A foreign national is a citizen and resident of another country who periodically visits the United States.  Many like to have homes to live in and enjoy during their stays.  A foreign national is not an American citizen, permanent resident alien or non-permanent resident alien.  Think of it as someone who likes to come for a spin, but hates to stay in hotels!

 

Before 9-11, it was much easier for non-Americans to purchase real estate here.  Since then, it has become a more questioned transaction and guidelines to borrow mortgage money are much stricter:

 

·        The loan to value can be no more than 75% of the purchase price.

·        A tax ID number is required if the borrower doesn’t have a U.S. Social Security number.

·        The property must be a primary or second home (single family or condo).

·        The source of funds to purchase the home must be from domestic or foreign bank accounts. (cash in a suitcase is not allowed)

·        The funds must be in a U.S. bank account for a minimum of 60 days before use.

·        The transfer must be documented 

·        The borrower must have at least 6 months worth of housing expenses post closing.

·        Employment and income in the foreign country of origin must be verified.

·        An international credit report will be ordered if there is no credit in the U.S.

·        No late payments are allowed on any trade lines, foreign or domestic. None!

·        If a borrower appears to be a Politically Exposed Person (PEP), then the file must be manually underwritten, and suspicious activity must be reported to a government agency**

·        If the borrower’s country of origin is on the Non-Eligible Country list for the government’s anti-money laundering program, then the transaction will be reported immediately to the authorities.**

 

** You can assume, I am telling you not to apply for a mortgage.

 

 

 

Dale Siegel

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