A Full Guide On Getting A US Mortgage From India

Are you an Indian citizen who wants to buy property in the US? Well, you’re not alone. Between 2010 and 2024, Indians have bought more than 160,000 properties in the US, with California, Texas, and Alaska being the most popular states. Now, what might surprise you is that a lot of those properties were directly financed through US mortgage for Indian nationals.

So, the question you might have now is: how are Indians getting mortgage in USA? If that’s the case and you want to find the answer, all you have to do is keep reding this article. 

Can Indians Get Mortgage in USA?

The answer is YES; getting mortgage in USA as an Indian is possible but can be challenging.  Not all lenders in the US are prepared to work with Indians. That’s why the best way to get a US loan is to contact a mortgage broker experienced in working with international clients. These specialized companies know how to find lenders that deal with foreigners and can even help you get a US mortgage for Indians, even if you don’t have a US credit score, history, or Green Card.

The statistics about foreign investment in US real estate show that Indian nationals spent over $3,4 billion buying property in the country between April 2022 and March 2023. Because Indians are smart, they followed the best advice for buying real estate — use other people’s money. That’s why a huge percentage of them chose to go with nonresident mortgages instead of buying property entirely with cash. 

Now, before we share with you the main steps Indians getting mortgage in USA took, let’s first talk a bit about the main differences between US and Indian mortgage loans. 

3 Key Differences Between US and Indian Mortgages

There are many differences between US and Indian mortgages, with the main ones being:

Interest Rates

US interest rates are not fixed and can vary significantly, from 3,5% to over 12%. The rates will depend on numerous factors, including:

• The exact type of mortgage
• The loan amount
• The specific lender
• The down payment
• Citizenship status

The interest rates in India are generally higher than in the US and are also variable, usually between 8% and 12%. They are greatly influenced by the Reserve Bank and a borrower’s credit profile, which is probably the biggest difference between US and Indian mortgages. 

In the US, with the help of the right lender, your credit profile will have less influence on the interest rates and, ultimately, your ability to get a loan.

Loan Term Lengths

Most US mortgages are long-term and can be between 15 to 30 years. The US lenders don’t discriminate based on age, meaning you can get a long-term US mortgage regardless of age. On the other hand, in India, most long-term mortgages are capped at 65. This means that past that age, you won’t be eligible for a long-term mortgage.

Credit Scores 

The US has a credit score system called FICO. This system evaluates a borrower’s ability to repay a loan and can have an impact on interest rates. The higher the US credit score is, the lower interest rates borrowers can get.

Just like the US, India also uses a credit score system. Theirs is called CIBIL, and it is similar to the FICO system the US has. The main difference between the two is the scoring itself. In both countries, the lowest credit score is 300. However, in India, a good credit score is anything above 750, while in the US, a good score is anything between 690 and 720.  

How to Get US Mortgage From India? 5 Main Steps to Consider

Getting a mortgage in USA as an Indian national is not a routine process, meaning the journey will not be the same for everybody. However, there are certain steps that almost every Indian who wants to purchase property in the US will encounter. These main steps are: 

1. Your Reason for Purchasing

The first thing you should do, even before you start looking for US mortgages for Indian nationals, is to figure out the purchasing reason. Why is that? It’s simple — the reason behind the purchase is directly connected to the type of loan you’ll need to get. To buy a rental property, you’ll need a different loan than if you want to buy a primary residence or a vacation home. Because there are so many different types of loans, knowing the purchasing reason will point you in the right direction regarding what US mortgage is right for you.

2. Figure Out Your Budget and Financial Assets

Before you start looking for US mortgages for Indian nationals, you first have to estimate how much money and assets you have. Try to figure out your current cash flow and how much money you can put down for a down payment. If you have any financial assets (e.g., real estate, businesses, etc), make sure to prepare any documentation you have for them. That can significantly help you in your loan application and make qualifying for a US mortgage from India much easier. 

3. Decide in Which State You Want to Buy a Property

In the US, there are 50 states, each with its own set of rules and regulations for buying properties. The best way to look at the 50 US states, in terms of investing, is to view them as completely separate countries because the differences are simply that big. 

For example, California is a tenant-friendly state where the laws greatly favor renters over landlords. This makes California less ideal for investing in rental properties. On the other hand, buying an investment property in Florida can be a better decision, as the state is friendly to landlords and has laws protecting property owners’ rights. That’s why, if your goal is to buy investment property, you must learn how to choose the best location and the right US state to put your money in. 

On the other hand, if you plan to permanently settle in the US as an Indian and work there, you’ll probably want to buy a property in the state you want to live in and turn it into your primary residence. In that case, the rules and regulations of each state will play a smaller role in your decision-making, as you’re not looking to make the highest return on your investment. 

The same is basically true if you or anyone from your family wants to move to the US to study. In that case, you’ll pick the property location based on where the university is rather than its rental and commercial viability or state laws. 

4. Prepare Documentation

The documentation you’ll need to prepare can depend on various factors, including:

• The loan type you want to apply to 
• Whether you have a US visa or any other US documents
• The mortgage lender

Note here that you can get a US mortgage for Indian nationals without a US credit score, Green Card, or Visa. However, the process will be a bit more complicated.

Indians getting mortgage in USA should prepare the following documents:

• Proof of Income — documentation that shows your earnings (e.g., tax returns or various financial statements)
• Proof of Assets —  documentation showing your financial health and any assets you hold; these serve as proof that you have enough cash for a down payment
• India’s Credit Report — not all lenders will ask to see your credit report from India, but some might; that’s why it’s a good idea to prepare it in advance 
• Proof of Identification — Indian passport or other national documents; US visa or residency status (not mandatory, but make sure to prepare those if you have them)

5. Choose How You Want to Apply for a Loan

When it comes to getting a mortgage in the USA as an Indian, there are two distinct ways you can go about it: 

DIY Method 

If you have experience and connections in the US real estate market, know how to get in touch with mortgage lenders, and have enough free time to do it, you could try getting a US mortgage by yourself. However, if you don’t have experience and try to do everything by yourself, you might end up losing a lot of time and money. That’s why we’d recommend going a different route:    

Contact us

Mortgage brokers in the US have only one job — to find the best loan deals for their clients. The best of them will help you find the deal, prepare all the necessary documents, and guide you through the entire mortgage process. They will do all the heavy lifting and ensure you get the financial solution that best suits your needs.   

Are you looking for US mortgage for Indian citizens? Contact NRI’s mortgage expert and schedule a free 30-minute consultation to learn how we can help you achieve your financial goals. 

Most Popular US Mortgage for Indian Citizens

Getting mortgage in USA as an Indian is all about figuring out the reason behind your purchase. Knowing the reason will help you evaluate which of the US mortgages for Indian citizens is right for you and your specific needs. 

Once you’ve determined your investment goals (i.e., what you want to achieve by purchasing US real estate), it’s time to start checking out different US mortgages for Indians. And, to help you on that journey, we’ve created a list of the most popular US loans:

Foreign National Mortgage Loans

The main goal of foreign national mortgage loans is to help foreigners, including Indian nationals, finance properties in the US. You don’t need a US credit score, history, or Green card to apply and get this loan. That is the main selling point of these loans and one of the main reasons they are so popular with foreign buyers. 

The down payment for foreign national mortgages is usually between 25% to 30%. They are very flexible loans that allow you to finance different property types, including:

• Primary residences
• Commercial rental properties
• Residential rental properties
• Vacation houses and second homes

DSCR Loans for Foreigners

DSCR loans for foreigners are unique types of mortgages that allow borrowers to qualify based on the property’s rental income rather than their personal finances. To determine the property’s ability to support loan payments, lenders calculate the DSCR score. If the score is 1 or above, that means that a specific property can generate enough cash to cover the loan payments. The higher the DSCR score is, the better loan terms you can expect to get. 

DSCR mortgages can only be used to purchase rental properties in the US. They have a loan limit of 2 million dollars, but the money can be split to finance multiple properties. To apply for a DSCR loan, you don’t need a US credit score or Green Card. But, what you do need is enough money for the down payment (usually 25% to 30%). Also, you should expect the interest rates for DSCR loans to be slightly higher than those for traditional loans. DSCR interest rates usually range between 7% and 9% and can depend on various factors (e.g., lender, price of property, loan amount and term, etc). 

ITIN Mortgage Loans

To get an ITIN loan, you first need to have an individual taxpayer identification number and be an ITIN card holder. These loans are primarily used to purchase main residences but can also be used to buy rental properties. This US mortgage is for Indian citizens that can help Indians who live and work in the US but have issues getting a Green Card or US Social Security Number. 

The down payment for ITIN loans can start at 15% and go up to 25%, depending on various factors, including the specific lender and loan length.

Fix and Flip Loans 

Indians getting mortgages in USA, should be aware of fix-and-flip loans — investor-only mortgages used to buy undervalued properties in need of renovation, with the goal of fixing and selling them for financial gain. 

Fix-and-flip loans have a short loan term, usually between half a year and two years. The interest rates are around 10% (in some cases even higher), and the closing times are much quicker than other traditional loans. They are mostly interest-only loans, where the principal is paid only after the property is sold or refinanced. The downpayment for these loans is usually between 25% and 30%.