Can a UK citizen buy a house in the USA?

Can a UK citizen buy a house in the USA?
US Mortgage, UK Citizens buying US Property

The only globally-based USA mortgage specialists, America Mortgages

Can a UK citizen buy a house in the USA?

With a mortgage from America Mortgages, any UK citizen can buy property in the United States.

The United States of America has no laws that specifically prevent non-citizens from buying or owning property in its states and territories, regardless of nationality. What was once limited to the ultra-rich and British rock stars has become more mainstream, with heaps of those living in the Home Islands grabbing their slice of the American Dream.

Our lending tiers start with residential units valued at a minimum property value of $200,000, with a minimum loan amount of $150,000 which is ideal for those seeking seasonal vacation units as a source of rental income. In addition, America Mortgages also offers commercial, portfolio, and bridge loans, all three of which require minimum loans of $1,000,000. 

Buy a house in the US

Buying property in the US for UK citizens can be just one step, however, because owning property in the US does not grant residency rights. If you are not a permanent US resident, the length of your stay is legally limited to the duration of your visa. Still, making substantial investments in American real estate is one path to permanent residency, and by extension, full citizenship (via naturalization).

US Green Card for UK citizens via Property Ownership

For example, the EB-5 visa can grant one conditional permanent residency, or a US Green Card, by investing a minimum of $900,000 (at the time this article was published), and while this does not offer instant citizenship, it can expedite US residency that might eventually lead to full citizenship. Although owning real estate in the United States doesn’t qualify as an investment into an EB5 program, it can be a factor in consideration when or if you decide to apply for residency. Please confer with an EB5 attorney or advisor.

US Property Market for UK Citizens

As the United States transitions to a post-pandemic economy, its housing market has heated up for several reasons, including an increase in home offices and those with the financial means motivated by a Fear of Missing Out (FOMO). Unlike many other nations, however, UK citizens investing in US housing need to remember that it’s not a homogenous market: its 50 states and one federal district (Washington, D.C.) offer as much diversity within themselves as they do as a whole.

Best place to buy house in USA

For example, $10,000,000 can get you a massive 7-bedroom, 9-bath 10,000 square-foot ranch house on a large piece of pristine forested land in Colorado, but that same ten million dollars in New York City is the going price for a luxury 3,100 square foot apartment with three bedrooms and four bathrooms. But as mentioned above, UK citizens need not be in the top 1% of earners to purchase a home in the US, get in touch with us today to start your path to American property ownership.

Financing US Housing as a UK Citizen

America Mortgages provides comprehensive USA residential mortgage services for those living abroad, including UK citizens who wish to invest in US properties, as well as Foreign Nationals and American expats residing anywhere in the U.K. — England, Scotland, Wales, and Northern Ireland. Our global team of specialists is ready to help you — As America Mortgages only focus is very specific, we achieve approval on 97% of mortgages for US citizens and foreign nationals applications submitted through a vast network of the top 150 US lenders.

Sources: Portal Hud, British Expats

The Real Estate Investor Toolbox: AM FN Investor +

A five part series on powerful mortgage tools for U.S. real estate investing for preferred clients.

America Mortgages presents this series as part of our never-ending mission to inform and educate the global real estate community about the investment prospects in U.S. residential real estate and the accessibility with which financing may be obtained. If you’re getting this email, you’re considered a preferred client of America Mortgages or Global Mortgage Group, thank you.

Over the last 2 years, we worked on sourcing mortgage programs for all investors regardless of their experience. With loan amounts as low as $150,000 and as high as $150,000,000 we are at the forefront of Foreign National and U.S. Expat mortgages.

Over the next 5 weeks, we will introduce a new weekly series; The Investor Toolbox for Preferred Clients. This will consist of 5 enhanced loan programs offered by America Mortgages. As with everything we do, these programs are laser focused for Foreign Nationals and U.S. Expats looking to invest in U.S. property market. In this next series, we will go over the various ways you can acquire U.S. real estate without the rigorous and often painful process “traditional” banks require.

The Real Estate Investor Toolbox Series:

  • · AM FN Investor +
  • · AM U.S. Expat Mortgages +
  • · AM Commercial +
  • · AM Holiday/Airbnb Investor Program
  • · AM No Income Required +

In the first article of the series, we introduce AM FN Investor +

AM FN Investor + allows borrowers to use a simplified form of income documentation to qualify rather than “traditional” income.

As a company, our only focus is providing market rate mortgage programs for Foreign Nationals. As we close U.S. mortgages for borrowers from Sydney to Shanghai, it is important to keep the documentation provided by the borrowers very simple and consistent.

Rather than going through years of complicated tax returns, pay statements, translations, and then having everything certified, we’ve realized that there is a much easier and straightforward way. America Mortgages has simplified the process to be very straightforward, and easy to obtain. We understand that many of our clients are entrepreneurs, self-employed or pure investors. Often these types of clients have difficulty qualifying for loans due to excessive writes offs, lumpy income or not being able to show their true ability to service debt. If you fall into one of these categories we will only require a letter from your accountant. This letter will state your last two years of income and current year to date. Fret not, you will no longer be seen as a “complicated or high-risk” borrower. As many have stated, it is truly the perfect loan for self-employed investors and entrepreneurs.

Are you employed but earning your income abroad? We understand you as well. Currency exchange, bonus income, deferred compensation, all these issues and more make for a complicated tax return for an underwriter in the U.S. that is used to looking at “Mr. and Mrs. Smith” simple two page tax returns. If you’re employed, all that is required is a letter from your employer with the employer’s letterhead. The letter, for which we have a template, will state last two years income and current YTD (year-to-date). Anything not in English will require a professional translation, but in general, yes, it’s that simple.

We should also mention that for both of these programs you do not need to have U.S. credit or a U.S. footprint. In lieu of U.S. credit, we can use a credit report from your home country or country of residence.

The income documents we require are very straightforward and easy for the borrowers to provide, making the underwriting approval process much quicker.

Normally, we can get an approval for your mortgage within 72 hours of submitting all documents. Following a successful mortgage approval on a purchase, we will issue a pre-approval letter which you can then use to go shopping! Once the loan is approved, if it’s an equity release or a refinance to a lower rate, we are able to start the process immediately and normally close the transaction within 30-45 days. .

This program is available in all 50 states regardless of your passport.

Are you more of a “seasoned” investor (like myself) in age? Don’t worry. In order to increase the yield, all loans are amortised over 30 years regardless of the borrower’s age. As a bonus, we also have a fixed 10 year interest servicing only option. As stated in the series, our goal is to give you the “tools” to invest in U.S. real estate.

If you’re sitting on the fence wondering if you should be investing in U.S. real estate, perhaps our last statement may make the decision easier… America Mortgages approves 97% of the loans submitted.

For more information on this Preferred Client mortgage program, please contact our team at [email protected]. Stay tuned to our next week’s article, where we introduce U.S. Expat mortgages as if you walked into a bank in the U.S.

What is a Bridge Loan?

America mortgages

What is a Bridge Loan?

A bridge loan is a type of asset-based, short-term loan, typically taken out for a period of a few months to a couple of years pending the arrangement of longer-term financing or an exit such as the sale. It is usually called an asset-based bridge loan in the U.S, a bridging loan in the United Kingdom, or a “caveat loan,” or a swing loan.

What are the benefits of a bridge loan?

Let’s say you’re selling your house and need money to buy another house, but you’re short. In this case, a bridge loan can take care of the financing issue that emerges before your current home sells. Bridge loans fill the gap where traditional lenders cannot provide the speed of funding and flexibility of terms required by the borrower. It is used when financing is fundamental, and a favorable rate is not accessible – think of them as a form of secured debt upheld by collateral.

In addition, bridge loans fund faster than bank loans. Good opportunities don’t last long, which is why using a loan with fewer requirements that closes quickly is an excellent choice. It allows investors to grab a fleeting opportunity before someone else snatches it up.

How can you use a bridge loan?

1. Purchase transactions

In residential real estate, bridge loans are used to rapidly close on a deal before a long-term loan or mortgage with a lower financing cost is acquired. When a homebuyer wants to buy a new property before selling their previous home, a bridge loan can be used to pay off the old mortgage and purchase the new home.

2. Liquidity

Let’s imagine a scenario. Like many of our clients today, Covid has impacted your business and you need capital now. You’ve applied for a loan with your bank, but the lender tells you that it could be weeks before you get your funds or you may not qualify based on current cash flow. You don’t want to play the waiting game. Anything can happen in the time it takes for a “standard” mortgage to be approved and disbursed.

On the other hand, if you own real estate you could use a bridge loan and receive funding with a much shorter turnaround — even as quickly as a week depending on the complexity, location, LTV, and structure.

3. Flexibility

Bridge loans can give you the flexibility you need to buy your dream home in a competitive market. At America Mortgages, we provide U.S. short-term “bridging” loans for overseas borrowers and are certain to find you the right mortgage.

Often America Mortgages Bridge financing is a cheaper alternative to the standard hard money or private lending options, while just as flexible underwriting and fast with the turn around to fund.

America Mortgages provides bridge loan financing for companies, developers, and individuals on a global scale. These interim financing services have been designed to assist real estate investors with financial solutions that offer quick relief in challenging times when liquidity or cash flow is an issue. America Mortgages Bridge has normal terms of 12-36 months with interest-only payments.

4. Delayed purchase exit

Using a bridge for purchase is almost “same-as-cash” and could get your offer accepted when other offers may be tied to “traditional” financing. The big question, how do you exit out of a higher interest bridge loan? The answer is simple; Delayed Purchase.

In a delayed purchase transaction, you can take out a “traditional” mortgage on the property immediately. This allows you to have the advantage of being a “cash buyer” and gives sellers the chance to know the transaction will close while giving you the time and flexibility to obtain a long-term permanent mortgage. Depending on the loan program, this normally needs to be done within three months of closing.

Bridge loan Case Studies

Here are two case studies of America Mortgages Bridge financing solutions:

Canadian investment fund purchases hotel in Texas. Read More.

Chinese National closes US$5.6m purchase with GMG Bridge Loan. Read More.

Get in touch with us today to learn more about the structures and options of short-term bridge financing solutions