Typical Program Types:

The most sought-after loan programs in the U.S. include the 30-year and 15-year fixed-rate mortgages. These fixed-rate options are now accessible for foreign borrowers. However, the preferred loan program for foreign borrowers often remains the 10-year ARM.

U.S. ARM loan programs resemble the variable rates available in many countries. However, U.S. mortgages are amortized over 30 years and do not come with prepayment penalties.

U.S. ARM loan programs typically offer an initial fixed rate for 1, 3, 5, 7, or 10 years. After the initial fixed rate period, the rate adjusts annually for the remaining loan term.

Income Documentation:

U.S. Mortgages in California now necessitate comprehensive income documentation spanning a minimum of 2 years. Income verification is typically done through Federal and Corporate/Business Tax Returns, along with current paystubs when applicable.

Asset Documentation:

Full documentation of liquid assets is mandatory. Assets are typically verified using 2-3 months of bank, stock, mutual fund, and/or retirement account statements. Please note that the full value of retirement accounts may not always be considered.

All documents must be translated into English by a bank-approved company. For a comprehensive list of required documents for your loan application, please refer to our Document Checklist.

Closing Costs:

Closing costs in California differ from those in other countries. Common and standard fees required by banks/lenders in the U.S. include:

• Points: A fee (a percentage of the loan amount… 1 point equals 1% of the loan amount) directly linked to the rate. Higher points typically correlate with lower rates and vice versa. Zero point options are now available to foreign borrowers.
• Lender Fees: These encompass underwriting, loan documentation, administrative, processing, and funding fees. Some or all of these fees may apply and will be disclosed in our initial Lender’s Estimate.