The U.S. is experiencing a boom in foreign national loans.
More and more overseas buyers are shelling out cash for real estate in the U.S. In the past year, 50 percent of foreign homebuyers paid cash for their investments, according to the National Association of Realtors. But a strong market value of the U.S. dollar and rising home prices have blocked some buyers from purchasing homes outright, which means they need to look for other financing options, The Real Deal explained. Strong interest in the American real estate market from foreign buyers has been a large contributor to inflated home prices, National Mortgage News reported.
"Applicants must make as much as a 30 percent down payment."
Many foreign buyers flock to nonconforming loans - which are different from conventional loans and jumbo mortgages - because they allow them to buy more expensive homes than they could through traditional means. But this comes at a price. Applicants must make as much as a 30 percent down payment
on loans up to $1 million, and even more for bigger loans, The Wall Street Journal reported.