First Time Buyer - Foreign Income Question for Lenders

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LondonK
Posts: 2
Joined: Wed Jun 13, 2018 1:11 pm

First Time Buyer - Foreign Income Question for Lenders

Post by LondonK » Wed Jun 13, 2018 1:16 pm

I am currently looking to purchase a home in California.

I had a steady income in the US from 2015 through the end of 2017.
A better opportunity arose with income from an international source (same job type), this started in April 2018.

I am seeking lenders I can work with given this information.

Does anyone have any advice or recommended lenders? I would need to use the new foreign income for the loan and I'm looking at putting down 15-20% down on a property up to $450,000.

Any advice would be really appreciated.

I live in the US if that makes any difference, it's just the company I do consultancy for now is based in the UK.

TropikThunder
Posts: 1032
Joined: Sun Apr 03, 2016 5:41 pm

Re: First Time Buyer - Foreign Income Question for Lenders

Post by TropikThunder » Wed Jun 13, 2018 2:41 pm

LondonK wrote:
Wed Jun 13, 2018 1:16 pm
I am currently looking to purchase a home in California.

I had a steady income in the US from 2015 through the end of 2017.
A better opportunity arose with income from an international source (same job type), this started in April 2018.

I am seeking lenders I can work with given this information.

Does anyone have any advice or recommended lenders? I would need to use the new foreign income for the loan and I'm looking at putting down 15-20% down on a property up to $450,000.

Any advice would be really appreciated.

I live in the US if that makes any difference, it's just the company I do consultancy for now is based in the UK.
Are you filing (and paying) taxes here? As long as you have >2 years steady income (verified by pay stubs and tax returns), a lender won’t care where the employer is based. You may have extra hoops to jump through if you’re a “consultant” rather than a W-2 employee.

LondonK
Posts: 2
Joined: Wed Jun 13, 2018 1:11 pm

Re: First Time Buyer - Foreign Income Question for Lenders

Post by LondonK » Wed Jun 13, 2018 3:27 pm

Yes I am.

2016 - Income was from US (taxes paid) - Company A
2017 - Income was from US (taxes paid) - Company A
2018 - Income now from US (taxes pulled from paycheck) Company A (lower no. of hours) = lower annual salary + Foreign Income (started April 2018) = Combined these make up a little more than what I was earning in 2017.

I am however earning a lot more from the Foreign Source, let's say 30% now comes from US employer and 70% from the Foreign Income.

Thanks
Katie

47Percent
Posts: 336
Joined: Tue Oct 29, 2013 9:59 pm

Re: First Time Buyer - Foreign Income Question for Lenders

Post by 47Percent » Thu Jun 14, 2018 7:03 pm

Most US lenders would want to verify the foreign income in some way and convince themseves and more importantly convince others (whoever it may be) that they actually did the due diligence to verify it is actual income.

If it was a 2017 income the easiest thing for them to do is to look at your tax returns and see how much you declared.

Since it is so recent, and only in 2018, just looking at the few paystubs that are available may not be enough.
Even if you have consultancy income from a US company, with such short history it would be a challenge.

You should provide whatever contract or agreement you have with the foreign employer as part of your documentation and hope for the best. If the foreign employer is a known big name, and/or if they can bolster your application with a letter stating not only your start date and payment arrangement, but something additional like "at this time it is their intention to continue the arrangement for a few years", or some such wiggle language that would be not be full-on guarantee, but at the same time give a warm and fuzzy feeling to the underwriter.

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