How to Get U.S. Mortgage for U.K. Citizens?

The U.S. is one of the most sought-after countries in the world to invest in real estate mainly because it caters to a wide range of needs, which is why, as a U.K. Citizen, this is the right time to move the needle on obtaining a mortgage in the U.S.

In this guide, we will explain how to get a U.S. mortgage as a U.K. citizen. Whether it is for a new home, an investment or a commercial property.

Can U.K. Citizens Obtain a Mortgage in the U.S.?

Yes, U.K. Citizens can obtain a mortgage to buy real estate in the U.S. The U.S. does not restrict any non-citizens from owning property in the country. 

As long as you meet the criteria for owning a property in the U.S., you are free to do so. These criteria are rather simple; you don’t even need a credit history in the U.S. to own property there!  

However, it is important to note that you do not receive residency rights by owning a property in the U.S. you can stay there for as long as your visa permits. 

Documents Needed to Get a Property in the U.S.?

Here’s a list of documents needed for a U.K. citizen to obtain property in the U.S. However, note that some additional documents may be required on a case-to-case basis. 

  • Proof of your income, your last three years of tax returns, or a letter from your employer – Documents proving your creditworthiness.
  • Documents proving that you can afford the monthly payments, such as household cash flow statements, utility bills, or bank statements – Documents proving the mortgage’s affordability.
  • Personal identification documents (passport).
  • Proof of legal status in the United States as a Foreign National.

Who is eligible for a U.S. mortgage?

While everyone can obtain a mortgage in the U.S. there are specific differences based on immigration status. Let’s look into each scenario further to understand how a U.K. citizen obtains a U.S. mortgage. 

U.K. Nationals Without  Residency

As a U.K. citizen who doesn’t have permanent residence (a green card) in the U.S. or a work visa, you will not be eligible for a government-backed loan. But you are still eligible for a foreign national loan.

You must establish that you live and earn in a foreign country to obtain this loan. 

Permanent Resident With Green Card

As a permanent resident with a green card, you are eligible for the same loan as any U.S. citizen which is – a Fannie Mae or FHA loan. Additional eligibility for such a loan includes a 2-month bank statement, 2 years credit history in the U.S. and 2-3 years of tax return. 

Temporary Residents With a Work Visa

Everyone working in the U.S. on a work visa is eligible for the loans, as is any permanent resident. In addition to the usual documents, you may be asked to provide a letter from your company. 

What are the differences between getting a mortgage in the U.K. versus the U.S.?

Both U.K. and U.S. mortgage systems have gone through years of upgrades and are very well organised. Yet, there are some differences. If you are a U.K. citizen keen on buying a property in the U.S., read through these differences.

1. Interest Rate 

The U.K. follows a variable mortgage rate, wherein the interest rate varies with the market condition. While one can take advantage of the change in the interest rate when they are low, it is equally challenging to keep up when the interest rate is on the rise. The average mortgage term in the U.K. is a short 3.5 years. 

The mortgage rate in the U.S. is fixed. This means the interest rate remains constant throughout the term, no matter how long or short. A standard rate of interest helps monthly financial planning. Owing to the fixed rate, the average mortgage term in the U.S. ranges from 15 years to 30 years.

2. Credit Scoring

In the U.S., lenders rely on credit reports from these three agencies: Equifax, Experian, and TransUnion. The credit score is determined based on the credit report and ranges from 300 to 850. FICO scores are the most commonly used credit scores in the U.S.

Unlike the U.S., where FICO scores are used, the U.K.  uses credit scores provided by credit reference agencies. These scores vary depending on the agency and range from 0 to 999. 

3. Taxing

U.K. citizens are exempt from paying taxes on the sale of primary residence. Whereas an American citizen is liable to pay capital gains up to 24%

How Can U.K. Citizens Obtain a U.S. Mortgage?

America Mortgages can help you obtain a U.S. mortgage. If you’re interested in learning more, reach out to us at [email protected] or visit our website at www.americamortgages.com. Additionally, if you’d like to schedule a commitment-free meeting with one of our U.S. loan officers to explore your U.S. mortgage options further, you can do so using our 24/7 calendar link.

Schedule a call with our U.S. Mortgage Specialist.

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