- Work with a mortgage advisor who has experience funding loans for expats. Preferably a lender who is able to do the program in-house with their underwriting/funding team. Conventional FHFA guidelines do allow for qualified foreign income that is recorded on your US taxes but some companies/banks have ‘overlays’ that don’t allow them to use foreign income as qualifying income.
- Have patience! Normal loans for a standard US based W-2 employee can require as little as 5-6 documents for approval. For US citizens living and working abroad the process is a lot more challenging. Not only are there substantially more documents to underwrite, everything needs to be ‘manually’ underwritten which means the underwriter needs to spend more time doing a detailed review specific to the file. Most countries/companies have different payment methods and reporting which takes longer to review, translate, etc.
- ‘Season’ your funds in a US account. Funds to close will include: down payment, closing costs, prepaids, and additional reserves required. To avoid additional underwritten scrutiny you will want to have your funds deposited in a US account, in your name, for at least 30 and preferably 60 days before application. While it is possible to document the transfer of foreign funds, due to transfer methods and anti money laundering policies some programs and banks require funds be seasoned in the U.S. 60 days before closing.
- Have a plan for signing. Our company will allow Remote online Notarization (RON) in many circumstances, but many mortgage companies, title companies, states, and counties will not. If you are using a specific power of attorney it will take extra time to review and it will either need to be signed on US soil, in an embassy, or via a RON (assuming every party allows it). Due to current COVID-19 conditions many embassies are closed or have slow appointment times for notarizing docs so it is possible that you would have to make a trip to the US.
- Organize your finances! You will need to submit many documents including the recent 2 years of US taxes and current country of residence taxes. You will also need to submit pay statements, a foreign credit report, documents related to any properties owned, and other additional financial and identifying documents. Your employer will also need to provide verification of your employment & income so good communication with your HR or Payroll team is extremely helpful.
For additional questions and tips please feel free to reach out
Jordan Lee
503-887-3619
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