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.

U.S. fashion designer living in Sao Paulo buys a second home in Miami.

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The Client

An up and coming fashion designer with dual Brazilian and U.S. passports wanted to buy a home in Miami, where she grew up. She is self-employed and therefore it doesn’t show on her U.S. tax returns her true ability to service the loan.

How We Helped

For self-employed clients, showing the ability to repay the debt can be challenging. Although the tax returns may not reflect her ability to repay the loan, her cash-flow is significant. We were able to find her a loan that did not require any tax returns and went strictly off the cash-flow (rental amount) from the property.

Loan Details

NationalityProperty ValueLoan AmountLTVRate
U.S. Citizen$1,725,000$1,380,00080%4.50% interest-only payments
TermStateProperty TypePurposeLoan Type
5/1 ARMMiami, FloridaSingle-Family Residence (SFR)PurchaseResidential

Hong Kong investor buys retail complex in Boston.

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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$2,730,00065%4.875%
TermStateProperty TypePurposeLoan Type
7 year fixed loan /
20 year amortization		Boston, MassachusettsRetailPurchaseCommercial

What is the ‘Term’ in a mortgage?

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A mortgage term indicates the total duration of a mortgage. You will pay the lender monthly installments during this period and finally own the home after clearing off the last installment. The term of a mortgage starts from drawing the funds from the lender institution and ends on the expiry date when you need to repay the lender.

America Mortgages offer loan terms as long as 30 years (for fixed-rate mortgages) and as short as 5 years (for adjustable-rate mortgages). There are even shorter terms available, known as Bridge loans. These special loans can be as short as six months to up to one year and are excellent for procuring immediate cash-flow.

Most financial institutions offer these loans to commercial bodies like investors and constructors, but America Mortgages serves individual clients and the guarantee of some form of collateral.

If you can afford the higher monthly installments, a short-term mortgage saves plenty of money down the road. The explanation is quite simple: the longer the mortgage term, the more is the sum of the payable interest. As the interest rate is primarily front-loaded, the interest amount of a 30-year mortgage would be higher than that of a 10-year loan during the early years.

Similarly, ARM is more financially beneficial than fixed-rate loans if you can pay off the loan during the first interest cap. However, fixed-rate loans are better for people with a limited income. So, you should choose a mortgage term carefully, considering your future plans and current income sources.

America Mortgages Introduces U.S. Bridge Lending.

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A bridge loan is short-term financing used to facilitate the financing of a property for a short period. It is used to either acquire, maintain or improve a property with quick access to funds while more permanent financing is being arranged.

America Mortgages Bridge is a unique arrangement with various funds globally that gives America Mortgages the ability to source immediate asset-based capital in most countries worldwide. America Mortgages has funds and lending partners specializing in U.S.A., SE Asia, Central Asia, Europe, Central America, and the Caribbean. These unique relationships and volume give America Mortgages a lot of negotiating power on behalf of the client.

“Regardless if you’re in the U.S., Singapore, Hong Kong, HCMC, or Phnom Penh, America Mortgages Bridge is a viable short-term financing option to assets you may own globally and wish to keep but have a short term liquidity issue. In many cases, these events are unforeseen and can be resolved in a few months to a year. We understand the situation and the implications and, in most cases, take a loan from application to funding in a matter of 10 days. In most cases, we don’t like to exceed 55%LTV (loan-to-value); however, in some cases, we have been able to secure as high as 70% LTV. Anyone that knows bridge financing – that is extremely aggressive.”Robert Chadwick | America Mortgages

AMERICA MORTGAGES OFFERS BRIDGE FINANCING ON A VARIETY OF PROPERTY TYPES:

  • – Commercial buildings
  • – Hotels and casinos
  • – Land
  • – Warehouses
  • – Retail shopping centers
  • – Mixed-use residential
  • – Apartment buildings
  • – Luxury homes
  • – Multi-family commercial

REASONS COMPANIES OR INDIVIDUALS APPLY FOR BRIDGE FINANCING:

  • – Avoiding foreclosure
  • – Quick close on the property
  • – Partner Buy-Out
  • – Financing a project beyond standard bank limits
  • – Pay off debt

“When America Mortgages issues a bridge loan, a viable exit strategy is in place before the loan ever funds. Normally America Mortgages Bridge loans, regardless if they are in Vietnam, Cambodia, Hong Kong, or the U.S., the terms are relatively the same. 12-36 months interest-only payments with rates ranging from 9%-15% depending on the location, the rule of law, and the collateral. More often than not, with the proper time frame, we can refinance these assets into long-term financing through America Mortgages’ commercial or residential mortgage programs.”Robert Chadwick | America Mortgages

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. Both are non-standard loans acquired due to short-term or uncommon situations. A bridge loan term may be closed, only available for a pre-determined time, or open with no fixed payoff date. There may be a required payoff after a specific date. America Mortgages Bridge has normal terms of 12-36 months with interest-only payments.

America Mortgages provide 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.

As one of the leading International property bridging finance companies in the market, we pride ourselves on creating long-term client-lender relationships.

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

How is an ‘Annual Percentage Rate (APR)’ calculated?

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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.

U.S. Marketing Executive in Paris purchases investment home in Los Angeles.

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The Client

Having lived in Paris for the past few years, our client was rejected by two large U.S. banks for foreign earned income regardless of whether her credit score was 812. She had excellent credit, high income, and a sizeable down payment, yet the bank couldn’t see beyond her income being earned outside of the U.S. and not having a W2.

How We Helped

Our only focus is foreign nationals and U.S. Expats. We know exactly what banks, lenders, and finance companies need in order to view her situation just as if she was living and working in the U.S. The loan was closed in 37 days with ease.

Loan Details

NationalityProperty ValueLoan AmountLTVRate
U.S. Citizen$920,000$736,00080%3.35%
TermStateProperty TypePurposeLoan Type
30 year fixedLos Angeles, CaliforniaSingle-Family HomePurchaseResidential

Chinese real estate developer buys land near Seattle for development.

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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$750,00050%8.99%
TermStateProperty TypePurposeLoan Type
24-month total term with possible extensionsTacoma, WashingtonMulti-family constructionPurchaseLand/Construction