Foreign National Mortgage: Step by Step Process

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Foreign National Mortgage: Step by Step Process

Foreign National Mortgage: Step by Step Process.

  • The process takes from 20 to 40 days.
  • Mortgage is for thirty years with an option of 3 to 10 years fixed interest. The rate adjusts every year after fixed rate term expires according to LIBOR index.
  • Down payment: 30% House, 35% on Condo or Condo-Hotel, 40% for citizens of Russia, Ukraine, Argentina, and Venesuela.
  • Property can be purchased under individual or company name (registered in US).
  • Borrower must have US bank account with funds to close prior to closing:
    1. Down payment
    2. Closing cost
    3. Reserves from 12 to 24 month payment (includes: mortgage, maintenance or insurance and taxes). These funds stay at your account and are available to use at your discretion after closing.
  • Following is the list of documents required to apply for mortgage:
    • Proof of address from borrower’s home country such as utility bill or other bill showing borrower’s name and address.
    • Bank letter showing that account was opened for two years or more. Borrower must show enough funds to cover payments and lifestyle in home country as well as mortgage obligations in US. We have a SAMPLE (asset verification letter).
    • Borrower who’s income derives from business – required to provide  letter from an independent accounting or auditing firm (not connected with borrower or borrowers business). We have a SAMPLE (income letter for self-employed). It helps when business have a website or lots of printed business materials and/or brochures that explains nature of business.
    • Borrower who is an employee of a company will need to provide letter from his/her employer. We have a SAMPLE (income letter for employee). In some cases we need additional reference letters. It can be from companies which borrower have worked in the past. We have a SAMPLE (reference letter).
  • To start the process borrower must pay the following fees:
    1. Appraisal fee: from $350 (depends on the purchase price)
    2. Condo Questioner fee: from $50 to $250 (depends on the condo)
    3. Translation fee ($70 per page, if applicable)

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