICO score, the AUS cannot process your application and will almost always issue an automatic denial.
- No Risk Benchmark: Lenders have no standardized way to measure your creditworthiness. Even if you have a perfect payment history in your home country, it doesn't exist within the U.S. system they rely on.
- Increased Perceived Risk: For a high-value jumbo loan, lenders need to be extremely confident in your ability to repay. A lack of U.S. credit history is a major unknown, and lenders are naturally risk-averse.
This is precisely the problem that Foreign National loan programs are designed to solve. They bypass the traditional reliance on a FICO score and instead use alternative methods to verify your financial reliability.
How do Foreign National loan programs verify income from my home country?
Foreign National loan programs utilize a manual underwriting process that is specifically designed to handle international income and assets. Lenders who specialize in these loans have established protocols to verify employment and income from nearly any country in the world.
The process involves a significant amount of documentation, all of which must be professionally translated into English.
Required Income Documentation
- Employment Verification Letter: You will need a formal letter from your foreign employer written on company letterhead. This letter must detail your position, your start date, and your salary in your local currency. It should be signed by a representative from the human resources or finance department.
- Foreign Tax Returns: Lenders typically require the last two years of tax returns you filed in your home country. These documents help establish a history of consistent earnings.
- Bank Statements: You will need to provide two to three months of statements from your foreign bank account showing the direct deposit of your salary. This confirms that the income stated in the employment letter is actually being paid.
The Verification Process
Lenders do not just take these documents at face value. They use third-party services to independently verify the legitimacy of your employer and your employment status. This may involve a phone call or a database search to confirm the company is a valid, operating entity. They will also analyze your income for stability, converting your salary to U.S. dollars using an average exchange rate over time, rather than a single day’s rate, to account for currency fluctuations.
For example, if you are a tech executive in London earning £300,000 per year, the lender will calculate the USD equivalent to determine your debt-to-income ratio for the California property you wish to buy.
What is an international credit report and how do I obtain one?
Since you don't have a U.S. FICO score, lenders use an international credit report as a substitute. This report gathers your credit history from your home country and compiles it into a format that a U.S. underwriter can analyze. It serves the same purpose as a domestic credit report: to show your history of managing and repaying debt.
You do not obtain this report yourself. The process works as follows:
- Lender Initiates the Request: During the application process, your mortgage broker or lender will work with a specialized third-party vendor that provides international credit reporting services.
- You Provide Consent: You will provide the vendor with your personal information and consent to access your credit data from your home country's credit bureaus.
- The Vendor Compiles the Report: The vendor pulls your credit files and creates a comprehensive report. This report will include information such as:
- Tradelines: A list of your credit accounts, such as credit cards, mortgages, or personal loans.
- Payment History: A record of whether you have made payments on time.
- Outstanding Balances: The total amount of debt you currently carry.
- Public Records: Any bankruptcies, liens, or judgments against you.
While this report won't generate a FICO score, it gives the underwriter a clear picture of your financial discipline. A clean international credit report is crucial for getting approved for a jumbo loan.
What are the typical down payment requirements for non-US buyers?
The down payment is one of the most significant differences between a standard mortgage and a Foreign National loan. Because the lender is taking on additional risk by forgoing a U.S. credit history and verifying foreign income, they require more 'skin in the game' from the borrower.
A larger down payment lowers the lender’s loan-to-value (LTV) ratio, which is a primary measure of risk. A lower LTV means the lender has a bigger equity cushion if the borrower defaults and the property must be sold.
For a Foreign National jumbo loan in California, you should expect a minimum down payment of 30% to 40%. The data, information, or policy mentioned here may vary over time. In some cases, depending on the loan amount, property type, and your overall financial profile, it could be as high as 50%.
Example Scenario
- Property Price: $3,000,000 home in Los Angeles.
- Standard Jumbo Loan (U.S. Citizen): A well-qualified U.S. buyer might secure this loan with 20% down, which is $600,000.
- Foreign National Jumbo Loan: As a foreign national, you would likely be required to put down at least 30%, which is $900,000.
This substantial investment demonstrates your financial capacity and commitment to the property, making you a more attractive borrower to the lender.
Can I use assets held in foreign banks to qualify for the loan?
Yes, absolutely. This is a fundamental feature of a Foreign National loan program. Lenders understand that most of your liquid assets will be held in your home country. These funds can be used for your down payment, closing costs, and required financial reserves.
However, the verification process for these assets is extremely thorough to comply with U.S. banking regulations and anti-money laundering (AML) laws.
Asset Verification Steps
- Provide Bank Statements: You will need to submit anywhere from two to twelve months of statements for any foreign account you intend to use. The data, information, or policy mentioned here may vary over time. Every page must be included.
- Certified Translation: All statements must be translated into English by an accredited, independent translation service.
- Sourcing of Funds: Lenders will scrutinize the statements for any large, unusual deposits. Any deposit that is not from your regular payroll must be 'sourced'—you must provide a paper trail explaining where the money came from (e.g., sale of another property, sale of stocks, a gift from a family member). All funds must be 'seasoned,' meaning they have been in your account for a specific period, typically at least 60-90 days. The data, information, or policy mentioned here may vary over time.
- Transfer to a U.S. Account: While you can qualify using foreign assets, the actual funds for the transaction must be transferred to a U.S. bank account before closing. This transfer should happen several weeks in advance to allow the funds to clear and be verified by the U.S. bank and the escrow company.
What are the unique challenges of buying in Beverly Hills as a Foreign National?
Purchasing a luxury property in an iconic and competitive market like Beverly Hills presents a unique set of challenges for any buyer, but these are amplified for a foreign national.
Navigating Intense Market Competition
Beverly Hills real estate is among the most sought-after in the world. You will likely face multiple offers on desirable properties. To compete effectively, you must present a clean, credible offer. An all-cash offer is strongest, but a financed offer can compete if it is backed by a solid pre-approval from a lender who specializes in Foreign National jumbo loans. A generic pre-qualification letter will not be taken seriously by listing agents in this market.
Larger Loan Amounts and Reserve Requirements
The median home price in Beverly Hills is in the millions, meaning your jumbo loan will be substantial. For multi-million dollar loans, lenders have stricter requirements. One of the most important is the need for post-closing liquidity or 'reserves'. Lenders will require you to have enough liquid assets left over after your down payment and closing costs to cover a certain number of monthly mortgage payments. For a large Foreign National loan, this could be 12 to 24 months of reserves. The data, information, or policy mentioned here may vary over time. For a $15,000 monthly mortgage payment, that means having an additional $180,000 to $360,000 in a verifiable liquid account at closing.
Logistical and Communication Hurdles
Coordinating a complex real estate transaction from another country can be difficult. Time zone differences can slow down communication, and transferring large sums of money internationally requires careful planning. It is essential to build a reliable team on the ground in California, including:
- A real estate agent with experience in luxury properties and international clients.
- A mortgage strategist who is an expert in Foreign National financing.
- A real estate attorney or escrow officer familiar with the complexities of foreign ownership. Navigating a jumbo loan in California as a foreign national requires specialized expertise. If you're ready to explore your options, working with a mortgage strategist who understands the complexities of international finance can streamline your path to homeownership and help you build a competitive offer.
Ready to begin your journey to U.S. homeownership? Apply now to explore your mortgage options for a California property.
Author Bio
David Ghazaryan is the expert mortgage strategist and founder behind iQRATE Mortgages. With a mission to fund home loans that traditional banks won't touch, David specializes in helping clients with unique financial situations, including those recovering from foreclosure or bankruptcy. He expertly crafts smart, strategic, and stress-free mortgages by leveraging a vast network of over 100 lenders to secure competitive rates for investors and homebuyers alike. Praised for exceptional customer service, David has helped hundreds of families with a 97% satisfaction rate, guiding them to the mortgage they deserve.
References
Consumer Financial Protection Bureau - What is a jumbo loan?
