Loans for nonresidents in the US Money Transfers

Getting a loan as a non resident in the United States

Moving to a different country can be financially strenuous.

Moving costs, flights and everything else that comes along with it can leave you feeling stretched. When US residents feel the financial pinch, they can simply take out a loan to pay for extra expenses. As a non US citizen, can you do the same?

Even though you don’t have access to all of the financial benefits that come with being a US citizen or resident, you are able to get a loan for personal use, for business use, to buy a home and to pay for your studies. Though it may be more challenging for nonresidents, there’s no reason for you to give up on the American dream.

Prosper Personal Loan

Prosper Personal Loans

You could borrow up to $35,000 for a variety of purposes, with rates starting from 5.99%.

Recommended Credit Score: 640 or higher
Minimum Loan Amount: $2,000
Maximum Loan Amount: $35,000
Loan Term: 3 or 5 years
Turnaround Time: 1-3 business days
Simple online application process
No prepayment penalties

    Can I get a loan as a nonresident?

    The simple answer: yes! For lawful permanent and nonpermanent residents, applying for a loan is the same process as for citizens. There are no higher costs or fees, though interest rates may vary.

    Rates last updated May 25th, 2017
    Unfortunately, none of the personal loan providers have a loan for that credit score. It you are urgent need of a small loan, you might want to check out a short term loan.
    Maximum Loan Amount Term of Loan Turnaround Time
    Prosper Personal Loan
    Borrow only what you need for debt consolidation, home improvements, special occasions and more — with APRs based on your credit score.
    $35,000 3 or 5 years 1-3 business days Go to site More
    Lending Club Personal Loan
    Borrow up to $40,000 with rates from 5.99% to 35.89% APR based on your credit score.
    $40,000 Flexible Terms Varies Go to site More
    Upstart Personal Loans
    This newer service looks beyond your credit score to match you with accredited investors for low-rate personal loans.
    $50,000 36 months 1-2 business days Go to site More
    NetCredit Personal Loan
    You could borrow up to $10,000 and get an interest rate personalized to your credit score
    $10,000 Varies upon State 1 business day Go to site More
    SoFi Personal Loan Fixed Rate (with Autopay)
    Borrow up to $100,000 with a competitive APR and no fees.
    $100,000 3, 5, or 7 years Varies Go to site More
    OneMain Financial Personal Loans
    Get funded quickly with a term loan that works for your circumstances — even with bad or no credit.
    $25,000 3 years to 5 years Up to 3 days More
    Avant — Personal Loan
    Check your rate — without affecting your credit score — before applying for this unsecured personal loan.
    $35,000 24–60 months 1–2 business days More

    Have we missed anything in the comparison table? Tell us

    • If the provider quotes a different rate to the one above please let us know

    Are there restrictions for nonresidents?

    Like most options for nonresidents of any country, there are restrictions — including for loans.

    For instance:

    • If you are a nonresident who will be in the US for a limited time, approval for a loan may be hard.
    • If you are a foreign national or have diplomatic immunity, it’s much more difficult to get a mortgage because you are not subject to US law. This leaves lenders unprotected should you default on the loan.

    What about my credit history?

    For nonresidents to get a loan, a two-year credit history and valid credit score within the United States ideal. That’s a difficult requirement for nonresidents. But depending on the lender, there are ways you can still get a loan.

    • Assemble a credit report with three nontraditional credit accounts — for example, a rental, utility or life insurance bill.
    • Obtain your credit history from a foreign independent credit reporting agency.
    • Get written verification from foreign creditors to establish a credit history.

    Getting your paperwork together is only the first step in getting a loan. If you are emigrating from your home country to the US, you will need to convert your existing credit into US credit in order to apply for any kind of loan.

    How to get nontraditional credit references

    For many nonresidents, it may be possible to do a nontraditional credit check. This could help you get a loan without a credit score. You will need sufficient nontraditional credit references, and your credit accounts must be free of late payments, collections or foreclosure. Nontraditional credit references can include:

    • Your rental history
    • A history of payments for such utility bills as gas, electric, water or cable TV
    • Non-payroll-deducted medical, life, auto or renters insurance
    • School tuition

    You should gather at least three nontraditional credit references, each showing 12 months of on-time payments.

    Can I get a personal loan?

    1 US Dollars Money Transfers
    When applying for a personal loan in the US, you’ll quickly realize that they are not designed for nonresidents. The good news is that you are still eligible to apply for personal loans that include mortgages and auto loans. There will be plenty of paperwork, so your patience is required.

    What do I need to apply for a personal loan?

    If you are a nonresident, required paperwork depends on the type of loan you’re applying for. Loans are only granted to those who plan to continue working in the US for at least three years of the loan.

    If you’re applying for a traditional loan, you’ll need:

    • A valid visa — E1, E2, H1B, H2 A, H2B, H3, L1, G series or 0-1
    • Employment authorization Form I-766 or I-765 to prove that you are eligible to work in the US
    • Form I-797A with an attached I-94 or any other documentation that can prove you are authorized to work in the US

    Types of personal loans

    As a nonresident, you can apply for three main types of personal loans. They can be used to get you through a financial pinch or build your creditworthiness for bigger loans.

    Types of loansDescriptionMaximum loan
    Short term loanWith repayment terms of three to five years, short term personal loans are typically for smaller sums of money. These type of loans can be used for any purpose, including auto title loans.Generally up to $1,000, with some lenders offering as much as $2,250.
    Installment loansWith a set number of payments over a scheduled period of time, installment loans can last for a few months or more. An installment loan can be ideal if you’re trying to improve your credit history. It shows potential creditors that you can make payments responsibly.Generally up to $5,000.
    Unsecured loansUnsecured loans are not backed by other property you own and have fixed terms and interest rates. You can use this loan for consolidating debt or to help with home improvements.Generally up to $100,000, with some lenders offering much more for specific purposes.

    What is a secured loan?

    secured loan is a loan that requires you to provide an asset as a guarantee — like your car or home. It protects the lender by allowing it to repossess and sell your asset to recoup its losses if you default on the loan. With an unsecured loan, the lender believes that you can repay the loan without providing an asset.

    Compare secured vs unsecured personal loans

    Can I get a student loan as a nonresident?

    Can I get a student loan as a nonresident money transfersWhether it’s MIT, UCLA or Harvard, the opportunity to study in the US can open many doors. But not all foreign students can afford tuition, room and board, books and supplies that college requires. For these students, applying for a student loan is often the best bet. International student loans often cover the total cost of school.

    Do I still need a credit history as an international student?

    As an international student, you likely haven’t built up a credit history in the US. Lenders do not require you to have excellent credit, but you are required to have a US cosigner. Your cosigner will legally sign loan papers in order to help you to obtain a loan.

    Because cosigners are jointly and legally responsible for repaying the loan, they must have:

    • Proof of US citizenship or lawful permanent residency
    • Good credit
    • An income history
    • Proof they’ve lived in the US for two years or more

    How can I pursue financing a new home?

    How can I pursue financing a new home money transfersOwning a home is one of the cornerstones of the American dream. Providing shelter for your family and a place to call your own is a step toward integrating into American culture and your new community. But many noncitizens believe there’s no way to obtain a home loan. As a nonresident of the US, financing a home loan or mortgage is difficult, but not impossible.

    The ease of getting a home loan depends on your residency status. Generally, you can apply for a home loan if you are a:

    • Permanent resident with a valid green card (Form I-551)
    • Nonpermanent resident with a valid work visa

    What do I need to apply for a mortgage?

    By assembling the following documentation, you’re assuring potential lenders that you can make future mortgage payments:

    • A valid work visa — E1, E2, H1B, H2A, H2B, H3, L1 or G1–G4 visas
    • A valid Social Security number
    • Employment authorization documentation
    • Proof of employment history
    • A credit history
    • Proof of income

    How to compare loans

    All loans are not created equal. You’ll need to do your research and compare your options before making a final decision.

    Consider these factors:

    • Loan terms. If possible, choose the shortest loan term available. You’ll increase your monthly payments, but you’ll pay a lower amount in overall interest.
    • Monthly payments. Monthly payments with variable interest rates or balloon payments typically have lower monthly payments, but these loans come with other catches. Evaluate what you can afford each month before signing any contract.
    • APR. Don’t ignore the APR, which reflects the interest rate, broker fees and other charges. For mortgages, lenders are required to tell you the APR, allowing you to find the best rate to save money in the long run.
    • Interest rate. One of the most important factors to consider is the interest rate. It’s not always easy to compare them, but a loan with a low interest rate may be a bad value if its fees are too high. Likewise, a loan with a high rate and low fees could be an exceptional value.
    • Balloon payments. A balloon payment is a large payment due at the end of a balloon loan. It means you’ll need to pay any remaining money owed at the end of your loan term. If you are a considering a loan with a balloon payment, you will need to have money on hand when it comes due.
    What is a balloon loan?

    A balloon loan is a loan — often a mortgage — that does not fully amortize before the end of its term. This means that while your payments are lower over the life of the loan, you will owe a large payment to pay off the balance at its end. This payment is often more than twice the loan’s average payment, sometimes thousands of dollars. You’ll need to think about whether you will have the cash on hand to pay the balloon payment when it’s due.

    Rates last updated May 25th, 2017
    Unfortunately, none of the personal loan providers have a loan for that credit score. It you are urgent need of a small loan, you might want to check out a short term loan.
    Maximum Loan Amount Term of Loan Turnaround Time
    Prosper Personal Loan
    Borrow only what you need for debt consolidation, home improvements, special occasions and more — with APRs based on your credit score.
    $35,000 3 or 5 years 1-3 business days Go to site More
    Lending Club Personal Loan
    Borrow up to $40,000 with rates from 5.99% to 35.89% APR based on your credit score.
    $40,000 Flexible Terms Varies Go to site More
    Upstart Personal Loans
    This newer service looks beyond your credit score to match you with accredited investors for low-rate personal loans.
    $50,000 36 months 1-2 business days Go to site More
    NetCredit Personal Loan
    You could borrow up to $10,000 and get an interest rate personalized to your credit score
    $10,000 Varies upon State 1 business day Go to site More
    SoFi Personal Loan Fixed Rate (with Autopay)
    Borrow up to $100,000 with a competitive APR and no fees.
    $100,000 3, 5, or 7 years Varies Go to site More
    OneMain Financial Personal Loans
    Get funded quickly with a term loan that works for your circumstances — even with bad or no credit.
    $25,000 3 years to 5 years Up to 3 days More
    Avant — Personal Loan
    Check your rate — without affecting your credit score — before applying for this unsecured personal loan.
    $35,000 24–60 months 1–2 business days More

    Have we missed anything in the comparison table? Tell us

    • If the provider quotes a different rate to the one above please let us know

    What happens after I receive my loan?

    After you’ve completed and submitted the paperwork, you’ll have to wait to receive your money. Most lenders take 48 hours to authorize a loan, but it could take longer.

    It’s now up to you to stay on top of your repayments. Here’s a few ways to do it.

    • Create a budget. A budget can help you both save for monthly payments and remind you not to overspend.
    • Enroll for automatic payments. With autopay, recurring payments are deducted from your bank account and electronically sent to your lender. It’s the easiest way for you to pay off your loan — without late fees.
    • Avoid skipping even one payment. If you think you won’t be able to make your monthly repayment, contact your lender as soon as possible. Your lender may be willing to explore ways to help.

    Whether you’ve decided to make it your new home or a place to further your studies, the United States has a lot to offer nonresidents — including loans to finance your new home, car, tuition or extra cash to ease your transition.

    Getting a loan as a nonresident involves paperwork, documentation and time. But once you’ve followed the process and received your loan, it will be worth it. Stay on top of your monthly payments, and you’ll save both money and your credit history.

    FAQ

    As a nonresident of the US, a cosigner is required to apply for a student loan. Consider asking your friends or family who are US citizens or lawful permanent residents to be a cosigner.

    The maximum loan amount available for a nonresident is $10,000,000 for a mortgage on one property.

    It depends on the lender. Most lenders don’t have higher interest rates, but others can increase rates by 0.5% to 1%. Interest rates on mortgages for nonresidents are often higher than the average US interest rates.

    Was this content helpful to you? No  Yes

    Ask a Question

    You are about to post a question on finder.com

    • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
    • finder.com is a financial comparison and information service, not a bank or product provider
    • We cannot provide you with personal advice or recommendations
    • Your answer might already be waiting – check previous questions below to see if yours has already been asked

    Disclaimer: At finder.com we provide factual information and general advice. Before you make any decision about a product read the Product Disclosure Statement and consider your own circumstances to decide whether it is appropriate for you.
    Rates and fees mentioned in comments are correct at the time of publication.
    By submitting this question you agree to the finder.com privacy policy.

    US Personal Loans Offers

    Learn about our information service
    Lending Club Personal Loan

    Borrow up to $40,000 with rates from 5.99% to 35.89% APR based on your credit score.

    Prosper Personal Loan

    Borrow only what you need for debt consolidation, home improvements, special occasions and more — with APRs based on your credit score.

    Upstart Personal Loans

    This newer service looks beyond your credit score to match you with accredited investors for low-rate personal loans.

    PersonalLoans.com

    An online loan matching service that connects you with lenders for peer-to-peer, personal and bank loans for a variety of purposes.

    feedback