Real estate investing for Foreign vs US citizen

[Ziad Hamati]

Hello,

My sister is US citizen who has been living overseas most of her life and I am helping her get into real estate.

Since she has lived overseas, she has not been able to build credit. She did get a secured credit card about 3 months ago.  When talking to a lender, he recommended two things:  

1) Apply for a loan with her secondary passport as a non resident so she would get good rates. According to lender, it is a much simpler process. 

2) Apply for a loan as a us resident. Since not much credit history, she would get a smaller loan and higher rates. 

Would appreciate some tips and opinions about what best option is. I am against option 1, since lender is trying to find his best interest. Plus the downside to investing as a foreign is taxations. 

Thanks