For many non-US residents, buying a home or obtaining a mortgage in the United States is the next step to achieving the American Dream. But with different rules and regulations from country to country, it can be overwhelming to begin.
We understand how important obtaining a mortgage and getting a home is for a non-US resident. This is why to help you put down roots, we have compiled a thorough mortgage for non-US residents guide to help you get a mortgage, even if you lack credit history or are unfamiliar with the US mortgage system.
Fortunately, there are now many lenders who provide home loan programs and mortgage financing for non-US residents that recognize the unique needs of foreign buyers. The homeownership rights are also the same for US citizens and non-US residents, which means you can easily buy a home.
To make sure this happens, let’s get started with this definitive guide to getting a mortgage as a non-US resident!
A non-US resident refers to an individual who’s not a citizen or legal permanent resident of the United States and does not meet the substantial presence test, which determines residency for tax purposes. Two aspects are crucial for determining a Non-US resident:
Non-US residents include individuals who are in the country on temporary visas, such as tourists, students, and temporary workers. Non-US residents may also include individuals who maintain permanent residence outside of the US and only spend only a limited amount of time in the country.
Non-US residents are subject to different tax laws and regulations than US citizens and legal permanent residents. Non-US residents are typically only required to pay taxes on income earned within the United States, while US citizens and legal permanent residents are required to pay taxes on their worldwide income.
Overall, non-US residents are individuals who are not considered residents for tax purposes and do not have the same legal rights and privileges as US citizens and legal permanent residents. They may face different rules and regulations regarding employment, taxes, and immigration status.
The United States has two types of foreign nationals living as non-citizens: Permanent Resident Aliens and Non-Permanent Resident Aliens.
Permanent Resident Aliens hold a green card and a social security number issued by the USCIS, which grants them permanent residency in the US. They qualify for a mortgage, similarly to US citizens, by providing the required documentation, such as a valid green card and social security number.
Non-Permanent Resident Aliens, however, must demonstrate that they plan to utilize the property they are buying as their primary residence. They need to provide their Employment Authorization Document (EAD) and social security number or a valid visa sponsored by their employer. The work eligibility documentation must prove their ability to live and work in the US for at least three years. Additional paperwork may be required based on the situation.
Non-Permanent Resident Aliens are also referred to as Non-US residents. For tax purposes, the significant presence test is used to determine whether a foreign individual is a resident or nonresident of the US.
Yes, it is possible for a non-permanent resident alien to get approved for a mortgage loan. However, the criteria and requirements are quite different from that of an American citizen or permanent resident alien.
There are two types of non-permanent resident aliens in the US. One, with zero US credit, and two, with US credit. Let’s look at the mortgage situations for both: