Guide to Foreign National Mortgage Texas [2023]

Foreign National Mortgage Texas
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Amresh Singh, CEO - HomeAbroad  by Amresh Singh

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Foreign national mortgage in Texas, bridging the gap for non-US citizens and foreign nationals to fulfill their homeownership dreams in the Lone Star State. Delve into this detailed guide to gain a deeper understanding of these specialized loans, tailored to address the unique challenges of obtaining a mortgage without a US credit history.

Foreign National Mortgage in Texas

Foreign national mortgage are specialized financing solutions created to assist non-US citizens and foreign nationals in purchasing property in the United States, including Texas, even with limited or no US credit history.

These loans address the unique circumstances of foreign national borrowers, considering factors like residency status, income sources, and non-traditional credit factors, providing them with viable options for obtaining a mortgage.

Find the best foreign national mortgage lenders in Texas.

Importance of foreign national mortgage in Texas

Real estate investing in Texas has become almost a no-brainer, with its booming population growth of 3.5 million since 2010, surpassing even Florida and California. This surge has created a demand for a million and a half new homes, making Texas an attractive market for foreign investors. However, only 56% of US newcomers on non-immigrant visas finance their homes through US mortgages, most of them after a long wait to establish a US credit history.

Who are the top foreign buyers in Texas

This highlights the importance of Foreign national mortgage in Texas, which offer investment opportunities and potential returns to foreign investors without an established US credit history. Increasing awareness about these financing options can help reduce the prevalence of all-cash deals, allowing US newcomers and foreign national buyers with no or thin US credit history to purchase homes without waiting 2-3 years for credit establishment.

Eligibility Criteria For Foreign National Mortgage

Foreign national mortgage provide opportunities for foreign nationals or non-citizens to purchase property in the United States. To be eligible for these loans, borrowers typically need to meet certain criteria, including:

  • Non-permanent resident aliens or individuals without a green card can apply.
  • The borrower’s specific financial circumstances, such as good income, and employment, are considered. Additionally, no US credit history is required.
  • Cash flow assets sourced from a foreign country might be required to demonstrate the ability to make monthly mortgage payments.
  • A higher down payment is often necessary compared to traditional mortgage. While the minimum down payment requirements can vary depending on the lender and the borrower’s qualifications, it’s common for foreign national borrowers to be required to provide a larger down payment, typically around 20% to 25% of the property’s purchase price.

Documentation Required for Foreign National Loans in Texas

To apply for a foreign national mortgage in Texas, borrowers will need to provide specific documentation, which may include:

  • Valid passport or visa indicating eligibility to be in the United States.
  • Social Security Number (SSN) for those who have it.
  • Individual Tax Identification Number (ITIN) or other taxpayer identification documents.
  • Bank statements or other financial records from the home country and the United States establish cash flow and assets.
  • Employment verification and proof of income, such as pay stubs or employer statements.
  • Credit report or other evidence of credit history, which can be from the home country or the United States.

How to Get a Foreign National Mortgage Loan in Texas

A. Finding a lender specializing in foreign national mortgage loans

Estimate budget: Determine how much you can afford to borrow.

  • Look for financial institutions that offer foreign national mortgages in Texas.
  • Research lenders with experience in the foreign national loan program.
  • Consider lenders affiliated with FDIC banks for added security.

After finding a lender, obtain pre-approval: Get preliminary approval from the lender based on your financial information. Within 3 business days of applying, your loan officer must provide you with a Loan Estimate.

HomeAbroad provides a platform to connect foreign nationals with reputable lenders specializing in foreign national mortgages in Texas.

US Mortgages with no US credit history

Find the Best US Lender for Foreigners

Get pre-qualified for an US Mortgage with No US credit

B. Preparing the necessary documents for the loan application

Gather important documents such as your passport and individual tax identification number (ITIN).

  • Provide proof of income, including bank statements from your home country and US bank statements if available.
  • Ensure you have a valid and eligible visa to apply for a foreign national mortgage loan.
  • Check if your country of origin is of the sanction-listed countries allowed to apply for loans in the US.

C. Understanding the loan application and approval process

Understand the foreign national mortgage guidelines and requirements specific to foreign national mortgages. Familiarize yourself with the loan amounts, interest rates, and monthly mortgage payment terms offered by the lender. Also, be prepared to provide additional documentation or information as requested by the lender.

D. Submit the application

Fill out the necessary information accurately and provide the required documentation, then send the completed loan application to the lender for review and processing.

E. Underwriting process

During the underwriting process, the lender carefully evaluates your loan application, verifies the information provided, and assesses your financial circumstances to determine your eligibility for the mortgage loan.

F. Property appraisal

A licensed appraiser assesses the value of the property, considering its condition, location, and comparable sales, to determine if it aligns with the requested loan amount.

G. Loan approval

Once your loan application is submitted, the lender carefully evaluates your financial information and other relevant factors. Upon completion of the evaluation, the lender provides loan approval, outlining the specific terms and conditions that will apply to your mortgage.

H. Closing

Sign the necessary documents, pay closing costs, and finalize the loan agreement. And to know more, you can refer to the Mortgage Closing Process guide for detailed steps in finalizing your home loan.

Check out this definitive guide on Can Foreigners Buy Property in Texas? to learn more about the Texas home buying process and working with a real estate agent experienced in international real estate transactions.

Requirements for Foreign National Mortgage in Texas

When applying for a foreign national mortgage loan in Texas, it’s important to understand what lenders typically look for to increase your chances of approval. Here are key factors lenders consider:

A. Credit History for Foreign National Mortgages:

  • Demonstrate creditworthiness through alternative data points, as traditional US credit history may not be required.
  • Focus on establishing a strong financial profile to support your loan application.

International Credit Reports (ICR):

  • ICRs assess eligibility for applicants with no or thin U.S. credit history.
  • Compile credit information from home country and other financial histories.
  • Include credit history, property ownership, public records, and employment/residency verification.

Options for Limited Credit:

For foreign nationals or immigrants with no or thin U.S. credit history, various lenders offer foreign national mortgage programs. These programs may consider alternative credit sources and a larger down payment as qualifying factors.

B. Documentation and Income Verification

  • Lenders typically request documentation such as a valid passport, visa, and employer verification.
  • Providing proof of stable employment for salaried employees, income, and a two year history of employment is crucial.
  • Additional documentation may include tax returns, bank statements, and proof of assets.

C. Loan-to-Value (LTV) Ratio

  • Lenders assess the loan-to-value ratio, which is the loan amount compared to the property’s appraised value.
  • The maximum LTV for a foreign national mortgage loan is 70%.
  • Expect to provide a larger down payment of over 25% to reduce the loan-to-value ratio and mitigate the lender’s risk.

D. Property Type and Purpose

  • Lenders consider the purpose of the property, whether it’s a primary residence, vacation home, or investment property.
  • Different loan programs may have specific guidelines and requirements for each property type.

E. Foreign National Program Guidelines

Different lenders have specific guidelines for mortgages for foreign nationals, so it’s crucial to understand them, including property location restrictions and country-specific requirements.

HomeAbroad can help you connect with lenders specialized in foreign national programs, ensuring you find the most suitable loan for your needs.

US Mortgages with no US credit history

Find the Best US Lender for Foreigners

Get pre-qualified for an US Mortgage with No US credit

Foreign National Mortgage Loan Rates in Texas

Foreign National Mortgage Loans Rates Texas
  • Foreign national mortgage rates in Texas typically range from 7.5% to 9%. These rates are generally higher than conventional mortgage rates, which typically range from 5.5% to 7.0%. The actual interest rates for foreign national borrowers depend on factors such as creditworthiness, loan term, and other relevant considerations.
  • It is important for foreign national borrowers in Texas to compare loan offers from multiple lenders to find the most competitive interest rates and terms that suit their needs. By doing so, they can potentially secure a better deal and save on their overall mortgage costs.

Closing Costs and Fees for Foreign National Mortgages in Texas

Category Percentage of Loan Amount
Loan Costs  
– Origination Charges 0.4%
– Points 0.09%
– Application Fee 0.07%
– Underwriting Fee 0.24%
– Total Loan Costs 1.3%
Services You Cannot Shop For  
– Appraisal Fee 0.09%
– Credit Report Fee 0.007%
– Flood Determination Fee 0.004%
– Flood Monitoring Fee 0.007%
– Tax Monitoring Fee 0.017%
– Tax Status Research Fee 0.025%
– Total Services You Cannot Shop 0.15%
Services You Can Shop For  
– Pest Inspection Fee 0.03%
– Survey Fee 0.014%
– Title – Insurance Binder 0.16%
– Title – Lender’s Title Policy 0.12%
– Title – Settlement Agent Fee 0.11%
– Title – Title Search 0.28%
– Total Services You Can Shop 0.72%
Taxes and Other Government Fees 0.019%
– Homeowner’s Insurance Premium 0.136%
– Prepaid Interest 0.059%
– Property Taxes 0%
Initial Escrow Payment at Closing  
– Homeowner’s Insurance 0.045%
– Property Taxes 0.047%
– Total Initial Escrow Payment 0.092%
– Title – Owner’s Title Policy 0.229%
Total Closing Costs (D + I) 1.81%

Please note that the percentages provided are approximate and may vary depending on the specific loan terms and lender’s fees.

Consult with your lender for specific details regarding your foreign national mortgage in Texas. Let HomeAbroad connect you with a reliable one!

US Mortgages with no US credit history

Find the Best US Lender for Foreigners

Get pre-qualified for an US Mortgage with No US credit

Taxes and Insurance in Closing Costs for Foreign National Mortgages in Texas

  • Property Tax: At closing, foreign nationals are expected to pay pro-rated property taxes from the closing date to the end of the tax year. The amount is based on the anticipated closing date and may change if the date is pushed back.
  • Homeowners Insurance: Lenders usually require foreign nationals to prepay the first year’s homeowners insurance premium at closing. This entails transitioning from an existing renter’s insurance policy to a more comprehensive coverage plan for the newly purchased property. Different types of homeowners insurance coverage options, such as actual cash value, replacement cost, and extended replacement cost/value, may be available.
  • Flood Insurance: In certain areas that are prone to flooding, a certified flood inspector will determine if the property is in a flood zone, which requires additional flood insurance coverage. This is separate from the standard homeowners’ insurance policy and helps protect against potential flood-related damages.

Foreign national buyers should know the potential property tax and homeowners insurance obligations associated with purchasing a property in Texas.

It is recommended to consult with a local tax advisor or insurance agent to understand the specific requirements and costs related to taxes and insurance for foreign national mortgages in Texas.

HomeAbroad can help you connect with a lender specializing in foreign national mortgages – Texas. We are a free concierge service hand-holding foreigners to navigate them through their US home-buying journey.

US Mortgages with no US credit history

Find the Best US Lender for Foreigners

Get pre-qualified for a US Mortgage with No US credit

Differences Between Foreign National Loans and Traditional Mortgages

Foreign national mortgages have certain distinctions compared to traditional mortgage, including:

Aspect Foreign National Loans Traditional Mortgage
Eligibility Criteria Non-permanent resident aliens or non-citizens U.S. citizens and permanent residents
Down Payment Higher down payment requirements, at least 20% – 25% Varies, but typically requires a down payment of 5-15%
Loan Program Specifically designed for foreign nationals Standard loan programs for residents
Interest Rates Slightly higher rates may apply, between 7.5% to 8.82% (3 April 2023) Rates depend on creditworthiness and market conditions, ranging up to 7.5%
Documentation Requirements Additional documentation may be needed Requires documentation for identification, income, and more
Maximum Loan-to-Value (LTV) Lower LTV ratio; 0.75-0.8 Higher LTV ratio; 0.85-95
Credit History Consideration of no credit history or from home country Credit history is required in the U.S. Generally, a good credit score of 620 or more

Benefits of Foreign National Mortgage in Texas

Foreign national mortgages in Texas offer numerous benefits for individuals looking to invest in real estate or purchase a property. These loans cater specifically to foreign nationals, providing them with financing options that suit their unique needs and circumstances.

Here are some key benefits of foreign national mortgage in Texas:

A. Access to real estate investment opportunities in Texas:

  • Foreign nationals can take advantage of the vibrant real estate market in Texas, which offers a wide range of investment opportunities.
  • With foreign national mortgage, individuals can purchase residential or commercial properties, including vacation homes or income-generating assets.

B. Tailored financing solutions for foreign nationals:

Foreign national mortgages offer customized terms and payment flexibility, addressing the challenges of obtaining loans with limited or no US credit history.

  • Lenders provide options for both small and large investments, accommodating varying loan amounts for foreign national borrowers.

Enjoy competitive interest rates specifically designed for foreign nationals, making the loan affordable and appealing.

C. Building credit history and establishing financial stability in the US:

By securing a foreign national mortgage loan and responsibly meeting monthly payments, individuals without or with limited US credit can establish a strong credit history in the US, leading to improved financial stability and potential access to future lending options.

This is particularly advantageous for non-permanent resident aliens aspiring to obtain permanent status or citizenship.


In conclusion, foreign national mortgage present both benefits and challenges for individuals looking to invest in real estate in Texas. While these loans offer opportunities for non-U.S. citizens to enter the housing market, they also come with considerations such as language barriers and legal requirements. To navigate this process successfully, it is crucial to explore options and consult with lenders specialized in foreign national loans.

HomeAbroad can assist in connecting you with lenders who understand your unique circumstances and can guide you through the mortgage application process. Start your journey towards homeownership in Texas today.

US Mortgages with no US credit history

Find the Best US Lender for Foreigners

Get pre-qualified for an US Mortgage with No US credit


  1. Who qualifies as a foreign national for mortgage purposes in Texas?

    Foreign nationals refer to individuals who are not citizens or permanent residents of the United States.
    This includes individuals residing in Texas or abroad who are seeking mortgage financing for properties within the state.

  2. Can foreign nationals qualify for a mortgage in Texas?

    Yes, foreign nationals can qualify for a mortgage in Texas through specialized loan programs designed for non-US citizens.

  3. What are the requirements for foreign nationals to obtain a mortgage in Texas?

    The requirements may vary, but typically, foreign nationals need to provide documentation of their income, assets, and residency status, along with a valid passport and, in some cases, a US visa.

  4. Is a US credit history necessary for foreign nationals to get a mortgage in Texas?

    No, specific lenders offer mortgage options specifically for foreign nationals without requiring a US credit history.

  5. How much down payment is required for foreign national mortgages in Texas?

    Down payment requirements can vary, but foreign nationals may be required to provide a higher down payment than US citizens, which is close to over 20% or more.

  6. Are there any restrictions on the types of properties foreign nationals can purchase in Texas?

    Generally, foreign nationals can purchase a wide range of properties in Texas, including single-family homes, condominiums, and investment properties, subject to compliance with local regulations.

  7. Can foreign nationals apply for mortgage pre-approval in Texas?

    Yes, foreign nationals can apply for mortgage pre-approval, which provides them with a loan estimate of the amount they qualify for, helping streamline the home-buying process.

  8. Do foreign nationals have access to the same mortgage rates as US citizens in Texas?

    Mortgage rates for foreign nationals may differ from those available to US citizens, generally 1 -2 % higher, as they can be influenced by factors such as credit history, down payment, and loan program specifics.

  9. Are there any additional fees or costs associated with foreign national mortgages in Texas?

    Foreign national mortgages may involve additional fees or costs, such as higher interest rates, processing fees, or attorney fees. It is important to review and understand all associated costs before proceeding with a mortgage application.

  10. Can foreign nationals refinance their mortgage in Texas?

    Yes, foreign nationals can explore mortgage refinancing options in Texas, depending on their specific circumstances and eligibility criteria set by lenders.

Amresh Singh, CEO - HomeAbroad
About the author:

Amresh Singh is the founder & CEO of HomeAbroad and has an extensive 12+ years of experience in the financial services and mortgage industry – building business development and product strategy and leading customer strategy
in the financial services industry domain.

Prior to co-founding HomeAbroad, Amresh has worked for one of
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