FHA Loans when new to the US | Credit Score

[Miquel Julia]

Hello everyone,

I work for a big German multinational and will transfer to the US starting next year. My goal is to stop renting my savings away and househack my first property in the US (co-owner of some properties in Spain). I have the following questions:
- Is there a way to start building up my credit score to qualify for an FHA loan? I've read of some methods but they are hardly applicable

- Are investors in the New York / NJ greater areas usually interested in partnering up on deals where you could leverage an FHA loan? Worst case scenario I wouldn't qualify for the first deal as I am building up credit but we'd rinse & repeat for the second one

Please hit me up with any questions whether it is investing in Europe, helping me with my questions or getting to know each other to potentially partner up!

Best,

Miquel

[Mohammed Rahman]

Hey @Miquel Julia! 

Have you already obtained a social security number? You will absolutely need this in order to start building up your credit history. The good thing about a program like FHA is that their credit requirements are lower than a conventional bank loan.

Once you have your SSN, I recommend applying for a secured credit card to begin building up your credit history. When you move, if you plan on buying a car you can finance either all or part of it so that the on-time payments will reflect on your credit history too. 

For what it's worth, I haven't had much luck posting messages in the forums asking for an investor to partner up since investors typically will want to see a working history or internal referral before partnering with someone -- your experience could be different, but I recommend networking as a priority before seeking investors. 

Good luck! 

[Erik Estrada]

There are foreign national DSCR programs available. I have not seen an FHA program for foreign nationals.

[Andrew Postell]

@Miquel Julia thanks so much for posting.  I want to clarify a few things here:

1. When you are new to the US there are different immigration status that you could have.  The one you will want to have is "permanent resident alien".  Meaning, if you have "conditional" status...you aren't permanent yet.  So just check on that element to see what to do next.

2. If you are "non-permanent" then you can get a mortgage for a "foreign national" as mentioned above.  That means you will move back to your country of origin and the property in the US will be your "secondary" home essentially. They are different than standard mortgages but you will have some option at least.

3. If you are a "permanent resident" then you will need 12 months of work history to qualify for a mortgage.  So the first year you are here you will need to rent and just be prepared when it comes time.  Save money. Build credit...that whole thing.

Hope all of that makes sense but do feel free to ask anything additional.  Thanks!