Author: Premela R.

Rent’s are Red Hot, Is Your Portfolio?

International Housing Loans | Home Loan in America

The U.S. housing market is seeing changes as the summer season winds down, and certain cities are standing out as the hottest markets. According to U.S. News & World Report, Austin, Texas, and Kansas City, Missouri, tied for the top spot, according to the U.S. News Housing Market Index (HMI), which ranks areas based on demand, supply, and financial data. As 30-year mortgage rates drop 50bps for the first time in years, buyers and sellers are feeling hopeful for a market rebound.

The Top Housing Markets in the U.S.

  1. Austin, Texas – HMI Score: 72.8

    Austin is booming with job growth and a steady influx of new residents. It has strong demand, with very few rental properties sitting vacant and a demand score of 82.2. While the median home price dropped to $453,000, Austin remains popular thanks to its diverse economy and cool cultural vibe.
     
  2. Kansas City, Missouri – HMI Score: 72.8

    Tied with Austin, Kansas City has seen a rise in demand driven by its affordability. The median home price here went up by 5.7% to $350,000, making it a hot market for buyers and investors. The city has a strong job market and tight housing supply, with just 1.8 months’ worth of homes available.
     
  3. Philadelphia, Pennsylvania – HMI Score: 72

    Philadelphia has seen renewed demand thanks to its affordable housing and access to jobs. The city’s mix of affordability and urban lifestyle has made it one of the most resilient housing markets, attracting more people each year.
     
  4. Omaha, Nebraska – HMI Score: 71.9

    Omaha shines with great financial numbers, scoring 95.4 in the financial category. It’s a very affordable market, and Omaha’s steady job growth makes it a great choice for homeowners and investors.
  5. Houston, Texas – HMI Score: 71.8

    Houston rounds out the top five with high demand and solid financial stability. The city offers affordable housing prices and job growth, making it attractive to renters and buyers.

What’s Driving These Markets?

The cities at the top of this list share common features: growing job markets, affordable housing, and a steady supply of homes. Cities like Austin and Kansas City provide a nice balance of urban amenities without the high prices you’d find on the coasts.

Housing Trends to Watch

According to U.S. News & World Report, it’s good to keep an eye on markets like Denver, North Port (Florida), and Durham, North Carolina, which have all improved in their rankings between December 2023 and June 2024. Baltimore and New York City are also seeing rising demand, even as the economy fluctuates.

As the housing market stabilizes, expect Austin, Kansas City, and Omaha to keep doing well. With lower mortgage rates and strong job growth, these cities are ideal for buyers and investors.

Invest in These Markets with America Mortgages’ Rental Coverage+ Loan Program

For investors, America Mortgages’ Rental Coverage+ Loan Program is a great way to break into these hot markets. This program lets you qualify for a loan based on the property’s rental income, not your personal income. Here’s what you get:

Key Features:

  • Property Type: 1-4 units (one property)
  • Minimum Loan Amount: US$100,000
  • Loan-to-Value: Up to 80% for purchase & 70% for cash-out
  • Underwriting: Based on the property’s rental income
  • Credit Requirements: No U.S. credit required
  • Income Requirements: No personal income required
  • Closing Time: 30-45 days

If you’re interested in investing in U.S. real estate, whether you’re a U.S. expat or foreign national, America Mortgages is here to help. You can schedule a chat with a loan officer anytime, or if you want to speak to someone right away, call us at +1 (845) 583-0830. We’re ready to assist! You can also reach us at 

[email protected] or visit our website at www.americamortgages.com to get started.

U.S. Real Estate Investing Made Easy. Qualify Only On the Rental Income!

U.S. Real Estate Investing | International Mortgage

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

Save $10,000 on Your U.S. Mortgage with America Mortgages!

U.S. Mortgage | Mortgage For Foreigners In USA

Recent research from Polygon, supported by Willow Canyon Advisors and United Wholesale Mortgage (UWM), found that working with an independent mortgage broker saves borrowers an average of $10,662 over the life of a loan compared to non-bank retail lenders. This perfectly aligns with what America Mortgages is all about: offering better value, more options and smarter solutions to its clients.

Why Borrowers Save More with Independent Brokers

According to the study, in 2023, when interest rates were “historically high”, borrowers in the broker channel paid an average of 115 basis points upfront for a 6.58% interest rate, while retail borrowers paid 148 basis points for a slightly higher 6.60% rate. Though the difference seems small, it adds up to significant savings over the life of the loan.

In addition to these financial advantages, America Mortgages offers an expertise that very few, if any, brokers are able to provide. 100% of our clients are either foreign nationals or U.S. Expats. Having loan officers globally, we work on your time and often in your language. We guide you through the mortgage process to secure the best terms and an enjoyable client experience.

What Makes America Mortgages Stand Out?

America Mortgages isn’t just the leading U.S. mortgage provider outside the U.S.; it’s a trusted partner for clients across the globe. America Mortgages delivers competitive interest rates, a wide variety of loan products, and substantial savings over the life of the loan. In a global market that’s constantly changing, having a flexible, experienced mortgage partner is essential.

Key Benefits of Working with America Mortgages:

  • $10,662 in Savings: On average, independent brokers save clients more than $10,000 over the life of a loan.
  • Higher Approval Rates: The broker channel has a proven track record of securing higher loan approvals for international borrowers, and America Mortgages has a 97% approval rate!
  • Personalized Service: America Mortgages offers tailored mortgage solutions designed to meet the unique needs of U.S. expats and foreign nationals.

At America Mortgages, we encourage investors to seize the opportunities that current market conditions present! To support your investment goals, we offer customized loan programs designed to ensure you don’t miss out:

AM Rental Coverage +

  • Property Type: 1-4 units (one property)
  • Minimum Loan Amount: US$100,000
  • Loan-to-Value: Up to 80% for purchase & 70% for cash-out
  • Underwriting: Based on the property’s rental income (personal income not required)
  • Credit Requirements: No U.S. credit required
  • Closing Time: 30-45 days

If you’re looking to invest in U.S. real estate, whether you’re a U.S. expat or foreign national, America Mortgages is the expert partner you need to make homeownership more accessible and affordable.

You can schedule a time to chat with a loan officer 24/7, or if you’d prefer to speak with someone right away, call us at +1 (845) 583-0830. We’re ready to assist!

6.8% cap rate multi-unit LA + Don’t wait for interest rates to drop before reading this!

Cap Rate Mortgage | US Mortgage Bank

[Super rare] Newly-constructed multi-family unit in Los Angeles with a 6.8% cap rate!

4 Units x 5 bedrooms + 5 bathrooms + attached garage (total 20 bedrooms!). Approximate Lot Size: 7,499 sq. ft. Year Built: 2024

The property will be delivered with a 5-year master lease with government-assisted transitional housing organization.

Located just 0.2 miles from the University of Southern California’s Health Sciences Campus and offers easy commutes to Downtown Los Angeles, Mid-City, and the Westside.

The 2024 construction ensures no deferred maintenance and strong in-place income. The property will be delivered fully occupied through 2024-2029, providing investors with immediate stabilized cash flow greater than 6.8% cap rate on current income.

Projected Monthly Rent: Y1 $23,000; Y2 $23,690; Y3 $24,400; Y4 $25,132; Y5 $25,886

Contact me directly for pricing and financing options.

Cap Rate | America Home Mortgage

A unique opportunity is emerging for U.S. expats and foreign national investors: the potential for a U.S. interest rate cut, which could lead to an immediate rise in real estate values. Recent comments from Federal Reserve Chairman Jerome Powell suggest that lower rates are imminent, which could create a huge opportunity for our clients to act.

What U.S. Expat and Foreign National Investors Should Expect

Markets and financial analysts are firmly expecting the Federal Reserve to cut interest rates at its upcoming meeting on September 18. This expectation is grounded in recent signals from the Fed, including comments from Jerome Powell at the Jackson Hole Economic Symposium, where he hinted that the time has come for policy adjustments.

As we’ve always said, if U.S. interest rates decrease, property prices will increase. Lower rates typically result in increased market activity, with more domestic and international buyers eager to secure properties at lower financing costs. For U.S. expats and foreign nationals, this could mean a potential increase in competition for U.S. real estate, which may drive up property prices.

30-Year Fixed Rate Mortgage Average in the United States

Fixed Rate Mortgage | Mortgage For US Expats

However, this also presents a strategic advantage for overseas investors. By acting before rates drop further and competition intensifies, investors can purchase a property before market demand pushes prices higher.

The Golden Opportunity

The possibility of a U.S. interest rate cut presents a golden opportunity for savvy investors. With the potential for lower borrowing costs and a more competitive market, acting now could position you ahead of the curve, allowing you to secure U.S. properties at favorable prices before the market shifts.

Why Now is the Time to Act

At America Mortgages, we understand the unique needs of U.S. expats and foreign national investors. We believe that this moment calls for decisive action. Waiting for rates to decrease further might mean missing out on prime U.S. properties at today’s prices. With the market poised for a possible surge in activity, those who move quickly — will likely benefit from more favorable purchasing conditions.

AM Investor +

  • Property Type: 1-4 units (one property)
  • 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

These offerings are designed to simplify the process and make U.S. real estate investment more accessible and rewarding for U.S. expats and foreign national investors.

Position Yourself for Success

We believe that by acting now, you can position yourself ahead of the curve, securing a property before the market shifts and competition intensifies. It’s still a buyer’s market, however, how long that will last is uncertain. 

America Mortgages is committed to providing the best loan solutions and expert guidance to help U.S. expats and foreign national investors navigate this potential turning point in the U.S. real estate market. With our enhanced loan programs, investors have the tools they need to make smart investment decisions. 

If you would like to discuss your loan options, schedule a call with one of our U.S. Loan Specialists 24 hours a day, 7 days a week. If you’d like to speak with someone right away, please call us at +1 (845) 583-0830.

Don’t miss out on what could be a significant moment for your investment portfolio. Contact us today to explore how we can help you take advantage of this unique opportunity.

2024 Housing Market Showdown: What’s Your Next Move?

2024 Housing Market | America Home Mortgage

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.

Q&A: U.S. Mortgage Update: Big Rate Drop

U.S. Mortgage Update | International Mortgage Loans

Robert Chadwick, CEO of America Mortgages, and Donald Kilp, Co-founder of Global Mortgage Group, provided valuable insights in this webinar, which highlights the implications of U.S. mortgage trends, including the latest rate drops, market strategies, and investment opportunities. For those who couldn’t attend, the recording is now accessible here.

During the session, Robert Chadwick (RC) and Donald Kilp (DK) addressed a variety of inquiries, offering informative responses to help investors make informed decisions in the current market environment. Remarks have been edited for clarity and brevity.

1. What’s the likelihood of being pre-approved?

DK: Highly likely, depending on the loan program you’re seeking.

2. What is needed for the loan application? What documents should I have ready?

RC: To get a pre-approval for the loans, you’ll need your passport if you’re a foreign national. The biggest hurdle is usually the down payment for the property. For AML (Anti-Money Laundering) purposes, any money used in the transaction needs to have been in your account for a minimum of 60 days. The funds can be in a U.S. or overseas account. Once you submit all the necessary documents, your loan officer will review them along with the application, and you can receive a pre-approval in 24 hours.

3. Rates have come down but will they stay down?

DK: It’s uncertain, but it’s expected that rates will either stay flat or continue to go down over the next few years.

4. What would cause a loan application to be rejected?

RC: There are a few possibilities, such as insufficient credit for U.S. expats or a debt-to-income ratio that doesn’t work. However, American Mortgages has loan programs that can address these issues. Generally, it’s not about whether the loan qualifies or not, as they qualify 97% of their loans. The primary concern is whether the rental income covers the mortgage payment. If it doesn’t, it might just mean that you need to bring in a bit more cash.

5. What’s the most popular loan program America Mortgages offers?

RC: The “Rental Coverage Plus” loan program.

6. Which banks do you work with for the underwriting and disbursement?

RC: As of last December, we became a direct lender ourselves, which allows us to lend in our own name and gives us more control over our loan programs. For loans that do not qualify for our own lending, we have a variety of other options available. 

7. Are the banks the same as for a U.S. resident?

DK: We don’t use traditional banks, even for U.S. citizens. Instead, we work with banks that understand the unique needs of foreign nationals and expats. This approach is particularly effective when dealing with foreign-earned income.

8. Can the loan commitment be less than 30 years?

RC: Absolutely. If you prefer, you can choose a 15-year term instead of the standard 30-year term. While most of our loans are 30-year fixed to provide safety and security, you’re free to pay off your loan faster, make double payments, or opt for a reduced 15-year term. However, if you’re qualifying based on rental income, shortening the amortization period might present some challenges, but it is entirely possible and acceptable.

9. How do we make sure what the rental price is?

RC: To ensure the rental price is accurate, we order a supplement alongside the appraisal or valuation of the property. This supplement provides the exact average rent for the specific property, which is the number we use to qualify the loan. This process not only protects the lender but also protects you by ensuring that the rental income you expect aligns with the actual market data, confirming what you’ve been told by your realtor.

10. Could you give us an example of the type of properties that will not be able to get financing?

RC: Difficult to finance properties include rural properties, mobile homes, manufactured homes, and co-ops.

11. Some investor loans that fall into the better financing deals have a 4-unit max.

RC: Generally, our standard loan offerings, especially those we provide ourselves, are for properties with one to four units, and we handle these every day. However, we also have loan programs available for properties with five to eight units. If you find a fantastic property within this range, we can provide a loan for up to 75% loan-to-value for properties with up to eight units.

12. Can I close my existing loan midway through the tenor and reset my rate?

RC: Yes, you can close your existing loan midway through the tenor and reset your rate, but be aware of the prepayment penalty that typically applies to investment properties. This penalty usually decreases each year. If interest rates go down, you can calculate the break-even point to determine if refinancing makes sense. Once the prepayment penalty period ends, you can refinance without any penalties, whether you want to switch to a shorter loan term, pay off the loan, or even take out a brand new loan and pull cash out.

13. What is the minimum down payment required to qualify for a loan?

RC: 25% for foreign nationals with no U.S. credit; 20% for U.S. expats.

Robert Chadwick, CEO of America Mortgages, and Donald Kilp, Co-founder of Global Mortgage Group, provided valuable insights in this webinar, which highlights the implications of U.S. mortgage trends, including the latest rate drops, market strategies, and investment opportunities. For those who couldn’t attend, the recording is now accessible here.

During the session, Robert Chadwick (RC) and Donald Kilp (DK) addressed a variety of inquiries, offering informative responses to help investors make informed decisions in the current market environment. Remarks have been edited for clarity and brevity.

www.americamortgages.com

Harris Wins! What’s Next for the 2024 Housing Market?

Harris Wins | International Mortgage USA

As the 2024 presidential election draws near, many are considering the potential impact of a Kamala Harris victory on the U.S. housing market. Last week, we discussed what could happen if Donald Trump wins. This week, we focus on what might occur if Kamala Harris secures the presidency. Known for advocating affordable housing and economic equity, Harris is expected to continue the current administration’s policies, potentially leading to significant shifts in the real estate market.

Expert Predictions on a Harris Victory

Real estate and economic experts have shared their views on how a Kamala Harris presidency could affect the U.S. housing market. Vincent Favorito, a financial planner and managing partner at Landmark Wealth Management, remarked, “I think the presidential election is likely to have little impact on the housing market and markets in general.” Meanwhile, Rick Kuci, COO of FundKite, believes that “If Kamala Harris wins the election, the housing market might see more affordable housing projects and increased opportunities for first-time homeownership.”

What to Expect if Harris Wins

Housing Policies: Kamala Harris has strongly advocated for affordable housing policies. She has supported capping rent increases and announced significant funding for affordable housing and economic growth. If elected, her administration would likely continue to focus on these initiatives, which could stabilize housing prices and make homeownership more accessible to the broader population.

Economic Stimulus: Democrats, including Harris, often advocate for increased government spending on social programs and infrastructure. Such stimulus measures could boost economic growth and indirectly support the housing market by creating jobs and improving consumer confidence. This could lead to a gradual increase in housing demand as more people are able to afford homes. A Harris administration might also implement more comprehensive housing policies involving tighter regulations on rent increases and increased funding for affordable housing projects.

Market Reaction: A Harris victory could bring a more balanced and stable housing market in the long term. The emphasis on sustainable development and eco-friendly homes could also create new investment opportunities in green housing projects. However, in contrast to Trump’s presidency, which saw relatively low interest rates, the Biden administration has seen higher rates aimed at combating runaway spending and inflation. If Harris continues this trend, the higher borrowing costs could temper the housing market somewhat, potentially slowing the pace of home price increases.

Recent interest rates under the Biden administration include:

  • 2021: 2.96%
  • 2022: 5.34%
  • 2023: 6.50%
  • 2024: 6.89% (as of July 2024)

America Mortgages: Supporting Foreign Nationals and U.S. Expats

Regardless of the election outcome, America Mortgages remains committed to supporting non-resident investors, including foreign nationals and U.S. expats, in their U.S. real estate ventures. Our comprehensive loan programs are designed to cater to the unique needs of international investors, ensuring that you have the financial tools necessary to capitalize on market opportunities.

Featured Loan Program for Foreign Nationals and U.S. Expats:

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

As the U.S. presidential election looms, its outcome will undoubtedly shape the future of the residential housing market. Whether Kamala Harris or Donald Trump takes office, America Mortgages remains your dedicated partner in navigating these changes and achieving your investment goals.

For more information about our loan programs and how we can assist you, visit America Mortgages. 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.

www.americamortgages.com

How to Obtain U.S. Mortgage as an Indian Citizen

U.S. Mortgage | US Expat Mortgage

It’s an exciting time to get a mortgage in the U.S. But if you are an Indian Citizen you might be wondering: Can I get a loan if I hold an Indian Passport? What kind of credit history do I need? Do I need a U.S. citizen to cosign with me? 

In this guide, we’ll answer all these questions and more about obtaining a U.S. Mortgage as an Indian Citizen.

Can Indian Citizens Buy Property in the USA?

Absolutely! There’s no citizenship requirement for real estate purchases in the U.S., so Indian citizens can buy property in the U.S. as long as they meet the mortgage criteria for non-U.S. residents. 

We’ve noticed that California is the top choice for Indian buyers, with 40% opting to purchase a U.S. property in the Golden State. 

Before we jump into buying a property, it’s crucial to understand exactly how the mortgage system works in the U.S. for Indian citizens and the difference between the two mortgage systems.

What Are the Differences in Mortgage: USA vs. India

If you’re used to the Indian mortgage system, you might find new terms and products here. 

In India, a home loan (or mortgage) is a secured loan with the property as collateral. In the U.S., the process is similar. The property is the collateral for the loan. The title of the property is recorded under the buyer’s name and securely recorded with the state and county the property is located in.

You must also decide whether you want a fixed or variable-rate mortgage. A fixed-rate mortgage guarantees a constant interest rate for the loan’s term. In the U.S., you can get a fixed rate for up to 30 years regardless of the age of the borrower. This is something very unique to the U.S. real estate market and allows for maximum yield opportunity for the property. A variable rate mortgage is normally fixed for 3, 5 or 10 years and then variable every year after, depending on the market.

The differences between the two mortgage systems:

AspectThe U.S.India
Interest RatesCurrently, 6.5% is fixed, but it fluctuates from time to time.Ranges from 8.15% to 11.80% p.a., usually not fixed.
Loan TenureLong-term mortgages (15 to 30 years) regardless of age are common. Most Americans prefer small monthly payments over a long period.Similar in terms of repayment periods, which can also stretch up to 30 years but will be capped at age 65.
Credit ScoresAmerica Mortgages does not require Foreign Nationals / Non-U.S. residents to have a FICO / U.S. credit score. NO U.S. CREDIT REQUIREDA good CIBIL Score is 700 or higher. The closer to 900, the better your chances of approval.
Taxes on Property and MortgagesMortgage payments include property tax, principal, interest, and homeowners insurance. Mortgage interest is deductible to mitigate any income earned from the property. Mortgage payments include property tax, principal, interest, and homeowners insurance.

Eligibility Criteria for Indian Citizens

Good news to all Indian Citizens who wish to get a mortgage in the U.S.! You don’t need to be a U.S. citizen to get a mortgage here. If you have a green card and a social security number, the process is similar to that of U.S. citizens. 

If you do not have a green card but have a social security number, you can use a work visa or a special employer-sponsored visa. 

In the case where you aren’t staying or working in the U.S. – No Problem! As a company America Mortgages ONLY focus is providing U.S. mortgage financing for non-U.S. residents. This is our expertise. If you’re living and working in India and want to buy a U.S. property or refinance / cash-out an existing U.S. property you already own, America Mortgages is the best option. 

Loan highlights: 

  • No U.S. credit
  • No personal income
  • Qualify on the rental income of the property
  • All 50 U.S. States
  • Minimum loan amount $100,000
  • Minimum down payment only 25%

What Type of Mortgage Can Indians Get in the U.S.?

By now you’ve understood the differences and checked the eligibility criteria – great! Now if you are ready to start, let us tell you about the different types of mortgages available for Indian Citizens. 

Foreign national mortgage loans

As the name goes, this is a tailored loan, designed for foreign nationals, that is people who aren’t citizens of the U.S. You don’t need a U.S. credit history to qualify and the down payment is only 25%.

CashFlow loans

Debt Service Coverage Ratio or DSCR loans are used exclusively for property investors. It measures the property’s ability to generate enough income to cover the payments. America Mortgages is the leader in this market when it comes to financing properties in the U.S. for non-U.S. residents. 

Conventional Mortgages

These loans are the standard home loans, they aren’t government-backed. Offered mostly by banks and follows the guidelines set by Fannie Mae and Freddie Mac. Conventional mortgages require the borrower to have a U.S. credit score and a U.S. passport or Green Card to qualify.

Jumbo Loans

Jumbo loans are mortgages that are normally US$1,000,000 and higher. These come with different  requirements since they are used to finance high-value properties. The down payment will likely be higher depending on the loan size. 

Tips for a Smooth Mortgage Application Process

To ensure a smooth mortgage application process, consider the following tips:

  • Ensure you have enough savings for a down payment.
  • Consult with your America Mortgages loan specialist on the options available and your requirements.
  • Provide all information required by your loan officer so your loan can be processed and approved quickly and easily.

America Mortgages can help you obtain a U.S. mortgage. As a company, our only focus is providing U.S. mortgage financing for non-U.S. residents and U.S. expats. If you’re interested in learning more, reach out to us at [email protected] or visit our website at www.americamortgages.com. Additionally, if you’d like to schedule a commitment-free meeting with one of our U.S. loan officers to explore your U.S. mortgage options further, you can do so using our 24/7 calendar link.

Trump Wins! What’s Next for the 2024 Housing Market?

Trump Wins | America Home Mortgage

As the 2024 presidential election approaches, there’s a lot of debate about how a Trump victory could impact the U.S. housing market. Over the next two weeks, we’ll dive into this topic, starting with what might happen if Trump wins. We’ll analyze how his policies could reshape real estate and the broader economy. Next week, we’ll focus on Kamala Harris and how her potential administration could influence the U.S. housing market. Whether you’re a foreign national or a U.S. expat, the election outcome may shift how you invest in U.S. real estate.

Expert Predictions on a Trump Victory

Real estate and economic experts have mixed views on how a Trump win could impact the housing market. Deregulation will likely be a priority, with Trump likely to push for looser rules that could stimulate real estate investments. Marty Harlee, CEO of First Trust Financial, predicts a surge in refinancing and home sales if Trump influences the Fed to lower rates. 

Dennis Shirshikov of CUNY suggests Trump’s tax cuts could boost the economy and housing demand but warns higher inflation might drive up interest rates. 

Kateryna Odarchenko, a political strategist, notes that some of Trump’s housing initiatives, like privatizing Fannie Mae and Freddie Mac, may face significant challenges and might not be fully realized but could potentially be a huge opportunity for property owners to see gains in real estate values. 

What to Expect if Trump Wins

Regulatory Changes: During his previous administration, Trump focused heavily on deregulation and tax cuts. If re-elected, this could lead to more lenient building and zoning regulations, potentially increasing the housing supply. By reducing the regulatory burdens on developers, Trump could encourage the construction of new homes, which might help address the ongoing housing shortage in many parts of the country. This could potentially make more affordable properties in various markets. 

Economic Policies: Trump’s policies often emphasized tax cuts and business incentives, which could boost economic growth and housing demand. His approach to trade policies and immigration reforms could also create a more competitive environment for labor and investment. This could lead to innovations and efficiencies in the construction industry that might help offset costs and support housing market growth.

Market Reaction: If Trump wins, some experts predict a potential massive refinance boom and record home sales. Marty Harlee, President and CEO of First Trust Financial, expects Trump to push policies that stimulate the housing market and other industries. Deregulation and tax cuts could increase disposable income, benefiting the housing market by raising demand for homes. This could result in a short-term boost in housing prices due to increased demand.

During Trump’s previous term, the market experienced relatively low interest rates, which supported housing demand. 

Historical interest rates under Trump were:

  • 2017: 4.03%
  • 2018: 4.54%
  • 2019: 3.94%
  • 2020: 3.11%

Interest Rate Outlook: Interest rates are a critical factor in the housing market, and while the Federal Reserve controls these rates, Trump’s influence on economic policies could indirectly affect them. 

Discussions within his campaign about restructuring the Fed to exert more direct control over rate decisions suggest that a Trump administration might aim for lower rates to stimulate the economy, although such moves could introduce economic uncertainty.

In My Opinion, How Would a Trump Win Impact America Mortgages’ Clients?

A Trump presidency could go both ways for foreign investors. Trump believes in “America First”, which could potentially impact real estate investors from some countries such as China. However, with non-resident investors purchasing US$60B a year of residential real estate, it is highly unlikely he will take a stand against foreign investments in general. 

The potential for further deregulation and lower interest rates under a Trump administration will likely super charge the U.S. real estate market adding trillions in appreciation for investors that already own U.S. real estate. 

Love Trump or hate Trump – I’d love to hear your thoughts and opinions regarding the potential impact of a Trump presidency on the U.S. real estate market.

America Mortgages: Your Trusted Partner

Regardless of the election outcome, America Mortgages is committed to supporting non-resident investors in their investment ventures. Our comprehensive loan programs are designed to cater to the unique needs of international investors.

Featured Loan Program for Foreign Nationals and U.S. Expats:

AM Expat Investor + 

  • Property Type: Single-family homes, Multifamily, Condo, apartments, second/holiday homes, investment properties 
  • Minimum Loan Amount: US$100,000
  • Loan-to-Value: Up to 75% for purchase & 70% for cash-out
  • Underwriting Uniqueness: No W2 is required, and foreign-earned income is allowed 
  • Credit Requirements: U.S. credit score required 640+
  • Tax Requirements: 2 years of U.S. tax returns required
  • Closing Time: 30-45 days

In conclusion: 

As the U.S. presidential election looms, its outcome will undoubtedly shape the future of the residential housing market. America Mortgages remains your dedicated partner in navigating these changes and achieving your investment goals. 

Stay tuned next week as we explore the potential impacts of a Kamala Harris victory on the housing market.

For more information about our loan programs and how we can assist you, visit America Mortgages. 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.