Our client is a lawyer for a U.S. internet company in their Singapore office. They saw our flyer at the American Club and reached out to learn more.
How We Helped
The only thing we had to say is that we offer the same programs as you would find in the U.S., and that there’s a good chance we could even find something lower.
The fact that he could meet us in person already convinced him to use our services.
Homeowners insurance is the insurance policy that ensures the protection of a home and its belongings from specific damages. You can take the insurance for a certain period and pay the provider’s fixed monthly premium.
Standard home insurance is likely to cover your property from the damage caused by perils like storm, wind, hail, fire, theft, and more. Each coverage requires careful research and your living area’s climate condition to decide what to keep and what not.
There is no legal obligation for a homeowner to get homeowners insurance. However, the lender may demand you to have a standard policy, at least during the mortgage period. It is also common to have a policy since it will help you recoup some financial losses after an accident. It would help if you also remembered to review the policy periodically and add and deduct the necessary clauses required for the protection of your house.
An adjustable-rate mortgage (ARM) refers to a mortgage with variable interest rates, which change regularly after an initial period. It fluctuates with the market interest rates, offering either a financial gain or loss to the borrowers. This is in direct contrast with the fixed-rate mortgage rules that impose a fixed interest rate for the entire repayment period.
Each ARM loan has an introductory period from 3 to 10 years where the interest rate stays lower than that of any fixed-rate mortgage. It’s possible to save a lump sum of money if you can settle the loan within that primary window.
After the initial fixed-rate period, an ARM’s interest rate will depend on the current market rates, meaning the rates can rise or fall over the mortgage’s remaining course. The lender will revise the rate at regular intervals, possibly once a year, and adjust it to the current market rate until the end of the term. To avoid paying extra money in rising interest, you can either sell the house or refinance the loan.
America Mortgages offers standard 5 and 7-year adjustable-rate mortgages (ARM) that you can qualify easily without going through much paperwork. You can also refinance if your home’s market price is at least $150,000 or pull out cash of the home equity.
An ARM might be the right choice if you can pay the loan off during the initial cap or don’t plan to live in the same house for your entire life. Ask the lender about the loan’s margin, the factors related to rate changes, and the intervals of rate changes to see if you can afford the calculated monthly installments.
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.
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.
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.
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.
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.
Year
Number of P.R.’s Issued to H.K. Citizens
2016
1,360
2017
1,360
2018
1,525
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%)
Here is just a small sample in (no particular order):
Location
Rental Yield
Home Value Increase
Arlington, Texas
7.5%
10.3%
Columbus, Ohio
7.9%
9.2%
Las Vegas, Nevada
5.3%
15.9%
San Antonio, Texas
6.4%
8%
Orlando, Florida
5.7%
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!
Location
Enquiries
Loan Processing
U.S.
12
10
U.K.
8
5
Canada
8
7
Australia
6
3
Japan
6
4
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.
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.
America Mortgages Inc. is a mortgage broker focusing only on U.S. Expats and Foreign Nationals living overseas. We offer over 150 U.S. bank and lender programs direct to our international clients. America Mortgages is wholly-owned by Global Mortgage Group Pte. Ltd. an international mortgage specialist based in Singapore.
