Author: Dipti K.

U.S. advertising executive in Manila refinances apartment in Newark, New Jersey.

mortgage for overseas property

The Client

The client wanted to take advantage of buying out his business partner but didn’t have the cash on hand. He lived in Manila for over ten years and didn’t know if he had any credit or a score.

How We Helped

Lucky for the client, he had enough credit to get into one of our bank programs, which gave him the ability to extract up to 80% equity out of the property giving him sufficient funds to buy out his business partner and expand into a new market.

Loan Details

NationalityProperty ValueLoan AmountLTVRate
U.S. Citizen $450,000 $360,000 80% 3.65%
Term StateProperty TypePurposeLoan Type
30 year fixed Newark, New JerseyApartmentRefinanceResidential
NationalityU.S. Citizen
Property Value$450,000
Loan Amount$360,000
LTV80%
Rate3.65%
Term30-year fixed
StateNewark, New Jersey
Property TypeApartment
PurposeRefinance
Loan TypeResidential
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U.S. Expat in Tokyo buys an apartment in Boston as a second home.

mortgage specialists international

The Client

Since our client had business monthly in Boston, buying a home there seemed to make sense rather than staying in a hotel.

How We Helped

With only 20% down, no W2 income, and self-employed tax returns, we were able to get the loan closed in 30 days.

Loan Details

NationalityProperty ValueLoan AmountLTVRate
U.S. Citizen $887,000 $709,600 80% 2.75%
Term StateProperty TypePurposeLoan Type
30 year fixed Boston, MassachusettsApartmentPurchaseResidential
NationalityU.S. Citizen
Property Value$887,000
Loan Amount$709,600
LTV80%
Rate2.75%
Term30-year fixed
StateBoston, Massachusetts
Property TypeApartment
PurposePurchase
Loan TypeResidential
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America Mortgages PrimeSelect For U.S. Expats With Foreign Income.

America Mortgages Prime

Are you a U.S. Expat living abroad, filing U.S. income tax, but earning income from your overseas assignment? If you answered YES, we created a U.S. Home Loan Mortgage program specifically for you! America Mortgages PrimeSelect allows you to use two years of your U.S. tax returns, along with your monthly foreign income, to qualify just as you would if you were back home in the U.S.

The credit crunch, which was primarily caused by the U.S. banks’ cavalier attitude to mortgages and other loans, has paid for the previous days of easy credit. It is now much more challenging to obtain a mortgage from a U.S. lending institution. For example, guidelines introduced in January 2013 encouraged lenders to demand full documentation from potential borrowers and to be more precise about the consequences of low early repayment rates.

As an expat, you will find getting a mortgage even more difficult. Many lenders will not even consider lending to foreign income earned, so you would need to be persistent and shop around. Note that, as in many cases, mortgage programs may vary from state to state. With America Mortgages PrimeSelect, you are now able to purchase U.S. Real Estate as an investment, second home, or if your intention is moving back to the United States, owner-occupied at prime rates, terms, and programs.

Requirements

You will need to prove that you have sufficient employment and enough funds to repay the loan. Bear in mind that the more cash you have readily available to pay for a deposit, the broader choice of mortgage you will have. America Mortgages PrimeSelect will allow up to 90% financing for a second home purchase.

America Mortgages PrimeSelect mortgages are ‘fully documented,’ meaning you will need to prove your income by supplying two years of U.S. tax returns. In addition to this, you will also need to show your last two months’ bank statements to show you have money sufficient to cover both down payment and closing costs. We will also require one month of pay statements in the country you are working in. If these accounts, pay, and banking is in a language other than English, it will require a professional translation.

Here are the requirements:

  • – Two years of U.S. Tax returns
  • – Two months bank statements (foreign okay)
  • – One month of pay statements
  • – Passport or drivers license
  • – Social security card
  • – U.S. credit score (FICO)

Debt to Income Ratio

Most lenders will want your debt-to-income ratio to be no more than 35%. America Mortgages PrimeSelect will allow up to a 45% ratio. This is somewhat aggressive but often needed due to the fluctuation of the U.S. dollar to other currencies. LTV (Loan to Value)

Unlike many programs that restrict LTV for U.S. Expat foreign earned income, America Mortgages PrimeSelect Loan-to-value ratios are generally around 80-90%. The maximum full term is 30 years, regardless of age.

Mortgage Types

A wide range of mortgage products is available for U.S. expats looking to purchase or refinance U.S. Real Estate. Mortgages can be variable or fixed-rate, with flexibility over the fixed-rate term. In addition to the standard principle and interest U.S. mortgage loans, there are also interest-only mortgages, allowing for more cash-flow. As most of these loans do not have pre-payment penalties, you can pay towards the principal at will.

Do you have the income but doesn’t show on your U.S. tax returns? No problem either, America Mortgages StatedSelect allows you to only state your income. We will not request or require proof of income, including tax returns or monthly pay statements. LTV and rates vary for these programs, but qualifying can be extremely simple.

One of our associates or partners will be happy to answer any questions you may have regarding America Mortgages’ various loan programs.

Please send us a message at [email protected].

What is the ‘Down Payment’ in a real estate purchase?

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Your down payment is the first payment you make on your mortgage loan. For example, if your house is worth $150,000, the lender requires you to pay a portion of that price upfront, called the down payment. Typically, it could be anything between 20% to 50% of the asset’s price. So, at 20%, you have to pay $30,000 in advance to obtain the loan. Most financial institutions make it obligatory for the borrowers to pay the down payment.

You can pay the down payment from your personal savings or other legal sources. This payment for a home purchase is possibly the biggest single cash expenditure in most people’s lives.

To obtain competitive mortgage rates, you’ll need to pay at least 20% to 25% of your home’s purchase price in a down payment. Some financial institutions require the borrowers to pay a mandatory minimum deposit in addition to the down payment.

Mortgages are price-sensitive, so one with a lower down payment has higher risk factors, which will warrant a higher interest rate. Plus, a low down payment can cause you to pay for private mortgage insurance. So, to get the best option at a reasonable interest rate, be prepared to pay out of your pocket in advance.

To get an overseas loan from America Mortgages as a Foreign National, you will be required to pay only 25% in down payment. U.S. Expats get an unbelievably lower rate, which can be as little as 10% in down payment.

Hong Kong investor buys retail complex in Boston.

America mortgages

The Client

A real estate investor from Hong Kong purchased a retail complex with a credit anchor tenant.

How We Helped

As a Foreign Entity, the borrower has traditionally purchased their U.S. real estate in cash due to the struggles of obtaining financing with no U.S. credit or tax returns. This is a typical client scenario for America Mortgages and with lenders that will focus on the cash flowing real estate, the borrower was able to keep a large position of their cash and utilize a commercial loan.

We were able to secure a non-recourse 7-year commercial real estate loan for the purchase of the property with 65% leverage.

Loan Details

NationalityProperty ValueLoan AmountLTVRate
Hong Kong
Investment Company		 $4,200,000 $2,730,000 65% 4.875%
Term StateProperty TypePurposeLoan Type
7 year fixed loan /
20 year amortization		Boston, MassachusettsRetailPurchaseCommercial
Nationality Hong Kong Investment Company
Property Value$4,200,000
Loan Amount$2,730,000
LTV65%
Rate4.875%
Term7 year fixed loan / 20 year amortization
StateBoston, Massachusetts
Property TypeRetail
PurposePurchase
Loan TypeCommercial
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How is an ‘Annual Percentage Rate (APR)’ calculated?

mortgage broker

The annual percentage rate (APR) estimates the total interest rate you will pay on your mortgage, including any additional lender fees.

In your mortgage statement, you will see two interest rates, and the APR is always the one with the higher percentage. It accounts for all charges that come with the loan, showing the true cost of a mortgage.

There are two types of Annual Percentage Rates, fixed and variable. In the case of a fixed APR, the rate will be the same over the mortgage term. In the case of variable APR, it will change according to the changes in Treasury or WSJ prime rate index. Some credit card issuers may change the fixed APR rate from time to time but not without notifying the user 30 to 45 days prior.

Both APR types include the interest rate, discount points, and various charges like the closing costs, private mortgage insurance (PMI), to name a few. However, they don’t include expenses associated with buying a home, such as a title search, title insurance, appraisal, transfer taxes, and more.

To acquire a good mortgage rate, you must clearly understand your interest rates and APR fees. If you take a 15-year loan, you need to pay the interest every month, but the APR has to be paid at the closing. Some institutions offer 0% APR if you can pay off the loan within a certain period.

When shopping for mortgages, compare APR rates offered by various lenders to find the best deal. Stay away from the lenders that warrant an unreasonably high APR for the same interest rate. However, don’t get too focused on APR only because you may end up paying more by ignoring a lower interest rate for the sake of a low APR.

Chinese real estate developer buys land near Seattle for development.

advisor mortgage group

The Client

Experienced real estate developer purchasing a piece of land for the construction of a 12 unit Multi-Family Complex.

How We Helped

As a Foreign National, the developer has used personal cash to finance prior builds, due to the struggle of getting construction financing as a non-US citizen.

We were able to secure a purchase loan for the piece of land that will roll into a vertical construction loan, once permitting is complete. At 50% LTV for the land purchase, and 65% LTC construction loan once the project is shovel ready, the borrower would happily be able to retain more of their personal funds.

Loan Details

NationalityProperty ValueLoan AmountLTVRate
China Citizen $1,500,000 Land purchase $750,000 50% 8.99%
Term StateProperty TypePurposeLoan Type
24-month total term with possible extensionsTacoma, WashingtonMulti-family constructionPurchaseLand/Construction
NationalityChina Citizen
Property Value$1,500,000 Land purchase
Loan Amount $750,000
LTV50%
Rate8.99%
Term24-month total term with possible extensions
StateTacoma, Washington
Property TypeMulti-family construction
PurposePurchase
Loan TypeLand/Construction
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America Mortgages

mortgage for overseas property

One source, multiple options

America Mortgages is a Super Broker with an emphasis on the U.S. mortgage market. We specialize in Residential, Commercial, Construction, and Bridge financing for Non-U.S. Citizen, U.S. Expats, Family Offices, and Institutions. With the ability to lend in all 50 U.S. States (for most programs) and Internationally, America Mortgages is the “go-to” source for global Real Estate financing.

America Mortgages has direct relationships with U.S. banks, Asia regional banks, private mortgage lenders, and global funds to directly offer market-rate loan programs to the borrower in Asia or abroad.

The Power of YES! Over 11 languages/dialects spoken, cultural understanding, regional representation, and the ability to open an application and close the mortgage in most locations without leaving your home country.

Our U.S. mortgage programs include:

  • U.S. Expat Mortgages
  • Non-U.S. Citizen/Foreign National Mortgages
  • Construction and Commercial property loans
  • Bridge lending
  • Hard/Soft money loans
  • Cross Collateral
  • Fix-n-Flip

Our international mortgage programs include:

  • Large scale, global bridge financing – US$3M minimum and up in most countries
  • Residential mortgage loans in various countries with a minimum loan amount of US$100k

For more information, please contact [email protected].

Property Taxes – How is this calculated, and why is it important?

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A tax imposed on a real estate property by the government is called property tax. The local government supervises the regulation and collection of such taxes within its jurisdictions.

● Some of the taxable properties are:
● Land (with or without constructions)
● Buildings
● Vehicles, RVs, and boats (in some states)

The local government sets up the property taxes based on either the market or appraised value of the properties. The assessed value is always lower than the current market price.

The property tax rates fluctuate as per the change in property value over time. The location of the property also impacts it. You pay more taxes if your property is situated in a prime location or a prestigious neighborhood.

Many taxing authorities use a “millage rate” instead of a percentage of the property’s value to determine the taxes. One “mill” equals one-thousandth of a dollar. For instance, if the property tax rate on residential homes in your area is 20 mills, you will pay $20 for every $1,000 in the assessed price. If your home’s assessed value is $350,000, you will pay $7,000 in taxes. In the case of a percentage system, it will be $17,500 at a 5% tax rate on residential properties.

Most property taxes have to be paid on an annual basis. However, if you feel the tax bill of your land or home is unreasonably higher, you can appeal to the local taxing authority for a reassessment.

Property taxes are a significant fund collection source for the local governments in the United States. They use this money to develop various public services and infrastructures.

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