U.K. Alert – Top 5 Q&A Regarding U.S. Real Estate

Did you know? Non-U.S. resident investors purchased $59 billion worth of home purchases in the past year, a 9% leap from 2021, according to a report from the National Association of Realtors. 

We asked 387 of our U.K.-based readers their top 5 questions regarding purchasing an investment property in the U.S. 

Below, we answer those questions.

1. Can U.K. citizens buy property in the United States?

Yes, U.K. citizens can purchase property in the United States. It’s very straightforward. U.K. citizens can qualify for a mortgage in the U.S. with America Mortgage’s F.N. Investor + loan program. Borrowers can get pre-approved for a loan within 24 hours of application! What makes the U.S. unique from many other countries, the U.S. does not have any laws which prohibit or limit the ownership of U.S. real estate. 

2. What documents are required for British citizens to apply for a U.S. mortgage?

The loan document requirements are based on the loan program the client qualifies for. America Mortgages’ approval rate is 97%, so we can almost certainly find a solution for our clients. Below are a sample of two of our most popular loan programs for non-resident U.S. real estate investors;

America Mortgages Investor + 

  • Income letter by either the borrower’s employer or if self-employed, accountant (purchase, equity release, cash-out, or refinance).
  • Credit report from client’s home country (must be translated to English). U.K. credit report is perfect; however, if the client has credit in another country, that will also be okay. 
  • Two months’ bank statements (foreign bank accounts allowed).
  • Passport. 

America Mortgages Investor

  • Qualify ONLY on the rental income of the property (purchase, equity release, cash-out, or refinance).
  • Credit report from client’s home country (must be translated to English). U.K. credit report is perfect; however, if the client has credit in another country, that will also be okay. 
  • Two months’ bank statements. 
  • Passport.

3. Where do U.K. Citizens buy property in the U.S., and what do they use it for?

U.K. citizen property ownership in the U.S. is evenly split between suburban/resort areas (45%) and rural/urban areas (55%). Top states include:

U.K. citizens use their U.S. properties as investments, second homes, and Airbnb:

4. What is the average purchase price of houses in the U.S. purchased by U.K. citizens?

The average purchase price of houses in the U.S. purchased by U.K. citizens is $718,800, and the median purchase price is $366,600. With a total of 2.7 billion U.S. dollars annually, the United Kingdom was one of the top foreign buyers of residential real estate in the U.S. in 2021.

5. Do U.K. citizens pay the same mortgage rates as U.S. citizens?

Non-U.S. citizens may face slightly higher mortgage rates with a minimum down payment of 25%. What makes the U.S. unique from many countries is there are no age limitations on a mortgage. This means a borrower, 19 or 99, gets to take advantage of the same long 30-year tenure (fixed or adjustable). 

Overall, with America Mortgages’ Foreign National loan programs, clients do not need U.S. credit to apply for a U.S. mortgage for foreign investors. We accept international credit reports from your home country or country of residence. 

As a company, America Mortgages’ only focus is providing market rate mortgage financing for foreign nationals and U.S. Expats. 100% of our clients are living and earning their living outside of the U.S. We have loan officers in 12 different countries speaking your language, in your time zone. If you’d like to learn more about our loan programs, please email us at hello@americamortgages.com.