Home Ownership Success

New American achieves dream of home ownership

February 18, 2025 | As a new arrival to the United States and Minnesota, Alessandro thought it would take years to build credit in the U.S., qualify for a mortgage loan and become a homeowner. Last summer, however, he and his family purchased a cozy, two-bedroom home with guidance from a financial coach at the International Institute of Minnesota.

“To have your own space to call home, it gives you the mindset to be full of energy every day to just be better,” said Alessandro, a medical professional originally from Central America.

Dreaming of a stable future

One of the unique barriers to financial stability for an immigrant is that even if a person had good credit in their home country, that credit status does not follow them to the United States. New arrivals must start over with building work history and credit history in the U.S. That can take years and make it difficult to qualify for an apartment lease or apply for a mortgage.

Alessandro first connected to the Institute through a workforce development program and learned about the opportunity to work with an Institute financial coach. His lack of U.S. credit history as a new immigrant meant his family had to pay significantly higher rent, which burdened him and his wife as they took multiple jobs to build a new life and contribute to their new communities.

He arrived at his first financial coaching appointment with a primary goal: to build a credit history so his family could rent a more affordable apartment. Although Alessandro also aspired to one day purchase a home, this dream seemed distant — something he couldn’t imagine achieving within the next few years.

“We were not looking for anything fancy,” he said. “We’re just starting our lives here. We just wanted our kids to be able to run from the living room to our room.”

Barriers to home ownership

When Alessandro first met with our financial coach, they took the time to assess his income, review his budget and create a tailored plan to build his credit. Our financial coach believed in Alessandro’s potential and encouraged him every step of the way.

He credits the Institute for being a trustworthy, connected resource that helped him and his wife work toward their financial goals.

“Sometimes we didn’t know who or what to trust. There were lenders with really high rates,” Alessandro said, explaining that his Institute financial coach helped them uncover legitimate resources to help them work toward home ownership.

Through his diligent work, Alessandro successfully built his credit in just six months, enabling him to not only qualify for more affordable rental options, but also to apply for a mortgage — a goal he thought was years away.

One of the key challenges was Alessandro’s limited U.S. employment history, even though both he and his wife held stable, full-time jobs. Our financial coach was able to identify a bank willing to consider his overseas employment history, a crucial factor that opened the door to mortgage approval. This achievement was monumental for Alessandro, who previously faced high rental payments due to his lack of credit.

Planning for the future

Today, Alessandro and his wife are proud homeowners, with a mortgage payment comparable to what he used to pay in rent. Only now, he’s investing in his own future.

“It has provided peace of mind,” Alessandro said. “Of course it comes with a lot of responsibility. It has been totally worth it.”