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Foreigners have harder time buying American homes

September 13, 2010 - Unless they pay for their new home with cash, international buyers will have a harder time relocating to a new home in the U.S.

According to the Wall Street Journal, foreign buyers can often have the toughest time relocating to the United States if they require a mortgage. That's because lenders, fearing that they will have little course of action if a foreign borrower defaults on their home loan, require loads of documentation and proof of income to approve a mortgage. Foreigners with diplomatic immunity are better off not applying for a mortgage at all, said the paper, because it would be impossible for lenders to take action in the case of default.

The paper advised that international buyers who don't have diplomatic immunity be sure they have ample documentation proving employment and income history. They will likely have to prove that they have at least two year's worth of credit or employment history in the U.S. or another country, and might have to prove legal residence in the country for the same time period.

The foreign market continues to be a large driver of relocation activity in some parts of the country. According to AOL Real Estate, international buyers are moving into Miami at an increased rate.

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