International Students: Getting A Mortgage In A Foreign Country

International students often face challenges when it comes to securing accommodation during their studies due to high rent prices. Many believe that a lack of credit history or income makes it impossible to get a mortgage, but there are options available for international students who dream of owning their own home. In the US, for example, F1 visa holders can get mortgages without a US credit history or income, and companies like HomeAbroad and Stilt offer tailored solutions to help international students navigate the home-buying process. Similarly, in the UK, international students can get a mortgage, but they will need to provide proof of their right to reside in the UK, proof of income, and a gift deposit letter if they received help with the deposit.

Can an international student get a mortgage?

International students can get a mortgage without a US credit history

International students often believe that they need a US credit history to secure a mortgage loan. However, this is not the case. There are several options available for international students to get a mortgage in the US without a US credit history.

HomeAbroad, for instance, offers specialised foreign national mortgages focused on international students. These mortgage loans consider the borrower's foreign credit history or can even provide financing without requiring it. HomeAbroad's DSCR loan, for instance, bases eligibility on the property's rental income rather than the borrower's DTI ratio, making it easier for students with existing debt to secure a mortgage.

Additionally, HomeAbroad offers tailored F1 visa mortgage programs that enable international students' parents to qualify for a loan and purchase property for their children. In these cases, the parents apply for the mortgage program, leveraging their income, assets, and credit history from their home country to qualify for a loan in the US. The property can serve as the student's residence during their studies, earning additional rental income and potentially appreciating in value over time.

For international students on Optional Practical Training (OPT), there are also options available to secure a personal loan for a mortgage down payment. While there is no specific OPT mortgage loan, companies like Stilt can help increase your chances of securing a home loan. Making a sizable down payment can also improve your chances of obtaining a mortgage as a visa holder.

Overall, while it may be challenging, international students can get a mortgage in the US without a US credit history by exploring specialised loan programs and considering their financing options.

International students can get a mortgage with a high debt-to-income ratio

International students often believe that they need a US credit history to secure a mortgage loan. However, this is not the case. International students can get a mortgage with a high debt-to-income ratio. HomeAbroad, for example, offers solutions tailored to F1 visa holders. These mortgage loans consider the borrower's foreign credit history or can even be provided without one.

HomeAbroad's DSCR loan, for instance, bases eligibility on the property's rental income rather than the borrower's debt-to-income ratio. This makes it easier for students with existing debt to secure a mortgage. The key criterion is that the expected rental income from the property should cover the mortgage payments. This means that the focus is on the property's ability to generate income, rather than the borrower's income or credit history.

Additionally, there are mortgage options where the borrower can qualify based on the rental income potential of the property, rather than their personal income. This is ideal for international students earning an income during their Optional Practical Training (OPT) period. OPT is temporary employment directly related to an F1 student's major area of study.

International students can also consider parent-assisted mortgages, where their parents apply for the mortgage program, leveraging their income, assets, and credit history from their home country to qualify for a loan in the US.

It is important to note that, while it is possible for international students to obtain a mortgage, it will likely be more difficult than for a US citizen. A strong down payment of around 20% can help to make the borrower less of a risk to lenders and increase their chances of securing a home loan.

International students' parents can help qualify for a loan

International students on F1 visas can legally buy a house in the US without waiting for a green card. However, it can be challenging for F1 visa holders to get a mortgage loan due to their visa status, lack of credit history, and limited income.

One option for international students to qualify for a mortgage is to have their parents help them. HomeAbroad, for example, offers tailored F1 visa mortgage programs that enable international students' parents to qualify for a loan and purchase property for their children. In these cases, the parents apply for the mortgage program, leveraging their income, assets, and credit history from their home country to qualify for a loan in the US. The property can then serve as the student's residence during their studies, earning additional rental income and potentially appreciating in value over time.

Additionally, there are mortgage options where the parents can qualify based on the rental income potential of the property rather than their personal income, without needing US credit history. For example, HomeAbroad offers the DSCR Loan, which focuses on the property's ability to generate rental income rather than the borrower's DTI ratio. This allows the parents to purchase the property with less focus on their foreign income.

It is important to note that international students typically need their passport, F1 visa, and proof of funds to buy a house in the US. If financing is involved, additional documents may be required for mortgage qualification based on the specific loan program. International students may also need to provide a down payment of 20% to 25%, depending on the loan program and their financial profile.

International students can get a mortgage with a strong down payment

International students often believe that they need a US credit history to secure a mortgage loan, but this is not always the case. While it is more challenging for visa holders to get a mortgage loan, it is possible to make yourself less of a risk to lenders by making a strong down payment.

International students on F1 visas can legally buy a house in the US without waiting for a green card. F1 visa students can get mortgages in the US, even without a US credit history or income. HomeAbroad, for example, offers specialized foreign national mortgages focused on international students. These mortgages consider the borrower's foreign credit history or can even provide financing without requiring it.

HomeAbroad also offers tailored F1 visa mortgage programs that enable international students' parents to qualify for a loan and purchase property for their children. In these cases, the parents apply for the mortgage program, leveraging their income, assets, and credit history from their home country to qualify for a loan in the US. Additionally, HomeAbroad offers mortgage options where the parents can qualify based on the rental income potential of the property rather than their personal income, without needing US credit history.

International students typically need their passport, F1 visa, and proof of funds to buy a house in the US. If you are getting financing, you’ll need additional documents for mortgage qualification based on the specific loan program. Typically, international students may need to provide a down payment of 20% to 25%, depending on the specific mortgage loan program and your financial profile.

International students can get a mortgage on a discounted student visa

International students on F1 visas can legally secure mortgages to buy houses in the US. While it may seem impossible due to their visa status, lack of credit history, and limited income, there are options available. For instance, HomeAbroad offers specialised foreign national mortgages focused on international students, which consider their foreign credit history or even provide financing without requiring it. They also offer tailored F1 visa mortgage programs that enable international students' parents to qualify for a loan and purchase property for their children. In these cases, the parents can qualify based on the rental income potential of the property rather than their personal income. Additionally, international students can borrow up to 90% of the purchase price for a specific visa, and a few lenders can offer mortgages on discounted student visas.

It is important to note that there is no such thing as an "OPT mortgage loan", but international students on Optional Practical Training (OPT) can still secure mortgages. OPT is temporary employment directly related to an F1 student's major area of study, and while it does not provide a specific path to a mortgage, it can help students increase their income and improve their financial profile. With proper planning and understanding of financial products, OPT students can increase their chances of securing a personal loan for a mortgage down payment. A strong down payment can make it easier for visa holders to get a mortgage loan as it reduces the risk for lenders.

To get started, international students can consult lenders and apply for a pre-approval letter, which confirms their financial ability to purchase a property up to a certain amount. This makes them more credible buyers in the eyes of sellers and real estate agents. They can also explore platforms like HomeAbroad, which offer comprehensive solutions, including an AI-powered property search platform, connecting with real estate agents with international expertise, and getting approved for financing without a US credit history.

Overall, while there may be challenges, international students on discounted student visas can realise the dream of homeownership in the US by exploring tailored mortgage programs, making strong down payments, and consulting lenders and specialised platforms.

Frequently asked questions