Permanent Resident Aliens

If you’re a permanent resident alien, you’re eligible to get a mortgage under the same terms as any U.S. citizen. You just need proof of residency status. This can be in any of the following forms:

If you’re applying for a regular jumbo loan, you must have three years of U.S. residency and three years of work history with authorization.

Applying for a nonconforming jumbo loan is a little trickier. You need to have been a resident of the United States for at least five years. You also have to have a likelihood of continued employment for at least the first three years of the loan. The property must be single-family or condo housing, and it must be owner occupied. A 30% down payment is required. You also need the following:

Which segment applies to your buyer?

Buyer #1: Green card and work visa holders buying a primary residence

Immigrants with valid visa status to live and work in the United States, a history of U.S. employment and a social security number face fewer borrowing difficulties than other foreign buyers and can apply for a conventional mortgage.

People in this group tend to be first-time home buyers. They may or may not have established a U.S. credit history. Often they are looking for an entry-level home at a low price with a low down payment. Family members in their home country may be sending cash for the down payment.

Buyer #2: Foreign nationals buying a second residence or vacation home

With their primary residence outside the U.S., many consider this group as the prototypical “foreign national.” Their length of stay in the U.S. is limited by the type of visa they hold and they are not allowed to work here.

There are a number of hurdles to finding a loan that fits their needs. Comprised of visitors and vacationers who want to spend more time in the U.S., members of this group probably haven’t established a paper trail in the U.S. banking system. Whether justified or not, they are perceived as risky. Compounding the risk is that they are looking to finance a second residence, always more dicey than the first.

“They are financially solid enough to afford buying a second home and use it only part of the year, but their overseas resources can’t easily be documented in a format familiar to U.S. lenders.” Banks get especially nervous if these mortgages turn out to be jumbo loans.

There are a number of ways lenders can work around the absence of U.S.documents to determine if an applicant has enough income and assets to qualify for a mortgage. However, after a borrower qualifies, they should expect to make a substantial down payment in the range of 30 to 50 percent. Lenders may require as much as two years of mortgage, insurance and tax payments to be deposited in a U.S. account.

Depending on the lender, these buyers can borrow up to or more than $5 million. Lenders will be looking for extensive documentation of their foreign assets, liabilities, credit dealings and proof of income.

Buyer #3: Luxury and other high-end foreign buyers

At the top end of the second home market is a smaller group of ultra-high net worth foreign buyers. Though these buyers usually pay cash for high-end properties, they sometimes want a mortgage to free up funds for other investments. They may initially purchase with cash to gain an advantage in bidding, then cash out after closing with a post-sale mortgage.

Fewer lenders serve this market, which is largely geared towards international banks looking to expand relationships with high-net-worth individuals. Borrowers can expect a low loan to-value ratio, perhaps 40 to 50 percent.Large deposits in a U.S. account will also be required, although borrowers may be allowed to pledge other assets as collateral.

Immigrants with valid visa status to live and win the United States, a history of U.S. employment and a social security number face fewer borrowing difficulties than other foreign buyers and can apply for a conventional mortgage.

People in this group tend to be first-time home buyers. They may or may not have established a U.S. credit history. Often they are looking for an entry-level home at a low price with a low down payment. Family members in their home country may be sending cash for the down payment.