Canadian doctor in Vancouver buys condo in Atlanta for rental income using 1031 Exchange.

mortgage broker | Canadian doctor

The Client

Our client from Australia came to us online and wanted to look for low-cost residential housing to earn investment income. They like the Midwest cities due to their low entry point.

How We Helped

Given the capital tax implications of selling, we suggested using a Tax Program called “1031 Exchange,” which allows property owners to swap one investment property into a more expensive one, which allows capital gains taxes to be deferred. They reviewed this option with their tax advisor and were able to roll the gains into the new purchase allowing them to buy a nicer property located in a better school district that equated to higher rental yields.

We found the client a very competitive foreign national mortgage, and they were able to take advantage of this Tax Incentive. (Also see Can a Canadian Buy a House in the USA?)

Loan Details

NationalityProperty ValueLoan AmountLTVRate
Canada Citizen$480,000$264,00055%4.750%
TermAddressProperty TypePurposeLoan Type
5/1 ARMAtlanta, GeorgiaSingle-Family HomePurchaseResidential

63-year-old French university professor releases equity from an investment home in St. Louis, Missouri.

mortgage specialists international

The Client

Our client came to us from an ad they saw on Facebook. He was reaching retirement age and wanted to buy a small business in Paris but needed additional funds.

How We Helped

Our client was 63 years old and concerned if he could qualify for a mortgage, the amortization period would be extremely short. When he spoke with one of our loan officers, this was his first concern. What makes the U.S. mortgage market unique is that every borrower is looked at the same. Regardless if you are 20 or 80, you still can qualify for a 30-year mortgage term, which makes servicing the monthly debt much more manageable.

We were able to get an equity release of 70% LTV even though the borrower was 63 years old, had no U.S. credit, and was nearing retirement. He was able to buy his business with the funds and enjoy his future retirement.

Loan Details

NationalityProperty ValueLoan AmountLTVRate
French Citizen$580,000$406,00070%5.49% interest servicing only
TermAddressProperty TypePurposeLoan Type
10-year interest-only, which converts to a 30 year fixedSt. Louis, MissouriSingle-Family HomeCash-out Equity release remortgageResidential

Australian family buys a home in Detroit for investment income.

mortgage specialist

The Client

Our client from Australia wanted to look for low-cost residential housing to earn investment income. They like the Midwest cities due to their low entry point.

How We Helped

Our client purchased a 3-bedroom property, which would give them the benefit of both yield and capital appreciation. They had no U.S. credit and a lumpy income from being self-employed, but we were able to structure a foreign national 30 year fixed loan. The entire transaction from loan application to closing was completed within 40 days, and the client never left Australia.

The entire transaction from loan application to closing was completed within 40 days, and the client never left Australia.

Loan Details

NationalityProperty ValueLoan AmountLTVRate
Australia Citizen$150,000$105,00070%5.99%
TermAddressProperty TypePurposeLoan Type
30 year fixedDetroit, MichiganSingle-Family HomePurchaseResidential

20 Famous Real Estate Investing Quotes.

mortgage advisors

America Mortgages is proud to bring you these quotes from some of history’s smartest people. In their own simple yet clever way, each quote shows that real estate could be the best way to increase wealth.

Real estate is a numbers game. But that doesn’t mean a few words can’t help investors dominate the market. Real estate investing is an extremely emotional pursuit. Between investors’ swing moods, that many times drives the market, to the risks that are involved with investing, emotions can sometimes run high. America Mortgages has a unique line of mortgage products regardless of where in the U.S. you’d want to invest.

Enjoy the selection of quotes from history’s greatest minds and investors, including Warren Buffett, Mark Twain, and Teddy Roosevelt. So the next time you need a little motivation to keep going, here are a few quotes for you to reflect on.

1) Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world.
Franklin D. Roosevelt, U.S. president

2) Buy land, they’re not making it anymore.
Mark Twain, writer, and humorist

3) Ninety percent of all millionaires become so through owning real estate. More money has been made in real estate than in all industrial investments combined. The wise young man or wage earner of today invests his money in real estate.
Andrew Carnegie, billionaire industrialist

4) Buy on the fringe and wait. Buy land near a growing city! Buy real estate when other people want to sell. Hold what you buy!
John Jacob Astor, real estate and business mogul

5) In the real estate business, you learn more about people, and you learn more about community issues, you learn more about life, you learn more about the impact of government, probably than any other profession that I know of.
Johnny Isakson, U.S. senator

6) Some people look for a beautiful place. Others make a place beautiful.
Hazrat Inayat Khan, spiritualist

7) Games are won by players who focus on the playing field—not by those whose eyes are glued to the scoreboard. If you instead focus on the prospective price change of a contemplated purchase, you are speculating. There is nothing improper about that. I know, however, that I am unable to speculate successfully, and I am skeptical of those who claim sustained success at doing so.
Warren Buffett, billionaire investor

8) Landlords grow rich in their sleep without working, risking, or economizing.
John Stuart Mill, political economist

9) Every person who invests in well-selected real estate in a growing section of a prosperous community adopts the surest and safest method of becoming independent, for real estate is the basis of wealth.
Theodore Roosevelt, U.S. president

10) Don’t wait to buy real estate. Buy real estate and wait.
Will Rogers, actor

11) Buying real estate is not only the best way, the quickest way, the safest way, but the only way to become wealthy.
Marshall Field, entrepreneur

12) I still think buying a home is the best investment any individual can make.
John Paulson, billionaire

13) I have always liked real estate, farmland, pastureland, timberland, and city property. I have had experience with all of them. I guess I just naturally like ‘the good Earth,’ the foundation of all our wealth.
Jesse Jones, entrepreneur

14) If you’re not going to put money in real estate, where else?
Tamir Sapir, business mogul

15) To be successful in real estate, you must always and consistently put your clients’ best interests first. When you do, your personal needs will be realized beyond your greatest expectations.
Anthony Hitt, real estate professional

16) The best investment on Earth is Earth.
Louis Glickman, real estate investor

17) A funny thing happens in real estate. When it comes back, it comes back up like gangbusters.
Barbara Corcoran, real estate investor

18) It is a comfortable feeling to know that you stand on your own ground. Land is about the only thing that can’t fly away.
Anthony Trollope, novelist

19) In my experience in the real-estate business, past success stories are generally not applicable to new situations. We must continually reinvent ourselves, responding to changing times with innovative new business models.
Akira Mori, real estate developer

20) Now, one thing I tell everyone is to learn about real estate. Repeat after me: real estate provides the highest returns, the greatest values, and the least risk.
Armstrong Williams, entrepreneur

Real estate investors need to stay motivated and open to new ideas, loan programs, and suggestions. Hopefully, these quotes will help prospective investors and veterans alike get there.

For more information, please contact [email protected].

Reasons NOT To Buy In Cash.

advisor mortgage group

In today’s low-inventory housing market, real estate investors are looking for any way to get an advantage over the other buyers when putting in an offer on a property.

Part of that strategy is not to buy in cash. If you have the means, an all-cash offer is a great way to fast-track a deal. A seller, more often than not, will consider a cash deal over a mortgage. The deal’s success isn’t reliant on a lender’s approval following an appraisal, and you’ll own the home outright after the transaction with no mortgage.

“With two similar offers, all cash or financing, it’s likely that an all-cash offer would be the most attractive and less risky to the seller and seller’s agent.”

“For Non-U.S. citizens, cash transactions make up a majority of Real Estate investments due to what is perceived as the lack of access to consistent and affordable financing options. However, that is not true any longer. Our focus is being able to provide competitive, viable, and easy access to U.S. mortgage loans for non-U.S. citizens. And we’ve done it to perfection.”Donald Klip

BUT EVEN IF YOU HAVE ENOUGH LIQUID ASSETS TO PURCHASE A HOME WITHOUT A LOAN, IS IT ALWAYS A GOOD IDEA?

Here are several reasons not to buy a home with cash:

LIQUIDITY, LIQUIDITY, LIQUIDITY

You always hear the axiom in Real Estate – Location, location, location, and although that may be true, it’s not wise to purchase a home with cash if you have only just enough liquidity to pay for it. Liquidity issues at some point in time affect everyone.

The inability to move currency across borders to cover large expenses could also be a factor. It’s essential, especially as a non-U.S. citizen, to have access to available funds for any number of unexpected needs, from a new roof to other large repair expenses.
You may even want to have enough funds on stand-by to sustain the mortgage if the property goes un-rented.

ACCESS TO SOLID FOREIGN NATIONAL MORTGAGES ARE AVAILABLE

With a down payment of 30 percent or more for a foreign national mortgage loan, you don’t have to worry about additional mortgage insurance when it comes to a standard U.S. conventional loan. With a lower LTV (loan-to-value), a lower interest rate will normally be available due to the lower risk lenders perceive that you’ll default on the loan.

For the younger generations looking to invest in a market that doesn’t have a huge sticker shock, acceptable yields, and stable appreciation, obtaining a mortgage is a smart move.

“Unlike their parents and grandparents, Millennials in Asia are more comfortable with taking on a mortgage loan,” says Donald Klip. He notes the younger generations’ familiarity with the U.S. credit market from either extensive travel or schooling makes taking on debt an easier choice than for older generations that have built up Real Estate wealth over time but may not be accustomed to having mortgage loans.

Although interest rates may be on the rise, they remain low compared to previous decades. With 30% down, the rates are still favorable and fixed for periods of 5, 7, 10, or 30 years. America Mortgages is currently offering fixed-rate mortgages at slightly over 6% without verifying income, U.S. credit, or residency. Compare that to the 1980s, when a foreign national mortgage loan was almost impossible to obtain, and mortgage rates were at an all-time high of 18%, there is no question on why you should leverage up.

MORE BANG FOR YOUR BUCK

Even if you’re looking to buy an investment property outside a pricey metro area such as NYC, San Francisco, Washington DC, or L.A., and if you have enough funds to pay outright, you’re likely sitting on a sizeable amount of capital. However, the decision isn’t necessarily between buying a property outright or keeping money earning very little in the bank. Consider other forms of investment to grow your wealth. Use those funds and your cash to “leverage up” by purchasing more than one investment property, increasing your portfolio and holdings quicker.

YOU’LL MISS OUT ON POTENTIAL TAX BREAKS

Although we suggest discussing any potential tax benefits with your tax advisor, most homeowners with a mortgage receive a tax benefit on the interest paid to the lender. The larger the mortgage, the bigger the benefit, increasing the yield potential of your investment.

ALWAYS WEIGH THE PROS AND CONS

In an extremely competitive Real Estate market, an all-cash offer can provide the edge you need to get the seller to consider your offer more seriously than others. Often your offer may not be the highest, but the seller knows an all-cash off will make the closing process easier.

If you want to obtain financing, keep in mind that the seller may consider an offer that allows for easier financing. Often larger down payments and smaller mortgages will also be considered easier to close mortgages as it’s less risky for the lender.

“We do it all day, every day. It’s not difficult if you know the terrain and have the right relationships, and in most cases, we can find a U.S. mortgage loan for every non-U.S. Citizen or Expat client. Most U.S.-based mortgage lenders look at a borrower’s U.S. credit history to determine their ability to repay a mortgage loan.

However, at America Mortgages, we understand that as a non-U.S. citizen, you normally don’t have a U.S. credit, and often can’t show income in a manner in which the lender will approve.If a borrower was attempting to search this for themselves, be prepared. Finding a lender in the U.S. to understand your situation becomes time-consuming, frustrating and often unobtainable, not to mention staying up late at night in Asia to answer questions or provide documents. Our job is simple; to understand the complexity of analyzing risk, calculating foreign income, and alternative sources of acceptable credit verification to find our client the best possible loan.”Donald Klip

If you’re a non-U.S. citizen looking to invest in U.S. Real Estate, we recommend sending America Mortgages an enquiry. Who knows, you may be on your way to Real Estate investing before you know it.

For more information, please contact [email protected].

You Don’t Have To Be A U.S. Citizen To Get A U.S. Mortgage.

Foreign national loans for non-residents

US Mortgages for non Residents

Yes, you read that correctly. You don’t have to be a citizen to get a U.S. mortgage.

If you’re a permanent resident alien, you’ll need your green card and your social security number. Your mortgage application process will be very similar to that of U.S. citizens.

If you’re a non-permanent resident alien, you don’t have a green card, but you have a social security number or ITIN. You can finance a home if you produce a work permit (Employment Authorization Document) or special employer-sponsored visa. Lenders must verify that you’ll be able to live and work in the country for at least three years.

Non-U.S. citizens without lawful residency in the U.S. are not eligible for Fannie Mae, Freddie Mac, or FHA home loans. There are two sorts of non-citizen homebuyers in the United States — the resident who wants a primary residence and the non-resident who wants a vacation or investment property in the U.S. Each buyer may finance a property with a foreign national mortgage, but the loans are not alike.

Permanent resident aliens

Both permanent and non-permanent resident aliens can obtain mortgages in America, pretty much like everyone else. They can even get Fannie Mae and Freddie Mac home loans with as little as three percent down once they live in the U.S..

The documentation requirements depend on the borrower’s status.
If you’re a permanent resident alien, you’ll need your green card and your social security number. Your mortgage application process will be very similar to that of U.S. citizens.

Non-permanent resident aliens

Suppose you’re a non-permanent resident alien, meaning you don’t have a green card, but you have a social security number. In that case, you may be able to finance a property if you produce a work permit (Employment Authorization Document) or special employer-sponsored visa.

Lenders must verify that you’ll be able to live and work in the country for at least three years. If your permit is going to expire within a year, your lender must evaluate your likelihood of remaining in the country and decide accordingly.

Foreign national loans for non-residents

Before America Mortgages’ Foreign National Mortgage programs, it was a lot harder for borrowers outside the U.S. to finance second homes or investment properties in the U.S. These are riskier for lenders. Hence, they carry higher interest rates, often above 8%.

Borrowers also used to have to make much larger down payments — on average, 50 percent. However, that has all changed with America Mortgages’s specialized programs.

Two of the most popular programs;

– America Mortgages FNSTATED: This is a perfect program for borrowers that either can’t show the required income for various reasons such as self-employment, lumpy income, or just a privacy concern. This program doesn’t require any income verification, U.S. credit, or residency and has a high LTV of 70 percent.

– America Mortgages FNFull: This is a perfect program for a borrower to show their foreign tax returns and income statements just as a U.S. citizen would. Rates are on par with what a U.S. citizen would pay, and the LTV can go as high as 50 percent without reserves required.

America Mortgages is the ONLY Asia-based U.S.-focused Real Estate financing firm with offices in Singapore, Hong Kong, and Shanghai. The ability to open an application and close a loan without ever leaving Asia may be unique, but we do it every day.
Borderless mortgages. Easy.

What about U.S. credit scoring?

One challenge foreign borrowers face is the lack of credit history. It can take years to accumulate enough credit history to generate a good score. Or any score.

However, there is help for those with so-called “thin files” or No Credit. America Mortgages can accept either a bank reference letter or a foreign credit report instead of a standard U.S. credit report. This is a unique feature and sets America Mortgages apart from other U.S. based lenders and brokers.

What about U.S. Expats?

Are you a U.S. Expat, files U.S. Taxes but work for a foreign company and don’t receive a W2? Oh, boy! We’ve got a great program for you! Our America Mortgages Expat mortgage program is as easy as walking into your local bank in “Small Town, USA.” We look at your foreign income just as we would if it was paid in USD. Your W2 is offset with other documents, and your loan is processed just as it would if you were in the U.S. It’s that easy! Although it does require sufficient U.S. credit for these programs.

However, if U.S. credit isn’t an option because you’ve been abroad for many years … we have thought of that as well. We have programs for these borrowers as well.

America Mortgages welcomes everyone!

With over 40+ combined years of experience in U.S. mortgage banking and Asia private banking, America Mortgages knows the type of borrowers, their problems and hurdles, and how to resolve these issues in the same time zone, without the learning curve, U.S. based banks/brokers may have. America Mortgages welcomes anyone looking to invest or refinance U.S. Real Estate. We have programs for almost every type of borrower regardless of their passport.

For more information, please contact [email protected].

Is There An Age Limit For Getting A U.S. Mortgage?

Age Limit - U.S. Mortgage

Becoming a real estate investor is often seen as one of the universal signs of personal financial achievement, no matter what your age. While, technically, in the U.S., there is no age limit for getting a mortgage, there are some age-related home buying guidelines you should keep in mind.

HOW OLD IS TOO OLD TO GET A MORTGAGE?

Because a mortgage is a legally binding contract that allows you to finance the cost of a home over a long time, some people might wonder if there are age limits involved. For example, if you’re 75, could a lender refuse to let you take out a 30-year mortgage? After all, the average life expectancy in the United States is 78.6, according to the Centers for Disease Control and Prevention.

The good news for seniors looking to buy a house is that it is against the law for a mortgage lender to discriminate against you based on age. The Equal Credit Opportunity Act (ECOA), which came out of the Civil Rights Act of 1964, says lenders cannot deny you credit based on age, as well as other criteria like race, color, religion, national origin, sex, or marital status. The Fair Housing Act of 1968 adds even further protections, specifically stating that it’s against the law to discriminate in any residential real estate transaction.

However, there are some instances in which a lender could consider a lendee’s age indirectly. According to the Consumer Financial Protection Bureau, a lender may look at whether you are close to retirement age and make a decision based on your having enough income to handle the loan. But again, in this instance, the disqualifying factor is not your age but rather your ability to manage loan payments.

HOW YOUNG IS TOO YOUNG TO GET A MORTGAGE?

Can age be a discouraging factor when it comes to getting a mortgage if you’re closer to high school graduation age than retirement? Lenders can’t deny a mortgage application solely because of age, but states have laws that determine the age at which a contract can be negotiated. For example, in Virginia, you must be 18 to enter into a legally binding contract, including a mortgage.

Your age may also affect your ability to meet other requirements for being approved for a mortgage loan.

Lenders evaluate your income to see that you have enough to make the mortgage payments. If you’re under 18 or even in your early 20s, it’s unlikely that you’ll have a job in which you make enough to take on a mortgage. Lenders also typically require you to have a specific credit history, meaning they may not have enough credit history to meet the lender’s requirements. Young people who haven’t had time to build a credit history by using credit cards or taking out loans are likely to fall in this category.

Finally, homebuyers typically need to make a down payment. For example, the minimum down payment for a non-citizen is 30%. U.S. citizens living abroad and purchasing a second home or investment property may be able to put down as little as 10% if they still maintain a U.S. credit score.

THE RISKS OF TAKING OUT A MORTGAGE AT AN OLDER AGE

Just because you can legally take out a U.S. mortgage at any age doesn’t mean it’s always the wisest move. A mortgage is a long-term commitment, and you want to make sure you’re ready for it. If you’re a senior and thinking about taking out a mortgage, consider the following risks.

Mortgage debt can hamper your day-to-day finances. When people retire, they typically live on a fixed income. There are no more promotions to look forward to or year-end bonuses to give your finances a boost. Some seniors may find it challenging to make those mortgage payments month after month, along with their other expenses on a fixed income. If a financial crisis hits, they could experience a financial disaster. The Consumer Financial Protection Bureau points out that this did happen during the Great Recession of 2007-09. Many older homeowners struggled to pay their mortgages and eventually foreclosed on their homes.

Unexpected repairs can throw your budget for a loop. Your mortgage payment isn’t the only thing you’d have to worry about. Most homeowners at some point experience the sticker shock that comes with appliance replacements and major repairs. If you’re living on a fixed income, replacing a roof or buying a new furnace may be too much to handle on top of homeownership’s regular costs. Also, keep in mind that if you’re handy around the house and have been able to do your repairs, you might not be able to do as much physical work as you age. In that case, you’d likely have to pay someone to do the jobs you used to be able to do.

You’ll likely have less time to build equity. One reason people buy real estate is so they will have something to pass down to their heirs. If you buy a house at an older age, there’s a higher chance you won’t live in the house long enough to build a lot of equity. In that case, if you die and your house is left to heirs who want to sell it, there may not be much of an inheritance for them to split.

THE BOTTOM LINE

Age plays a role in many of our biggest decisions. Whether we’re thinking about marriage, starting a business, or retirement, we often consider whether the timing is right to pursue these goals. While age can’t legally deter you from buying a house, you should always weigh the pros and cons of real estate investing.

America Mortgages has programs that do not require income proof, which may help obtain a mortgage at an older age where income may be sporadic.

For more information, please contact [email protected].

American Expat teacher in Singapore refinances home in Tampa, Florida.

mortgage for overseas property

The Client

International school mathematics teacher purchased a home in 2019 with a high-interest rate. Since she had long term tenants and the rent was covering the mortgage, she hadn’t thought about refinancing until one of her colleagues mentioned lowering their mortgage rate using America Mortgages.

How We Helped

Although we gave her a very detailed report on the various options, including releasing up to $68,000 in cash out of her property, her priority was to get the lowest rate possible and maximize the rental yield.

Loan Details

NationalityProperty ValueLoan AmountLTVRate
U.S. Citizen$313,000$181,45058%3.35%
TermStateProperty TypePurposeLoan Type
30 year fixedTampa, FloridaSingle-Family Residence (SFR)RefinanceResidential

Singapore high tech manufacturing company identifies Texas as a manufacturing hub.

advisor mortgage group

The Client

The beneficial owner has had a connection to Texas having studied Electrical Engineering at the University of Texas. He has a modest portfolio of investment property in which he paid historically 100% with cash because of the lack of financing options.

How We Helped

Given his affinity towards Texas and the tax breaks it offers value-added manufacturers, our client chose Dallas as his U.S. headquarters. He came to us from a referral by our former client and we were able to provide the investor a financing option. This would allow him to use leverage to purchase a larger building than he originally had the cash to purchase. The building provides a positive cash-flow and is in a market with a very positive real estate outlook.

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
Singapore Listed Company$5,150,000$3,347,00065%5.5%
TermStateProperty TypePurposeLoan Type
7 year fixed loan /
25 year amortization		TexasCommercial – IndustrialPurchaseCommercial