Common Questions about Home Loans in the U.S.
In the United States, a significant proportion of prospective homeowners choose to finance their home purchases through mortgage loans. How does one go about getting a mortgage to buy a property in the United States? What specific requirements need to be met?
1
Can International Students Take A Loan Without Income and Tax History?
Students holding F1 visa can qualify for loans; however, a 40% downpayment is required. Besides, the passport must not be expired, and the funds must be held in a bank account within the United States.
2
Is There Any Differences in Mortgage Eligibility for Non-US Citizens?
In fact, there isn’t a significant difference; having U.S. citizenship doesn’t provide any particular advantages. If the client possesses a green card, an A visa, a C visa, or various types of work visas, they can enjoy all the same conditions as a U.S. citizen.
3
What Are The Most Common Types of Loans?
Here are the most common types of loans: fixed-rate loans, variable-rate loans; conventional loans, home equity loans, bridge loans; residential loans, commercial loans, construction loans, renovation loans, and more.
4
What Are the Typical Costs Associated With A Lloan?
Bank application fees, appraisal fees, property title fees, and taxes.
5
What Documents are Required for A Loan Application?
Proof of identity, income verification, assets and debts.
6
What Are the Different Loan Terms, And What Are The Distinction Between Them?
Loans are typically divided into 15-year and 30-year terms. A 15-year loan typically comes with a fixed interest rate for the entire 15-year period, resulting in higher monthly payments but a higher proportion of principal repayment each month. On the other hand, a 30-year loan can have both fixed and adjustable interest rates. The adjustable-rate option allows clients to lock in rates for periods such as 3,5, 10 or 20 years, providing slightly lower monthly payments and greater flexibility in choosing loan terms.
7
What Is The Process for Applying for A Loan? How Long Does It Take?
Banks require the applicant’s credit records, proof of assets, and other documents for review. Appraisers, property agencies, and other entities provide relevant reports to facilitate the examination. The time required varies depending on different circumstances.
8
Is It Beneficial for International Students to Take Out Loans to Buy the Property in Terms of Building Their Credit Score for The Future?
To some extent, it can be beneficial; however, consistently making timely mortgage payments is the best way to accumulate a good credit score.
9
Can Overseas Assets or Overseas Income Be Used as Collateral for A Loan If There Is No U.S. Income?
For most banks, overseas assets can only serve as proof of assets and cannot be used as direct collateral for a loan. Any documents related to overseas real estate assets require a bilingual appraisal report for the property in question, conducted in both English and the local language, along with notarization of any Chinese documents at the U.S. consulate. As for overseas income, banks can only consider income earned overseas that has appeared on tax returns filed in the U.S. for the past two years. For foreign national loan programs, it is not mandatory to provide proof of domestic income. Acre also offers a variety of options for its clients.
10
What Is The Best Time to Lock in The Interest Rate?
Some banks offer the option to lock in the interest rate at the beginning of the application process, while others require loan approval before allowing rate locks. There’s no inherent advantage or disadvantage; it depends on the specific circumstances at the time. Everyone’s situation is different. For more detailed information, you can consult with us for personalized advice.
11
Can You Use Overseas Banks And Overseas Loans to Buy Property in The United States, Such as Chinese Banks?
There are currently no known cases of overseas banks directly providing loans for property purchases in the United States. However, some overseas banks, such as HSBC and Bank of China, operate legitimate banking services in the United States.
12
What is Refinance? How Does It Work in Detail?
Refinancing involves two primary aspects: relocking existing interest rates and using the property as collateral to borrow cash. The specific process is similar to applying for a mortgage when buying a property. Depending on the bank and state regulations, in many cases, you may not need to pay the mortgage recording tax to the government again.
