Foreign national citizens buying in United States must remember
not to make assumptions about how mortgages work in America. There
are many differences. Understanding
the difference will help you close a successful purchase. You should
work with a specialist in order to secure a foreign national mortgage to
avoid the potential for disaster. Caroline Gerardo,
has twenty four years experience and can help you avoid the pitfalls and
direct you in your search for a great investment home and the
right Foreign National Mortgage Loan.
The best way to guarantee the success of your
property purchase is to gather as much factual information as possible, and
get relevant advice from the right people with your best interest in mind
and who work with foreign national mortgages on a regular basis. A Realtor on the ground in the local
County and city where you target to purchase is very important. They will
know and have seen properties on the market over the years.
Your documentation of bank statements and tax returns should
be ready as pdf attachments. Current paycheck stubs and copies of your ID
such as passport or driver’s license should also be copied and enlarged and
put into easily readable pdf format. All the information about your
financial status for the past two years is necessary to get a lower
conventional mortgage loan. Every deposit over $500 that is not a payroll
check you must be prepared to provide copies of the checks and trail the
source. In order to get a low rate a very large amount of paperwork is
required.
Mortgage Types for Foreign National Investors
There are many of popular types of mortgages available to
foreign nationals buying in California. Particularly the basic fixed rate
and adjustable (variable) rate mortgages. However, there are variations on
these themes that have no real foreign national mortgage equivalents.
There is also a wide range of programs and offers that are really only
suitable for special case USA citizens. Below you will find a brief
description of the many types of foreign national mortgages.
FIXED RATE
MORTGAGE
Fixed rate mortgages have traditionally been the most popular type of
mortgage. With a fixed rate mortgage, you pay both capital
and interest over a fixed period of (usually) fifteen or thirty years with
the same monthly payment for the duration of the loan. This type of
foreign national mortgage suits buyers who value knowing exactly what their
repayments are going to be over the long term and don’t want to take any
risk of being affected by rising interest rates. Thirty year loans are the
most popular.
ADJUSTABLE
RATE MORTGAGES
With an adjustable rate mortgage (much like a UK variable rate or Canadian
5 year or 7 year but not due and payable) there is usually a fixed interest
rate for the start of the term (typically five or seven years), after which
the rate is adjusted once every year (depending on the foreign national
mortgage type) and fluctuates in line with independent published financial
indexes.
SPECIAL CASE
MORTGAGES
Certain foreign national borrowers – those who are coming from non- OLFAC
restricted countries who do not want to proved income and asset
documentation. There are low documentation loans available, often called
Hard Money loans in the eleven to twelve percent interest rate range with
forty percent down payment.
There is a foreign national mortgage structure for almost
any situation, and once your mortgage broker understands your
circumstances, we will be able to find a suitable mortgage to fit your
situation.
MORTGAGES FOR
RENTAL PROPERTIES
There are different types of mortgages available, and these
vary depending on the use you plan for the property. There are different
lending rules for mortgages on properties which are used as a primary
residence, a second home or as an investment. Many times there are
different and / or additional rules for Foreign residents.
For those seeking a foreign national mortgage, you must
ensure that you are completely open about why you are buying a property in California
in order to avoid any serious consequences.
For example, while you are researching the California
market, you may see advertisements featuring loans of up to 80% of the
property value which would increase your buying power with low owner occupied
rates. However, typically these loans are only available on
properties that are for your personal occupation as a primary or a
secondary residence. These types of loans are not designed for and
are specifically not offered on rental properties. Also certain properties
such as condominiums may have pending lawsuits or low owner occupancy
ratios and you may not discover this information until the last minute. Finding
yourself at the final hour and closing on the property without a loan can
be disastrous. Do you pull out of the deal and potentially lose the
property and your deposit?
We work with many international, national, regional lenders
and some Wall Street conduits and investment firms. Most US lenders do not
offer foreign national mortgages or an international borrower
program. Most of the big banks won’t touch them. Each lender may limit options in some way.
When working with a buyer interested in a Foreign National
Mortgage Caroline Gerardo is motivated to find the loan that offers the
best rate and quickest approval time. Because of this, we are not
tied to any one bank and will work with many lenders to find a competitive
rate and to guarantee loan approval. Our desire to find our clients the
most suitable mortgage ensures a continued stream of referrals and
solidifies our reputation as a top-notch foreign national mortgage
resource.
We will coordinate with a US escrow/ attorney and
US notary for signing
Caroline Gerardo will act as your professional in a
Real Estate Property transaction and Foreign National Mortgage Loan.
Refinance or Purchase no limit to number of properties
Rates change daily and are subject to your credit score, net income on taxes, type of property, property
use and other factors call for details
Caroline Gerardo NMLS #324982 (949) 637-8190 Newport Beach California
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