Foreign nationals attempting to get a home loan in California have had a difficult time in the past few years. But there are a few options available for Foreign Nationals in California in 2011 offered by Portfolio lenders.
Who is Considered a Foreign National?
A Foreign National is someone who visits the United States for short periods of time but actually lives in another country. With property values in California currently low relative to where they were a few years ago, Foreign Nationals from China, Japan, Europe and other parts of the world are finding real estate a great investment.
What Areas of California Attract Foreign Nationals
Areas near the beach and in typical vacation spots are very attractive to Foreign Nationals. Orange County cities like Newport Beach, Laguna Beach, and Newport Coast tend to be favored by Foreign Nationals. Also, Los Angeles coastal cities like Malibu, Beverly Hills, Rancho Palos Verdes, and Redondo Beach have beautiful luxury homes priced low compared to a few years ago.
Advantages of the Foreign National Home Loan Program
- No FICO score required. This is great since most Foreign Nationals do not have credit in the United States.
- Foreign Income and Assets are acceptable.
- “Asset Depletion” can be used for income. This is where income is derived from the borrowers liquid accounts using a formula. So even if the borrower does not report the income needed to qualify on their tax returns, they can still qualify based on their assets.
- Pledged Asset Loans allowed. This permits the borrower to pledge assets to help offset the required down payment.
- Second Homes are allowed.
- 50% is the max Loan to Value.
- Vesting in all types of Trusts, LLC’s, partnerships, and corporations allowed.
- Non-Permanent Resident Aliens allowed.
What Type of Loan Program is Offered?
The loan programs offered are 5, 7 and 10 year ARM’s. With these programs the interest rate is fixed for the first 5, 7 or 10 years before adjusting every six months based on a set Margin over a variable index. The loan amounts are typically between $300,000 and $5,000,000, but this Portfolio lender will go as high as $10,000,000 on a case by case basis.
The first step is to contact a local California Jumbo Loan Expert for information and an initial determination of eligibility for this Foreign National loan program.
Authored by Tim Storm, an Orange County, CA Jumbo Mortgage Loan Officer – Please contact my office at Alpine Mortgage Planning for more information about an Orange County, CA Jumbo Mortgage. 877-786-4243 x 7.
Contact us for your Orange County Jumbo Mortgage:
877.786.4243 x 7 | tstorm (at) ochomebuyerloans.com