It is not as difficult as you may think for a non-American citizen to obtain a loan. There are many mortgage lenders who will offer foreign national loans. Most of these loans are not that much different from a standard loan, except that they usually require a much more substantial down payment before the loan is approved.

Typically, a down payment minimum of 20 percent or more of the total purchase price is required. A foreign national purchaser should anticipate paying at least 30 percent of the down payment. Banks, lenders, and mortgage institutions most likely to provide foreign national loans are located in and around large major cities. This is because major cities are likely to have a large population of foreign nationals, and banks and mortgage lenders will have programs available to meet the needs of this group.

There is a multitude of mortgage lenders who offer programs offering loans for foreign nationals. While the guidelines on these loans differ from a standard loan, these loans are designed to meet both the needs of the borrower and the lender. Usually, there will be a cap on how much money you are permitted to borrow. There may be multiple fixed rate terms for the borrower to select from, as well as various adjustable rate terms.

One thing that may pose as a challenge is providing a credit history. But this is not a deal breaker. Many mortgage lenders are willing to work with you and can produce an American credit history using your payment history and accounts. While this is a more expensive option than a traditional credit report, it makes obtaining a mortgage possible, which in turn allows a foreign national the possibility of purchasing a home.

The foreign national will be asked to provide documentation proof to show adequate income, bank statements, two forms of identification, and reference letters from their credit or banking institution. If the loan is approved, the borrower will typically be required to open a checking account in the United States. The process from the time the application is submitted to the time it is approved and closed on is approximately 40 days.