E2 Visa Mortgage Guide [2023]: Everything is Covered

If you’re an aspiring investor holding an E2 visa and planning to buy or refinance a home in the US, this article is for you! Here, we’ll discuss E-2 visa mortgage loans and how they can benefit foreign nationals. With these loans, you can fulfill your homeownership dreams or improve your current mortgage with financing tailored to the requirements of E2 visa holders.

Can You Get a Mortgage with an E2 Visa?

Yes, you can get a mortgage with an E2 Visa. The E-2 visa is a nonimmigrant visa available to citizens of specific treaty nations. It enables them to invest significant money in a U.S. business and work in the US. The visa is intended for individuals who want to invest in a U.S. company and take charge of its everyday operations.

The E2 visa is a temporary visa that permits the visa holder and their dependents to live and work in the US for a specific time period, usually up to five years. And though it can be renewed countless times as long as the eligibility criteria are fulfilled, it doesn’t automatically lead to permanent residency (a green card).

E2 Visa Mortgage: Eligibility and Requirements

The ability to obtain a mortgage to finance your home purchase in the USA is one of the key considerations for visa holders. However, to secure a mortgage, it is crucial to understand the eligibility criteria and requirements specific to E-2 visa holders.

  1. Proof of income, residency, and financial assets
  2. A credit score of at least 620 (You can also apply for a mortgage with no/thin US credit history)
  3. Minimum 2 years of prior employment in the United States
  4. A valid E-2 visa issued by the U.S. government
  5. Tax returns from the past two years, W2 forms, and bank statements
  6. An established business in the U.S. that is operational, generating revenue, and employing U.S. workers
  7. A minimum investment amount of more than $150,000
  8. Down payment of at least 20% or higher

To obtain an E-2 visa mortgage, it’s crucial to consult with several lenders who are experienced in dealing with E-2 visa holders since each lender may have distinct criteria and requirements. They can offer guidance and assistance in navigating the mortgage application, especially if you don’t have a U.S. credit history.

Explore the Mortgage Options for E2 Visa Holders

There are mortgage options specifically designed to cater to the unique needs of E2 visa holders. These mortgage options provide you with the opportunity to finance your home purchase or refinance an existing property, allowing you to establish roots and build a life in the United States.

Mortgages with Established US Credit History

For E2 visa holders who have established a credit history in the United States, there are several mortgage options available to help them finance their dream home. With an established US credit history, E2 visa holders may have access to a wider range of mortgage products, competitive interest rates, and more favorable loan terms.

1. Conventional Mortgage

If you have a stable income and strong credit history, you may be able to get a conventional mortgage, which is a common type of home loan provided by banks and mortgage lenders. The mortgage requires a down payment, proof of income and assets, and a good credit history.

Qualifications:

  1. A minimum down payment of 20% is necessary
  2. A credit score of 620 or higher
  3. 2 years of tax returns
  4. Social Security Number
  5. Proof of stable job history of at least 2 years

Find the best conventional mortgage lender for E2 visa holders.

2. Federal Housing Administration Loan

The Federal Housing Administration insures FHA loans, designed for borrowers with lower credit scores who cannot afford a big down payment. You can use these loans to buy or refinance a primary residence in the US.

Qualifications:

  1. 3.5% down payment
  2. A credit score of 580 or higher
  3. A valid Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN)
  4. A stable job or employment history in the U.S. of at least two years.
  5. A lower debt-to-income ratio not exceeding 43%

Find the best FHA loan lender for E2 visa holders.

3. United States Department of Agriculture Loan

The USDA Loan (specifically the USDA Rural Development Guaranteed Housing Loan Program) helps people buy homes in rural areas. It offers affordable home financing options for those with low to moderate incomes.

To qualify for this loan, you must buy a property located in a rural area that is designated by the USDA. You can check the USDA website or talk to a USDA-approved lender to see if a specific property is eligible.

Qualifications:

  1. Your income should not exceed 115% of the median income for the area
  2. A minimum credit score of 640
  3. A Debt-to-Income ratio of less than 41%
  4. Upfront fees of 1% and an annual fee of 0.35% (of the loan amount)
  5. A stable job or employment history in the U.S. of at least two years

Mortgages with No/Thin US Credit History

If you have limited or no established credit history in the United States, obtaining a mortgage can pose certain challenges. However, there are still mortgage options available that take into consideration your unique circumstances. They provide you an opportunity to secure financing and buy a home for yourself.

1. Foreign National Mortgage

Some lenders give mortgages to foreign nationals who have E2 visas. These mortgages are specifically made for people who are not from the U.S. and may have different requirements. Lenders who offer these mortgages might use other proof, like international credit history or employment verification, to decide if the borrower is eligible for the mortgage.

Qualifications:

  1. A down payment of 20% or higher
  2. A Debt-to-Income ratio of 43% or lower
  3. 2 years of employment history
  4. Cash reserves or liquid assets
  5. Credit reports from home country

2. Debt-Service Coverage Ratio Mortgage

If you’re considering investing in real estate, like rental properties or businesses, you may want to consider DSCR loans. These loans evaluate the potential income that the property can generate to cover a loan payment instead of solely focusing on the borrower’s credit history. They’re a common option in the industry.

Qualifications:

  1. A DSCR ratio of 1 or higher
  2. Credit Score of 620 or Higher
  3. Down Payment of 20-25%
  4. Property appraisal and 1007 Rent Schedule
  5. An LTV ratio below 75% is preferred

Before finalizing any mortgage option, it is crucial to conduct thorough research and comprehend all the details. It is advisable to compare various rates and terms across multiple lenders to secure the best possible deal.

Finding a Lender for E2 Visa Mortgage

If you choose to go for an E-2 visa mortgage, the next step is to find a lender specializing in this type of loan. To find a suitable lender for an E-2 visa mortgage, search online for lenders who have experience working with non-U.S. citizens. Seek advice from other visa holders and immigration attorneys for guidance.

You need to reach out to banks and credit unions in the area and schedule meetings with potential lenders to discuss your situation and learn about their eligibility requirements and the mortgage programs available. Review the terms and requirements before choosing the lender that best fits your needs. Keep all the necessary paperwork ready to prove your E-2 visa status and financial position.

HomeAbroad can help simplify the process of finding E-2 mortgage lenders so that you can secure financing more easily and without extensive research. With the right groundwork, you’ll be closer to owning your international dream home.

What is the Mortgage Process for E2 Visa Holders?

The mortgage process for E-2 visa holders is generally similar to that of other borrowers. Here is an overview of the mortgage process:

1. Pre-qualification

Start by researching and contacting lenders who specialize in working with E-2 visa holders. They will assess your financial situation, including your income, assets, and credit history, to determine the loan amount you may qualify for. Pre-qualification gives you an estimate of your purchasing power and helps you set a realistic budget.

2. Documentation

Prepare the necessary documents for your mortgage application. This typically includes your:

3. Application

Complete the mortgage application with the chosen lender, and be prepared to explain any unique aspects of your visa status or financial situation. Provide accurate and detailed information about your:

4. Mortgage Underwriting

The lender will review your application and documents during the underwriting process. They will assess you:

This may involve verifying your employment, conducting a thorough credit check, and assessing the property’s market value.

5. Mortgage Approval

If your application is approved, you will receive a mortgage commitment letter from the lender. This letter outlines the terms and conditions of the loan, including the interest rate, loan amount, and repayment schedule. Review the details carefully and address any conditions or contingencies mentioned in the letter.

6. Property Appraisal

The lender will order an appraisal of the property you intend to purchase. An appraiser will evaluate the property’s market value to ensure it aligns with the loan amount requested. This step protects both you and the lender by ensuring that the property is worth the agreed-upon purchase price.

7. Closing

Once the appraisal is completed and all conditions are satisfied, you will proceed to the closing stage. The closing process typically takes place at a title company or attorney’s office and involves:

8. Repayment

After closing, you will begin making monthly mortgage payments according to the terms of the loan. It’s essential to understand your repayment obligations and budget accordingly to ensure timely payments. Learn more about the Mortgage Closing Process: All You Need to Know About Your Closing and Closing Disclosure with us.

Remember, each lender may have slightly different requirements and processes, so it’s important to work closely with a knowledgeable mortgage professional who understands the specific needs of the E-2 visa holders. If you need further help or consultation, we can connect you with the best lender for your situation and visa program to make the approval process less cumbersome.

What are the Benefits of Getting an E-2 visa mortgage?

If you’re an E-2 investor, you can get a mortgage that comes with several benefits. Knowing these advantages can help you make a well-informed decision regarding your long-term plans and what you want to achieve. These include:

1. Establish a Home for Yourself

Having a home in the U.S. means more than just having a place to live. It gives you a feeling of being a part of something and a place to make memories that will last forever. Being a homeowner brings stability and safety, making you and your family feel more permanent in your new country.

2. Potential for Value Growth

Investing in a home through your visa mortgage can offer the potential for long-term value appreciation. This means that any increase in property value over time may benefit you and contribute to your financial well-being. Historically, real estate has shown to be a significant asset in this regard.

3. Predictable and Stable Housing Costs

A fixed-rate mortgage offers the benefit of having the same monthly payments throughout the loan term. This means you can plan your budget more effectively as you know exactly how much you need to allocate towards housing expenses each month. It gives you peace of mind and stability, especially when it comes to long-term financial planning.

4. Tax Benefits

If you own a home, you may be able to lower your tax bill through certain tax benefits. In the U.S., you could qualify for mortgage interest payments and property taxes deductions. These deductions can help you save a lot of money and improve your financial situation.

5. Building a Strong Credit History

If you handle your visa mortgage responsibly, it can help you establish a strong credit history in the U.S. Being punctual with your mortgage payments demonstrates financial responsibility and can improve your credit score. This, in turn, can lead to future financial opportunities, including the ability to obtain loans and credit cards with favorable interest rates.

Remember that the benefits and advantages of your visa mortgage may vary depending on your circumstances, the current market conditions, and your financial objectives. Nevertheless, these benefits work together to help you build a safe and comfortable home, attain financial security, and create a strong foundation for your future in the US.


Tips and Considerations for E-2 Visa Holders

When it comes to securing an E-2 mortgage, several tips and considerations can help streamline the process and ensure a successful outcome. As an E-2 investor, it’s essential to be well-informed and prepared to navigate the complexities of obtaining a mortgage in the U.S.

1. Monitor immigration and policy changes

To ensure that your mortgage applications and plans are not impacted, you need to stay updated on any changes to immigration policies or regulations. Regularly checking official government sources and seeking guidance from immigration experts can help you stay informed and prepared.

2. Work with a specialized lender

To secure a viable mortgage, it’s crucial to locate a lender well-versed with E-2 visa holders. Such a lender will have in-depth knowledge about the distinctive demands and conditions linked to your mortgage visa. Conduct research to pinpoint lenders that cater to the specific requirements of overseas investors and have a history of effectively aiding them.

3. Explore alternative financing options

If you are an E-2 investor, keep in mind that traditional lenders may have specific requirements. However, there are other financing options to explore. Look into non-traditional lenders, international banks, or lenders who specialize in foreign national mortgages. These alternatives may offer more flexibility and be better able to accommodate your unique circumstances.

4. Consider the impact of currency exchange rates

If you earn money in a currency that is not the US dollar, changes in exchange rates can make it difficult for you to pay your mortgage. Analyze the possible consequences and prepare backup plans to reduce the risk of currency exchange.

5. Consult with professionals

It may be helpful to consult with experts in immigration law, real estate, and financial planning to get personalized guidance and make informed decisions about the mortgage process. HomeAbroad can connect you with a lender who specializes in visa mortgages and can offer valuable advice to help you navigate the complexities and achieve your goals.

Conclusion

To purchase a house in the US with an E-2 visa, it’s crucial to be proactive, conduct thorough research, and collect all necessary paperwork. To improve your likelihood of getting a mortgage while on an E2 visa, it’s essential to partner with lenders who specialize in this type of visa, seek guidance from experts, and look into custom mortgage options.

It’s essential to demonstrate commitment, offer alternative credit history, and receive support from professionals knowledgeable about E2 visa mortgages. With effort, preparation, and proper support, E2 visa holders can overcome obstacles and achieve their goal of homeownership in the US.