Buying a home involves so many obligations and paperwork that the process sometimes becomes very daunting. If you are a non-U.S. resident, an increased amount of legal and financial formalities – applicable specifically to foreign nationals – makes the home buying process even more cumbersome. Different rules may apply when you are an immigrant living in the U.S. and when you are buying out of the country.

While you should consult with licensed professionals such as immigration lawyers or accountants to know what legal and financial formalities you need to deal with, here are a few things you should keep in mind when buying a home in the U.S.:

Financing

When buying as an immigrant, many foreign nationals are forced to pay cash because the biggest challenge for them is to arrange for financing.

Like other countries in the world, the banks in the U.S. follow certain underwriting norms when reviewing a mortgage application. First of all, they take a look at an applicant’s credit score. It is measured on an individual’s payment history with regards to his or her debts in the past, types of credit used and several other factors. Since you are a foreign national, you most likely won’t have a credit history in the U.S.

It doesn’t mean that you can’t absolutely take out a mortgage in the U.S. However you will have to face a stricter scrutiny. You may be required to have an operating account in a bank with a balance. The minimum balance requirements differ from bank to bank, but it could be up to $100,000 or more. You may also be required to prove the origin of your assets.

The lender may also require you to put at least 50% down. An American citizen can get the best mortgage deal with 20% down. A Federal Housing Assistance loan could be obtained with as little as 3.5% down.

Under our Buyer Investor Match program, we have helped many non-U.S. residents buy residential properties in the country. Our program is best suited for them because we use a unique financing model that requires no credit check or income verification. We help foreign nationals buy home with owner financing. An investor – instead of a conventional lender – buys a home of your choice and owner finance it to you on the same day. In other words, you borrow from the investor, instead of a conventional lender. You make monthly payments under a flexible financing arrangement.

Owner financing offers several other advantages also. While the process of obtaining a mortgage from a bank is very time consuming and can take several weeks, you can close the deal in an owner financing arrangement within a few days (Related article: How mortgage payments work in owner financing: A comparison). You also deal with less paperwork and formalities which ensures a hassle-free transaction. You put the property as collateral just like when taking out a home loan from a bank. Realtors, accountants and lawyers from our network will help you each step of the home buying process.

The information provided in this article is intended as a general overview of the home buying process in the U.S. You should consult with a licensed professional for any financial or legal consultation with regard to your individual situation.

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