Foreign National Programs
In mortgage lending terms, a Foreign National is a citizen of another country who visits on vacations or relocates to the U.S. for business, educational, or employment opportunities.
For years, 30%-35% down was the industry standard and Foreign Nationals were only offered variable rate mortgages often with stiff prepayment penalties, high rates, and expensive closing costs. Today the industry standard is a 20% down payment, although 10% down is available. Most mortgages no longer have prepayment or early redemption penalties, and 30 year fixed and 15 year fixed mortgages are available to all borrowers.
Additionally, Foreign Nationals are now characterized as borrowers with ITINs (individual taxpayer identification numbers), or those borrowers who have a legal right to live, work, or study in the U.S. (visa holders). Most lenders require no down payment or small down payments such as 3%, 5%, or 10% down for borrowers with visas or ITINs, depending on immigration status, length of residency, work and credit history in the U.S.