About International Mortgages

Securing a foreign national mortgage in the U.S. often begins with proving that funding is in place. Many sellers will not accept an offer unless the buyer has been pre-approved. For re-sale properties, closing is typically scheduled 30–45 days after the sales contract is signed, and in some cases, late completion may trigger financial penalties.

Mortgage Options and Loan Terms

Financing is generally available up to:

• 70–75% loan-to-value for second homes and investment properties.

   

• 80% loan-to-value for a primary residence purchased by a foreign national with a qualifying visa.

   

Loan terms can extend up to 40 years, and there are no age restrictions for mortgages on U.S. property. Most foreign national mortgage loans for primary or second homes are based on affordability, supported by proof of income from the applicant’s home country. However, for investment mortgages, proof of income is usually not required.

Banking and Reserves

Opening a U.S. bank account is typically necessary to manage mortgage payments, property taxes, insurance, and utility bills. Some foreign national mortgage lenders may also require 6–12 months of mortgage reserve payments to be demonstrated, though these funds are not pledged and can be held in either a U.S. or international account.

Currency Exchange Considerations

Because deposits and closing fees are usually converted into U.S. Dollars, exchange rates can significantly affect the overall cost of purchasing a property. This requirement applies equally whether you are applying for a mortgage for non-residents or a home loan for foreigners. (Visit our Currency Exchange page for details on registration and available services.)

Closing Fees

Closing fees will be detailed in a Loan Estimate and commonly include:

• Purchase taxes and stamps

   

• Legal fees

   

• Lender fees

   

• Insurance costs

   

The exact amount depends on the location of the property.

Legal Guidance

While a lawyer or attorney is not legally required, many of the contractual elements are handled by a Title or Escrow Agent, who often represent both buyer and seller. Buyers seeking independent legal advice may still wish to retain their own lawyer to review contracts before signing.

Tax Obligations

Taxes may apply not only to income generated from the property but also to capital gains or withholding tax at the time of sale. Consulting a tax advisor or engaging a Certified Public Accountant (CPA) in the U.S. is recommended to ensure compliance.

For those exploring second homes, both vacation home mortgage and vacation home mortgage loan programs may be available.

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