Qualify For A Foreign National U.S. Mortgage Loan

Foreign National U.S. Mortgage

USA mortgage for NON-U.S. citizens, foreign nationals investing in US real estate.

It is now easier to qualify for a U.S. mortgage loan to purchase or refinance U.S. Real Estate even if you are NOT a U.S. citizen or have a valid U.S. Visa.
Although we LOVE the Power Of YES! We really like to see these “No” requirements even more!!

Here are the “NOs” (the good type of “no”)

  • No income verification
  • No age restrictions. The buyer can be 70 + years old and eligible for 30 years mortgage term
  • No U.S. credit is required
  • No USA visa or residency is required
  • No reserves required
  • No Life insurance is required
  • No pre-payment or redemption penalty
  • No tax returns are required

30% down payment foreign national mortgage program enables foreign nationals, Non-U.S. residents, or employment transferees to place a minimum 30% down payment and finance up to 70% of the property value with no income verification. Most of the lenders still require a 50% down payment to obtain a foreign national mortgage loan, but we can arrange financing with as little as 30% down with no income verification and rates in the low 6s to mid 7s. The borrower must have verifiable funds for the down payment, closing cost, but no payment reserves are required.

Not only is there no pre-payment penalty, meaning you can pay down or off the loan at any time, America Mortgages offers 70% LTV mortgage for foreigners does not require Private Mortgage Insurance (PMI) either, so there is no extra cost.
We also offer rate and term foreign national mortgage refinancing with no limit to cash-out option.

This foreign national refinance mortgage is available as a fixed and or adjustable-rate mortgage. Adjustable-rate is 3/1, 5/1, 7/1 term for 15 or 30 years fully amortized loan. Fixed rates are offered for the 10, 15, or 30 years fully amortized loan.

Here are some of the Loan Program features:

  • Minimum 30% down payment
  • Starting 6.00% Interest rate (right now – 11/01/18)
  • The term: 30 years, 20, and 15 years fixed
  • Loan amounts up to US$5,000,000
  • Par rate only
  • No pre-payment penalty
  • International Credit History Report required in some cases
  • 1 to 4 unit residential property eligible
  • 72 hours for underwriting
  • Closing on average 30-45 day

Here are the requirements for our Foreign National loan program:

  • Copy of executed purchase agreement (purchase only)
  • Copy of passport
  • Credit References (Credit card, Mortgage, Car lease) or International credit report
  • Last 2 months bank statements showing enough funds for a minimum of 30% down payment plus closing cost

We are able to assist with Credit reference or International credit report if needed. Contact us at [email protected] for more information.

U.S. Expat living in Singapore buys investment home in San Diego.

America mortgages

The Client

Our client came to us through his client, a technology founder who saw our press release about disrupting the U.S. mortgage space for overseas borrowers. He wanted to purchase a property in San Diego as a second home for vacations with his son.

How We Helped

Our client had been in Asia for a long time but has been compliant in filing taxes and still maintaining a healthy FICO score. However, his bank, which he still keeps a deposit in, will not offer him a loan since he does not earn a U.S.-based income.

It’s hard to explain to our clients that it’s not that banks can’t help; it’s that they won’t help. Since we have been working with our lenders for almost five years now, they know that when they receive a loan application, we understand how to work with clients to make sure the loan makes sense to both the bank and the borrower.

Loan Details

NationalityProperty ValueLoan AmountLTVRate
U.S. Citizen$3,750,000$2,000,00053%2.50%
TermStateProperty TypePurposeLoan Type
5/1 ARMSan Diego, CaliforniaSingle-Family HomePurchaseResidential

What is a ‘Fixed-Rate Mortgage’ vs. an Adjustable-Rate Mortgage?

mortgage advisors

A fixed-rate mortgage keeps the interest rate fixed throughout the loan term. This is the direct opposite of an adjustable-rate mortgage (ARM) that changes the interest rate regularly.

America Mortgages offers various fixed mortgage loans ranging from 15 to 30 years. Regardless of the length, the rate in all of them remains the same for the entire period.

In the case of a fixed-rate mortgage, if you purchase a home with a 15-year loan and your monthly payment is set at $1,500 in a fixed interest rate, you will be paying exactly this amount throughout the entirety of the loan.

People with a budget who do not want to deal with the sudden surge in interest rates will find this mortgage type ideal for them. However, these borrowers will not be able to take advantage of a drop in the interest rate unless they choose to refinance to modify their terms. A fixed-rate mortgage is also a good option for people who intend to live in the same house for the rest of their life. By paying a small monthly amount, they can eventually own the house when the mortgage period is over.

German pharmaceutical company buys warehouse for U.S. headquarters and expansion.

mortgage broker

The Client

The client was referred to us by a private bank in Zurich. The client is a German company looking to expand to the U.S. and wanted to purchase a U.S. Headquarters. They struggled to look for financing as the source of repayment of the loan was based on the European company and foreign financials, which U.S. banks do not recognize or underwrite to.

How We Helped

We were able to secure a lender that underwrote to the foreign financials, based in Euros, and secured a 5-year interest-only Commercial Real Estate loan. Going forward the U.S. revenues will roll up to a U.S. tax return allowing for traditional bank financing in a few years.

Loan Details

NationalityProperty ValueLoan AmountLTVRate
German Company5,900,0003,540,00060%6.125%
TermStateProperty TypePurposeLoan Type
5 yearsCincinnati, OhioWarehouse/Office BuildingPurchaseCommercial

Hong Kong Migration Wave 2019 – Is This Time Different?

Hong Kong Migration Wave

Is It Time to Invest in Overseas Real Estate?

America Mortgages (www.americamortgages.com) is Asia’s only overseas mortgage company with Direct Bank Programs for Foreign Nationals and Overseas Expat to purchase or refinance residential property in the U.S.

I am a Hong Kong citizen and what’s happening now is heart-breaking to watch unfold. Hong Kong’s cultural identity, fortitude, and integrity are all being tested, and regardless of whose side you are on, one thing cannot be disputed – Hong Kong is not the same as it once was.

Previous Migration Trends

Hong Kong is no stranger to phases of migration. Starting in 1967 and lasting almost 10 years, social instability was wide-spread, with riots all over the small island city. Many Hong Kong citizens moved to South East Asia, South Africa, and even as far away as South Africa. Towards the end of 1984, when the “Handover” to China from the U.K. was officially signed, it was the beginning of the largest outbound migration Hong Kong has ever seen. At the time, the U.K. government did not offer passports to those born in Hong Kong as it once did. Then just a few years after, in 1989, the Tiananmen Square event happened, and Hong Kong citizens migrated en-masse, primarily to Commonwealth countries such as Canada, Australia, and New Zealand and, to a lesser extent, the U.S.

The Numbers Were Staggering!

Some estimate total emigration was up to 1 million during this period, with the peak between 1988 – 1994 at 330,000. That is about 20% of the entire population of Hong Kong in the 90s!
Other research shows that an estimated US$4.2billion of outbound investment flowed to Canada during this period.

Why Is This Time Different?

What is different this time around is that back then, the “Handover” was relatively uneventful, and most Hong Kong-born emigrants returned home, a phenomenon known as “香港回流潮” or Hong Kong Returning Tidal Flow.

Fast-forward 20 years to today, and the landscape is very different. Every conversation with friends, colleagues, and family, Every news channel, Every newspaper – it all revolves around the protests. Hong Kong is emotional, it’s tense, and its energy is visceral. We now have a small glimpse into what the future may be like, and it’s different from the landscape during the Handover.

Folks Are Looking To Move!

Hong Kong has the most expensive property prices globally, and the market has increased consistently for 30 years with a few pullbacks – Asian Currency Crisis 1997, SARS 2003, G.F.C. 2008, to name a few. Meanwhile, the H.K.D. is pegged to the USD, so being able to cash out your Hong Kong property to purchase homes in the U.S. is starting to make a lot of sense. It’s already happening.

YearNumber of P.R.’s Issued to H.K. Citizens
20161,360
20171,360
20181,525

Other Destinations

Canada issued permanent residency for Hong Kong Citizens:

  • – San Francisco: home prices fall first time in 7 years
  • – Manhattan: Slowest 1Q sales since 2008
  • – Vancouver: down 9.6% from its peak in June 2018
  • – London: down 20% from its peak in 2014
  • – Sydney: down 15% from the peak in July 2017

Case Study: U.S.A.

The reasons why the U.S. attracts the most Foreign Purchases of Investment Property:

– Education – “Something for Everyone”
Most universities in the world. The U.S. has approximately 5,300 colleges and universities in the world vs. 2,600 globally.
That is a staggering 20% of all colleges and universities in the world!

– Evidence Supported
Top Foreign Buyers in the U.S. in 2019: China $13.4bn
Top Destination (more below): Florida (20%); California (12%); Texas (10%), Arizona (5%), New Jersey (4%)

Rental Yield

The U.S. has some of the highest investment yields globally.

Here is just a small sample in (no particular order):

LocationRental YieldHome Value Increase
Arlington, Texas7.5%10.3%
Columbus, Ohio7.9%9.2%
Las Vegas, Nevada5.3%15.9%
San Antonio, Texas6.4%8%
Orlando, Florida5.7%10.7%

** Did you know Orlando is the most searched city in America for Chinese real estate investors?

Since June 15, 2019, America Mortgages has seen a steady increase in loan inquiries from Hong Kong, with about 70% of them in the process of an actual home purchase!

LocationEnquiriesLoan Processing
U.S.1210
U.K.85
Canada87
Australia63
Japan64

Hong Kong is an amazing city, and it has provided so much, for so many, for so long.

However, Hong Kong, just like any other country, is not immune to domestic turmoil, and you have to wonder if this current Migration Wave is different from the others?

“There is nothing wrong with being prudent and diversifying your investments aboard.”America Mortgages Partners

America Mortgages has bank loan programs that are easy to qualify for. We can close loans in 30 days with many loan programs not requiring any income proof or the need to leave Hong Kong. Overseas Expats and Foreign Nationals to Purchase or Refinance.

For more information, please contact [email protected].

What does ‘Principal’ mean in a mortgage?

mortgage broker

Principal refers to the initial mortgage amount taken against the property you mortgaged. When you obtain a mortgage, it comes in two parts — principal and interest. The principal is the amount that you borrow from the lender, and the interest is a percentage of that principal amount charged by the lender as the cost of borrowing that money. When repaying, you have to pay both the principal and the interest.

For example: if you borrow $300,000 from a lender to buy a house, the principal of your loan is $300,000. At a 3% of annual interest rate, it will add $750 of interest balance per month to the principal balance. If you repay $10,000 as a monthly installment, the lender will cut off $750 as interest, and the rest $9,250 will pay off the principal balance. So, after one month, your loan principal will be 290,750. With each monthly installment, the principal balance will be reduced.

If you find it difficult to calculate the balance principal, interest percentage, and other fees, check the loan’s monthly statement. Our lenders will provide you a breakdown of all the numbers. It will show how much of the monthly installment goes toward paying off the principal balance and interest.

A bigger loan comes with a bigger interest rate. One way to avoid paying extra money is to pay off the loan faster by making additional payments with every monthly installment. Doing so in the case of adjustable-rate mortgages will save you plenty of money.

With America Mortgages, you can get anything between $150,000 and $5,000,000 and a choice from various paying off options.

U.S. Expats Takes Advantage Of Lower Rates To Increase Rental Yield On Summer Home.

mortgage advisors

The Client

A U.S. Expat living in Hong Kong working in the IT field. He wanted to refinance his 4-bedroom Tempe, Arizona home, which used to be the family’s residence and is now used as a short-term rental so the family can use it over the summer school holidays.

How We Helped

The client was working for a global company. He was currently on his U.S. tax filings, but his income was foreign-earned, no “normal” payslip, no U.S. bank account, and no W2.

Once we had all the required documentation settled, we packaged the loan and shopped for the best rate and terms. Our mortgage specialists helped the client structure several letters of explanation regarding how his income was calculated and the use of the rental property (Airbnb).

A formal mortgage offer was received within ten working days and closed shortly after that. The client was able to lower his current interest rate by a full percent on a 30-year fixed savings of thousands of dollars in long-term financing costs.

Loan Details

NationalityProperty ValueLoan AmountLTVRate
U.S. Citizen$560,000$448,00080%2.375%
TermAddressProperty TypePurposeLoan Type
15 year fixedTempe, ArizonaSingle-Family HomeRefinanceResidential

Buying a new home? Why a ‘Pre-approval’ can help you with your search.

advisor mortgage group

A pre-approval denotes an official letter from the mortgage lender outlining the maximum mortgage amount they are willing to lend you. It’s not a commitment but only a rough estimate of the loan that you may borrow from that organization, the possible interest rate, and the monthly installment figure.

You can get the pre-approval document by filling up a loan application. The lender will ask you to submit some paperwork, including pay stubs, credit check, bank account statements, tax returns, and W-2 statements. An officer will look into the information provided and give you a written statement detailing the mortgage amount you are qualified to borrow.

A pre-approval does not guarantee the approval of a loan. It just means that the lending company has looked into your assets and other aspects of finances and chalked out the sum of a loan against that credit history.

At America Mortgages, we approve over 97% of all applications. Some of our loan programs don’t even require verifying the applicant’s income! Mortgage pre-approvals have an expiry duration, ranging between 30 and 90 days, depending on the lending company. Meaning, you will need to find a home and apply for the loan within that expiry window. Upon the pre-approval document’s expiration, you will need to apply for a new one that may affect your credit score a bit.

A pre-approval solidifies your financial stability and seriousness to the house seller. You can stand ahead of other potential buyers in a competitive market. This will particularly help first-time homebuyers to convince the seller that they are ready to put in an offer. Some people confuse between pre-approval and prequalification. However, the latter does not have much credibility since it does not involve a thorough investigation into your incomes and credit score.

Family Office in Asia purchases Multi-Family residential building in San Francisco.

mortgage specialist

The Client

A Family Office based in Singapore has been actively shopping for yielding assets in the U.S. Given the recent weakness in San Francisco, the Family Office bought the building at 27% below the peak of 2019.

How We Helped

The borrower was an overseas company with no U.S. footprint and could not find any lenders willing to underwrite the loan. The lead came from a private bank that referred us to the client.

High Net Worth investors require a level of sophistication and professionalism which is why so many private banks are comfortable with us handling their clients.

We were able to secure a 5-year term with 25-year amortization with one of our lending partners that underwrote solely to the stabilized property. The borrower will now be able to generate a U.S. net worth which will open up further financing options for their next property.

Loan Details

NationalityProperty ValueLoan AmountLTVRate
Singapore registered
corporate entity		6,200,0002,790,00045%5.875%
TermAddressProperty TypeLoan TypeHome use
5 yearsSan Francisco,
California		Multi-Family BuildingPurchaseCommercial