Loan Officer Training 08/20/2024 - How to Structure Foreign National Loans

In this episode of Loan Officer Training, we dive into the essentials of mastering Foreign National Loans to help you broaden your client base and tap into a lucrative market. We'll cover the key aspects of working with foreign national borrowers, including understanding their unique needs, navigating the specific requirements and documentation, and offering tailored solutions to meet their financing goals.

Learn about the common challenges faced by foreign national clients and how to address them effectively, from currency exchange issues to cross-border legal considerations. We’ll also provide strategies for building relationships with international clients and expanding your reach in the global real estate market.

Whether you’re new to foreign national loans or looking to refine your expertise, this episode offers practical insights and expert advice to help you excel in this specialized area and grow your business.

Tune in to discover how to effectively serve foreign national borrowers and enhance your role as a trusted loan officer.

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About The Mortgage Calculator:

The Mortgage Calculator is a licensed Mortgage Lender (NMLS #2377459) that specializes in using technology to enable borrowers to access Conventional, FHA, VA, and USDA Programs, as well as over 5,000 Non-QM mortgage loan programs using alternative income documentation! 

Using The Mortgage Calculator proprietary technology, borrowers can instantly price and quote thousands of mortgage loan programs in just a few clicks. The Mortgage Calculator technology also enables borrowers to instantly complete a full loan application and upload documents to our AI powered software to get qualified in just minutes!

Our team of over 350 licensed Mortgage Loan Originators can assist our customers with Conventional, FHA, VA and USDA mortgages a

Catch all the episodes of the Loan Officer Training Podcast at https://themortgagecalculator.com/Page/Loan-Officer-Training-Series-Podcast

Catch all the episodes of the Loan Officer Training Podcast at https://themortgagecalculator.com/Page/Loan-Officer-Training-Series-Podcast

Loan Officers for Unlimited Free Non-QM Leads & Trainings Join The Mortgage Calculator at https://themortgagecalculator.com/join

The Mortgage Calculator is a licensed Mortgage Lender (NMLS #2377459) that specializes in using technology to enable borrowers to access Conventional, FHA, VA, and USDA Programs, as well as over 5,000 Non-QM mortgage loan programs using alternative income documentation!

Using The Mortgage Calculator proprietary technology, borrowers can instantly price and quote thousands of mortgage loan programs in just a few clicks. The Mortgage Calculator technology also enables borrowers to instantly complete a full loan application and upload documents to our AI powered software to get qualified in just minutes!

Our team of over 350 licensed Mortgage Loan Originators can assist our customers with Conventional, FHA, VA and USDA mortgages as well as access...

Transcript

Restream recording Aug 20, 2024 • 11:03:26 PM: 0:13

So, welcome everyone. My name is Kyle Hiersche. I'm the COO of The Mortgage Calculator, joined here by our President of Nick Hiersche and our CSO, Jose Gonzalez. We are a lender that specializes in non QM loans, and what we do every Tuesday, Wednesday, and Thursday evening at 7 p. m. Eastern on this show is go through an in depth Loan officer training topic. Tonight's topic is going to be how to structure foreign national loans. So, uh, again, we specialize in non QM loans here at the Mortgage Calculator. We're also based in Miami. So, uh, Jose being a loan officer in Miami for the past 28 years has definitely had a lot of his own experience with foreign national borrowers and foreign national loans. So I will go ahead and turn it over to Jose so he can go through the presentation. If you have any questions as he goes through, feel free to drop them in chat. Good afternoon, everybody. Thank you for joining us for one of my favorite topics for national borrower loans. Uh, definitely, uh, at the mortgage calculator, we like to make sure that we have a diversified product line, uh, for definitely, uh, In South Florida, but that is not the only place counted mention about my being in South Florida, but we are a national company and for nationals. Obviously, Florida is the number one destination for their purchases. But plenty of other, uh, options that I will cover in this presentation as well. Uh, it is always good not to have all your eggs in one basket, especially when we're dealing with four national borrowers. Why? Because first you want to diversify yourself outside of your local market. Then obviously you want to go national, but on top of that, you also want to be able to go international. International as far as your customer base, right? Why? Well, definitely we don't want to just be tied into our local market because what happens if the top employer in your local market just decides to lay everybody off and now there's nobody buying homes, nobody's selling homes cause they can't qualify for the lows, all that kind of stuff. Right? So, Then you obviously go national, right? You want to get from different states, depending what, uh, where you're at. Like, for example, in Florida, we're seeing a lot of activity coming from different parts of the U. S. as people are migrating around the U. S. from state to state, right? But on top of that, international. So now you're saying nationally, what's the chance that, um, in other states, the economy may be locally The same affected as in my national market, right? You're hedging your risk there, uh, as well as internationally hedging your risk even more, what are the whole us economy for whatever reason, uh, tanks. Are you still going to be able to derive business from elsewhere on top of your national business? So definitely international is very interesting. Uh, definitely great component of your diversified income stream as both a loan originator and for those of us out there that are also real estate practitioners. So let's get right into it. What do we mean when we're talking about a foreign national borrower loan? Well, first, let's define what a foreign national borrower is. It is technically a citizen of another country who derives their income and permanently resides there. outside the U. S. So both income is derived outside the U. S. and they permanently derive outside the U. S. Now I will state income when we're talking about an income type loan. In other words, there is a DSCR loan concern about that, but we're just talking about where this foreign national borrower derives their income to be considered a foreign national borrower. Now, uh, foreign national borrowers, uh, are not required to have a credit score Nor is there any U. S. credit required. Now I will state that there is a couple exceptions out there for those rare, uh, guidelines out there that do actually require the foreign national borrower to have U. S. based credit. So when you are reviewing those options, If one looks possibly too good to be true compared to the other ones, make sure that they may not be one of those options that actually requires U. S. based credit. Most of the ones that we do, definitely all the ones that I'm, that I'm referring to in this presentation, uh, that I used to put it together do not require U. S. based credit nor a U. S. based credit score. Make note that borrowers, not all visa types are required. acceptable. The main one the diplomatic immunity v that's not acceptable bec type cannot be sued, whic You cannot initiate legal proceedings court action against them to get them to pay or to try to Get the uh foreclosed on the property in any way With that being said we do have an option This is you know what the mortgage calculator we like providing solutions for even these types of situations, right? We do have an option for if a foreign national borrower has an expired visa Right. This is an option for when they're purchasing an investment property loan where they don't have to occupy the property ever. Right. It's not a second home and they're not signing in the U. S. because obviously if they need to come sign in the U. S. physically sign for the closing. They need a visa if they are from a non visa waiver country. Now, if they're from a visa waiver country like Canada, for example, they never, they don't need a visa to come into the U S and most of the, I think all the European countries don't need a visa to come into the U S at least most. I think we're, uh, some like Russia most likely does, um, but no investment property, um, not, uh, not signing in the U S. They don't need to have a visa on their passport or it could be expired. Why is that important you state, right? Why do I make a such a, you know, stop here and talk about this? Because those of you familiar with foreign national borrowers in countries where they need to obtain a visa on the stamp on their passport know how long that process can take if that borrower has an expired visa in some cases post pandemic. Uh, because you know, most of the, uh, the consulates around the, around the world, the U. S. consulates and U. S. embassies are closed after the pandemic. I would imagine most have reopened by now, but they're still trying to catch up from the backlog. So you could have borrowers waiting still months or possibly years to get a visa to come to the U S where, and you're thinking, and they're thinking, Oh, I got to wait to purchase anything because I can't close on the loan and now we give them the solution here. Or they don't need a visa if they're from a visa waiver country to close on the real estate loan. Like mentioned, uh, up on the slide there, cannot derive any of their qualifying income in the U. S. Wanted to make note of that. So again, if you're doing an income based loan, full doc. Any income used to qualify, the borrower has to be derived outside the US with the appropriate, uh, verification letters. Now, real important point here, if the borrower does not have any US based credit or credit score, the loans are going to typically be priced out in the pricing engines with either a 500 or a six 80 input. That's a credit score depending on the investor where you're sending this loan, right? That's the key. Some require 500 that shows in the system. This borrower doesn't have a credit score. Some tell you use 680 and that's just a configuration thing for the individual investors out there. So keep that in mind because like everything else in the non QM world and all these four national loans are non QM, um, None of these guidelines are homogeneous. They're going to vary depending on who they are selling the loans to, right? Or they're keeping them themselves, uh, in their own portfolio, but don't fall into the trap of just pricing all your loans a certain way, and then realize when you go to get the file disclosed that due to the fact that you use a 680 and not a 500 for a particular investor, now it's going to be different pricing on the loan. So it does vary. So that's another of those guideline items that you need to check. So before I break down loan types, I want to talk about destinations because that determines marketing efforts. Now these numbers are from 2022. Uh, they're gonna change in 20 for the 2023 numbers, but. Uh, it's not going to be much change in the countries, uh, nor in the U. S. destinations, just in the dollar amounts, as more people were able to make it to the U. S., more of the foreign nationals were able to make it, those that weren't using the full no visa required option that we have had to get their visas to come here and buy and sign, right? So, 59 billion in 2022 was the dollar volume of the U. S. Foreign national residential sales. That was from April, 2021 to March of 2022. I can bet you it's a lot higher than that in 2023, 98, 600 is a number of foreign buyer existing home purchases, not including new construction. That's existing home purchases. 57 percent of the foreign buyers who reside in the U. S. right, or non immigrant visa holders. So they're here, uh, in the U. S. buying the properties already. In some cases, right? They have their, their tourist visa for six months. They may have their E 2 visa that allows them to, to have a business here for five years, even though you can't use that income until they have U. S. based credit and all the other stuff. That's one of the visas that eventually lets you buy a U. S. national. Now let's talk about, um, Where they are coming from, right? Cause that's where you may want to then target your marketing efforts, right? Uh, 11 percent of all foreign buyers are from Canada. Most of them buy in Florida and most in the West coast of Florida. 8 percent of the foreign buyers are from Mexico, right? That's another obvious. Now notice the relationship there, right? Our north border and our south border, obviously residents of those countries, citizens of those countries are buying in the good old us of a 6%. Are from China. 5 percent are from India. 3 percent are from Brazil and 3 percent from Columbia, right? So those are the six countries, top foreign buying countries. Now let's talk about destinations, right? Where, and especially if you're going to be saying, you know, chasing some of that business, trying to network, maybe also with some of those real estate agents. Uh, and want to have, you know, thinking about licensing and all that kind of stuff. Well, number one destination, Florida, 24 percent California, number two, the 11 percent Texas, number three with 8 percent Arizona for New York. Number five in North Carolina, number six, and the median sale price of four national borrowers is definitely higher this year, but for this report was 366, 100. The important point to note here that was a full 11, 500 higher. We're almost 4 percent higher than the median U. S. borrower, and I will tell you that the transactions in, uh, tend to be even more disparate than that when you go to some of the markets like, uh, Florida and Southeast Florida, where the foreign national borrowers typically are buying million dollar plus condos and homes and stuff like that. So definitely high dollar. transactions. So talking about transactions, what are our eligible transactions? Well, purchase rate and term and cash outs. That's all good, right? The four national borrowers love it when you, when you let them know that they can actually cash out an existing home and get more money because they don't, they're not really about credit, right? They're really about paying that credit off as quick as possible, but if they want to expand and get additional investments, right? The important points to know here is max 75 percent LTV. On any transaction type and max 70 percent LTV of the cash out refi of any transaction type. And the different transaction types you have, I break it down into four different transaction types. We're looking at first our full dock of which there's two. Same for the DSCR. One that I refer to as streamlined and the other I refer to as non streamlined. That's because we have different guidelines for whichever investor we're going to use for that loan. The streamlined option is the one that I mentioned. That doesn't require the visa, right? Doesn't require the valid visa on the passport. This option also does not require a credit reference letter and will not require any type of, um, CPA or accountant verification for primary housing expenses because they don't verify primary housing expenses. They don't verify primary housing history in their country either. They could be a first time investor and a first time buyer buying DSCR here in the U. S. and it won't matter. Because they're not checking any of their information like that in their country of origin. So that's the full doc streamlined option. The non streamlined option, obviously the rate may be a little bit lower in that option depending, but not all the time. Actually, and actually I'm going to tell you this, the, the streamlined option has a higher LTV. than the non streamlined option in many cases for that particular conduit. But the difference on and the two is that the borrower is going to have to provide a CPA letter and an employer letter for their income from their country and a credit reference letter, right? So that's, uh, that's the the main, uh, thing there. Valid visa and valid passport, uh, for that. So, and the DSCR streamline option is the same, no credit reference letter, CPA letters and all that kind of stuff. And the non streamlined option is going to require the CPA letter to verify primary housing and a credit reference letter will also be required. So definitely you want to look at that full doc streamlined option or the DSCR streamlined option whenever possible. Now, however, sometimes we do have the scenario where you're going to have to go with like a, a low ratio or a no ratio DSCR because we actually do have a DSCR known for foreign nationals When the DSCR is below 1. 0 Unfortunately, it's not the streamlined option You wouldn't think it would be because now you're talking about a higher risk loan You can't have all of those high risk factors in one loan, but we do have less than 1. 0 DSCR For our four nationals, which is great to know. And that's for a cash out refines as well. So breaking down a little bit more on what we mean by the four national full doc loan again, I remind everybody. The streamlined option does not require credit reference letters. Now, any full doc loan can be an investment property or believe it or not. They can qualify as a second home. Second homes do not have a prepayment penalty, but then second homes require that visa and second homes, they, they got to qualify. But by the way, check also be very careful because in many cases, uh, you have to make sure if you're going full doc. It may, the loan guidelines may not allow you to use income from the subject property to qualify. You know, normally we can use for an investment property, 75 percent of the subject property income on an unseasoned rental being purchased, not necessarily so on foreign national loans. So make sure that you check that income and make sure that without any property income, it's at least 10, 000. No more. That is no more than, should I say, 43% DTI, unless the guidelines allow you to go higher. I put typically 43% now for the full doc, uh, CPA letter from the country of origin if they're self-employed. Or a salary or a verification letter completed and signed by their employer if they're a salary individual. Now, depending on the option chosen, in other words, if you don't choose the streamlined option, you will need most likely two credit reference letters from creditors in the country where they permanently reside. A resume, maybe, or track record, depending on what we're doing here, may be required. Uh, and very important, uh, point to consider about second home, right? When it's a second home, they're occupying it when they're not occupying it, that that property is empty, that they're sitting in Columbia, guess what you're allowed to short term rent that property. What you cannot do is, you know, purchase this property. That's really an investment property. That's going to be short term rented and state that it's a second home when it's really going to be fully investment in that case. It's an investment, but if they're actually going to do a second home, you know, they can do sporadic short term rentals when they're not occupying the property as long as they don't have a lease with anybody or any type of a management agreement with anybody that would prevent them from occupying the property whenever they wanted to. That is the only thing to note for second home. And uh, personal or entity ownership is allowed. Entity ownership highly recommended. So now DSCR, right? Again, the streamline option does not require credit reference letters. All of these loans are always, like all non QM loans, manually underwritten. Remember, if you do not choose the streamline option to credit reference letters from creditors, will be required. Really important to note now for the foreign national DSCR. This isn't a loan to buy a no doc loan and then go and occupy either the borrower or their family because they do post closing audits on these files and that can cause a repurchase issue and a foreclosure filing if they find that the borrower or the family is living in the property and it's actually not an investment property. Again, uh, Anthony ownership is usually required for the DSCR loan, but not always. So check the guidelines. And I did mention the, the low and no ratio options that we have, which is super cool and no visa option available. If not signing in the U S that no, that no visa option is not possible for the second home, by the way, if they are qualifying as a second home. They would need to occupy the property at some point of the year. So they have to have a visa. Now this is probably. The most important slide in this presentation, right? Because of the logistics, right? You see that plane there? They're flying from halfway around the world. They could be coming from Paris, from England, from India, from Africa, from China. Anywhere, well, anywhere around the world. So, You know, logistics is an issue, right? They want to buy that plane ticket, hopefully far in advance. Um, sometimes they're not available. So make sure that planning for the closing begins at the onset of the loan application, definitely, but at least two weeks or more before the closing. Because where are you going to close this loan? How are you going to close this loan? How long is your lock for, right? How long does your lock have to be good for after, after the borrower signs, right? If the borrower signs in their country rather than signing in the U. S. and the docs were sent to them and they needed to get an appointment with an embassy, right? They need to make that appointment way in advance. In some cases, months. in advance. Some cases could be only a couple of weeks in advance, but definitely in advance, depending on the country, right? The lesser developed countries that have less embassies, less consulates, they may only have one in the whole country and there could be hundreds or thousands of miles away and booked months in advance. So if you're thinking, you know, okay, I got my clear to close. Let me tell the customer to go make the appointment at the consulate. That's going to be a tough one, but luckily, you know, we have options now. The simplest one, obviously. In person signing in the U. S. Right now, remember visa will be required if they reside in a non visa waiver country, but we've had to get, um, creative with this approach, for example, with our Canadian or Mexican borrowers when it's a last minute kind of thing, uh, we've been able to, Uh, send a notary, uh, across the border, or they may be able to come across the border if it's not, you know, flying, having to get the plane that they couldn't get at the last minute, and they just can drive a couple hours. They can do that. And like I mentioned something for a little bit more fee, the notary can go to the other side of the border, meet with the borrower, sign is that U. S. notary is able to notarize. Right. They have the stamp, they got what they need, uh, to, to notarize it. So in person in the U S or right by the border, I didn't mention consulate. Now, if it is that last minute type of situation, uh, a solution, maybe. remote online notarization, but this option also needs to be planned in the very beginning of the transaction. Why? Because there, there's certain details that need to be confirmed, right? Uh, like it needs to be approved by the investor or lender funding the loan. Do they allow remote online notarization? Do you possibly have to use one of their Vendors are there, you know, they're approved vendors to do the remote online notarization. You just can't wing it and say, let me grab this company from the internet. And also just as importantly, this is the one that many people don't realize. The remote online notarization needs to be approved by the title company underwriter. right? Title company can't get closing the loan without title. They need to prove it because when you're using remote online notarization, you're presenting certain type of documentation to confirm the borrower's identity, right? So not every title underwriter accepts the documentation confirming identity that may be possible for that borrower to provide, like a passport instead of a U. S. passport. federal government or state issued ID, which is normally what they ask to prove who you are, especially in these days. Now, when you're coming into the country as a, as a U. S. national, you know, that ID has a lot of biometric data and that's how they're identifying, you know, quickly. And the last option is much less common, seldom happens, but is. Technically possible. You just have to, this is logistical considerations. Here is up a steel notarization. I put notarization in quotes because it's not a real notarization. It's just a certification process that occurs, uh, in certain countries. That how typically European countries. So that may be another option, but again, that's a much less common option. So make sure you do your research for your foreign national loans and please plan the closing. Remember that if they're signing overseas, they got to put that package into a FedEx, or it's usually going to be DHL who they use, um, for the international stuff that may take three days. Four days to get here, depending what day of the week day they went and they asked and what time it was when they were shipping it. Then when it gets here, it has to get to the title company, has to open it up, scan it, and hope everything is good. And you want the borrower to send those critical docs first so you can check them out, make sure everything's good, because once they sign and you four days later you get the documents and they miss some signatures that have to be, you know, notarized. I don't know, it could be a logistical. nightmare. Your loan isn't going to fund, uh, until the docs are correct. In the meantime, your rate lock is sitting there with the clock ticking because the loan can't fund until you get those docs. So you, your lock has to stay valid through funding usually, right? So a lot of logistics. So for national loan could be the easiest one you do in terms of document requirements. But the toughest one that you do in terms of logistical planning. And one thing I did want to note, remember all the documents, if the documents are provided in a foreign language, they need to be translated to English. So all these sample reference letters that we have are available in English. And I think also available in Spanish, but, uh, you would want to, you know, You would want to send them the English, uh, rough draft so they could check it out and make sure they write one in English because if they write it in their own language, guess what? Then it has to be translated by a certified translator to English at a cost. And time, right? So, uh, keep that in mind and you can dig and just grab this basic form letter, put it on letterhead, fill in the blanks, sign it, provide their, uh, if it's a bank or credit reference letter, there's no license. That has to be required. But if it's a CPA letter for income from the self employed borrower, they'll also have to provide their, uh, business license in their country. Notice how this is very basic. This is the one where we would send that to the employee for a salaried, uh, borrower, you know, no tax returns required or no equivalent of W 2s from their countries either. So you see how that works out, right? And that was it. That is my last sample letter. I thought I had another one sitting there. But again, make sure any documentation, if at all possible, especially bank statements that they, uh, the money needs to be in the U S to close. So if the money's not in the U S to close. Then you got to make sure that the money gets transferred in the U. S. prior to closing so that underwriting can check up on the sourcing of the money, the seasoning on the account that it came from. And also to make sure that you meet any reserve requirements, typically foreign national loans have a 12 month reserve requirement of PITI and if applicable association fee. All right. It looks like we have a couple of questions here that we can pull up. So let's go ahead and pull up. The first question here is, is it possible for them to enter with a work visa so they can work at, say, Home Depot to establish credit rating to lease a car or something? I mean, I guess as they touch on that, we're not talking about a foreign national at that point. Yeah, I mean, at that point, you're talking about a non permanent resident alien that doesn't have US based credit yet. Right? So at that point, if they're working here. With a work visa, they're gonna, they may have not necessarily, but they may have a work author is an employment authorization card. Uh, the work permit as they like to call it. So that's fine. That's, that's a non permanent resident alien. And the perfect, uh, definition legally working here in the U S that's a legal status here to be here working in the U S, but unfortunately they don't have credit. They got to wait until then they meet the minimum credit requirements and. If purchasing a DTI based loan, uh, through a, through a DTI based loan, then also to have the necessary income verification, documentation, and employment verification, uh, for that type of loan. All right. Another question here is gift letter allowed. Yes, but again, like every non QM loan out there, scour the guidelines and make sure Now, I will tell you the option that I've been talking about tonight. That's the streamline option actually allows gifts for the down payment and allows gifts for the closing costs. But none of the options ever when they do allow gifts will allow gifts for reserves. When you're talking about especially, you know, investment properties and stuff like that. But gifts are allowed and we do have very flexible gift options. Okay. Let's see here. Another question. Um, it's allowed money deposit in US account for down payment. Yeah, that's where it has to come from. I mean, let's say if they have their money in Brazil, if they're going to close on the house in Orlando, Florida, for example, they have to transfer the money to the US based account. And then that they have to provide the bank statements from the Brazilian account as well as the US account. And then we've got a typically source and season the money in the account where the money came from. But again, that does depend from option to option. All right. Let's see here. Another question. Do we have any lender for F 1 visa self employment and origin country primary? I would really have to look up the visa types because there's so many visa types. What the F 1 visa is. Self employment, I'm not exactly sure what you mean by primary or second either, but the only way you, a foreign national can buy if they're a true foreign national would be second home in some cases and investment property. They can only buy as a primary once they have legal work authorization here. Or like for example, If they have an E 2 visa, which is a visa that allows them to have a U. S. based business and earn income by managing their U. S. based business, right, they're gonna Pay themselves their salary, whatever, but it's from their business, right? They're not earning, uh, you know, as a W 2 employee for somebody else. That borrower who has an E 2 visa, that's a five year visa. And that borrower is legally allowed now to, to generate income from their business. That's how they get the E 2 visa by, uh, investing in a business in the U S that's going to generate some jobs. They're allowed to then, uh, uh, earn money in the U. S. Once that borrower gets credit in the U. S., that borrower could buy as, uh, a, uh, non permanent resident alien and buy with 5 percent down payment, for example, or 10 percent down payment. Okay. Let's see. A couple more questions here. Couldn't afford national work in the U. S. under a work visa. So, not a foreign national under this definition, right? We wouldn't be talking about a foreign national at that point. Yeah, I mean, exactly. At that point, they would have just transitioned to non permanent resident alien, right? Because now non permanent is the non permanent part, but they're still a resident alien, meaning that now they are legally working here legally, uh, residing in the U S while, while their legal work status documents are, are valid that they're allowed to be here. So we have a lot of workers here, for example, with H one B visas, which is a specialized worker visa, like a lot of tech and software workers from countries typically like, uh, India, for example, really prevalent in the tech industry. And a lot of them you end up finding out, the ones that have been here 3, 4, 5 years are all on that type of visa. They already have credit, they have W 2s, they got their pay stubs, and they're buying properties. 3, 3. 5%, 5 percent off. Alright, so yeah, just remember, Foreign National does not live here or work here, right? Uh, here's a good question from Robert, can we do commercial properties? So for nationals, yes, there are, there are four national options out there and they're not as prevalent though as residential options. So you just gotta. You know, find the ones that do, but we definitely do have plenty of foreign national options so you can do your small multifamily or you can do your commercial properties to rent. What foreign national borrowers cannot do, for example, is SBA, right? They can't do an SBA loan. An SBA loan is a full doc US based, uh, income loan. Uh, and they have to be at least a US citizen or a permanent resident. Can't even be a non permanent resident alien. And get an SBA loan. All right. And it looks like the last question we have here is I think we were talking about the down payment money. Uh, if it's in a Canadian bank with the U. S. branch on those accounts. Okay. Um, I mean, it's, it is what it is. Yeah. If they have, if it's a U. S. based bank, it's a U. S. based bank. I mean, the, the fact that they could be a subsidiary of a Canadian bank. They're not operating with the same licenses and the same operating agreements and all that kind of stuff in the U. S. that they are in Canada. It's just a subsidiary. That's fine. It's gonna be U. S. based currency in a U. S. based bank. That's just a, that's just providing a bank statement. You would want to see the currency, right? You can't hold, you can't have a U. S. account with Canadian currency, right? So, you have a Canadian account with Canadian currency, that's held in their Canadian branch. If they're holding your U. S. money, that's going to be held in the United States under the United States laws and in United States fiat, right? So, yeah. Oh yeah, talking about that, there's a lot of tips and tricks too in that part of it that you can help your borrower structure the deal. So that you don't get any last minute hiccups. And one of the ones I'm talking about are currency fluctuations, right? You're getting scenarios where, especially if it's a new construction, for example, where they're entering and they may be closing on the deal six months or. We're a year from now, right? And you don't know what's going to happen with the money, the cost of the money, the cost of their money. So they can actually hedge the currency through companies that then they buy the contract through this company. And as they're buying the money from this third party company, instead of going to their national bank in their country and asking the bank to wire the funds to the U S. At a much higher cost because and I've thought about the cost of the wire the cost Of the purchase of the money, because you're going to Colombian bank and you're going to give them pesos, the Colombian pesos, they're going to give you a really bad exchange rate. And then they're going to charge an exorbitant fee to wire it. Versus you can go to this country, to this, uh, a vendor, and you can set up the transfer for whenever you're going to need it now, depending the country that you're originating the funds from is going to determine how far out they can go. With this contract, right? Like if you're from, uh, you know, UK, for example, very liquid currency, they're going to give you a real far contract as opposed to, you may be from some of these more volatile currency countries like Brazil or Columbia, for example, where they may say, no, we can't go a year out from you with you. But maybe we'll go three months out, but the whole key is have that money purchase already set aside at a cost that is already set. That's the key because if you get a 10, 20, 30 percent swing in the valuation of the currencies, that transaction just became 10, 20, 30 percent more expensive for your borrower for no purpose other than the cost. To convert from their national currency to us dollars. So that's something that has blown more than one deal in the past. So just so that you know about the logistics, not just plan the closing, but in some cases also plan the currency transfer. If they don't have the money. You can also use that to your advantage too, right? Jose when there's strong currencies, that means. Transactions become cheaper for borrowers. Oh, converting money to us currency and buying property in the U S to leverage there. Leverage, right? That, that happened, uh, when, you know, when we had the last go around, uh, a couple of years ago where you had a lot of foreign buyers that had purchased properties and, and we're making 20, 30, 40, 50 percent on the sale because their currencies had actually appreciated so much, like for example, the Euro where the Euro went almost one to one with the dollar. Right. So, so I had, you know, people telling me, I, you know, I sold it for 10, 000 less than what I bought it for, but I made 30 percent on the exchange, which was a beautiful thing. Okay. I think we'll go ahead and wrap it up then, but a great training there tonight, Jose. Just remember, foreign nationals don't work here, they don't live here, but they can definitely buy properties here, and we have amazing programs for them to do so. So, remember that we do this at 7pm Eastern every Tuesday, Wednesday, and Thursday evening, where we go through a new Loan Officer Training topic. So we actually have a new topic for you tomorrow, so we will see you all tomorrow, 7pm Eastern, for the next episode of the Loan Officer Training Series.