J1 Visa Foreigner looking to buy a house - Please opine (loan officer, 2014)

[micoud2db]

Moved from Europe a year ago and I am considering the idea of buying a condo of around 165k.

I dont know much about the credit system here so here is how I see the whole thing:

Cons:

- I have a J1 visa that runs for another one year and a half and the intention of my school district (I am a teacher) to get on a initial H1 visa with 5 years more and then renew it over and over until I get a green card.
- I never built a credit score as I dont have credit cards in the US. So I guess no credit score = bad credit score. I pay my renting, electricity, cable, internet, phone all with a debit card.

Pros:

- I can do a downpayment of 50k with money sent from overseas, family sold property and part of that money is used to help me buy a house.

How do you think I can make this happen? I have been told to go to local banks as they will want my business. Do you guys think that down payment is enough or I should target cheaper apartments?

I would really love to hear your thoughts!

Thanks in advance

A

[Pfhtex]

For my company (FDIC Mortgage Bank), we like to see a three-year renewable Visa, at least one year of US Tax Returns, full time employment, and the condo cannot be in Florida. These are FHA rules for my company, by the way, I will look into Conventional, as you have a good bit to put down.

This is not a solicitation.

Regarding credit, you need to build it. Your lender will be able to use non-traditional credit for FHA, but I'd rather see you get a secured credit card at your bank, use it, never exceed half of the available balance. You really want a conventional loan on the property, but condo approval might be another non-citizenship related hurdle.

Where do you want to buy?

[micoud2db]

Thank you very much for your answer. I want to buy in Denver, CO. Indeed the price of the apt might be even lower, 100 to 130k which would make my down payment even higher, close to a 50%. I can provide 2 tax returns, a letter of intention of my district to renew my visa to a H1. Proof of more properties in my home country in Europe that will be sold and part of that money will be sent to me (I know that might be hard to use or prove).

I would not like to wait to build my credit before buying, so do you think that giving these conditions I will get a house loan?

thanks for your opinion, I really helps me having an idea of my position at this time

A

[TarkaK9]

If from the UK, there may be a way to take your UK history into consideration, eg Experian.

J1 can make underwriters queezy, H1 is more comfortable. Don't take a loan officers word nor 'automatted/desktop underwriting' - you want to hear yeah or ney directly from an underwriter. IOW, have the loan officer get on the blower with an underwriter. A conventional program is more likely and they could require upto 40% down. You might want to explore a credit union, too.

Many expats may comment about waiting until your green card b/c if your visa isn't renewed and you have to immediately return to europe, how does that affect things for you...

[micoud2db]

I am going to meet with a broker and local banks, I have gathered this info. It is whole truth. Please let know how you like my chances and whether I should provide them with some other information as well.


Information:
- J-1 Vista until 2014. School district and my school have agreed to start the process of getting an H1B. Letters of intention can be provided. The intention of the applicant is to move residence from Europe to the USA and stay here definitely. Every district H1B applicant gets the new visa and renews until getting green card.
- Job: School teacher. Salary Chart: 4 years of experience – Finished M.A. – Last year of Ph.D. Employment 2011-2012 at a private school: – Income 34k. I can provide W2 and contract.
- Employment 2012-2013: Part time Public School (0.64FTE) Income 45K + bonuses (roughly 30k since I work part time). I can provide W2 and contract.
- Employment for next academic year. Full time Denver Public Schools (47k + bonuses) or (50k + bonuses if I complete Ph.D.)
- 2 years lease with my apartment complex. Studio Apartment for one person. I take care of monthly payments of over $800 with a salary of $1900 working part time this year. Clean history of payments.
- Capacity to make a down payment of over 30% (or even more depending of the house price). Funds for this potential operation are coming from overseas. Personal savings and properties sold.
- Looking for a “no penalties for quick payment” type of loan. As more family properties are sold, applicant will look for finishing paying loan or acquire new properties. No time estimation for this, it could be tomorrow or in two years. If having a “no penalty clause” represents a problem, the new funds will be used towards acquiring other properties in Colorado.
- Current status: no history or bad credit history. Never own a credit card in the USA. Credit score probably the minimum one can have.


I really want to hear your thoughts!! please comments!!

Thanks in advance

[Old Monkey]

Good luck with your meetings! Honestly, your lack of credit history will be an issue. Be prepared to discuss this.

[micoud2db]

Thank you sir.

Still hoping to hear more comments....