foriegn-national-program

Foreign National Mortgage / Non-Resident Aliens Program

We offer foreign national mortgages in: California, Colorado, Connecticut, Florida, Georgia, Illinois, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, South Carolina, and Washington D.C.

NorthStar Funding offers financing for non-resident aliens (NRA) through our portfolio product line. NRA loans can be complex so it’s important to work with a lender that understands how to assess overseas financial documents and how to analyze foreign credit reports and alternative trade lines. From application to closing, we’ll provide the guidance you need and even help you gather the appropriate documentation.

5 Highlights of the Foreign National / NRA Loan Program:

  • Super jumbo loans, $5M plus considered
  • No FICO, Social Security number, Green Card or visa required
  • Condotels and non-warrantable condos eligible
  • Second homes, vacation homes and investment properties eligible
  • 80% LTVs

To learn more about financing for non-resident aliens, call today! 800-917-1595

Program Basics

  • Target Clientele:
    • Foreign nationals buying a U.S. vacation home or investment property
      • No U.S. credit score
      • Low credit score due to limited U.S. credit history
    • U.S. citizens or green card holders living and earning income abroad
    • No recent or limited U.S. credit history
  • Some exceptions to 60% LTV for citizens of the UK, Canada, and Australia with a foreign credit report* provide that they are buying a 2nd home in a resort area as a true vacation home
  • 12 months PITI reserves for all properties owned in all countries for load amounts up to $1 million
  • Max DTI is 43%

* Foreign credit report generally not required

The Northstar Funding Advantage

  • No foreign credit report, alternative trade lines VOMs or VORs required
  • Foreign assets for down payment AND reserves including foreign retirement funds considered
    • Funds for closing must be moved to U.S. prior to the funding date
  • Foreign assets used for reserves do not need to be moved to the U.S.
  • Cash out refinances are allowed with no title seasoning
  • Assets used for the purchase less than 6 months prior to application date are sourced and seasoned 60 days
  • All collateral types allowed:
    • Non-warrantable Condos
    • Condotels
    • Co-ops
    • Jumbo
    • Super Jumbo
  • Loan amounts from $100,000 – $3,000,000
  • Option to use your assets to qualify

Points to Remember

  • Borrower must obtain a Social Security Number or Individual Taxpayer Identification Number (ITIN) prior to closing
    • Pre-approval letter can be provided to CPA or attorney to expedite process
    • Attorney / CPA resources available
  • Passport or Visa allowing entry into the U.S. is required
  • This is a full documentation loan in terms of income, assets, deposits, etc.
  • Income needs to be documented on foreign tax returns, W-2 equivalents, paystubs, etc.
    • CPA letters are not allowed
  • 2nd Homes must be in a resort area
    • Homes in metropolitan areas usually considered investment properties
    • General Rule: 2nd home = no other properties owned in the U.S.
  • Funds for down payment and closing costs must be moved to U.S. account prior to closing
    • All funds are sourced and seasoned 60 days
  • All foreign debts including any PITI info need to be added to the 1003 shown in USD equivalent
  • All income, assets and PITI info must be translated by a U.S. based certified translation company
  • Below are some contacts for translation**
    • samedaytranslations.com
    • link-translations.com/client/mortgage
    • certifiedchinesetranslation.com
  • Any U.S. citizen or U.S. Permanent Resident (Greed Card holder) living abroad must have filed the previous years U.S. tax returns while living outside the U.S. ***

** any U.S. based certified translation company can be used
***See IRS website

Property Requirements

  • One full Form 1004 appraisal with AIR Certificate and SSR required for loan amounts above $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.

Minimal Add to Rate

Pricing Example:

Use the 740+ FICO tier for start rate and add .75% for the Foreign National Program and either .25% for 2nd home or .50% for investment.

ARM Product Features

  • Max DTI 43%
  • 50% LTV up to $3 million loan amount
  • 30 year amortization
  • No prepayment penalty
  • 2/2/6 caps, 1-year CMT Index, 3.0% Margin, Floor = Note Rate
  • Qualify at the start rate on 7/1, 2% over on the 5/1 and 6% over on the 3/1
  • Escrows require

Asset Qualification Option

  • 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.

 

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