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I'm Working for a big international corporation and I'm back from a few years of relocation in the U.S. while I was in the states on a US payroll (I'm not an American citizen) I bought a property (which was my primary resident for a while). Now I'm back home and wanted to take advantage of the lower interest rates in the US to refinance my debt. I have an excellent credit score, don't have any other debts, never missed a payment, I'm still employed with the same employer that I have been working before and during my relocation to the US. I'm happy with a 75% LTV but my lender has refused my request to refinance because I don't have a current US income. I'm reasonably compensated and proven to never miss a payment even without a "US Income".

Can anybody suggests a research path ?

Thanks!

George Marian
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Falusberg
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2 Answers2

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The problem is you're probably running afoul of the underwriting standards of Fannie Mae / Freddie Mac, who gobble up most loans.

You probably want to look for a bank that caters to expats or a community bank/credit union that doesn't sell its loans. They have the flexibility to be more reasonable when it comes to underwriting. (Whether they exercise that flexibility is another matter)

That said, foreign income is a huge risk, because not only is the bank subject to the risk that you'll just stop paying and be beyond the reach of US Courts overseas, but they are also exposed to currency risk.

duffbeer703
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Think about this from the lenders perspective. What happens if you don't pay? If you are a US resident with US income, they can sue you in court, garnish your wages and tax returns, etc.

If you aren't in the US and don't have any income in the US, the US bank has little or no recourse against you other than trying to sue you in your home country, which even if possible, would likely be impractical.

It just adds risk that most banks wouldn't want to take. Your best bet would be to find a large international bank that has a presence in both the US and your home country.

Eric Petroelje
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