My son is finishing law school and is married. He has found a great brownstone in Brooklyn he is going to buy (and live there). He is on a student visa and not a US resident but will be working for a NY law firm starting in the summer (he has solidified his offer thank goodness). I will sign for him and we have about 60% down payment so want a first mortgage for about 40% (still about $800k).
Banks don't seem to help and can't find a broker yet who seems to be able to help. I live in Canada and have an excellent credit rating and fairly high net worth. My son doesn't have a credit rating in the US. He has an excellent credit rating in Canada. They for instance won't give him a credit card in the US (so he uses a Canadian one). Can we get a loan at a reasonable rate somewhere??

Your situation is not uncommon. There are many people either foreign born and/or on student visas who are trying to secure property in the United States. The fact that you're non-residents is the key here. Having an employment agreement is a good start, but please keep in mind, he didn't actually start working yet. Even if you have a sizable down payment, American lenders rarely will make loans to non-residents based on foreign credit standing and/or a signed letter from a future employer. In their minds, the risk is extremely huge, simply because a lot of things can happen between now and summer. American creditors and lenders, mostly because of new legislation, have made it tougher for citizens here to qualifiy for mortgage loans. So, even with your impeccable credit standing in Canada, it's going to be even harder, but not impossible. You will have to keep searching and unfortunately, you might have to go with the best "worst rate." Then once he's established in the US with the job, you might be able to refinance to a better rate. Hope this helps somewhat. Take care.

Very thoughtful and full response - many thanks - too bad there isn't an answer. Seems like a business opportunity. As for the employment situation, what difference does that make if they have 2 covenants and one is solid even if the second one never gets a job?

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Originally Posted by durk

too bad there isn't an answer. Seems like a business opportunity.

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Hello durk:

You should excuse me, but I think X DID give you an answer. It seems like it's not a matter of whether they will lend or not, but a matter of how much they're going to charge...

In my view, not knowing the market in NY, and not knowing the state of mortgage lending these days, it would seem to me, that with a 60% down payment, you COULD find a lender, and at a very good rate.

Yes, it may be risky to lend to Canadians, but if you default, the bank ain't going to cry too much. Why would they? They'll MAKE $1.2 million if you forfeit. Perhaps you could find a private lender. Maybe an add the Times would garner a phone call or two..

I don't know. I'm just an exconvict living out west.

excon