America mortgages

Portfolio Loans

Real estate investors looking to scale quickly and expand their residential investment portfolio often run into the same problem fairly quickly – too many financed homes. Most conventional lenders in the U.S. will allow borrowers up to 5 or 10 financed properties either with that lender or financed in general. After that, the available financing is limited or non-existent conventionally. This limits the investors’ ability to scale and grow their real estate portfolio without having more equity. Usually, releasing more equity is either not available or too expensive to make the numbers work. This is exactly where portfolio loans come into play.

What are the basics of portfolio loans?

Portfolio loans cross-collateralize several different properties and can be used to either purchase, refinance, or release equity from a portfolio of stabilized investment properties. Most portfolio lenders have a minimum of 5 properties and a USD $500,000 loan minimum – there is no maximum number of properties or loan amount. This, in turn, helps the investor avoid the 5 to 10 financed properties limitation that conventional lenders have and will instead consolidate them into one loan.

Here are 5 reasons how a portfolio loan is able to help an investor solve the issue of having too many financed homes, and grant them the ability to scale on their own terms and pace.

Top 5 Benefits of a Portfolio Loan:

  • – No capital or property financing restrictions
  • – Portfolio specific underwriting – no personal income underwriting
  • – Non-recourse and interest-only options available
  • – Flexibility and competitive structures with higher leverage and longer amortizations
  • – Ease of managing one loan versus many individual loans

With the underwriting criteria in the investment property market continuing to tighten among traditional lenders, the portfolio option provides a streamlined underwriting approach that focuses mainly on the cash flow of the specific properties.

Portfolio Loan Interest Rates

More often than not, the loans are offered non-recourse, allowing the investor to keep a separation between personal and business assets, with no requirements to document the borrowers’ personal income. For investors focused on monthly cash flow, interest-only options are available.

With the recent news of Fannie Mae‘s reduction in interest in the investment real estate market and the resulting interest rate increase on investment property loans, the portfolio loan terms are usually more competitive from a leverage and pricing standpoint as a conventional investment property loan, with much more streamlined underwriting and less documentation required.

We believe portfolio loans will continue to be a top financing option for clients looking for increased leverage, competitive pricing, and flexibility when looking at options for their real estate portfolio. Our team is available to review the specific scenario and terms best suited for you. Find out all about your mortgage options when you schedule a 15-minute call with our U.S. Mortgage Specialist here: [email protected].

International Mortgage Specialists

The number of luxury home sales rose 41.6% in the first quarter of 2021. According to Redfin, “luxury” homes sell for an average of $975,000, while “expensive” homes sell for an average of $429,000. Low interest rates and record-low home prices are helping many Americans buy high-end houses. This strategy is also helping millennials avoid expensive cities like San Francisco and New York.

Despite high-end properties that are over the asking price are getting multiple offers, according to Redfin agent Katy Polvorosa.

As we see it, it seems like the right time to invest in U.S. real estate in Texas, Florida, and Colorado. Aside from the higher rental yields, these states can provide improved cash flow to investors.

“This is consistent with what we see in America Mortgages, especially with foreign nationals looking to buy investment properties, mainly in Texas and Florida.”

Robert Chadwick

Texas Real Estate

Due to its diverse economy, Dallas real estate is very attractive for people of all income levels. Its low homeownership rate makes it the perfect place to invest. As interest rates rise, renting is becoming more affordable than buying. The demand for rental units has increased over 14% within the last year, making it perfect for investing in Dallas real estate.

Austin, Texas, is also another excellent place to invest in real estate. In the last 5 years, it has come to be known as another tech hub making its housing market very sizable. Its home values have more than doubled since 2010.

There are tons of high-paying tech jobs in Austin. As Austin is getting older, Millennials will become the largest buyers and renters in 2021, and this trend will continue. We believe investing in Austin real estate is a great market, as there is a huge scarcity of homes for sale in Austin, and more Millenials don’t see a value in owning.

Why should you invest in Texas properties?

The Texas real estate market has plenty of investment properties for sale. The real estate market in Dallas, Austin, and Houston is very active, and volumes of trade are high, and housing stock moves fast. This means it is relatively easy to exit investments and find a buyer for your home.

Florida Real Estate

In 2021, Florida is one of the best places to invest in real estate. This metropolitan area is also one of the most visited tourist attractions in the U.S. There are plenty of opportunities in this real estate market. Investors have a choice of targeting the long-term residential or holiday markets with their properties. Both offer strong returns.

Why invest in Florida Real Estate?

Florida’s real estate market is known to some as the hottest real estate market in the U.S. The housing market in Orlando, Tampa Bay, Lakeland, and Ocala is still growing steadily, with prices remaining low. Properties have a good chance of appreciation in the next couple of years. There is a huge demand for single-family homes in Florida, and with a strong renters market, we think this is a great place to invest in real estate and reap its yields and benefits.

Colorado Real Estate

Colorado Springs is a great place to invest in real estate in 2021. Its robust real estate market has continued to grow at a fast pace.

Colorado Springs’s real estate market is relatively affordable, with a median home price of around $320,000 and a monthly rent of approximately $1,600. Its proximity to Denver will make it more attractive to people looking to buy a home there. It is also important to note that the average home price in Denver in 2018 was $500,000. In short, you can buy two homes in Colorado Springs for the price of one in Denver.

Compared to other states, Colorado Springs has proven to be one of the best places to invest in rental real estate. What better time to do this than now when mortgage rates remain low?

At America Mortgages, we have eliminated many unnecessary steps to create a simple and easy process for our clients. We focus only on U.S. Expats and Foreign Nationals living overseas, and we offer over 150 U.S. bank and lender programs direct to our international clients. Our team of U.S. mortgage specialists are ready to help you! Schedule a call with us today!

For more information, please contact [email protected].

Sources: HousingWire & Redfin

Investment Property

Rental prices are bouncing back! We see the biggest single-month increase in rent prices since the beginning of the global pandemic. Apartment rental app Zumper reports that the price of a one-bedroom unit increased by 1.1%, and the average rent for a two-bedroom apartment in February rose 0.9%.

Through last year, Covid-19 disrupted the rental scene drastically. One-bedroom units in New York and Maine saw significant drops in rent prices. Even states like Massachusetts, Connecticut, Maryland, and Virginia also saw median rent prices go down during the pandemic’s peak.

There’s still good news for U.S. real estate investors as in just 2 months into 2021, low rental rates have finally reached the bottom. In some cases, like New York City, San Jose, and Boston, it is actually the first time rental prices have increased since the first quarter of 2020.

We think these events have presented an excellent time to secure an investment property or second home. Besides being able to take advantage of the higher rental yields and improved cash flow, property values in these states will likely correct up as the market heats up this summer. What better time to do this than now?

The increase in rates is largely tied to the uptick in mortgage rates that has slowed down the demand for new home purchases and refinances. Notably, year-over-year rate comparisons show that in major cities, there are still some great deals available. In San Francisco, the average one-bedroom is now 24.3% more affordable than it was a year ago, and two-bedroom rentals are 23.6% cheaper.

America Mortgages is committed to helping our clients find the best mortgage solutions. Keen to know what your mortgage options are? With a 97% approval rate for both U.S. Citizens & Foreign Nationals, our global team of U.S. mortgage specialists are ready to help you! Find out all about your mortgage options with us today!

For more information, please contact [email protected].

Sources:Fortune

Great Real Estate Reshuffling

According to a survey by Zillow, 1 in 10 Americans has moved in the past 12 months. With the COVID-19 vaccine implementation and the economy and housing market recovering, Zillow predicts that this number could increase to more than 40 percent in 2021; this means that millions of households could enter the housing market in 2021.

What prompted the Great Reshuffling?

A significant cause of the Great Reshuffling is due to the fact that work-from-home became a norm during the pandemic. Homebuyers quickly caught on to the fact that they can live and work in their dream home and location as long as they have an internet connection. Approximately 75% of those surveyed reported moving for positive reasons, such as being closer to their family, friends, or simply living in their desired part of the country.

Many cities, known as “secondary cities” across the country, have seen a massive influx of movers looking to take advantage of bigger homes with lower prices. According to Zillow, there has been an uptick in the number of people moving to the South over the past year.

The rise in people moving to more affordable areas has triggered a wave of first-time buyers. This is especially true in Phoenix, Charlotte, N.C., and Austin. Zillow’s data also showed the highest for-sale inventory climb in 4 major real estate areas – Los Angeles, Chicago, San Francisco, and New York.

We see this as an excellent opportunity for real estate investors, as over the past couple of months, the housing markets outside of the urban areas have flourished. “We have created a process specifically for our overseas clients which is easier, faster, and more transparent than international banks.” Robert Chadwick, Co-Founder of GMG and America Mortgages.

At America Mortgages, we understand our global clients’ needs, and we provide solutions to match their needs. We make investing in U.S. real estate easy. Schedule a call with our mortgage specialists today.

For more information, please contact [email protected].

Sources: Housingwire.com & Realtrends

mortgage specialist - USA Mortgage as a Non-Citizen

The “Roaring 20’s” is often considered as one of the most prosperous times in the West. WWI had just ended, and the housing market’s growth, the development of infrastructure, telephone networks, automobiles, etc., was the centerpiece of growth. America’s wealth more than doubled in the years between 1920 and ’29 with most of the wealth invested into finance and industry but there was enough trickle-down to lower-income earners to help buoy a new consumer culture.

Doesn’t this sound familiar?

In 2020, FAANG stocks (our version of industrial stocks in 1920s) doubled as well!

FAANG stocks Graph

Meanwhile, as the world heads towards being incrementally more vaccinated, we are seeing inflation expectations rise, the first wage growth in over a decade, and a potential $3T infrastructure plan in the U.S. which draws some comparisons to FDR’s The New Deal.

Personally, I find it remarkable how the global macro narrative has shifted 180-degree only one year out from the start of a global pandemic, and also not far from when the discussions among leading economists were ‘when’ deflation would happen, not if. Now consensus, in under 12 months, has gone from deflation to inflation.

If you are looking for evidence that inflation is back, look no further than housing prices. Knight Frank reports that worldwide home prices rose 5.6% in 2020, and CoreLogic says U.S. home prices increased 10.4% year-on-year in February 2021, the highest in 15 years!

Taking some data points from Knight Frank’s survey, look at the annual % change in home prices in the major cities that Global Mortgage Group offers mortgages in.

Can you guess which city had the highest growth in the U.S., U.K., France, Canada, Australia, and Singapore? Read here to find the answer!

U.S.
Phoenix, California+14%
Seattle, Washington+13%
Los Angeles, California +10%
New York City, New York+10%
Atlanta, Georgia+8.9%
Dallas, Texas+8.4%
Miami, Florida+9.2%
Switzerland
Geneva, Switzerland+7%
France
Lyon, France+8.9%
Paris, France+7.7%
Australia
Sydney, Australia+4.5%
Brisbane, Australia+4.2%
Melbourne, Australia +3.6%
U.K.
Manchester, UK+8.7%
London, UK+4.3%
Canada
Montreal, Canada+15%
Toronto, Canada+10%
Vancouver, Canada+7%
Singapore
Singapore+2.2%

For more information, please contact [email protected].

Sources: World Property Journal, High Finance, History.com

mortgage advisors

Dear Friends of Global Mortgage Group,

We are excited to announce that we are officially rebranding our U.S. mortgage business to America Mortgages on April 13th.

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.

Here is the link to our new website where you will find new information about our company, loan programs, our new expanded team globally, as well as hundreds of new Articles, Mortgage IQ, Case Studies, and Think Pieces in our Learning Lab section.

New Business Initiatives

America Mortgages will be expanding our licensed mortgage offerings as well as applying to become a direct wholesale mortgage lender. This will enhance our already comprehensive US loan programs with more flexibility, better pricing, and qualifying options than ever before. These programs will be announced as they are finalized, so continue to watch this space.

Technology

Our technology plan remains unchanged, and we will launch our API this year where our global partners can connect to our platform and offer U.S mortgages directly on their own website.

Lastly, as many of you know, our ultimate goal is to use technology to further streamline the mortgage journey for our international clients, from origination directly to underwriting. Our software is currently in development which will serve as the backbone of our connectivity. Here is a link from our DemoDay in Seoul in 2019.

Since we only focus on Foreign National and U.S. Expats living overseas, we have already streamlined an existing process by working directly with our investors to create loan programs specifically for our clients, which has eliminated many unnecessary steps. We expect our technology and process to further improve processing time by up to 80%!

Global Mortgage Group

GMG will be rebranded to an international real estate financing specialist where we connect our clients around the world with our network of banks, private lenders, private banks, family offices, and investment funds for their real estate financing needs.

Not only will we continue to offer residential mortgages to the: UK, France, Canada, Australia, and Singapore, we will further expand our already-active coverage of high net worth clients, in Asia, by offering bespoke real estate financing solutions.

As we continue on our journey to improve how international investors finance their overseas real estate investments, we are thankful for the support over the years from our clients from 34 countries around the world (and increasing)!

If you would like to learn more, please don’t hesitate to call us.

Sign of Robert Chadwick

Robert Chadwick
Co-founder

Sign of Donald Klip

Donald Klip
Co-founder

Have an enquiry about International or U.S. Mortgages?

Contact us:
To Schedule a call: Click here
WhatsApp: +65 8499-3229 (Singapore)
Email: [email protected] / [email protected]

mortgage advisors

The Client

Our client saw our ads in the local papers and reached out to enquire about a mortgage. We were told that the current political climate in Hong Kong has made many locals look into overseas options.

How We Helped

While we don’t normally advise where to purchase, we noticed that many of our overseas investors looking strictly at rental yield tend to choose Texas.

Texas is a very popular market for overseas real estate investors and local U.S. real estate investors, so our client wanted to get pre-approved before making any offers on the property. We were able to pre-approve the client and issue a letter. Once he identified a property, he supplied the pre-approval letter giving both himself and the seller the confidence he had his mortgage financing worked out in advance.

Getting pre-approved and underwritten for a loan is a great way to start the process for anyone thinking of investing in U.S. real estate.

Loan Details

NationalityProperty ValueLoan AmountLTVRate
Hong Kong Citizen$375,000$262,50070%4.875%
TermAddressProperty TypePurposeLoan Type
30 year fixed (regardless of the borrower’s age)Dallas, TexasSingle-Family HomePurchaseResidential
America mortgages

The Client

Our client had read about the tight housing supply in major college towns. He did some research and found Philadelphia as the best value.

How We Helped

Our client wanted to purchase a duplex very close to a university where he could rent to students. He had no U.S. credit, and to add to the complexity, he was self-employed and didn’t show his true ability to service the debt. We were able to get him 75% financing using his U.K. credit, and the debt servicing was structured solely around the projected rental income of the property he was buying.

Loan Details

NationalityProperty ValueLoan AmountLTVRate
U.K Citizen$260,000$195,00070%6.125% Interest servicing only payments
TermAddressProperty TypePurposeLoan Type
5/1 ARMPhiladelphia, PennsylvaniaDuplex ResidencePurchaseResidential
advisor mortgage group

The Client

Our client had a limited budget and nothing available back home or in Munich in his price range. He found a small Single-Family Home in Dayton, Ohio, and came to us about a loan.

How We Helped

Our client had two rental properties in Germany that yielded 1% on average and had appreciated less than 8% over a 10-year period. He wanted to put his money to better use, and after extensive research on various global markets, he picked Ohio. As he was referred to us by a colleague who had closed a loan with our parent company GMG last year, he knew the type of financing we could arrange.

No U.S. credit. No U.S. income. Limited down payment. No problem. We were able to arrange 70% financing and closed the purchase within 33 days of entering the contract.

Loan Details

NationalityProperty ValueLoan AmountLTVRate
Swiss Citizen$145,000$101,50070%5.875%
TermAddressProperty TypePurposeLoan Type
30 year fixedDayton, OhioSingle-Family HomePurchaseResidential