Real Estate Guides

Mortgage Financing Requirements Guide

Requirements for Financing Your Mortgage

Before one begins to search for a home or property in which one wants to invest in New York City, it is crucial to be aware of the requirements placed on non-cash buyers in order to finance a mortgage. Before deciding whether you want to use the services of a broker or mortgage bank, the following guide can help prepare you for what you will be asked to provide.

For Residents and Resident Aliens of the United States:

In order to finance your mortgage, you must provide the following documents:

  • Personal Information:
    • Full legal name
    • Current address
    • Social Security Number
  • Personal Income: All borrowers’ incomes, including amount of income and source (or sources) of income. This information must include:
    • 2 years worth of tax returns
    • Your latest savings and checking account bank statements
    • A letter of employment, which verifies the start date of one’s current job, as well as the person’s annual salary and bonus
    • Self-employed individuals must provide a letter from their attorney or CPA which verifies their salary along with net worth
  • Personal Assets: This is data on all of one’s assets, including:
    • Stocks and bonds
    • Real estate
    • Savings accounts
    • Checking accounts
    • Retirement plans
    • Liquid and/or non-liquid assets, listed
    • Current asset portfolio statement(s) (where applicable)
    • Current 401K and/or retirement fund statement(s) (where applicable)
  • Debts/Obligations: Data on all of your outstanding debts and/or all other financial obligations one might have.
  • Credit references: Data regarding past payment of loans and/or debts, along with any references that demonstrate your good credit.
  • Cash Reserve: For loans less than $650,000.00, you should have a reserve of at least six months worth of mortgage payments.
  • Mortgage Loan Programs:
    • 30 Years Fixed
    • 25%-35% required down payment
    • 3/1; 5/1; 7/1; 10/1 Adjustable Rate Mortgage (ARM)

For Foreign Nationals Residing in the United States:

The following financing rules apply to:

  • Visitors
  • Tourists
  • Residents from foreign countries

…who have…

  • No address in the United States and/or
  • No job in the United States

The following information explains the general rules for foreigners who want to obtain financing in order to purchase a home. The specific requirements, however, unlike for residents, can vary, depending on the bank and specific buyer qualifications.

Required Documents:

  • A valid (current and unexpired) passport
  • International Credit Report
  • I-94 (This is only a requirement if the foreign national is currently in the United States at the time of the application or the closing)
  • Stated Income
  • Proof of Income
  • Tax returns
  • Pay stubs
  • Verification of Deposit
  • The closings costs and the down payment have to be verified by a United States institution
  • Reserves in a foreign institution can be verified with six months of history
  • Statement accounts must be presented

Cash Reserves:

  • For loans less than $650,000.00—mortgage payment for 6 months
  • For loans more than $650,000.00—mortgage payment for 12 months

Mortgage Loan Programs

  • 30 Years Fixed
  • 25%-35% required down payment
  • 3/1; 5/1; 7/1; 10/1 Adjustable Rate Mortgage (ARM)