New immigrant, no credit score - getting a mortgage

[MattWatt 0]

Having been selected for further processing under DV-2014, we're in the process of planing (on the hopeful assumption of being granted our visas) for our move to the States.

On arrival in the US (Dallas, TX), we want to purchase a property relatively quickly, as we have a family and want a stable housing situation.

I will be transferring with my current employer, so will have work lined up before we get to the US. I have a good credit record in Australia (documented report, which I'll be taking with us). I understand that international credit reports don't always have any impact with US financial institutions, but sometimes they do.

How hard is it going to be to get a mortage, without having to wait 2+ years to establish a good US credit rating, or 'qualify' the 2/2/2 general requirement that I've heard many banks work off? We'll have 20% downpayment (from the sale of our home in Australia prior to moving). I've heard some US financial institutions (such as Advancial Credit Union) have special provisions for new immigrants.

Are there any other banks / credit unions that people can point us to that can help? How much penalty are we likely to incur on interest rates due to having no FICO score to start with?

On a related note, would we qualify as a "First Home Owners" in the US (in regards to FHA Loans), or would the fact that we've owned property in Australia disqualify us?

Any help greatly appreciated.

[Darnell 8,478]

these guys specialize (in the DFW area) for 'hard to place' mortgages..

http://blessyourheart.com/

http://blessyourheart.com/

http://blessyourheart.com/

Give them a shout, explain all, see what they tell you. If they can't find you a mortgage, it's most likely not going to do doable anywhere else.

Not a customer, they're not my clients - but they 'seem' to help out in the DFW area, based on customer testimonials and independent reviews.

[MattWatt 0]

these guys specialize (in the DFW area) for 'hard to place' mortgages..

http://blessyourheart.com/

http://blessyourheart.com/

http://blessyourheart.com/

Give them a shout, explain all, see what they tell you. If they can't find you a mortgage, it's most likely not going to do doable anywhere else.

Not a customer, they're not my clients - but they 'seem' to help out in the DFW area, based on customer testimonials and independent reviews.

Thanks Darnell. I've bookmarked them for when we arrive.

[Darnell 8,478]

oh, i really meant for you to contact them asap. they can certainly vette whatever you need vetted.

[VanessaTony 3,567]

Thanks Darnell. I've bookmarked them for when we arrive.

As Danell stated, you need to organise some of this stuff prior to arrival.

I also suggest one of you moving to the US first to set up and get established. Open a bank account, apply for a secured credit card to start building your credit history. Get a drivers license, get a car, rent a house, buy/rent furniture.

It'll be a lot easier dealing with the needs of one person to start off with before your family arrives. you may need to wait about 6-12 months before you can buy (my score was in the 700's after 6 months). This is actually a good thing. It'll give you an opportunity to look at the different areas you want to live in at different times of the year. Remember school is based on what area you live in (unless private) so make sure you rent/buy where you want your kids to go to school.

I also suggest getting a GPS with the letters LM in the number somewhere. I have LMT which stands for "lifetime maps and traffic". so everytime there's a map update, I get it for free, otherwise you need to pay.

Life in the US isn't golden. It is often hard. You have a job lined up and that's the first hurdle. Make sure you look at their benefits package (health insurance etc) and have enough saved for the "what if". My husband and I have health insurance and we have an 80/20 PPO plan. His surgery cost us $1K ($9K without insurance). Research docs as well. I have yet to find a doc I like (my husband likes his) but I love my dentist

Lots of stuff to learn! Also, tax time. Financial year in the US US is from Jan to Dec so keep your tax stuff from Aus to bring with you.

Good luck!

[AllYouCanEat 3]

How hard is it going to be to get a mortage, without having to wait 2+ years to establish a good US credit rating, or 'qualify' the 2/2/2 general requirement that I've heard many banks work off? We'll have 20% downpayment (from the sale of our home in Australia prior to moving). I've heard some US financial institutions (such as Advancial Credit Union) have special provisions for new immigrants.

On a related note, would we qualify as a "First Home Owners" in the US (in regards to FHA Loans), or would the fact that we've owned property in Australia disqualify us?

We had to make a down payment of at least 25% to get our loan as a non U.S. citizen, but that was back in 2007. Financial crisis came shortly after, so this might look different now.

Anyways, with no credit history you will probably get a pretty high interest rate, but still get a loan if the down payment is high enough. The bank won't be taking a huge risk with such a big down payment, because the house will be worth way more than the loan amount right from the start.

If would try it and then refinance your mortgage aften you build a decent credit history.

Here's a good guide how to approach building a good credit history for people new to the U.S.:

http://liveworktravelusa.com/build-an-outstanding-credit-history-from-scratch/

And yes, I'm pretty sure you will qualify as a "First Home Owner" in the US, since this will be your first home here. Doesn't matter what you owned abroad.

[MattWatt 0]

As Danell stated, you need to organise some of this stuff prior to arrival.

I also suggest one of you moving to the US first to set up and get established. Open a bank account, apply for a secured credit card to start building your credit history. Get a drivers license, get a car, rent a house, buy/rent furniture.

It'll be a lot easier dealing with the needs of one person to start off with before your family arrives. you may need to wait about 6-12 months before you can buy (my score was in the 700's after 6 months). This is actually a good thing. It'll give you an opportunity to look at the different areas you want to live in at different times of the year. Remember school is based on what area you live in (unless private) so make sure you rent/buy where you want your kids to go to school.

I also suggest getting a GPS with the letters LM in the number somewhere. I have LMT which stands for "lifetime maps and traffic". so everytime there's a map update, I get it for free, otherwise you need to pay.

Life in the US isn't golden. It is often hard. You have a job lined up and that's the first hurdle. Make sure you look at their benefits package (health insurance etc) and have enough saved for the "what if". My husband and I have health insurance and we have an 80/20 PPO plan. His surgery cost us $1K ($9K without insurance). Research docs as well. I have yet to find a doc I like (my husband likes his) but I love my dentist

Lots of stuff to learn! Also, tax time. Financial year in the US US is from Jan to Dec so keep your tax stuff from Aus to bring with you.

Good luck!

Thanks Vanessa,

Due to timings, etc, separate moves isn't convenient, but your point is well taken.

Planning on opening accounts as soon as we get there, to try to build credit rating asap, but we would prefer to buy than rent if at all possible (although we are realistic that we'll likely need to rent for about 6 months to start). Good news though that you were able to build your score to 700 so quickly (any tips not already on-line?).

Still trying to find out all the details for the US arm of my company, in regards to health care, 401K, etc. I know health insurance is a MUST in the US.

Taxes - doing my HEAD in (compare to Australia tax system). Looks like I'll have one small win though, in that Texas doesn't change state income tax. But Sale Tax / Use Tax / etc etc ... nightmare.

What do you mean "keep your tax stuff from Aus to bring with you"? Is that so we can remotely lodge an Aus tax return come July?

[MattWatt 0]

We had to make a down payment of at least 25% to get our loan as a non U.S. citizen, but that was back in 2007. Financial crisis came shortly after, so this might look different now.

Anyways, with no credit history you will probably get a pretty high interest rate, but still get a loan if the down payment is high enough. The bank won't be taking a huge risk with such a big down payment, because the house will be worth way more than the loan amount right from the start.

If would try it and then refinance your mortgage aften you build a decent credit history.

Here's a good guide how to approach building a good credit history for people new to the U.S.:

http://liveworktravelusa.com/build-an-outstanding-credit-history-from-scratch/

And yes, I'm pretty sure you will qualify as a "First Home Owner" in the US, since this will be your first home here. Doesn't matter what you owned abroad.

AllYouCanEat - thanks for the response. Here's hoping you're right, and that whichever bank / credit union we go with will be accommodating due to our downpayment.

Thanks also for the website link - some very interesting and useful tips.

[VanessaTony 3,567]

Thanks Vanessa,

Due to timings, etc, separate moves isn't convenient, but your point is well taken.

Planning on opening accounts as soon as we get there, to try to build credit rating asap, but we would prefer to buy than rent if at all possible (although we are realistic that we'll likely need to rent for about 6 months to start). Good news though that you were able to build your score to 700 so quickly (any tips not already on-line?).

Still trying to find out all the details for the US arm of my company, in regards to health care, 401K, etc. I know health insurance is a MUST in the US.

Taxes - doing my HEAD in (compare to Australia tax system). Looks like I'll have one small win though, in that Texas doesn't change state income tax. But Sale Tax / Use Tax / etc etc ... nightmare.

What do you mean "keep your tax stuff from Aus to bring with you"? Is that so we can remotely lodge an Aus tax return come July?

Re taxes, we ALWAYS go to H&R block. I've tried turbo tax (an online program you can also purchase that a lot of people use) but our situation changed this year and i didn't want to risk messing it up. I'm going to try plugging the information and compare it to my prepared return and see if i get the same answer. My colleague hasn't changed anything it the last 5 years so she just changes her income amount and hits send Re the Aussie stuff, yep in the one case so you can lodge remotely come July, but also in case you come over to activate the visa and get the GC issued but need to return to Australia for a couple of months to finish off work, you'd want to file as a non-resident in Australia for that return so that you don't cause issues for your GC/citizenship later.

My advice re credit is this: http://ustralian.com/a-few-things-about-social-security-numbers-credit-scores-credit-history/ and to tell you that I got this card: http://www.capitalone.com/credit-cards/secured-mastercard/?Log=1&EventType=Link&ComponentType=T&LOB=MTS%3A%3ALCTMMQC4S&PageName=Credit+Cards+Secured+Browse&PortletLocation=4%3B4-12-col%3B2-1&ComponentName=browseTable&ContentElement=56%3BSecured+MasterCard%3Csup%3E%26reg%3B%3C%2Fsup%3E&TargetLob=MTS%3A%3ALCTMMQC4S&TargetPageName=Secured+MasterCard+Details I applied for a Wells Fargo (my bank) card and was approved with a high limit (high interest too actually but no annual fee) so cancelled the secured because it's easier to pay my CC bill via direct transfer then sending a check (cheque) or using the online bill paying system. I also have an Amazon CC now and a Kohls charge. I don't use the Amazon one (it's my emergency card, no annual fee) and I haven't used the Kohl's charge yet either.

[missicy 87]

A good credit card for new immigrants is Capital One Cash Rewards for Newcomers CC: http://tinyurl.com/mkhlqtp

It's designed for new immigrants to help us build credit score. The good thing is that it is an unsecured card so no deposit is required (there is no annual fee and you get 1% cash back on all purchases & 2% on travel purchases). It has a high APR but that's not a problem if you pay your bills on time and in full each month - which you should when you are trying to build a good credit score. I applied for this card as soon as I had my own income in the US and was approved for a $500 credit - without any previous credit history. A few months later I applied for another credit card and a dept. store charge card and now (1 year and 3 months after opening my first credit account) my credit score is in mid 700's which is pretty good.

[zahrasalem 114]

My husband's been here over 3 years, has a great job, great credit score (about 700), and we're approved for a mortgage,

BUT, we live in northern California, and the real estate market here is fiercely competitive right now. There are a TON of CASH ONLY buyers and investors buying up all the normal priced real estate (below $500,000), leaving those of us buying with a mortgage, in the dust.

There are about 100 buyers waiting in line for every home on the market here.

We've been offering over asking price on homes for over a year, and we're always told that the CASH ONLY buyer's offer was accepted, time after time after time. Cash wins every time.

Good luck, hopefully the real estate market is not so competitive where you will live!

[irelandlove 0]

EVERYTIME MY HUSBAND APPLIES FOR CREDIT, HE GETS DENIED. he just got his green card and we don't know how to establish credit. i just tried to order his credit reports and they couldn't verify his identity. Is that because he has no file yet?