Foreign National
Traditional Full Documentation & Asset Qualification
(Foreign National)
Eligible
General
- This program is designed for foreign national borrowers who can fully document their income and assets OR who have significant verifiable assets and would benefit from alternative loan qualification methods. This program provides two alternate approaches to document the borrower’s ability to repay. Standard full documentation of income and assets is used by most borrowers. However, asset statements alone (no debt to income ratio is required) may be used by high net worth individuals for qualification.
Borrower
- 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, the borrower must be a legal resident of another country and live and work there. Please review published guidelines for complete Foreign National qualification, documentation and reserve requirements.
- Non-occupant co-borrowers are not allowed.
Credit
- A credit score is not required, unless a U.S. credit report is available. If a credit report is not available, a minimum of 1 original credit letter must be obtained from a financial institution located in the borrower’s country of origin, or 3 credit references. Please review program guidelines for complete credit requirements.
Income
- Full income documentation is required including two (2) years foreign tax returns from borrower’s resident country, translated into English by third party certified translator. If resident country has no filing requirement, please refer to guidelines for full documentation requirements.
- Verbal VOE to be performed by the underwriter prior to closing using lender’s VVOE form or if self-employed, an independent written confirmation of self-employment is required (i.e., copy of business license reflecting ownership of company, corporate minutes, etc.).
- (Asset Qualification only) Employment and Income is not required to be disclosed on the 1003 loan application. The income section should remain blank. Business phone number must be reflected on the 1003 (for consumer contact purposes only).
Assets
- Full documentation is required for all assets used to qualify, and for funds to close and reserves. Assets can be cash in the bank, stocks, bonds, IRAs, 401Ks, mutual funds or retirement accounts. For most asset types, this would include all pages of the most recent twelve (12) months. Asset levels in the verified accounts are expected to be consistent and sustained over the twelve (12) month period. Increases or decreases of greater than 15% over the twelve (12) month period must be explained by the borrower. Additional supporting documentation may be required.
- Minimum 12 months’ reserves required. (See published guidelines for other factors that may require additional reserves)
- Gift funds and gifts of equity are not allowed.
(Asset Qualification only)
- Assets must be verified sufficient to cover the loan amount request with sufficient additional assets to cover all revolving, installment, alimony/child support, and mortgage related expenses for a period of no less than five (5) years, plus the separate reserve requirement based on loan amount listed in the Assets section of the guidelines.
- Full documentation is required for all assets used to qualify, and for funds to close and reserves. Assets can be cash in the bank, stocks, bonds, IRAs, 401Ks, mutual funds or retirement accounts. For most asset types, this would include all pages of the most recent twelve (12) months. Asset levels in the verified accounts are expected to be consistent and sustained over the twelve (12) month period. Increases or decreases of greater than 15% over the twelve (12) month period must be explained by the borrower. Additional supporting documentation may be required.
- A copy of the Wall Street Journal’s conversion table as of the same date as the bank statements or quarterly statements is required for the purpose of converting the borrower’s foreign currency to U.S. dollars. The underwriter must provide a statement outlining the beginning and ending balances of all foreign bank accounts converted to U.S. dollars. Large deposits are handled per FNMA guidelines. Borrower must provide proof of transfer of the funds from the home country to a U.S. bank prior to closing.
- To the extent that required assets are verified as seasoned within a bank on the “Acceptable Bank List” there is no further seasoning requirement within a U.S. bank or financial institution. (See Acceptable Bank List attached to the guidelines). If asset documentation (12-month seasoning) is provided from a bank that is not on the “Acceptable Bank List” then additional verification and seasoning requirements will apply. Please review guidelines for complete details.
- Minimum 12 months’ reserves required. (See published guidelines for other factors that may require additional reserves)
- Gift funds and gifts of equity are not allowed.
Property
- One full Form 1004 appraisal with AIR Certificate and SSR required for loan amount $344,500.00. Property condition must be rated C4 or better. Property condition C5 or C6 is unacceptable.
- A Pro Teck Valuation Services Appraisal Risk Review (ARR) or a Clear Capital Collateral Desktop Analysis (CDA) supporting the value within 10% (higher or lower than appraised value) will be required. If variance exceeds 10% then a field review ordered from an approved AMC (see guidelines) will be required. A field review from any approved AMC is acceptable in lieu of an ARR or CDA. If a field review is obtained there is a 5% tolerance as follows: If the field review value is <= 5% below the appraised value, use the appraised value for LTV calculations. If the field review value is more than 5% below the appraised value, a second appraisal is required.
- When two (2) appraisals, or an appraisal and a field review from an approved AMC are provided, an ARR or CDA is not required.
- Preliminary Title Report dated within 30 days from application date including 24 months’ chain of title, property address, property type and plat map or survey.
- FSBO (for sale by owner) transactions are not allowed on this program.
Financing for Foreign Nationals in Hoboken, NJ – Serving New York – Manhattan, New Jersey, California, Connecticut & Florida
We recognize that offering Real Estate financing for Foreign Nationals Investors is an intricate part of providing a comprehensive lending platform. Traditionally, banks have been unwilling to waive credit score requirements and source-of-funds rules, but Northstar has accessed lenders who will accommodate borrowers who may not have access to this type of documentation.
While these transactions can be complex, our experienced underwriting and production teams will work with you, on a loan by loan basis, to assist you through the process of purchasing property in the US.
- No credit score required
- Up to 80% LTV*
- Loan amounts to $10,000,000+
- Condo-Hotels permitted
- Loan may close in a Trust, LLC or corporation
- Cash-out available to $5,000,000 on newly purchased properties
*avallable with asset pledge
Foreign Nationals:
- No Social Security Number, Green Card or VISA required.
- No Fico score is required. We will accept foreign credit reports to demonstrate credit worthiness or satisfactory alternate credit, from country of origin.
- Up to 80% LTV to $5,000,000*
- Interest only programs are available.
- Cross Collateralization Allowed.
- Income documentation is required.
- Tax Identification Number (TIN) not required. Borrower must apply for TIN
- Valid passport and second form of ID required.
- Minimum Loan amounts from $300,000 to $10,000,000. Loan amounts over $10M will be considered.
Northstar Funding has international connections and the ability to connect with foreign banks to verify offshore credit references and funds.