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As A Foreigner, You Can Avail Loans From Financial Firms In America


What is the first thing we will do when we plan to apply for a loan? Yes, visit either the nearest bank or our home branch, which operates our account. What if you are staying in Asia, working with an MNC and hoping to stay long-term in the US by buying a residence there?

It is possible except that there are some conditions which you must meet.

You can get a secured loan or an unsecured loan. For a secured loan, you should give some kind of strong security to the lending firm such as a property and unsecured loans are given based on your good credit history or payment history.

Now, you must be thinking that what should be the location of the property if you want a secured loan in the U.S (you are a foreigner).


Why does loan to a non-resident citizen gets special focus? Legal policies will be different in different jurisdictions, for example, you are a resident of a European country. Even if your complete security information is provided and you have steady, high income to become eligible for a loan, the laws in the two countries should be coherent enough to carry out a financial transaction. Or, if you are on a visa visit to the country, the firms may take you as risky once you leave the country. Hence, the application process as a non-resident US citizen is a bit different from that for a resident citizen. The final eligibility criteria depending on whether you fall under which among the following categories:
A soon to be permanent resident of the US or green card holder
Temporary resident with a visa
A foreign citizen residing outside the US


Unsecured, personal loans Usually, personal loans are given solely on the basis of your income or credit history. As a foreigner, if you, the lending firm puts forth the condition of having a cosigner. He should also meet the eligibility criteria for the loan you are applying.

There are other alternative considerations also. Some banks demand a good credit history for an extended long period. For example, as a resident, you may have to furnish the details of the previous six months or one year.

As a foreigner, you may have to submit the credit history for more years like five or six. The best way is to approach an online lending firm or banks that specialize in providing loans to non-resident US citizens.

This will enable you to have a uniform application process as all the applicants have a similar status. The document list will be standard for the bank and the application passes through common lines. A lot will depend on your type of stay in the country. If you are working, get the documents regarding how long you have been there, visa duration and extension, employment authorization forms and how long you would stay. If you are a student, collect the respectively similar documents from the institution.

Keep a backup of your credit history for the relevant number of years and in a format compatible with the legal and credit procedures in the US. Include the high profile transactions, savings, work experience, insurance, property exchanges or agreements, medical bills, educational bills etc in addition to your income. A credit reporting agency will always help you in this. Obtain proofs of your visa extension, stay duration and purpose from the concerned organizations.

 

Availing a mortgage loan
You can qualify for a mortgage loan, even one sponsored by the government whether or not you have a good credit history. If you are lucky enough to get a government sponsored loan, you can further reduce your ready cash collection since down payment is lesser.

If you are residing currently in the US as a green card holder or on a temporary visa (working/seeking/studying), the way through is quite easier and have more or less the same requirements once you verify your residency.  For an individual residing outside the country, banks deal him as a riskier customer.

This doesn’t make you ineligible for the loan, but you may be asked to pay higher than normal amount as down payment. You need not be on your toes to collect the mammoth amount of cash to own your dream house in the US, getting a mortgage loan as a foreigner is not a fantasy, but a reality.