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)