# Home morgage lender



## Nay78 (Dec 10, 2015)

Hi everyone,

We are moving to Virginia very soon and looking to purchase a home. We have never had credit in the US or filed a US tax return (yet) and so we are finding it difficult to find a lender. I would really appreciate any advice from expats that have been through this nightmare! We have the required down payment and our salary isn't an issue. Do any of you know someone that may be able to help us? The 12 hour time difference is also proving a bit of a pain and we are running out of time. We were hoping to get there for the end of July!

TIA
x


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## Bevdeforges (Nov 16, 2007)

Very generally speaking it's usually considered a good idea to rent for the first year or two rather than trying to buy a home right away. That allows you a chance to get to know the neighborhoods and areas before you try to buy something, and gives you a bit of time to develop a good credit record. The US credit rating system does not take experience outside the US into consideration, and frankly I'd be wary of any lender or broker that was too willing to finance a mortgage for someone "just off the boat" as it were.

Just my two cents. I'm sure you'll find other opinions.
Cheers,
Bev


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## twostep (Apr 3, 2008)

Down payment and income are only part of the matrix a potential lender looks at. Your visa and time with current employer play a role and your US credit history. There are some lenders who supposedly work with expats. The only positive feedback I know of is a poster in Houston but he has family there. Rent for a year or so, get to know the market, build your credit history.

Concerning your time frame - unless it is a cash sale count on 45 days from offer to closing. Some new rules from 2015 seem to throw wrenches when it comes to foreign assets and income even for Us citizens with credit history.


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## BBCWatcher (Dec 28, 2012)

A co-signer is a potential solution, but I agree with Bev. Do you have _any_ experience living anywhere in the United States yet? Isn't this a flat out crazy idea, or are we missing something?

We're assuming "mere mortal" net worth, probably a safe assumption if you're asking about a mortgage. There are a few extremely wealthy people that can comfortably pay, say, $1 million in cash for a home, sight unseen, as if they're buying a new pair of socks.


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## twostep (Apr 3, 2008)

Learn a bit about US homeownership before getting into it.

Pick your realtor VERY carefully. Remember that they are sales people and not responsible for questions you did not ask, research you did not verify.

Once you make an offer you tie yourself into a series of legally binding requirements and deadlines.

Closing costs - give or take 10% at sale and 5% at purchase. So your 500k house costs you 525k and will bring you 450k.

Homeowners insurance tends to go up every year, HOA fees, PMI, real estate taxes seem to go up every year so do utilities. 

Maintenance and repairs. How handy are you and your spouse. Some items can easily hit 15k plus.

My personal opinion based on experience - a good fotographer can make a dump look gorgeous on-line


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## Cleo Shahateet (Feb 23, 2009)

twostep said:


> Learn a bit about US homeownership before getting into it.
> 
> Pick your realtor VERY carefully. Remember that they are sales people and not responsible for questions you did not ask, research you did not verify.
> 
> ...


We have been in our house in VA for 7 years and our HOA is $55 per month and it has not gone up, nor has anything else enough to make any difference at all. 

A good photographer is key in showing a home's best qualities and getting people in the door but they would need to see it and have a good look around. They would also get a home inspection to insure there are no major issues. 

Closing costs can be requested to be paid by the seller as part of the offer someone makes on a house. In order to view homes, you need to have a Realtor to show you homes. They can also show you comparables recently sold and a good Realtor can show you where the market is trending. Home values in this area are generally strong - our home and every other home in our area has shown significant return on our investment since 2009.


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## twostep (Apr 3, 2008)

Cleo Shahateet said:


> We have been in our house in VA for 7 years and our HOA is $55 per month and it has not gone up, nor has anything else enough to make any difference at all.
> 
> A good photographer is key in showing a home's best qualities and getting people in the door but they would need to see it and have a good look around. They would also get a home inspection to insure there are no major issues.
> 
> Closing costs can be requested to be paid by the seller as part of the offer someone makes on a house. In order to view homes, you need to have a Realtor to show you homes. They can also show you comparables recently sold and a good Realtor can show you where the market is trending. Home values in this area are generally strong - our home and every other home in our area has shown significant return on our investment since 2009.


You can ask for the moon Getting it is a different cup of tea.

I have yet to have or hear of a positive experience with home inspectors. The small print on their contracts is a get out of jail free card. They do not see things. We had one done right before the sale of our house in Texas. Our buyer's inspector then came up with a single finding - lint in the dryer vent may cause combustion. Buyer went hysteric over the explosive dryer vent. Friends used the video of their inspectors hanging out in the kitchen to get their money back

At the end of the day there is a commission check for the realtor.


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## accbgb (Sep 23, 2009)

twostep said:


> You can ask for the moon Getting it is a different cup of tea.
> 
> I have yet to have or hear of a positive experience with home inspectors. The small print on their contracts is a get out of jail free card. They do not see things. We had one done right before the sale of our house in Texas. Our buyer's inspector then came up with a single finding - lint in the dryer vent may cause combustion. Buyer went hysteric over the explosive dryer vent. Friends used the video of their inspectors hanging out in the kitchen to get their money back
> 
> At the end of the day there is a commission check for the realtor.


Lol.

We sold our home in 2004; the buyer's inspector noted on his report that, "the roof is functioning as intended with no sign of water intrusion or other damage; the homeowner should continue to monitor it."

With that, our buyer insisted that the roof needed to be replaced prior to sale. She also wanted us to paint the basement walls (concrete block) "because they looked like they needed it." 

We said no and no, she withdrew her offer, we re-listed the home, she freaked out and came back to the table with her original offer, no roof replacement and no paint.


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## Nay78 (Dec 10, 2015)

Thanks Cleo. Thats very informative. We have been working with a realtor and shes been fantastic both when we were there and since returning home. The closing costs is definitely something we plan to negotiate.


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## Nay78 (Dec 10, 2015)

So Im guessing that means no one has any contacts for me regarding lending???


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## twostep (Apr 3, 2008)

Nay78 said:


> So Im guessing that means no one has any contacts for me regarding lending???


What do your realtor's contacts say?


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## Nay78 (Dec 10, 2015)

Ho Twostep,

My lovely realtor has been so helpful, however the lenders that she knows are unable to assist. I ahve spoken to one though that said there are lenders that will loan to expats but its generally at a higher interest rate. I am waiting to here back from him. I can't believe how difficult it is!


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## Nay78 (Dec 10, 2015)

Oops, thats 'Hi'


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## twostep (Apr 3, 2008)

Nay78 said:


> Ho Twostep,
> 
> My lovely realtor has been so helpful, however the lenders that she knows are unable to assist. I ahve spoken to one though that said there are lenders that will loan to expats but its generally at a higher interest rate. I am waiting to here back from him. I can't believe how difficult it is!


Why is it hard to believe? A paycheck, X percent down and potentially leaving the country within days is not a US credit history which shows how you handle your obligations. If you have a mortgage on an AUS property your debt/income ratio may play a role. 

What would a AUS lender say were I to walk in to get 500k with a temporary work visa?

Underwriting categorizes you high risk. It reflects in the rate. That paper does not sell well on the market. You might be able to find a local finance company who manages their paper in house. 

BTW it is not easier for US citizens with not top credit history, high debt to income which is not hard to have with moving every couple of years and maybe having a house in the market even in the upper income ranges.


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## Nay78 (Dec 10, 2015)

I understand fully the risk. Its just difficult trying to organise this from the other side of the world. We dont know any of the lenders and we are 12 hours ahead so even speaking on the phone proves a task. Im up till past midnight every night in order to speak with people via phone/email during business hours there, so yes, its been very difficult, and very stressful. Moving our whole family and pets to the other side of the planet is no easy process.
We have tonight discovered the existence of Foreign National Mortgage programs offered by many lenders so we are now going to investigate this possibility.


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## accbgb (Sep 23, 2009)

Nay78 said:


> I understand fully the risk. Its just difficult trying to organise this from the other side of the world. We dont know any of the lenders and we are 12 hours ahead so even speaking on the phone proves a task. Im up till past midnight every night in order to speak with people via phone/email during business hours there, so yes, its been very difficult, and very stressful. Moving our whole family and pets to the other side of the planet is no easy process.
> We have tonight discovered the existence of Foreign National Mortgage programs offered by many lenders so we are now going to investigate this possibility.


Well, you could try here Quicken Loans | Over Two Million Home Loans Closed!

Some disagree with the concept (see http://www.nytimes.com/2016/02/10/upshot/the-super-bowl-ad-that-set-off-economic-alarm-bells.html ), but they have taken a real bite out of the US mortgage market.


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## Crawford (Jan 23, 2011)

Nay78 said:


> I understand fully the risk. Its just difficult trying to organise this from the other side of the world. We dont know any of the lenders and we are 12 hours ahead so even speaking on the phone proves a task. Im up till past midnight every night in order to speak with people via phone/email during business hours there, so yes, its been very difficult, and very stressful. Moving our whole family and pets to the other side of the planet is no easy process.
> We have tonight discovered the existence of Foreign National Mortgage programs offered by many lenders so we are now going to investigate this possibility.


Have you already identified a home you wish to purchase? I'm surprised that, since you are not yet living in the US, you are in a position to purchase a property. Nearly all people I know who emigrated to the US spend some time renting prior to buying.

Even US residents have found it more difficult since the meltdown to obtain mortgages. It is only recently that criteria have eased a little. Without credit history you are in a more difficult position and not being in the country even more so.


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## Nay78 (Dec 10, 2015)

Hi Crawford,
We have been to the states several times and spent time in Virginia looking for properties. We know the area reasonably well. 
Renting is not an option for us as we wont risk our children having to move schools again. They have already been through this and now again on moving over there. 
With the Foreign National Mortgage programs US credit history is not required. Sadly the interest rate is a little higher though.


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## accbgb (Sep 23, 2009)

Applying for a Mortgage as a Permanent or Nonpermanent Resident Alien - ZING Blog by Quicken Loans | ZING Blog by Quicken Loans


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## BBCWatcher (Dec 28, 2012)

Nay78 said:


> Renting is not an option for us as we wont risk our children having to move schools again.


That doesn't make logical sense for at least two reasons:

1. School districts are never sized to single homes (or apartments), unless you're home schooling. You can rent and then buy (or rent again) a home _all within the same school district_. So just focus on picking the school district you like. You can still do that, no problem. *Pick a school district you like with a variety of rental and purchasable housing options that you also like.* It's that simple -- you don't have to overengineer this. Indeed, there are significant advantages in being even a slightly patient buyer, notably that you then have a more realistic option of getting the precise school transport options (e.g. walking distance) to neighborhood schools. (Exactly what my parents did, by the way. They waited a few months until the ideal home for them/us came onto the market, and then we could walk and did walk to every school. Well played.)

2. What if you and/or your kids end up in a terrible school -- terrible for whatever reason(s)? That's a risk, too! You wouldn't move even then? Of course, if you've bought a home, it's then more expensive to fix the terrible school problem.


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## Cleo Shahateet (Feb 23, 2009)

The area she is looking in has great schools. Since she seems to have looked at the area carefully I fully understand not wanting the hassle of moving house to house with children. You are right that the school districts are pretty large especially for high schools, but are smaller for elementary and middle. To good thing now is that there are a lot of homes and good family options on the market in the summer since most people with family homes move while school is out. She could wait but as we get into the Fall time frame there are generally less homes on the market and usually less in the winter in Northern VA. We had the same option when we came from Cyprus, to rent or buy - we found our house within 4 weeks and are very happy we bought rather than rented and have not had to move again. Having the children settled in your own home and avoiding the work of moving again counts for a lot in my opinion.


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## Bellthorpe (Jun 23, 2013)

twostep said:


> What would a AUS lender say were I to walk in to get 500k with a temporary work visa?


They would do their sums properly, and lend an amount which was adequately protected by their stake in the property. In case of default, they can sell it. If they have valued it properly, their risk is minimal.


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## twostep (Apr 3, 2008)

Bellthorpe said:


> They would do their sums properly, and lend an amount which was adequately protected by their stake in the property. In case of default, they can sell it. If they have valued it properly, their risk is minimal.


 The first question was "what visa are you on". Internal transfer.


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## Bellthorpe (Jun 23, 2013)

Yes, I'm aware of that. My post stands.


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## BBCWatcher (Dec 28, 2012)

Bellthorpe said:


> They would do their sums properly, and lend an amount which was adequately protected by their stake in the property. In case of default, they can sell it.


All true, but that's not the sort of market a low interest rate, reputable lender serves.

To summarize, those without an excellent U.S. credit history and creditworthiness (Nay78's situation) have these choices:

1. Rent in the desired school district, build an excellent U.S. credit history (and preferably obtain U.S. permanent residence), then consider buying;

2. Enlist a willing mortgage co-signer with an excellent U.S. credit history (the U.S. employer, for example);

3. Buy with cash, tapping low cost lines of credit elsewhere (e.g. home equity in Australia);

4. Find a subprime lender, if possible, and pay the much higher borrowing costs.

I recommend #1 for a variety of reasons both previously mentioned and not, but obviously it's the original poster's decision.


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## twostep (Apr 3, 2008)

Maybe OP will share details about her search so others in similar situations have something to start their searches with.


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## vanhavre (Jan 14, 2015)

Hello,
We moved from Australia to Portland, OR just over a year ago. Rental houses are few and far between here and extremely expensive, and the real estate market is very tight. We wanted to buy and were initially rejected by a large lender. We eventually worked with a small local bank (Banner Bank) and they were very helpful. However, be prepared with a "large" down payment... It was funny that we could get a mortgage but not a credit card! Our real estate agent was very helpful and put us in touch with the bank. I have been told since then that credit union might also be more helpful than large banking institutions. Good luck!


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