Foreign National Mortgages in the United States
Lending for International Borrowers, Visa and Green Card Holders
Financing for Foreign Nationals, Green Card Holders, Work Visa Borrowers

Who is a Foreign National?

  • A true foreign national is a legal resident or a national of a foreign country. 
  • A foreign national usually lives and works overseas. 
  • Majority of income is usually earned in country of origin, or overseas.
  • Classic definition of a foreign national is one who buys a 2nd home or vacation home.
Types of Financing for the True Foreign National
  • 70% Financing is the lending standard, in most cases.
  • 75% Financing may be available in certain cities or for borrowers from Canada.
  • Most products are variable rate mortgages fixed for the first 3 years or 5 years.
  • Interest only mortgages and 30 year fixed rate mortgages are not as common.


Types of Eligible Properties for the Foreign National Buyers
  • Foreign nationals usually buy a second home or vacation home in the U.S., and use the property for short-term vacation or business trips.
  • Condos or condominiums can be purchased in certain cities or areas.
  • Residential duplexes, triplexes, and quadplexes are not eligible.
  • Commercial properties are eligible for purchase.  Foreign nationals can buy commercial apartment buildings of 5 of more units, for instance (certain areas only).


Green card holders may be entitled to 95%-100% financing, including FHA, USDA rural development loans, and HomePath.  Green card holders should ask their accountants or tax professionals if they qualify for the $8000 tax credit given to first time homebuyers.

If the foreign national lives, works, and primarily earns income overseas, he or she should prepare for larger down payments than in past years.  True foreign nationals are now being asked to make a 30% to 50% down payment, a response to changes in US and global credit markets.  With less liquidity, fewer lenders making loans, and tighter underwriting standards; realtors, sellers and buyers may rethink new ways to buy and sell property. 


One such program allows for a 50% first mortgage (bank financing) and a seller held second mortgage up to 40% of the purchase price.  The Combined Loan to Value is 90% CLTV = 50% first mortgage + 40% second mortgage.  Sellers are under no obligation to fund a 40% down payment, and may instead fund 10% or 15% of the down payment, or any amount.  This, in turn, may increase the down payment from the foreign national.