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A Complete Guide to L1 Visa Mortgages in the US [2024]

L1 visa holders can qualify for various US mortgage options, even without a US credit history. HomeAbroad Loans provides tailored guidance and support to help L1 visa holders secure mortgages with the required documentation.
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Making informed real estate decisions starts with having the right knowledge. At HomeAbroad, we offer US mortgage products for foreign nationals & investors and have a network of 500+ expert HomeAbroad real estate agents to provide the expertise you need. Our content is written by licensed mortgage experts and seasoned real estate agents who share insights from their experience, helping thousands like you. Our strict editorial process ensures you receive reliable and accurate information.
Key Takeaways: 

➡️ L1 visa holders with an established credit history can qualify for conventional loans with flexible loan terms and competitive interest rates. 

➡️ Those without a US credit score can explore no-credit mortgage solutions through HomeAbroad Loans, assessing international credit reports and proof of assets. 

➡️ L1 Visa Mortgage options, including fixed-rate and adjustable-rate mortgages (ARMs), are available based on individual credit profiles and specific needs. 

L1 visa holders are eligible to buy property in the US, and securing an L1 visa mortgage is easier than you might think. 

Take the example of John, an executive on an L1A visa, who recently secured a mortgage through HomeAbroad Loans. With our personalized approach and expert guidance, John was able to buy a home in Florida within a year of moving to the US.  

Whether you’re on an L1A or L1B visa, HomeAbroad Loans is here to provide seamless mortgage solutions, offering competitive rates and expert support throughout your homeownership journey. 

Can L1 Visa Holders Get a Mortgage to Finance Their House in the US? 

Yes, L1 visa holders are eligible for a wide range of mortgage products, whether you’re looking to purchase a primary residence or invest in rental properties. Mortgage eligibility will largely depend on your credit score and credit history.  

If you lack a US credit history, HomeAbroad Loans can provide alternative solutions, such as Full Documentation Loans or DSCR (Debt Service Coverage Ratio) loans. 

L1 Visa Holders with No or Thin Credit History: 

L1 visa holders without a US credit score can still qualify for no-US-credit mortgage solutions through HomeAbroad Loans. Instead of relying solely on your US credit report, these programs assess your international credit, income, assets, and employment history.  

Even if you lack a strong credit score, having substantial assets and a reliable monthly income can strengthen your mortgage application. 

L1 Visa Holders with Established Credit History: 

L1 visa holders with a good credit score can qualify for conventional loans with competitive mortgage rates. A strong credit history, stable income, and a low debt-to-income (DTI) ratio can help you qualify for more favorable loan terms.  

Borrowers with excellent credit profiles often enjoy lower interest rates, reduced monthly mortgage payments, and better refinancing opportunities down the line. 

Mortgage Requirements for L1 Visa Holders: What You Need to Know 

L1 visa holders must meet basic eligibility requirements to secure a home loan, with the specifics varying depending on whether you have a US credit history or not. 

For L1 Visa Holders with No or Thin Credit History: 

  • International Credit History 
  • Proof of income, assets, and employment 
  • Passport and visa status documentation 
  • Alternative financial assessments, like bank reference letters and payment history on home country tradelines 

For L1 Visa Holders with Established Credit History: 

  • US Credit Score (670 or above) 
  • Two years of US credit and employment history 
  • Proof of assets and income 
  • Passport, visa, and Social Security Number or ITIN 

For more information on broader mortgage requirements, check out our detailed guide on Foreign National Mortgages

No US Credit? No Problem! How L1 Visa Holders Can Still Get a Mortgage 

Many L1 visa holders mistakenly believe that without a US credit score, they can’t qualify for a mortgage. HomeAbroad Loans offers no-US-credit mortgage solutions that use alternative documentation to assess financial health.  

If you don’t have a US credit report, our team will evaluate your international credit history, bank reference letters, and proof of income to offer competitive loan terms. 

Do L1 Visa Holders Need a US Credit Score? 

While having a US credit score can make the process smoother, it’s not a requirement. Many L1 visa holders arrive in the US without any established credit history, but that doesn’t mean you can’t qualify for a mortgage. 

Alternative Ways to Qualify for a Mortgage 

At HomeAbroad Loans, we look beyond the US credit score and assess your overall financial profile using alternative documentation, including: 

  • International Credit History: If you have an established credit record in your home country, we can use that to help assess your creditworthiness. This means we would check your credit report or credit card/other tradeline history from home country, bank reference letter etc. 
  • Proof of Income: We’ll take a close look at your income documentation, including pay stubs, employment contracts, and your length of employment with a US-based company. 
  • Assets and Savings: Your bank statements or other financial assets can serve as proof of your ability to cover the down payment and closing costs, helping to strengthen your application. 

Case Study: How HomeAbroad Helped Vikram Secure a Mortgage Without a US Credit Score 

Background: 
Vikram, a business analyst from India on an L1B visa, moved to the US with the goal of buying a home in New Jersey. He had no US credit history and was concerned this would prevent him from getting a mortgage. 

Challenge: 
Without a US credit score, Vikram believed it would be difficult to qualify for a mortgage loan. 

Solution: 
HomeAbroad Loans approached Vikram's situation by: Using his international credit record from India Assessing his proof of income and assets Factoring in his steady employment with a US-based company for over two years 

Result: 
Within a few months, Vikram secured a no-US-credit mortgage and closed on a home for his family. Thanks to HomeAbroad Loans' tailored solutions, he achieved homeownership without needing a traditional US credit history. 

Conclusion: 
HomeAbroad Loans offers tailored no-US-credit mortgage options for L1 visa holders, ensuring that even without a US credit score, they can qualify for competitive loan terms. 

Down Payment on a Mortgage: What L1 Visa Holders Should Expect 

When it comes to securing a mortgage on an L1 visa, understanding the down payment requirements is crucial. Let’s break it down: 

At HomeAbroad Loans, the typical down payment requirements for L1 visa holders vary based on whether you are considered a domestic investor or a foreign national. 

  • Domestic Investors (L1 visa holders residing in the US): Usually, a down payment of 20% is required for standard home loans. 
  • Foreign Nationals (L1 visa holders without US residency): A slightly higher down payment of 25% is often required to account for the additional risk associated with lending to foreign nationals. 

How Down Payments Affect Mortgage Rates and Terms 

The size of your down payment can significantly impact both your mortgage rate and the terms of your loan: 

  • Larger Down Payment: Putting down more than the required percentage can result in lower interest rates, helping you save money over the life of the loan. 
  • Smaller Down Payment: While a smaller down payment may be feasible, it can lead to higher interest rates and, in some cases, the need for private mortgage insurance (PMI), which adds to your monthly payments. 

With HomeAbroad Loans, we offer flexible down payment options tailored to your situation, whether you’re a domestic investor or a foreign national. Our goal is to help you secure the best mortgage terms possible, making your homeownership journey seamless and stress-free. 

The Best Mortgage Options for L1 Visa Holders in 2024 

When it comes to securing a mortgage in the US as an L1 visa holder, you have several loan options to choose from. Let’s explore the best ones available in 2024: 

Top Loan Programs for L1 Visa Holders 

When securing a mortgage as an L1 visa holder, the options available to you depend on your credit history and whether you’re purchasing an investment property or a primary residence.

Let’s focus on solutions for L1 visa holders with no US credit history, while also briefly addressing those with established credit profiles. 

For L1 Visa Holders with No to Thin US Credit History 

If you don’t have a US credit history, you can still qualify for mortgage options through HomeAbroad Loans. Here’s a breakdown of options depending on whether you’re investing in rental properties or purchasing a primary residence: 

1. DSCR Loans (Debt Service Coverage Ratio) – For Investment Properties 

For L1 visa holders interested in investing in rental properties, DSCR loans are a great option. These loans don’t focus on your personal financials or credit history, but instead evaluate the income potential of the property you’re buying. If the rental income can cover the loan payments, you’re likely to qualify, even without a US credit score. 

Why DSCR Loans? This option is perfect for those looking to build an investment portfolio in the US, as it eliminates the need for a strong personal credit history. 

For more details on how DSCR loans work, check out our DSCR Loans Guide. 

2. Full Documentation Loans – For Primary Residences 

If you’re purchasing a primary residence in the US, a Full Documentation Loan is the ideal choice. This loan requires extensive documentation of your income, employment status, assets, and international credit history.  

Even without a US credit score, you can qualify by providing proof of financial stability, such as a credit report from your home country, bank reference letters, or payment history on international tradelines like credit cards.  

Why Full Documentation Loans? This option allows L1 visa holders to secure mortgages for a primary home, even with limited or no US credit, if they can show stable income and assets. 

For L1 Visa Holders with Established Credit History 

1. Conventional Loans  

These are the most popular mortgage products for L1 visa holders with strong financials and credit profiles. Conventional loans typically offer competitive interest rates and are ideal for primary residences. 

3. FHA Loans 

For those who qualify, FHA loans provide an option with lower down payments and more lenient credit requirements. L1 visa holders who meet the criteria can use these loans to buy their homes, though you’ll need an Employment Authorization Document (EAD) for this option. 

Fixed-Rate vs Adjustable-Rate Mortgages (ARM): Which is Better for L1 Visa Holders? 

Choosing between fixed-rate and adjustable-rate mortgages (ARM) depends on your long-term plans in the US: 

  • Fixed-Rate Mortgages: These loans have a consistent interest rate throughout the life of the loan, making them ideal if you plan to stay in the US long-term. Stability in monthly payments offers peace of mind, especially if you’re settling down with your family. 
  • Adjustable-Rate Mortgages (ARM): If you’re unsure how long you’ll remain in the US or are seeking lower initial payments, ARMs may be more suitable. With an ARM, your interest rate is typically lower for the first 5-7 years and adjusts periodically after that. This can be a good choice for L1 visa holders who plan to sell or refinance before the rates adjust. 

Whether you’re investing in real estate or buying your first home, HomeAbroad Loans offers flexible mortgage solutions to fit your unique needs as an L1 visa holder.  

To learn more about investment property loans, check out our detailed guide on DSCR Loans

Ready to Get Your L1 Visa Mortgage? Start with HomeAbroad Today 

Whether you’re an L1 visa holder with no US credit history or an established credit profile, HomeAbroad Loans is here to help you with the mortgage process. We offer personalized mortgage solutions with competitive rates and expert guidance tailored to your unique situation. 

Our experienced team understands the unique challenges and opportunities you face, and we make the process as smooth as possible, ensuring your path to homeownership is stress-free. 

Are you ready to begin your mortgage journey? Contact HomeAbroad today for a free consultation and let us help you turn your US homeownership dreams into reality. 

For more information on broader mortgage options, check out our detailed guide on Foreign National Mortgages

FAQs 

1. Can L1 visa holders get a mortgage in the US without a credit history? 

Yes, L1 visa holders without a US credit history can still secure a mortgage. HomeAbroad Loans offers tailored no-US-credit mortgage solutions, such as DSCR loans for investment properties and Full Documentation Loans for primary residences. These options focus on your international credit history, income stability, and assets instead of relying solely on a US credit score.

2. What is a DSCR loan, and why is it suitable for L1 visa holders? 

A DSCR loan (Debt Service Coverage Ratio) is a mortgage option for L1 visa holders interested in investing in rental properties. It focuses on the income potential of the property rather than your personal credit history or finances. If the rental income can cover the loan payments, you can qualify, making it ideal for L1 visa holders without US credit. Learn more in our DSCR Loans Guide.

3. How can an L1 visa holder buy a primary residence without a US credit score?

L1 visa holders without a US credit score can still buy a primary residence by opting for a Full Documentation Loan. This mortgage requires proof of financial stability, such as income verification, employment history, and an international credit report. Even without US credit, you can qualify by showing strong financial documentation.

4. What are the typical down payment requirements for L1 visa holders? 

For L1 visa holders, the down payment requirements vary based on whether you’re considered a domestic investor or a foreign national: 
Domestic Investors (residing in the US): Typically require a down payment of 20%. 
Foreign Nationals (without US residency): Usually need a 25% down payment due to the additional lending risk associated with foreign investors.

  

About the author:
Amresh is the Founder & CEO of HomeAbroad. With over 14 years of mortgage industry experience, he specializes in foreign national mortgages and Non-QM mortgages. He is also a licensed mortgage originator (NMLS # 2549148).

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