Obtaining a loan for a real estate in USA for Foreign Borrowers

Mortgages are approved for terms up to 30 years. For the first 3-5 years the interest rate is fixed, thereafter the rate will change in accordance with the LIBOR (London Inter-Bank Offered Rate) index. It usually takes from 30 to 45 days to close. In order to obtain a mortgage a 30% down payment of the purchase price is required. Mortgages may also be issued to a U.S. Corporation or LLC as well as to an individual.

Items required to obtain a mortgage loan.

• An account with an American Bank with sufficient funds for the down payment, transaction funds and any reserve requirements. All the funds should be totally transferred to your American Bank account. Only after these funds are transferred can you then move money for escrow to an attorney or developer.
• A recommendation letter from your bank, it is required that your account is open at least two years.

• Borrower must have sufficient funds in their home country relative to their income.
• A letter indicating your income should be provided from the following: (1) if you are a self-employed business owner, a letter from an independent accountant or auditor that is not related to your business in any way.

• Additionally, it would be advantageous if the business has an Internet web page; if you do not have a web site then it will be necessary to provide company marketing material such as brochures or catalogs. (2) If you are an employee, a letter from your employer is required.

• You will also need to provide copies of utility bills from your country which indicate your name and address of your residence. For example: rent, telephone, water, electric or gas bill.

• Prior to processing your mortgage loan file, it will be necessary to pay for the cost of an appraisal (Property Evaluation), document translation to English if necessary. This will cost between $350 and $1500 depending upon the purchase price of the property.

Types of real estate

• Single Family House
• Townhouse
• Condominium
• Condo-hotel
• Apartment building
• Office building
• Shopping center

Frequently Asked Questions

1. What is a foreign national mortgage loan? These loans offer buyers who meet the legal definition of a bona fide “foreign national” the opportunity tofinance real estate in the United States.
2. Who is eligible for a foreign national mortgage loan? A foreign national is defined as someone who lives in another country and visits the United States for brief periods for business or vacation. In order to be eligible, you have to be a legal resident of another country and live and work there.
3. Do I need a green card? No, a green card is not required. You will need a valid foreign passport, and may need a visa (depending on your country of origin).
4. What if I have a temporary work visa in the U.S.? That’s okay!
5. Will I be able to get U.S. credit? Simply yes; because U.S. banks automatically report all mortgage payments made to the three largest credit reporting agencies you will automatically establish U.S. credit even though you do not have a U.S. social security number. Congratulations!
6. How much will I have to pay as a down payment? Down payment requirements range between 30% and 40%.
7. What are reserve requirements? Reserve requirements refer to the additional amount of funds above the down payment and transactional costs that a Foreign National investormust have in a US bank in order to qualify for a mortgage. The amount of reserves required varies on the particular program. Good rule of thumb is 12 months of mortgage payments plus tax and insurance payments in addition to your down payment and closing costs. Please note: THESE FUNDS ONLY NEED TO BE KEPT IN RESERVE UNTIL YOU CLOSE; THE NEXT DAY YOU MAY USE THESE FUNDS ANY WAY YOU WISH.

About the company

A&D Mortgage is a company you can trust to provide you with competent, ethical and reliable service.

Our professional operations staff and loan officers are both knowledgeable and experienced. We pay close attention to our borrower’s financial needs and work diligently to provide them with the proper solution. We make sure that each and every client is fully aware of the loan process and keep them totally informed from application to closing and ensure that their experience with A&D Mortgage is a positive one.

A&D Mortgage has been providing residential and commercial loans for borrowers in South Florida for more than 10 years and we are very well aware of the needs of our borrowers as our entire staff has been residing in our beautiful community for many years as well. Whether our borrower is a South Florida native, a recent transplant, or a Foreign National we have the right program to fit virtually everyone.

Despite the ups and downs of the South Florida real-estate market, A&D Mortgage has consistently developed and acquired new financial resources to ensure that our borrowers always have the best mortgage product available to fit their needs.

We welcome you to call us anytime at 305-381-0621 with your questions or please search our website with all the useful information provided.

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• Foreign National
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