For many foreign-born individuals living in the United States, owning a home is one of the cornerstones of the American dream. But theres a perception among some non-U.S. citizens that theres no way they can obtain a mortgage, thus creating a huge barrier to that goal.
However, according to the National Association of Realtors (NAR), resident foreign buyers—those living in the United States either as recent immigrants or those holding visas for professional, educational or other purposes—are more likely to purchase a home using a mortgage. In “Profile of International Activity in U.S. Residential Real Estate,” published in 2020, the NAR reported that 62% of resident foreign buyers acquired mortgage financing from U.S. sources.
Certainly, buying a home can present challenges if youre not a citizen. But as the NAR report shows, the reality is that many lenders are willing to extend credit to non-citizens—even to those without a credit history in the United States.
Non-citizens who are lawful permanent residents, with the proper documentation, such as a valid green card, social security number, and two years of verifiable income, may even qualify for government-insured mortgages, which have the advantage of requiring low down payments. Here is what you need to know to qualify for a home loan in the U.S., even if you are not a citizen.
Getting a home loan as a foreigner in the United States can seem daunting, but it is very much possible with the right guidance. As an expat myself who went through this process, I want to share everything I’ve learned to help other foreigners navigate home financing in the US.
Overview of Home Loans for Foreigners
The main types of home loans available for foreigners without US credit history are:
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Full Documentation Loans – Require extensive income and asset proof like tax returns, bank statements etc. Lenders also evaluate your credit history from your home country.
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Bank Statement Loans – Lenders evaluate your ability to repay based on your bank account deposits over last 12 months. Easy to qualify but higher interest rates.
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No Income Verification Loans – As the name suggests, you don’t need to prove your income. Harder to get approved but great option if you have substantial assets.
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Loans from Foreign Banks – Big banks like HSBC and Santander offer home loans in US for foreigners who bank with them. Easier to get approved.
Step-by-Step Process to Get Home Loan as Foreigner
Based on my first-hand experience. this is the typical end-to-end process for foreigners to get a home loan in USA
1. Prequalification
This first step is to assess how much loan amount you may qualify for before you start home search, Reach out to lenders specializing in foreign buyer mortgages to get pre-qualified They will evaluate
- Your income and assets
- Credit history in your home country
- Length of stay in the US
- Visa status
After reviewing your profile, the lender will give you a pre-approval letter that mentions the loan amount, interest rate and other terms you qualify for.
2. Search for The Home
Once pre-approved, you can confidently start searching for homes in your budget. The pre-approval letter also strengthens your offer in seller’s eyes.
3. Find The Right Lender
If you connected with a lender earlier only for pre-qualification, now is the time to explore mortgage lenders thoroughly because this is a long term relationship.
Compare multiple lenders on:
- Interest rates
- Closing costs
- Acceptance of your specific visa status
- Experience with foreign buyers
Go with the lender that understands your unique situation as an expat and offers the best overall deal.
4. Submit Home Loan Application
After selecting the home, your lender will submit the formal mortgage application on your behalf. Be ready to provide:
- Employment verification letters
- Income statements
- Bank account statements
- Tax returns
- Debt-to-income ratios
- Downpayment source documents
The lender will guide you on the exact paperwork needed. Respond promptly to any additional requirements throughout the underwriting process.
5. Get Final Approval
At this stage, the lender will order appraisals, title searches and underwrite the full loan application to issue a final approval. This process can take anywhere from 2 weeks to a month.
If approved, you will receive a final mortgage commitment letter that lists the confirmed loan amount, interest rate, closing costs and other terms.
6. Conduct Home Inspection
While waiting for final approval, you should get a professional home inspection done to evaluate major defects, if any. Renegotiate with the seller in case critical issues are discovered.
7. Close on The Property
This final step is signing all the legal paperwork and transferring of funds to officially close on the property. Ensure you review the Closing Disclosure carefully before signing the home loan documents.
The dream of owning a home in the US as a foreigner can absolutely become a reality if you plan diligently and work with a trusted lender. Patience and perseverance go a long way.
Frequently Asked Questions on Home Loans for Foreigners
Here are some of the common questions asked by foreigners seeking home loans in the US:
Do I need a SSN to get a home loan in US?
No, you do not need a Social Security Number. Many lenders can approve home loans for foreigners with an Individual Taxpayer Identification Number (ITIN) which is quite easy to get.
Can I buy a house on a tourist visa?
It is highly unlikely for tourists with B1/B2 visas to qualify for home loans. However, some lenders may offer if you make a substantial downpayment of 50% or more.
What property types can foreigners buy with a home loan?
Foreigners can use home loans to buy single-family homes, condos, townhomes, investment properties etc. Make sure your visa allows you to buy the chosen property type.
Can I get a mortgage on H1B visa?
Yes, H1B visa holders who have lived and worked in the US for minimum 2 years can easily qualify for home loans from most lenders.
How much downpayment do I need as a foreign buyer?
Traditional loans need 20% downpayment from foreigners. For conforming mortgages backed by Fannie Mae, the minimum can be as low as 3%. Speak to your lender to assess downpayment needed for your specific profile.
What documents do foreigners need for home loans?
Paystubs, tax returns, bank statements, credit report, proof of assets, visa/green card are some of the key documents. Ask your lender for a full checklist. Having all papers ready can expedite the process.
How long does it take to close a mortgage for foreigners?
If you submit all required paperwork promptly, it typically takes 45-60 days from mortgage application to closing for well qualified foreign applicants.
Find the Best Home Loan Lender for Your Situation
As a foreigner, your best bet is working with lenders who specialize in mortgages for non-US citizens. Here are some great options to consider:
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HomeAbroad – My personal favorite. Great interest rates, top class service and highly experienced with foreign buyers. Couldn’t recommend them enough!
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HSBC – Offers home loans to existing HSBC customers globally. Also accepts applications from non-customers.
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Santander Bank – Affords preferential rates to Santander account holders. Also lends to general public.
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Bank of America – One of few mainstream banks that provide loans to foreigners with ITIN. Competitive rates.
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Wells Fargo – Foreign applicants need at least 2 years of credit history in US to qualify.
I highly advise speaking to multiple lenders before taking the mortgage. This helps you find the best fit for your unique financial situation. The potential savings from the right lender can amount to tens of thousands of dollars over the mortgage term.
Be Persistent and You Can Make it Happen
The home buying process can seem harder as a foreigner if you are not familiar with the system. But staying organized, doing thorough research and working with an experienced lender can help you sail through the mortgage approval smoothly.
Many smart foreigners are able to fulfill their American dream of owning a home by educating themselves and diligently navigating each step. Now that you know what it takes, go make it happen and enjoy the perks of homeownership in the United States!
Can I Get a Mortgage If I’m Not a U.S. Citizen?
If you are a legal permanent resident and meet specific mortgage requirements, yes, you may be eligible for a mortgage in the United States.
Should I Use an International Bank for My Mortgage?
If you live abroad but want to buy property in the U.S., it may be easiest to obtain a home loan through your international lender if they operate in North America, rather than applying for a loan through a U.S. domestic bank.