Saad Ahmed arrived in the United States on work visa six months ago and is looking into buy a house by getting mortgage. He contacted some of the financial institutions for getting loan to pay for his new home to live in. However, he has been asked to provide too many documentations that he wonder even if it is possible for immigrants in the United States of America to get mortgage.
Immigrants in USA can get loan to buy properties such has home to live in though the requirements are in most cases much more stringent and interest rates are higher compared to citizens just for one basic reason they do not have any credit history in the country to assess their application.
In the absence of the credit history or very thin credit history, the financial institutions have to rely on documentations which is originated from the country of nationality of the applicant. It takes longer time to verify the documents and costs additional money to the lenders. Result higher interest rates and demand for lots of documents.
United States laws do not prevent an immigrant from buying a property in the country or obtaining loan to purchase it. However, lack of the credit history makes it much more difficult for immigrants to obtain mortgage.
Immigrants may consider to establish their credit history by getting smaller loans first and avoiding cash transactions to build their credit history in the country allowing them to obtain mortgage easier and quickly.