Foreign nationals can lock rates through non-QM and portfolio loans. Rates are typically higher and the timeline is longer than standard loans.
Foreign national borrowers have options for mortgages, but the terms and availability differ from conventional loans.
Non-QM and Portfolio Rate Locks
Foreign nationals who do not have U.S. credit history or a Social Security number typically qualify through non-QM (non-qualified mortgage) loans or portfolio loans held by the lender. These loans have different rate lock terms than conventional loans. Rates are generally higher because the lender takes on additional risk. For foreign national buyers considering property in San Antonio and the Texas Hill Country, I recommend working with lenders experienced in cross-border lending.
Higher Rates for Foreign National Loans
Because foreign national loans are not eligible for sale to Fannie Mae or Freddie Mac, lenders charge higher rates to compensate for the additional risk and portfolio holding cost. Expect rates to be 1 to 3 percentage points higher than conventional loan rates. A larger down payment of 30 to 50 percent is also commonly required.
Longer Timeline for Foreign National Locks
The underwriting process for foreign national loans takes longer because lenders must verify international income, assets, and credit history through alternative means. Expect a longer timeline from application to closing, typically 45 to 60 days or more. Plan your rate lock accordingly and choose a lock period that accounts for the extended processing time.
