Home Buying in Fremont>Question Details

Jporter, Home Buyer in 94539

I know a guy looking to buy a home, but he's coming from India. He used to live here, and still has a rental property here. How would he get a?

Asked by Jporter, 94539 Sun May 1, 2011

loan? More specifically, what would his loan pre-approval process be since he does not have any W-2's from the past 2 years since he was working in India?

Would it purely be based on the amount of cash he has in the bank? He is looking for a home for about 500K - approximately how much cash would he need in order to be pre approved for this amount, assuming it's not an FHA loan since he already has a rental?

I know that he does require financing - don't know yet how much cash he has.

He also does not currently have a job lined up here, but he says he will find one when he comes back.

Any other information you can provide would be much appreciated.


Help the community by answering this question:


He should have established a credit history based on his previous stay in US. If he still has a rental income, that means he has to do tax return. Tax return of the past 2 years and lease agreement can serve to document this source of income. Very likely this is not enough to qualify him yet. It's best that he starts having a salaried income and pay stubs to show it.

He has to talk to a loan officer together with all his personal financial information to know for sure how much he can borrow. If he needs referral on that, let me know.
Web Reference: http://www.archershomes.com
1 vote Thank Flag Link Mon May 2, 2011

This is a very difficult scenario to review. First, you may have an issue because of not currently being employed in the USA; however, I do have a foreign national lender that works scenarios like this. If he's currently employed in India, we could show this as a second home/investment purchase, but the loan would be limited to an ARM product. It would be ok not having the tax returns & W-2's, as we could show current pay stubs translated from Indian to verify his current income.

However, the one variable would be the fact that he currently has a rental property here, which brings me to the question "does this individual have US tax returns?"

There is just a little more information required to see the overall picture of this scenario to determine if financing would be available.

Michael Abram
First Capital Mortgage
NMLS #235060
Direct: (310) 434-1718
0 votes Thank Flag Link Sun May 8, 2011

I am aware of a lender that provides loans to foreign nationals for situations exactly like this. Obviously the buyer has to meet certain criteria – but loans like this are available.
0 votes Thank Flag Link Sun May 8, 2011
Hello Jporter,

First of all let’s welcome your friend back to USA and California housing market, where he is interested in buying home. It’s good that he is a landlord already.

As you may already know, that underwriting guidelines for loans are constantly
changing. Lots of rules, regulations and restrictions applies before banks
fund their monies.

Some of the requirements of getting a loan are...
• Borrower’s ability to pay back the loan.
• Good credit history demonstrates the debt paying habits.

Now, to determine if your friend can pay the loan back is going to be based on
how soon can he get a job here. His work history in India may be considered
if he will be working in the same line of trade. His Master’s degree certificate (if any)
can also be useful.

Since he owns a home and if has been paying his mortgages,
he has already established mortgage history, which is going to be a very good point on his credit report. He may have been filing taxes since he owns a property in USA. He can get FHA financing provided his income and expenses ratio are under the guidelines.
Lenders may be able to use his past history of work in USA a compensating factor.

Once your friend starts working here, accumulates at least 3.5 %( which can be gift too) cash down payment and have at least 10months of job history, he may be able get a FHA loan, provided his ratios are within the underwriter’s guidelines.

It’s an excellent market to buy a home now… where mortgage rates and home prices
both are low historically low. Have him talk to an efficient and knowledgeable and a sharp loan officer.

Good luck to you,

Charo Bhatt
0 votes Thank Flag Link Tue May 3, 2011

There are enough unknowns in the scenario above that I would be reluctant to tell you it could or could not get done. If your contact would like to speak about a loan pre-approval when the time is right, I am happy to help. And I'm also able to answer your questions above (without cost or obligation, etc.) if you want to walk me through them on the phone. I can at least give you the guidelines and parameters that way. I am here in the SF Bay Area.

Thank you,

Rob Spinosa
0 votes Thank Flag Link Mon May 2, 2011

DO give my Lender a call, she has 27 years of experience, is on top of things all the time, can help you Best.
I am from India too, But I am a Realtor and do not have Loan expertise, Can do the RE part of it when needed, taking exceptional care of him, but first, talk to the Lender, she will be straightforward, and let you know if feasible, how he can do it! Do Let her know I referred you to her:
Sue Baker-Dirickson
Princeton Capital
Dir: 408-861-8866
Cell: 408-309-2406
Email: suebaker-dirickson@princetoncap.com

All the Best ,
Nina Daruwalla
0 votes Thank Flag Link Mon May 2, 2011
If he doesn't have a job, does he have another source of income? Without an established income source or other significant assets he will have trouble getting approved. We work with lots of international clients and financing is available from many sources, so once he has secured a job it shouldn't be difficult to find a loan.
0 votes Thank Flag Link Mon May 2, 2011
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