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Mortgage for foreign nationals - Help!

Mortgage for foreign nationals - Help!

Old Jan 15th 2010, 2:55 pm
  #16  
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Default Re: Mortgage for foreign nationals - Help!

Originally Posted by Desinflorida
A broker in FL has made positive noises but a 70% LTV, i guess not so dissimilar to the UK today. I could raise the cash in the UK but dont want to take the exchange rate risk as i will be coming back to the UK in 4 years and if the exchange rate goes 20% the wrong way it will be painful. The housing markets will never recover unless banks take a reasonable view, they were far too relaxed and now too tight in the extreme.
I mainly disagree. The housing market won't recover until prices drop such that they reflect historic norms versus income/rents (happening in parts of the US, a way off in others, a long way off in the UK). Propping up the market with more easy money is simply not going to be sustainable in the long run, and will merely waste gobs of taxpayer money in the process. 20% down (still available for those with good credit) is pretty much the historic norm here and makes a lot of sense to me. People are much less likely to default if they have a significant amount of "skin in the game". When loan to values start approaching 100%, it's all too easy for a borrower simply to walk away.

Originally Posted by Desinflorida
Thanks to the comments made I am being influenced towards a rental but there is a very limited choice of family property for rent in the school areas i want to be in it seems. I am suggesting to some realtors that they contact some frustrated sellers who have marketed their property for some time without success who may be attracted by a good tenant and his family. I would be if i were in their position! Again thanks for your comments.
The vacancy rate for rentals is at a post-war high nationally. Don't know where you're looking, but I would be somewhat surprised if nothing was available. As you allude to many frustrated sellers end up renting property out "until the market recovers". And from solely a financial point of view, I think it's highly risky to buy for as short a time period as four years. Buying and selling costs in the US will likely hit you around 10% and the foreclosure rate is still climbing. We're a long way from the end of the housing mess, imo.
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Old Jan 15th 2010, 5:14 pm
  #17  
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Default Re: Mortgage for foreign nationals - Help!

Originally Posted by Sue
I've seen many people move abroad and jump right into buying a house first, only to wish they had waited a few months and got a feel for the area.

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Old Jan 15th 2010, 6:09 pm
  #18  
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Default Re: Mortgage for foreign nationals - Help!

Originally Posted by Sue
I agree with others who have posted in this thread. Probably would be a good idea to rent first. Its really hard to know if you will be totally happy with an area until you've lived there for a little while. I've seen many people move abroad and jump right into buying a house first, only to wish they had waited a few months and got a feel for the area.

Sue

Agreed. Not only that, I would recommend consulting with a financial adviser before jumping into buying a house. A really really large percentage of home owners in the US should not own homes; it is against their financial best interest to do so. Just because it makes financial sense for you to invest in a home in your country of origin doesn't mean it would make sense here in the U.S. given the potentially different tax and market dynamics. Also, if you are a skilled worker you maybe don't have to worry about it as much as your immigration status may be more secure than if you are an unskilled worker who is more subject to the whims of economic demand for labor, but if you have any bureaucratic snaffu with your immigration status that interferes with your ability to work, even if it's only for a few months, will you be able to afford to continue the mortgage payments with no income? Things to consider...
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Old Jan 15th 2010, 9:10 pm
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Default Re: Mortgage for foreign nationals - Help!

I guess this message board system has a glitch that caused it to lose my first post on this topic because I am a new user. I seriously hate that mis-programmed computers are all over the place.

anyway, what I said in summary is that you could try a contract for deed (see wikipedia article) instead of a mortgage. And also, I'd suggest not using banks if you can avoid it for any purpose, use credit unions instead. Try to join a large CU; if you join ASCAP you would be eligible to join a CU they are affiliated with. Finally, maybe try a CU that serves the immigrate community, e.g. Cubans maybe, as such a CU will be in the habit of giving loans to aliens.
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Old Jan 15th 2010, 10:14 pm
  #20  
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Default Re: Mortgage for foreign nationals - Help!

Originally Posted by galskap
I guess this message board system has a glitch that caused it to lose my first post on this topic because I am a new user. I seriously hate that mis-programmed computers are all over the place.
It's an anti spam thing, new posters aren't able to post links till they've made 3 posts. I've approved the post though.
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Old Jan 15th 2010, 11:04 pm
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Default Re: Mortgage for foreign nationals - Help!

Originally Posted by Bob
It's an anti spam thing, new posters aren't able to post links till they've made 3 posts. I've approved the post though.
I see. I should point out that approving the post won't fix the confusion and frustration that is inherent in the mechanics of the system. I understand what happened now, but future users won't. But then again, I'm used Macs as much as I've used Windows over the years. Most people's expectations are set by the experiences they've had over the years with only Windows. So probably most people won't mind this confusion that much. At the same time, this confusion probably detrimentally affects the conversion rate from lurkers to contributors. To what extent does it have an effect? Well, that's impossible to say. That's like asking how much better a cell phone could be before Apple came out with the iPhone. Unless you're a good GUI engineer, it's hard to imagine what a difference attention to detail can make in the overall application experience.
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Old Jan 15th 2010, 11:11 pm
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Default Re: Mortgage for foreign nationals - Help!

Originally Posted by galskap
I see. I should point out that approving the post won't fix the confusion and frustration that is inherent in the mechanics of the system. I understand what happened now, but future users won't. But then again, I'm used Macs as much as I've used Windows over the years. Most people's expectations are set by the experiences they've had over the years with only Windows. So probably most people won't mind this confusion that much. At the same time, this confusion probably detrimentally affects the conversion rate from lurkers to contributors. To what extent does it have an effect? Well, that's impossible to say. That's like asking how much better a cell phone could be before Apple came out with the iPhone. Unless you're a good GUI engineer, it's hard to imagine what a difference attention to detail can make in the overall application experience.
Shit Bob, he's right! How come you never thought of that before?

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Old Jan 15th 2010, 11:36 pm
  #23  
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Default Re: Mortgage for foreign nationals - Help!

Originally Posted by galskap
I see. I should point out that approving the post won't fix the confusion and frustration that is inherent in the mechanics of the system. I understand what happened now, but future users won't. But then again, I'm used Macs as much as I've used Windows over the years. Most people's expectations are set by the experiences they've had over the years with only Windows. So probably most people won't mind this confusion that much. At the same time, this confusion probably detrimentally affects the conversion rate from lurkers to contributors. To what extent does it have an effect? Well, that's impossible to say. That's like asking how much better a cell phone could be before Apple came out with the iPhone. Unless you're a good GUI engineer, it's hard to imagine what a difference attention to detail can make in the overall application experience.
Errr....most people don't go posting links to random things in their very first post though do they, most usually introduce themselves and probably go ask a question about something, so no, it's generally not an issue.

Also it's mentioned in the faq and site rules, which when you register are advised about having a look at.
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Old Jan 16th 2010, 4:59 pm
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Default Re: Mortgage for foreign nationals - Help!

Hi,
Sorry to hear you are having problems getting a mortgage in Florida, I know things can be difficult at the moment but there are ways around it. I have lived and worked in Florida on and off for the past 30 years, although I am presently at home in the UK sorting out some family problems.
What part of Florida are you moving to? One common way of getting round the problem is to buy using owner financing, where the seller provides the mortgage. I have done this on 2 occasions and it has worked out very well. The problem is finding a seller who will do it as a lot can't afford to, and a lot want to get their money out of the property. The reason I asked where you are going is that I am selling my home on the Gulf Coast, which I have owned since 2006, and I am going to advertise it using owner financing. When I go back to the States I am moving to North Carolina. If you are moving anywhere else in the state, I do know a company that does foreign national mortgages, but their rates tend to be rather high. If I can be of any further help to you, feel free to give me a call. My name is Marilyn and my number whilst in the UK is <deleted>

Last edited by meauxna; Jan 16th 2010 at 6:25 pm. Reason: please don't post phone numbers or advertise
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Old Jan 24th 2010, 3:44 pm
  #25  
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Default Re: Mortgage for foreign nationals - Help! and now opening a bank account too

Hi all, Just back from a short trip to Florida to look at some potential properties and attempt to begin financial life in the US. Met with the president no less (imagine trying or actually wanting to speak to the president of a bank in the UK!). This bank is a local town bank with a solid reputation - they didnt need a bailout and they are considering offering me a mortgage of 80% Loan to Value (5.1% 5 year fix) providing I can prove I have 20% deposit available as well as the closing costs covered etc. It was a good meeting, i had taken a stack of P60's, payslips, L1 visa application form, mortgage statements and so on from the UK as well as my new contract of employment effective July 1st by when i should have relocated. I am only looking to borrow 2X my new salary approx and this bank understood my situation as a foreign national and were prepared to treat me as an individual even though they seem to have limited experience of foreign nationals. I had some expected hurdles such as my telephone number having a different number of digits and not fitting their standard box and I also had to remind them that all my financial papers were in £ and not USD - and i also advised them of the current exchange rates as they didnt know!. All good stuff and seemingly positive. Just before the meeting closed i asked if i could open a checking account and leave some money behind, but was blocked by some rule citing that without an SSN (only obtainable after i have started my job) i cannot open an account. On challenging this they told me they could open an account but unless SSN is advised within 30 days it would close! So i was a little stuck. I am convinced the bank is the right one given that they will consider my mortgate and me as an individual but perhaps they were too small and likely few foreign natioanls in my position - so i have returned to the UK without a checking account and this was one of my plans. It seems i have run into an interpretation of the Patriot act perhaps.
Does anyone have any recent experience of opening a bank account in the USA without an SSN number? if so please help me! I am interested in hearing more experiences about people who have taken up AIG international relocation deals too as there seems to be some hope there. HSBC are poorly represented in Florida. I am open to any advice going on this. I spend hours on this site - and I cannot think where i would have learned more relevant stuff from. As we piece our plans together i will certainly share our experiences for the benefit of others. I like the idea of obtaining tax relief against mortgage interest payments, this could be a big saving! Thanks again.
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Old Jan 24th 2010, 5:01 pm
  #26  
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Default Re: Mortgage for foreign nationals - Help!

Apply for a TIN number, complete IRS form W7 and it takes about 4 weeks to process - this will help you get a bank account now until you have a SSN.
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Old Jan 24th 2010, 5:57 pm
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Default Re: Mortgage for foreign nationals - Help!

Originally Posted by Orangepants
Apply for a TIN number, complete IRS form W7 and it takes about 4 weeks to process - this will help you get a bank account now until you have a SSN.
You can only get an ITIN with a tax return now.

How Do I Get A TIN?


"Attach a valid federal income tax return, unless you qualify for an exception, and include your original, notarized, or certified proof of identity documents."


Des, you should have been able to complete the W-8BEN withholding form and opened the bank account. Water under the bridge now I guess.
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Old Jan 24th 2010, 6:02 pm
  #28  
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Default Re: Mortgage for foreign nationals - Help! and now opening a bank account too

Originally Posted by Desinflorida
Does anyone have any recent experience of opening a bank account in the USA without an SSN number? if so please help me!
If the bank requires a SSN, that is the bank's internal policy and nothing to do with the law. You won't have any problems opening an account without a SSN at one of the mega banks: BoA, Wells Fargo/Wachy or Chase.
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Old Jan 25th 2010, 4:24 pm
  #29  
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Default Re: Mortgage for foreign nationals - Help! and now opening a bank account too

Des,

BoA allowed me to open an account without my SSN.

You may also wish to read Fatbrit's guide to finance in the Wiki section if you haven't done so already. That helped me out a lot.

I've been here about 8 months now (Tampa, FL) on an L1A, and I can't get a mortgage for love nor money... I have an auto loan with a local credit union, a secured credit card with same, but they won't give me a mortgage without a green card...

Plan B:
Bank of America made some nice noises about being able to get me a mortgage without a green card (I have 20% deposit etc..) but then when it got to pre-approval stage, the guy told me that I hadn't enough of a credit footprint established in the US to qualify. The term he used was "FICO Zero". My existing lines of credit had not been open for long enough (4 months) to build a sufficient FICO score and give them that warm, fuzzy feeling.

As you know, you're effectively starting over again in terms of credit. I had great credit in the UK (that I didn't abuse), but that's not worth anything here. Not even HSBC (My previous lender in the UK) would discuss a mortgage without a Green Card...

Would it be rude of me to ask who the potential lender you have lined up is? I may go knock on their door also...

Houses - they're practically giving them away at the moment. Mortgages however...
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Old Jan 26th 2010, 6:52 pm
  #30  
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Default Re: Mortgage for foreign nationals - Help!

Originally Posted by meauxna
You can only get an ITIN with a tax return now.

How Do I Get A TIN?


"Attach a valid federal income tax return, unless you qualify for an exception, and include your original, notarized, or certified proof of identity documents."
They are really strict now and it's a total nightmare, especially for folks who come into the US as permanent residents near the end of a year. If there are any delays in obtaining a SSN, you can't even file a tax return extension on April 15 so open yourself up for failure to file penalties!
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