Am I Eligible?

 To qualify for a mortgage in the United States of America, you must be able to:

  • Prove your idenification by the means of photographic ID, such as a passport or driving licence
  • Prove your residential address. This is usually done by a suitable utility bill, bank statement etc. dated no older than 3 months from the date the application is submitted.
  • Prove your income by means of payslips and tax returns if employed and your last 2 years accounts, if self employed. In certain circumstances some lenders may accept a letter from your employer or accountant confirming income.
  • Be able to show the source of your deposit funds. You are usually required to show at least 60 days bank statements. Any large lump sums going into your account will normally require an explanation.
  • Provide some proof of credit history, usually by way of a credit report and/or credit letters from insituations you alreasy have credit with.
  • Have sufficient funds to close. This will include your deposit (minimum of 25% to 30%), closing costs (approx 5%) and 6 to 12 months mortgage and tax reserves, although this is not required by all lenders.
  • Have a US bank account (does not have to be with the same bank as your mortgage is through)
  • Have any references translated into English

Affordability

Most lenders will require your debt to income ratio to be no more than 36% to 40%, although there are exceptions to this in certain circumstances. Debt to income is the ratio between your monthly income and long term monthly outgoings. Long term outgoings would be any existing mortgages you may have, car loans etc. Income can include you main salary, bonuses, commissions, investment, pension and rental income.

Age Restrictions

In most instances there are no age restrictions on US mortgages. Some lenders will require proof of income if the mortgage terms goes over the standard retirement age i.e. proof of pension.

Nationality

Mortgages are available to most nationalities, although some lenders do have restrictions on the countries that they will take applications from.

Credit Reports

As a foreign national it will be assumed that you have no or a very low credit score, therefore most banks will require an international credit report. This is a tri-merge of 3 main credit reference agencies. In some instances lender will request 2 independent credit references from you home country to verify that you have made payments on time and in full.

Applying for your mortgage

If you wish to apply for a pre-approval, please download the 1003 application, complete as fully as possible and email to info@americanmortgages.co.uk