Mortgages in the United States can open doors to exciting real estate opportunities, even for non-residents. Securing a mortgage as a foreigner is, in fact, entirely possible, but it comes with its own set of challenges.
In this guide, Avanti Lending will explain everything you need to know about mortgages in the United States for foreigners. This includes, for example, required documents, financing options, trusted institutions, and expert tips to improve your chances of approval.
Mortgages in the United States for foreigners: how does it work?
Requesting mortgages in the United States for foreigners involves different conditions and requirements from those for residents or U.S. citizens. For example, banks typically require larger down payments, generally ranging from 20% to 30% of the property’s value, along with additional documentation proving the funds’ solvency and legality.
Furthermore, financial institutions carefully evaluate the credit profile. Many mortgage lenders in the United States require international references or financial statements demonstrating stability.
Another essential factor to remember is that, as a foreigner, the processes may take a little longer due to additional document and background verification, of course.
Essential documentation for requesting mortgages in the United States
Firstly, documents typically required include:
- Valid passport and visa, if applicable.
- Proof of income, such as tax returns, bank statements, or employment contracts.
- International credit history or financial references.
- Documentation related to the purchased property, including preliminary contracts or appraisals.
- Financial statements, both personal and business, if applicable.
Mortgages in the United States: available options
Mortgage loans in the United States can vary in terms of loan period, interest rate, and entry requirements. Standard options, for instance, include:
- Fixed-rate loans: Offer stable monthly payments throughout the loan period.
- Adjustable-rate loans: Start with lower rates, which can adjust according to market conditions.
- Loan terms of 15, 20, or 30 years: Longer terms reduce monthly payments but ultimately result in higher interest payments over the long term (DeNicola, 2023).
It’s also important to note that down payments are, as a rule, typically higher for foreigners.
Institutions providing mortgages in the United States (for foreigners)
Mortgage loans in the United States can come from various sources:
- Traditional banks: Offer formal mortgage products but with stricter requirements for international buyers.
- Specialized financial institutions: These entities focus on providing loans to foreigners, with more flexible processes tailored to international profiles.
- Private lenders: Some private lenders offer mortgage loans in the United States to foreigners. While they may offer more flexible conditions, they often have higher interest rates and shorter terms.
Mortgages in the United States: interest rates
The interest rate is one of the most important elements influencing the total cost of a loan. Therefore, understanding what affects it will help you make informed decisions.
- Credit score: The higher your score, the better terms you may receive. Additionally, the loan amount and the percentage you finance concerning the loan-to-value ratio also matter. A larger down payment generally reduces the bank’s risk and may, as a result, result in lower interest rates.
- Loan term: This is also significant. Short-term mortgages in the United States typically offer lower interest rates, although the monthly payments are higher. On the other hand, longer terms ease monthly cash flow but increase the total interest paid over time.
- Market conditions and the global economy: These factors influence interest rates. For example, changes in Federal Reserve policies or inflation levels can affect the rates applied at any time.
Recommendations for improving your mortgage loan approval
Are you looking for mortgages in the United States under the best possible conditions? Keep these tactics in mind to help you negotiate favorable interest rates:
Improve your credit profile
This is the most effective way to obtain better rates. Here are some strategies to boost your score:
- Make on-time payments on existing debts.
- Keep your credit card balances low.
- Avoid frequent loan applications.
Increase your down payment
Putting down a larger initial payment reduces the lender’s risk. It can also help you negotiate lower interest rates and avoid additional costs such as PMI (Private Mortgage Insurance).
Explore programs for foreign investors
Specific special programs for foreign buyers offer preferential terms on U.S. mortgages, lowering requirements and costs. Consulting with experts familiar with these options, like Avanti Lending, can increase your chances of accessing exclusive benefits.
Work with specialized support
Professional guidance helps you understand the mortgage market, identify suitable products, and prepare a strong application to improve your approval chances and loan terms. Avanti Lending, for instance, partners with a vast network of lenders and understands the needs of foreign buyers. They offer personalized support to help you negotiate your profile’s best possible rate and conditions.
How to plan your budget for a mortgage purchase
Applying for a mortgage in the United States involves more than just making monthly loan payments. There are additional expenses you need to consider in order to plan your investment realistically. These include:
- Down payment. This is the initial amount you pay for the property’s purchase price. A higher down payment can reduce your monthly payments and may help you avoid mortgage insurance.
- Closing costs. These are the fees associated with finalizing the property purchase. They often include legal fees, land transfer taxes, appraisal fees, title insurance, and administrative costs.
- Property insurance and private mortgage insurance (PMI). Home insurance is mandatory to protect the property from damage or loss.
- Maintenance and management expenses (for rental properties). If you’re buying a property to rent out, factor in ongoing costs such as repairs, routine maintenance, property management services, and potential vacancy periods. These costs can significantly impact your cash flow and return on investment.
Knowing these costs and planning a budget that includes them will help you avoid financial surprises and maintain a healthy cash flow. Avanti Lending offers comprehensive advice to help you project these expenses and build an economic strategy that fits your unique situation.
Advantages of specialized guidance from Avanti Lending
Having an expert ally simplifies each stage. Avanti Lending offers:
- Personalized evaluation of your financial profile.
- Assistance in gathering and presenting documents.
- Access to a broad network of specialized lenders for foreigners.
- Negotiation of optimal rates and terms.
- Transparent and efficient processes that reduce approval times.
An ally like Avanti Lending makes a significant difference for foreigners applying for mortgage loans in the United States.
Moreover, Avanti Lending is known for its transparency at every step and for providing financial solutions tailored to your profile, allowing you to invest with confidence and peace of mind. Visit Avanti Lending and begin your journey today to make your real estate dreams in the United States a reality.
References
- DeNicola, L. (2023, August 12th). What happens when you extend your loan term? Experian.com; Experian.
- La Nación. (2025, May 17th). How to get a mortgage in the United States: Is it a good idea in 2025?
- Fannie Mae. (2024). What Determines the Rate on a 30-Year Mortgage?