Aug
25

Is it Difficult For A Foreign National To Get a Mortgage in New York City?

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Flags of the worldThere is a common misconception that it is more difficult for foreign nationals than for American citizens to get a mortgage in NYC.  In fact, there are some restrictions, but it is perfectly possible for foreigners to get mortgages for New York City home purchases.

Foreign nationals obtain a mortgage like anyone else

Foreign nationals can approach local NYC banks, national lenders, credit unions and mortgage brokers to apply for a mortgage. Not all lenders offer foreign national programs, but they are readily available.

As a foreign national, one must be prepared to put a down payment as high as 40% of the purchase price—required by the lender because it typically will only loan 60-80% of the purchase price. Interest rates are reasonably priced and there are no forbidden property types so you can finance a condo and a co-op just as easily as a single-family home. Some lenders will require you to prove your Visa status or type of Visa you possess that gives you permission to be in the United States, be it for a business or a pleasure trip or to come to the U.S. to work, study, conduct business or immigrate.

Foreign nationals who hope to purchase co-ops will need to go before the co-op board, just as citizens do.  The co-op board may impose its own requirements such as requiring a green card, U.S. tax returns and other conditions. Co-op restrictions may make it more convenient for foreign nationals to purchase condos because the bylaws and rules of condo associations are typically less restrictive than those of co-ops.

If the purchase is strictly for investment purposes I would recommend the purchase of a condo. That said, in New York City, there are “condops” (a cross between a coop and a condo) which may allow you the flexibility as an investor but at a lower cost.

The bottom line is that a foreign national can obtain mortgage financing just like a The bottom line is that a foreign national can obtain mortgage financing just like a U.S. citizen would in order to establish a NYC mortgage. Find a lender that offers foreign national loans and apply for the mortgage. Then sit back and wait for information to be processed—just like a U.S. citizen would have to do.

Comments

  1. […] Bob Borger wrote an interesting post today onIs it Difficult For A Foreign <b>National</b> To Get a <b>Mortgage</b> in New <b>…</b>Here’s a quick excerpt […]

  2. Tomas says:

    I received a loan with eastcoastinvestmentsco.com they asked for 35% but as a venezuelan in my country that is a low down payment