Author: Premela R.

Have you been turned away by U.S. banks because of foreign-earned income? Can’t get a mortgage due to having no U.S. credit history? America Mortgages not only understands, we have lived it. Founded by two American expats, America Mortgages’ loan programs are tailored and specific to non-U.S. residents, whether they are foreign nationals, green card holders, or U.S. expats. 

Many overseas investors face challenges when trying to invest in U.S. real estate. Traditional lenders often ask for U.S. credit scores, tax returns, and strict income rules, which makes it hard for international investors to qualify for loans — even when they are more qualified than many U.S. borrowers. 

Having access to leverage in the world’s largest and most stable real estate market should be straightforward, logical, and affordable. But it’s not…until now! 

At America Mortgages, we accepted the challenge of making U.S. mortgage financing available for global real estate investors. That’s why we offer common sense underwriting. Instead of focusing on U.S. credit scores or tax returns, we look at the property’s cash flow and your ability to make payments. This approach makes it easier for foreign nationals and U.S. expats to secure a mortgage and invest in U.S. real estate. 

The Problem with Traditional Underwriting

One of the biggest challenges for international investors is that traditional underwriting relies on U.S. financial records like credit scores and tax filings. For foreign nationals who don’t have U.S. credit, this is a major roadblock.

Even U.S. expats, who may have great credit, can face problems because their income comes from outside the U.S. or they don’t receive a W2 (end-of-year statement). This can lead to rejections or less favorable loan terms, regardless of their relationship with U.S. banks.

Traditional U.S. bank underwriting doesn’t fit the needs of most international investors, creating unnecessary obstacles, stress and complexity when investing in U.S. real estate.

International Mortgages for U.S. Properties:

In certain countries such as Canada, some banks may offer U.S. mortgage financing but it comes with limitations and challenges. Besides impacting the local debt-to-income ratio in their home country, there are limitations on loan-to-value (LTV) and potentially the type of property and location. 

As America Mortgages uses onshore U.S. funding, it does not reflect nor impact the borrower’s home country’s credit report. 

What is Common Sense Underwriting?

America Mortgages uses a different approach with common sense underwriting. This system is built to help foreign nationals and U.S. expats, focusing on the property’s rental income instead of relying on U.S. credit scores and tax documents. This makes it easier for U.S. expat and foreign national investors to get qualified.

Introducing Two New Loan Programs: AM Complete and AM Expanded

AM Complete and AM Expanded – these loans are built on common sense underwriting, meaning they focus on the rental income of the property, not the borrower’s credit history or personal income. 

What Can These Loans Be Used For?

• Property Purchase: Whether you’re buying your first investment property or expanding your portfolio, our loans can be used for property purchases.
• Equity Release / Cash-Out: If you already own U.S. property and want to access the equity, you can use these loans for cash-out refinancing, giving you the flexibility to use the funds as needed.

AM Complete Loan Program

The AM Complete loan is designed for foreign nationals and U.S. expats focusing only on the property’s cash flow, not your U.S. credit history or tax returns.

Key Features:

• Loan amounts from $150,000 to $3.5M
• Up to 80% LTV for U.S. Citizens and 75% loan-to-value for Foreign Nationals 
• No U.S. credit required for Foreign Nationals 
• Interest-only option for the first 10 years, which helps increase rental yields
• Can be structured for individuals, entities, or trusts
• Fast, stress-free closing times

AM Expanded Loan Program

The AM Expanded loan is for investors with smaller to medium-sized loans. This program is excellent for those who may not meet strict traditional lending rules for income and property values. Like AM Complete, it focuses on the property’s rental income, not the borrower’s personal income. 

Key Features:

• Loan amounts from $55,000 to $2M
• Up to 75% LTV for U.S. Citizens, 70% for Foreign Nationals 
• Interest-only option for 10 years, which helps increase the rental yields
• Available only to U.S. entities such an LLC (not individuals)
• Requires proof of 12 months of payments (non-encumbered)
• Fast, stress-free closing times 

Why Common Sense Underwriting Works

Common sense underwriting is easier and more practical for foreign nationals and U.S. expats. America Mortgages looks at all investment property as a cash-flowing asset. If the rents cover the mortgage, then the loan will qualify. 

• Focus on Rental Income: The property’s rental income is the main focus, not your personal income, making it a straightforward way to qualify.
• Simple Process: With fewer paperwork requirements, such as tax returns, loans get approved faster.
• More Access: Common sense underwriting opens U.S. real estate to global investors by making it easier for investors to qualify for a U.S. mortgage.

If you’re a foreign national or U.S. expat looking to invest in U.S. real estate, America Mortgages is here to assist. Our AM Complete and AM Expanded loans offer flexible and straightforward solutions focused on rental income and cash flow, making it easier for international investors to invest in the U.S. real estate market.

You can speak to a loan officer anytime by calling us at +1 (845) 583-0830 or schedule a no-obligation meeting using our 24/7 calendar link. We’re ready to help!

www.americamortgages.com

Great news! America Mortgages is proud to announce that we are now a direct mortgage lender. Whether you’re a foreign national, U.S. expat, new to real estate investing, or a seasoned investor, this means faster processing times, better rates, and more control over the loan process.

One of our key offerings is our improved cash flow loan, the AM Rental Coverage+ loan program.

How it Works

If you were to buy a commercial building that relied on cash flow, you wouldn’t qualify using your personal income. That just wouldn’t make sense. That is how we look at buying an investment property which has or will have cash flow. That makes sense!  

Our rental coverage loan is a straightforward way to evaluate a property’s ability to generate enough rental income to cover its mortgage payments. At America Mortgages, we offer rental coverage loans designed specifically for investors, removing the need for personal income documentation. Instead, we focus on the property’s ability to generate rental income, simplifying the approval process. Common sense underwriting! 

How to Qualify Without Showing Personal Income

At America Mortgages, we understand that real estate investors want smarter ways to obtain mortgage financing. The old days of translations of tax returns, conversions of funds, Requirements for a U.S. bank account, U.S. footprint, etc., are no longer required!

Regardless if you’re a foreign national or U.S. expat, the AM Rental Coverage+ loan program gives you the flexibility of fast underwriting, quick decisions and a variety of terms. 

What is needed to qualify:

• No income tax returns or pay statements required: Instead, qualification is based on the projected or current rental income of the property using a 1:1 ratio. 
  
• Focus on property income, not personal income: You don’t need to provide proof of personal income, making it easier for foreign nationals and U.S. expats with foreign-earned income.
  
• No U.S. credit required: If you’re a U.S. Expat, you’ll need to have U.S. credit. If you’re a non-U.S. citizen / Foreign National – No U.S. credit is required!
  
• Proof of funds: Provide two months of bank or financial statements showing you have sufficient funds for your down payment and closing costs. Foreign banks allowed. 

It’s that simple!

Why U.S. Real Estate?

The U.S. real estate market is the largest and the most resilient in the world. Every year, non-U.S. residents purchase a minimum of $50B worth of U.S. residential properties. What do they know?

Here are a few key reasons:

• No Stamp Duty: Unlike many other countries, the U.S. does not impose stamp duty on property purchases, lowering your upfront costs.
  
• Favorable Tax Laws: The myth that U.S. taxes eat up all property yield is exactly that, a myth. In fact, it is the exact opposite. For U.S. Expats and Foreign Nationals, U.S. tax regulations are designed to benefit real estate investors, including favorable depreciation and deduction rules.
  
• Ownership Flexibility: Investors can choose to own properties individually or through entities such as LLCs, which provides flexibility in management, liability, and tax advantages.
  
• Stable Market: The U.S. real estate market remains a reliable investment, known for its stability and long-term growth.
  
• Top Rental Yields: U.S. real estate offers some of the best rental yields globally, making it an attractive option for investors.
  
• 30-Year Fixed Loans: The U.S. is one of the only countries that offers 30-year fixed-rate loans, giving investors long-term security and predictability, regardless of the borrower’s age.
  
• Interest Only: You have the option to choose between a traditional principal and interest loan or the flexibility of an interest-only option fixed for 10 years—a powerful way to optimize yields.
  
• Low Barrier to Entry: With loan amounts as low as $100,000 and LTVs as high as 80%, anyone can build wealth as a U.S. real estate investor.

What Does This Mean for You?

With America Mortgages now lending, we can provide even better loan options for global investors. Our AM Rental Coverage+ loan program is designed to give you the flexibility and ease you need when investing in U.S. real estate.

Key Loan Program Details:

• Property Type: 1-4 unit properties.
• Minimum Loan Amount: US$100,000.
• Loan-to-Value: Up to 80% for purchases and 70% for cash-out refinances.
• Underwriting: Based on the property’s rental income, with no personal income required.
• Credit Requirements: No U.S. credit required.
• Closing Time: Quick, with closings in 30-45 days.

Is Now the Time to Invest or Wait for Further Rate Cuts?

Everyone is aware of the recent 50 basis point cut on September 18th. It’s likely rates may decrease further. If you’re waiting for additional rate cuts, you’ll likely be joining the millions of U.S. owner-occupied borrowers who are also waiting. In our opinion, with America Mortgages’ creative loan programs, very favorable current rates and the fact it is still a “Buyer’s Market”, now is the time to strike. If rates decrease again, it will likely trigger the pent-up demand which has been brewing amongst all buyers. Once owner-occupied and investor buyers flood back into the market, it will likely increase prices, limit availability and turn the market back into a “Seller’s Market”.  

America Mortgages has one job – helping foreign nationals and U.S. expats secure U.S. mortgages. To learn more, feel free to contact us at [email protected], visit our website at www.americamortgages.com or if you are ready to apply for a U.S. mortgage, you can use our secure application to apply.

If you’d like to discuss U.S. mortgage loans in more detail, you can reach a U.S. loan officer 24 hours a day, 7 days a week at +1 845-583-0830 or schedule a no-obligation meeting using our 24/7 calendar link.

www.americamortgages.com

As the 2024 presidential election approaches, the potential impacts on the U.S. housing market are at the forefront of many investors’ minds. Whether Donald Trump or Kamala Harris wins the presidency, the policies and economic strategies of the next administration will undoubtedly influence the real estate landscape, especially for U.S. expats and foreign national investors.

Trump Wins! What’s Next for the Housing Market?

A Trump victory could bring significant changes to the U.S. housing market. Trump’s approach is likely to focus on deregulation and tax cuts, which could stimulate real estate investments. Experts suggest that Trump’s policies might lead to a surge in refinancing and home sales, particularly if he influences the Federal Reserve to lower interest rates. However, while deregulation could boost the housing supply, it may also lead to increased inflation and higher interest rates over time.

Key Predictions:

• Deregulation: Potentially easier building and zoning regulations, increasing the housing supply.
• Economic Policies: Tax cuts and business incentives may boost demand for homes.
• Interest Rates: Potential for lower interest rates, encouraging more real estate investments.

Harris Wins! What’s Next for the Housing Market?

In contrast, a Kamala Harris presidency is expected to emphasize affordable housing and economic equity. Harris is likely to continue the current administration’s policies, focusing on capping rent increases and supporting affordable housing projects. While these policies could stabilize housing prices and make homeownership more accessible, they may also introduce tighter regulations, potentially slowing down real estate investments. Additionally, the higher interest rates seen under the current administration may continue, which could temper the housing market’s growth.

Key Predictions:

• Affordable Housing Initiatives: Increased support for affordable housing projects and first-time homebuyers.
• Economic Stimulus: Continued government spending on infrastructure and social programs, potentially boosting housing demand.
• Interest Rates: Higher borrowing costs could slow the pace of home price increases.

What This Means for U.S. Expats and Foreign National Investors

Both election outcomes present unique challenges and opportunities for U.S. expats and foreign national investors. Under a Trump administration, the potential for deregulation and lower interest rates could accelerate market growth, making it an opportune time to invest in U.S. real estate. Conversely, a Harris administration might focus on long-term stability and affordability, which could benefit investors looking for sustainable, socially responsible opportunities.

Regardless of the election outcome, America Mortgages remains committed to supporting non-resident investors in navigating these changes. Our loan programs are designed to cater to the unique needs of international investors, offering tailored solutions whether you’re looking to capitalize on a booming market or secure a stable, long-term investment.

Featured Loan Program: AM Investor +

• Property Type: Single-family homes, Multifamily, Condo, apartments, second/holiday homes, investment properties.
• Minimum Loan Amount: US$150,000
• Loan-to-Value: Up to 75% for purchase & 70% for cash-out
• Underwriting: Based on an income letter, not personal tax returns
• Credit Requirements: No U.S. credit required
• Tax Requirements: No tax returns required
• Closing Time: 30-45 days

Whether Trump or Harris takes office, we believe the U.S. real estate market has outperformed the last few years. 

With the projected rate cuts and housing shortage, we are looking at a red-hot real estate market! 

America Mortgages isn’t merely a mortgage provider; we are your trusted partner in navigating these changes and achieving your investment goals. Your success is our success. 

For more information about our loan programs and how we can assist you, Contact our experienced loan officers today via our 24/7 link to start your U.S. real estate investment journey. Alternatively, you can reach us at +1 (845) 583-0830 24 hours a day/7 days a week.