Author: Premela R.

Top Undervalued U.S. Housing Markets Perfect for Foreign Nationals and U.S. Expat Investors

U.S. Housing Markets | Mortgage For US Expats

The world’s largest real estate market, the U.S.A., still has a lot of “undiscovered” housing markets where yield, undervalued pricing, appreciation potential, and low barriers to entry are a recipe for success. This week, we are going to feature a few of our picks. 

According to Insider Monkey, an underpriced housing market is one where the median list price tends to be lower than the typical home value. Based on Insider Monkey’s analysis of Zillow’s February 2024 Housing Market Report, the following cities present significant opportunities due to their undervalued properties, each offering distinct advantages that cater to diverse investment strategies. Here are ten promising undervalued markets to explore:

10. Van Wert, OH

Situated between Lima, Ohio, and Fort Wayne, Indiana, Van Wert offers a small-town atmosphere at an attractive price point. This affordability makes Van Wert ideal for investors looking for steady cash flow through rentals. With its growing market, Van Wert presents a potential exit strategy for those looking to capitalize on appreciation.

  • Average Home Value: $160,108
  • Median List Price: $134,967
  • Median Rental Income: $1,500

9. Detroit, MI

Detroit, fueled by cultural revitalization and economic development projects, is attracting new residents and businesses. This positive momentum has the potential to translate into rising property values and strong rental yields, making it a market worth considering.

  • Average Home Value: $240,536
  • Median List Price: $211,633
  • Median Rental Income: $1,250

8. Cape Coral, FL

Cape Coral is known for its extensive canal system and abundant waterfront properties. This unique feature is a cash flow magnet for investors looking to turn a profit on rentals. Cape Coral’s thriving tourism industry, fueled by vacation rentals, makes it a potential hotspot for rental income.

  • Average Home Value: $396,012
  • Median List Price: $364,633
  • Median Rental Income: $2,290

7. Rochester, NY

Rochester, NY, boasts strong education and healthcare sectors, ensuring a steady economy and a solid real estate market. It’s an excellent choice for investors seeking a reliable long-term property investment.

  • Average Home Value: $233,753
  • Median List Price: $189,233
  • Median Rental Income: $1,375

6. Boone, NC

Nestled in the Blue Ridge Mountains, Boone offers a combination of scenic beauty and a vibrant college-town atmosphere. This city attracts tourists and students year-round, making it a prime spot for investors seeking steady rental income.

  • Average Home Value: $477,496
  • Median List Price: $421,000
  • Median Rental Income: $2,200

5. Santa Cruz, CA

California dreamin’? Santa Cruz offers a vibrant coastal community with stunning beachfront property. This high-demand market is perfect for long-term investors seeking reliable properties with the potential for value appreciation.

  • Average Home Value: $1,148,405
  • Median List Price: $1,065,167
  • Median Rental Income: $3,400

4. Okeechobee, FL

Okeechobee is known for its stunning natural beauty and plenty of recreational activities, making it an appealing investment city. Investors can benefit from the potential for significant property value appreciation and a healthy rental income stream.

  • Average Home Value: $264,907
  • Median List Price: $178,800
  • Median Rental Income: $1,500

3. Clewiston, FL

Clewiston, known as “America’s Sweetest Town,” offers a substantial perk for investors – a significant gap between property value and list price. This translates to a strong potential for appreciation, making Clewiston a great deal for investors seeking a good return on investment.

  • Average Home Value: $274,997
  • Median List Price: $181,033
  • Median Rental Income: $2,500

2. San Francisco, CA

San Francisco remains a magnet for investors, with a strong economy, world-renowned culture, and stunning beauty. Despite higher property prices, San Francisco offers robust long-term returns, making it a high-value option for investors with long-term goals.

  • Average Home Value (Feb 2024): $1,132,271
  • Median List Price (Feb 2024): $951,667
  • Median Rental Income (July 2024): $3,350

1. San Jose, CA

Sitting in the heart of Silicon Valley, San Jose is a goldmine for investors. With booming tech companies driving the economy, this city offers excellent potential for property value growth and steady rental income. It’s a prime spot for savvy investors looking to capitalize on the tech boom.

  • Average Home Value: $1,554,128
  • Median List Price: $1,315,463
  • Median Rental Income: $3,044

But how does a non-resident (Foreign National and U.S. Expat) qualify for a U.S. mortgage loan?

It’s easier than you think! Regardless of where you live, work or play, investing in the U.S. housing market can be an excellent way to diversify real estate holdings for non-residents and U.S. expats. As most of you are likely aware, at America Mortgages, this is all we do. America Mortgages offers specialized loan programs, such as AM Investor +, designed to help international investors navigate the U.S. real estate mortgage market. These mortgage programs provide competitive rates, flexible terms and common sense underwriting, making real estate investment accessible and financially viable.

AM Investor + Program Highlights:

  • 1-4 units (one property)
  • Minimum loan amount: US$100,000
  • Loan-to-Value: up to 75% for purchase & 70% for cash-out
  • Underwritten using an income letter and not personal tax returns
  • No U.S. credit required
  • No tax returns required
  • Closing in 30-45 days
  • Suitable for non-resident entrepreneurs, self-employed, or pure investors
  • Approval within 72 hours of submitting all documents
  • Available in all 50 states
  • 30-year amortization for all loans, regardless of borrower’s age
  • 10-year fixed interest-only option available

Discover the potential of these top undervalued housing markets in 2024 with America Mortgages. Whether you’re a foreign national or a U.S. expat, our specialized loan programs like AM Investor + make investing in U.S. real estate accessible and potentially lucrative. 

Learn how America Mortgages can help you secure U.S. mortgage financing tailored to your needs. What are you waiting for? If you’re wondering, “Will I get approved?” consider this: America Mortgages approves 97% of all loan applications. When this is all you do, no one does it better! 

Contact our experienced loan officers using our 24/7 link to start your journey today!

www.americamortgages.com

This Week’s U.S. Real Estate News for Global Investors

U.S. Real Estate | Mortgage For Foreigners

Here’s this week’s top news in the U.S. real estate market. These highlights offer potential opportunities for U.S. expats and non-resident investors. Let’s dive into the news and insights that might shape your investment strategy.

KKR Acquires Multifamily Portfolio and Other Implications

KKR’s recent acquisition of Quarterra’s $2.1 billion multifamily portfolio has sparked considerable interest in the U.S. real estate scene. The strategic move reflects KKR’s confidence in the stability and growth potential of multifamily properties in U.S. markets. For U.S. expats and foreign national investors, the KKR investment suggests opportunities in multifamily properties, which our clients may want to explore.

At America Mortgages, we offer tailor-made lending solutions that help investors leverage multifamily assets similar to those acquired by KKR.

America Mortgages offers this loan program to help you invest using the KKR strategy; 

AM Multi-family + 

  • 5-8 units (one property)
  • Minimum loan amount: US$250,000 
  • Loan-to-Value: up to 75% for purchase & 70% for cash-out 
  • Underwritten on property cash flow 
  • No U.S. credit required 
  • Foreign National and U.S. Expat 
  • No personal income required
  • Closing in 30-45 days

Investors can qualify based on property cash flow, making the process easy and flexible when investing in U.S. real estate.

Read the article: KKR acquires $2.1 bln portfolio of multifamily real estate assets from Quarterra

Manhattan’s Surge in Home Sales

Manhattan home sales surged unexpectedly, with closings on apartments up 12.2% in the second quarter. This surge is powered by an increase in buyer activity aiming to take advantage of current market conditions before any Federal Reserve rate adjustments. This uptick indicates a strong demand in the market and a perfect timing for foreign national and U.S. expat investors who are looking to take part in Manhattan’s prestigious real estate market before potential price escalations after interest rates decrease. Marry the property. Date the rate. 

America Mortgages offers a well-positioned  loan program to help you invest in U.S. real estate as a foreign investor or U.S. Expat;

AM CashFlow + 

  • 1-4 units (one property)
  • Minimum loan amount: US$100,000
  • Loan-to-Value: up to 80% for purchase & 70% for cash-out 
  • Underwritten on property cash flow 
  • No U.S. credit required 
  • Foreign National and U.S. Expat 
  • No personal income required
  • Closing in 30-45 days

Read the article: Manhattan Home Sales Unexpectedly Rise as Buyers Cave on Rate Cuts

Barbara Corcoran’s Best Cities for Real Estate Investing

World famous “rags to riches” real estate investor Barbara Corcoran has identified three cities poised for significant growth and investment potentials:

  1. Pittsburgh, Pennsylvania: With an average home value of $227,329, Pittsburgh has seen a 6.2% increase in home values in the last year. The city has diverse advanced manufacturing and a strong base in education, hosting many colleges and universities.
  1. Columbus, Ohio: Columbus’s average home value is $243,838, up 6.9% year over year. Its strong business climate, with major companies like JPMorgan Chase and Nationwide based there, contributes to a strong demand for housing.
  1. Indianapolis, Indiana: Indianapolis’s average home value is $224,099, up 2.3% in the past year. Known for its diverse economy driven by the education, healthcare, and finance sectors, Indianapolis also benefits from sports tourism and major events like the Indianapolis 500.

These cities represent strategic investment opportunities where home prices are expected to rise due to economic growth, job creation, and strategic market conditions. For foreign national and U.S. expat investors looking to diversify their portfolios, Barbara Corcoran’s recommendations provide valuable insights into emerging markets with major potential for long-term investment.

AM Investor + 

  • 1-4 units (one property)
  • Minimum loan amount: US$150,000
  • Loan-to-Value: up to 75% for purchase & 70% for cash-out 
  • Underwritten using an income letter and not personal tax returns 
  • No U.S. credit required 
  • Foreign National 
  • No tax returns required 
  • Closing in 30-45 days

Read the article: Barbara Corcoran: 3 Cities To Invest in Real Estate Now Before Prices Skyrocket

The Hedge Against Inflation

It turns out that owning a home was likely your best bet for hedging against inflation during this cycle. This chart from “A Wealth of Common Sense” illustrates the performance of real estate as an inflation hedge.

Inflation Hedge | Home Loan in America

Historically, real estate has consistently outperformed inflation, protecting investors’ purchasing power over the long term. This is especially relevant in the current economic climate, where inflation rates have been rising steadily. The stability and growth of real estate values provide a reliable safeguard against the effects of inflation, making it a tactful choice for investors looking to preserve their wealth.

This week’s news highlights often overlooked opportunities from industry experts in the U.S. real estate market. From KKR’s strategic investment in multifamily properties to Manhattan’s surge in sales activity and Barbara Corcoran’s city picks for growth and profits, the U.S. real estate market offers diverse avenues for growth and profitability.

At America Mortgages, we’re dedicated to helping U.S. expats and foreign nationals navigate these opportunities with confidence. Whether you’re interested in multifamily investments, luxury properties in Manhattan, or overlooked markets like Pittsburgh and Columbus, our specialized financing solutions and expert guidance are here to support your investment journey. 

We work in your time zone, speak your language, and know this type of mortgage lending better than any other company in the industry. Use our 24/7 calendar link to schedule a meeting with one of our loan officers, and visit www.americamortgages.com to learn more about how we can help you achieve your real estate investment goals.

As always, thank you for your trust and your business. We look forward to a successful closing!

Turn your home equity into cash

Foreign National Mortgage Loan | U.S. mortgage

Has your property appreciated in value since you purchased it? If so, your equity — the portion of the property you own has increased as well!

A practical way to tap into this growing equity without selling your home is through a conventional cash-out refinance mortgage or an asset-based bridge loan. 

Quick Comparison

Bridging loan

  • Short term – 1-2 years.
  • Qualify on property value only
  • Speed a priority – funding times as fast as 1-2 weeks

Cash-out refinance

  • Exactly the same as a conventional 30-year fixed-rate mortgage
  • Qualify using your salary or rental income of the property
  • 30-45 days funding times.

$17 trillion in home equity!

In Q1 2024, CoreLogic reported that U.S. mortgage holders collectively held over $17 trillion in home equity, nearing the previous record set in 2023. With home values rising and equity growing, many homeowners now have significant capital appreciation. America Mortgages has loan programs designed for foreign nationals and U.S. expats looking to use their existing equity for short-term needs or long-term investment opportunities.

Average Equity Gain | Mortgage Lenders Of America
Average home equity changes by U.S. state year over year, Q4 2023

Two Ways to Access Your Home Equity

Foreign nationals and U.S. expats often face unique challenges when leveraging home equity in the U.S. America Mortgages’s loan programs are designed to meet these needs, making the process smoother and more accessible. 

1. Conventional Cash-out Refinance Mortgages 

Cash-out refinance mortgages are a good option if you have consistently made regular mortgage payments in a timely manner since owning the property or if you have no existing mortgage on the property. However, we recognize that securing a mortgage can be challenging for foreign nationals and often U.S. expats because they lack a U.S. credit history. At America Mortgages, we can use international credit reports and other financial documents in lieu of U.S. credit. It’s so straightforward that Foreign nationals are eligible to borrow up to 75% of their property’s appraised value, while U.S. expats can borrow up to 80%.

Key Loan Features and Requirements

  • Income: Foreign income accepted
  • Credit: No U.S. credit is required
  • Term Lengths: 30-year and 40-year fixed-rate mortgages regardless of the borrower’s age 
  • Term Options: Fixed 10-year, Interest-Servicing Only (Interest-Only) mortgages available
  • Loan Amounts: From US$100,000
  • Cash-out Refinance Loan-to-Value (LTV): Up to 80% for a U.S. expat and 70% for a Foreign National
  • Property Types: Single-family, multi-family (5+ units), duplexes, triplexes, quadplexes, condominiums, townhomes, commercial, industrial
  • Location: All 50 U.S. States
  • Amortization: All loans can be amortized over 30 years, regardless of age
  • Closing Time: 30-45 days

2. Asset-backed real estate bridge loans

Asset-backed bridge loans are designed for U.S. expats and foreign nationals who need flexibility and quick access to funds. These loans are perfect for short-term financial needs or investment opportunities and normally do not require the borrower to provide financials. 

Key Loan Features and Requirements

  • Income: No income required
  • Credit: No U.S. credit is required
  • Eligible Loan Types: Purchase, refinance, and cash-out refinance
  • Term Lengths: 12-24 months
  • Loan Amounts: US$200,000 to US$100m
  • Payment Options: Monthly, interest-only, interest rolled up
  • Loan-to-Value (LTV): Up to 75%
  • Property Types: Single-family, multi-family (5+ units), duplexes, triplexes, quadplexes, condominiums, townhomes, commercial, industrial
  • Location: All 50 U.S. States
  • Amortization: Interest-Only Servicing 
  • Closing Time: 3-10 days

Global Bridging Loans

For investors looking to release equity from their property globally, our parent company, Global Mortgage Group, offers bridge financing in Canada, U.K., Europe, Australia, Dubai, Singapore, Hong Kong, Philippines, and Thailand. 

Bridging loans are short-term loans, usually 1-2 years, used to bridge a funding gap where banks cannot meet borrower requirements such as speed of funding, loan-to-value, and certainty. These loans are asset-backed, relying on the collateral value of the property rather than the borrower’s personal financials. They typically feature “interest-only” or “interest-servicing only” payments with a bullet repayment at the end of the term. Bridging loans have become popular as retail banks globally reduce their lending on property, with private credit filling the gap.

Basic Details:

  • Get approved in 48 hours and funding in as fast as 7 days
  • Up to 70% of your home’s value
  • Available for primary homes, second homes, and investment properties
  • Priority is speed of funding, certainty, and high loan-to-value
  • Short-term and not meant to replace a bank loan
  • No age restriction in many countries

America Mortgages and Global Mortgage Group aims to simplify the process for foreign nationals and U.S. expats, providing the financial flexibility they need. Our tailored loan programs are designed to suit your unique situations, helping you make the most of your property’s equity.

With our fast approval process, flexible terms, and international reach, we’re here to support your financial needs. Schedule a meeting with one of our loan officers using our 24/7 calendar link and let’s turn your home equity into cash for whatever you need. Get started now!

www.americamortgages.com

Your child gets accepted to a U.S. university, and you want to buy a home nearby…

Buying Property In The US | Loans For Non Residents

Your child gets accepted to a U.S. university and you want to buy a home nearby..

Here is a video of our initial idea when we raised our first round of funding

There are 3 types of real estate purchases:

  1. Trophy assets
  2. Education-related
  3. Investment

There is obviously an overlap but for this article, we focus on #2 – education-related.  

This was my co-founder’s journey when he left Asia to study in the U.S., as did most, if not all, of his friends. In fact, through our research, we have concluded that education is the most popular reason to invest in overseas property. 

Top 10 Asian countries with students attending U.S. universities as of 2023:

China – 289,526   

India – 268,923 

South Korea – 43,897 

Vietnam – 21,900

Taiwan – 21,834  

Japan – 16,054 

Bangladesh – 13,563  

Indonesia – 8,467

Hong Kong – 5,867

Singapore – 3,182

I’m fairly sure that most of these parents would also like to own an investment property – now they can!

Your child gets accepted to a U.S. university, and you want to buy a home nearby….

After 4 years of university, you can:

  • Sell the home, and the capital gains can be used to recoup the college tuition
  • Have your child stay in the apartment while they work in the U.S. to get “international” experience before they come back home
  • Transfer to your child’s name to build credit and or earn rental income while they are living in the U.S.
  • Keep it to earn rental income

What happens next?

You speak to your local bank, and they do not offer U.S. mortgages – no overseas banks offer U.S. mortgages (but you don’t know that). 

You search online and do not see any U.S. banks – U.S. lenders do not advertise outside the U.S. (you didn’t know that either).

You give up and pay for the home with cash!  

Foreign home buyers face this problem every day!

Did you know that over the past 10 years, non-U.S. citizens have purchased $1 trillion worth of U.S. real estate, and almost 70% of it is paid with cash because of the problems mentioned above?

America Mortgages is the world’s only U.S. mortgage broker outside the U.S., focusing on overseas borrowers, both foreign nationals and U.S. expats – that is all we do.

Some common misconceptions:

  • My child/student can not be the tenant – wrong!

Our “AM Student +” loan program is the world’s only mortgage that allows this – just need a F-1 student visa.

  • My child/student can not qualify since they have no income – wrong!

We use a rental comparable to qualify – if it the comparables exceed the mortgage expenses – you qualify!

  • I need U.S. credit – wrong!

We accept overseas credit or a letter from your accountant

  • I need to be a salaried employee – wrong!

You can qualify with the rental income of the property – no need to show income!

  • I need to be living in the U.S. – wrong!

All of our clients are living outside the U.S.

  • I can’t get a mortgage – obviously wrong!

We founded America Mortgages to fix the problem of obtaining a U.S. mortgage while living overseas

  • I’m too old to qualify for a loan – wrong!

There are no age restrictions in the U.S.

  • Banks don’t give loans to foreigners – wrong!

We created loan programs specifically for foreign borrowers

  • I can’t borrow much as a foreigner – wrong!

Our programs can lend up to 75% of the property value

  • The process is very difficult and takes too long – wrong!

We have streamlined the process with technology and our average loan takes 30-45 days to close – faster than any bank!

  • I need to stay up late at night to speak to a loan officer – wrong!

We have loan officers in your timezone, speaking your language, 24/7

Investing in a home near your child’s university in the U.S. offers financial benefits, from potential capital gains to rental income. At America Mortgages, we make it easy for international buyers to secure U.S. home loans, debunking myths and simplifying the process. Ready to invest? Contact us today at [email protected]

www.americamortgages.com

Secrets Banks Won’t Tell You (Real Estate Bridging Loans)

Real Estate Bridging Loans | US Home Loan

Looking to access liquidity quickly and easily from your U.S. real estate? AM bridge loans can help! Bridge loans are short-term loans that help cover immediate financial needs until longer-term financing is secured. This is excellent for non-resident investors and U.S. expats who need quick access to liquidity.

What is a Bridge Loan?

Bridge loans provide fast approval and flexible repayment terms, allowing investors to act on opportunities quickly for a purchase or release equity from a property when “conventional” bank options are not available or are not practical. There are a variety of reasons sophisticated real estate investors use bridge funding – it can be used to purchase a new property while selling an existing property, fund renovations on a property before renting it out, or obtain almost immediate access to liquidity tied up in real estate for higher return investments.

As reported by CoreLogic, in Q1 2024, the total home equity for U.S. mortgage holders exceeded $17 trillion, nearing the previous record set in 2023. The increase in home values and equity growth suggests many homeowners have significant potential capital. AM Bridge loans allow foreign nationals and U.S. expat investors to leverage their existing equity to finance short-term needs or seize investment opportunities.

Map Bridge loans | Residential Bridge Loan

How Can Bridge Loans Help?

Bridge loans can be a vital tool for non-resident U.S. investors and U.S. expat investors. Unlike conventional mortgage loans, bridge loans can be structured to the exact needs of the borrower. Often with high LTV, no monthly debt servicing, and quick closing times – often as short as one week. Bridge loans can provide the needed capital to:

  • Facilitate Property Purchases: Investors can secure properties quickly without waiting for the sale of another asset.
  • Avoid Foreclosure: Quick access to funds can prevent the loss of property due to foreclosure.
  • Expand Business Ventures: Investors can use the equity from high-value properties to invest in other business opportunities.

America Mortgages Case Studies:

Canadian Businessman Leverages $10M California Property to Expand Business

America Mortgages Case Studies | Residential Bridge Loan

A Canadian businessman owned a $10 million property in California. To expand his business, he pulled out 65% of the LTV from his property, amounting to a $6.5 million loan. With an interest rate of 10% over a 12-month term, this bridge loan provided the necessary liquidity to invest in his business without selling the property.

Bridge Loan Helps U.S. Expat Avoid Foreclosure

Bridge Loan Helps U.S. Expat | Loan For Foreign Property

Facing foreclosure, a U.S. expat property owner sought help from America Mortgages. We helped to secure a $500,000 bridge loan at a 70% LTV and 12% interest over 18 months. This quick access to funds eased his financial strain, preventing foreclosure and protecting his investment by paying off the existing lender and structuring the loan so that he did not have to make monthly payments for 6 months. This allowed the client to relax, reset, and focus on getting back on track.

What is Needed to Qualify?

Equity: Qualifying for a bridge loan is primarily based on the existing equity in the owned property. Bridge loans will typically allow for up to 70% of the current value of the existing property.  If there is an existing mortgage, it will need to be paid off through the transaction. 

Income: Normally, there are no income requirements for these types of loans. However, the borrower should be able to either service the monthly payments or have sufficient equity to “roll up” or pay any interest payments due upfront out of the loan proceeds.

Credit: No U.S. credit is required

  • Eligible Loan Types: Purchase, refinance, and cash-out refinance
  • Term Lengths: 12-24 months
  • No U.S. Credit Required
  • Loan Amounts: US$100,000 to US$100m
  • Payment Options: Monthly, interest-only, interest rolled up, no prepayment penalty
  • Purchase Loan-to-Value (LTV): Up to 75%
  • Refinance Loan-to-Value (LTV): Up to 70%
  • Cash-out Refinance Loan-to-Value (LTV): Up to 65%
  • Property Types: Single-family, multi-family (5+ units), duplexes, triplexes, quadplexes, condominiums, townhomes, commercial, industrial

America Mortgages offers bridge loans designed to bridge that gap for non-resident U.S. investors and U.S. expats. Our fast approvals and flexible terms empower investors to access liquidity quickly, whether buying, renovating, or avoiding foreclosure. With substantial home equity available, our bridge loans help leverage existing assets for short-term needs and investments. Trust America Mortgages to support your U.S. real estate goals with tailored solutions that ensure confidence and success.

Schedule a meeting with one of our loan officers using our 24/7 calendar link. Contact us today at [email protected] to start your investment journey!

Your Exclusive Access to U.S. Real Estate Opportunities

US Mortgage Lenders | US Expat Mortgage

The U.S. housing market’s ongoing resilience and potential present unique opportunities for foreign nationals and U.S. expats. According to CoreLogic’s June 2024 Home Price Insights report, it is projected that U.S. home prices will increase by 4.6% over the next year, indicating the market’s stable growth. With projected home price increases, robust support for navigating currency risks, and a streamlined remote mortgage process, now is an ideal time to invest.

Why Now Is a Great Time to Invest

Despite higher interest rates, the U.S. housing market remains resilient. Experienced investors understand that waiting for lower rates may mean missing potential appreciation gains. The present market circumstances indicate that it’s a strategic moment to invest, as home prices are projected to keep rising. By acquiring properties now, investors can benefit from both rental income and long-term capital appreciation.

U.S. Home price scenarios | America Home Mortgage

Navigating Currency Exchange Risks 

One primary concern for global investors is currency exchange risk. Through our trusted partners, America Mortgages offers customized options to minimize these risks, allowing foreign investors to oversee their investments effectively. Through the use of hedging techniques and collaboration with financial professionals, investors are able to safeguard their profits from negative currency changes.

Seamless Mortgage Process from Abroad 

America Mortgages offers a remarkable feature that allows the entire mortgage process to be completed remotely. This convenience is particularly beneficial for expats and non-resident investors who may not have the opportunity to travel frequently. This ensures a stress-free experience for international investors. 

As the U.S. housing market continues to thrive, investors can utilize America Mortgages’ Investor + Program, designed specifically for foreign nationals and U.S. expats looking to capitalize on these opportunities.

Loan Highlights:

  • Competitive Interest Rates: Based on Loan-to-Value (LTV), America Mortgages offers the best potential market rate available 
  • High LTV Ratios: Up to 75% LTV based on the cash flow of the property and NOT your personal income
  • Flexible Loan Amounts: Minimum loan amount of $100,000 with no maximum cap 
  • Extended Loan Terms: Up to 30 years, providing lower monthly payments with an option for a 10-year fixed Interest-Only structure 
  • No U.S. Credit History Required: Credit report from your home country or country of residence instead of U.S. credit. If that isn’t available, we have alternative options for establishing credit 
  • Remote Application Process: Complete the entire mortgage application and approval process from anywhere in the world. Open and close your transaction without travelling to the U.S.  

Tax Advantages and Upcoming Webinar 

Investing in U.S. real estate offers numerous tax advantages for foreign investors that many may not be aware of, including deductions on mortgage interest, property taxes, and depreciation. These benefits can significantly improve investors’ overall investment return. To provide more in-depth insights, America Mortgages will be hosting a webinar on “3 Tax-Smart Strategies for U.S. Real Estate Investing” on June 13th at 6:30 PM SGT. Join us as we explore how strategic tax planning can enhance rental income for overseas investors and gain valuable insights into U.S. tax strategies that reduce liabilities and boost cash flow.

The U.S. housing market offers opportunities for foreign nationals and U.S. expats. With projected home price increases, support for navigating currency risks, high leverage, and creative yield-optimizing mortgage options, now is the time to invest.

America Mortgages is here to provide expertise and support for your investment journey. Explore your U.S. mortgage options and schedule a meeting with one of our loan officers using our 24/7 calendar link. Contact us today at [email protected] to start your investment journey!

U.S. Multifamily Real Estate Mortgage Loans Are Now Available to Non-U.S. Residents!!

Real Estate Mortgage Loans

As savvy investors already know, U.S. real estate investment has long been considered a fantastic opportunity for building wealth and ensuring financial stability. Until this week financing for foreign nationals and U.S. expats has been mainly limited to 1-4 unit properties. America Mortgages is proud to announce that we have made these mortgage loans available to all our clients regardless of their residency or passport!

“These types of properties present another opportunity for U.S. expats and foreign national investors seeking to invest in U.S. real estate, and America Mortgages is thrilled to introduce our newest mortgage program, AM MultiUnit+, designed specifically for non-resident investors looking to acquire 5-8 units,” states Nick Worthing, Vice President of Residential Lending.  

In this article, we explore why multifamily homes stand out as an excellent investment opportunity.

Why Invest in Multifamily Homes?

Steady Cash Flow: Multifamily properties provide several rental income sources from each unit, making sure that investors have a steady and reliable cash flow. This reduces the risk of losing all rental income in the event that one unit is vacant, unlike single-family homes where vacancy results in a complete loss of rental income.

Cost-Effectiveness: Managing multiple units within a single property is often more efficient and cost-effective than managing multiple single-family homes spread across different locations. Consolidating expenses such as maintenance, property management, and renovations can lead to lower per-unit costs and an increase in profitability.

Appreciation and Value: Multifamily properties typically appreciate in value over time due to the increasing demand for rental housing and strategic property improvements. Investors can boost their property’s value through renovations, leading to significant long-term capital gains.

Matrix Monthly YOY Chart | International Home Loans
Year-over-year multifamily rent growth, all asset classes. Yardi Matrix

Types of Multifamily Homes

There are various kinds of multifamily homes to consider, each offering different layouts and living spaces.

Apartments: Apartments are owned by a single entity and rented out to residents. They offer a range of affordability, from budget-friendly options to upscale and luxurious living. Some apartments have amenities like community pools, theatres, exercise facilities, gardens, or game rooms catering to various lifestyle preferences and budgets.

Condominiums: Condominium ownership is divided by each unit, with buyers sharing ownership of communal spaces. These units are designed to appeal to specific buyer markets, such as working professionals or seniors. Condominium communities offer the benefits of homeownership along with amenities and low-maintenance living, making them an attractive option for many.

Mixed-Use Developments: Mixed-use developments combine residential units with commercial, retail, entertainment, or cultural spaces. These developments offer residents convenience, with everything from grocery stores to public transit stations within close proximity. Living in a mixed-use development provides a blend of urban living and access to various amenities.

Student Housing: Modern student housing goes beyond basic dorms, offering luxurious amenities and contemporary designs. These spaces are located near university campuses and cater to the lifestyle preferences of today’s students. Many student housing developments feature amenities like spas, game rooms, and fitness centers, enhancing the overall living experience for residents.

Age-Restricted Communities: These neighborhoods are typically limited to residents aged 55 and older, focusing on social engagement and lifestyle amenities. Lifestyle directors, fitness classes, and social clubs are common features, providing ample opportunities for residents to stay active and engaged. Age-restricted communities offer a sense of community and camaraderie for those in the same stage of life.

Low-Income Housing: Government programs aim to make housing affordable for low-income families and individuals. Subsidized housing options are integrated into multifamily developments, providing essential support for millions of households. These units are often indistinguishable from market-rate units, offering affordable housing options without compromising on quality.

Benefits of Owning Multifamily Homes

Diversified Risk: Owning a multifamily property spreads the risk across several units. If one tenant moves out, the loss of income is less impactful compared to a single-family rental. This diversification makes multifamily homes a more stable and secure investment.

Scalability: Multifamily properties provide an excellent opportunity for investors to quickly expand their real estate portfolio. By acquiring a multifamily property, investors can increase their rental units and income potential without the need to purchase multiple single-family homes.

Community and Management: Multifamily properties often creates a sense of community among tenants, leading to higher tenant retention rates. As an investor, managing multiple units in one location simplifies property management tasks, making it easier to maintain the property and address tenant needs promptly.

AM MultiUnit+ Loan Program

At America Mortgages, we provide mortgage solutions for U.S. expats and foreign national investors. AM MultiUnit+ is designed to make the process seamless and accessible, especially for non-residents and U.S. expat investors.

Loan Highlights:

  • 5-8 units
  • Minimum loan amount: US$250,000
  • Loan-to-Value: up to 75% for purchase & 70% for cash-out 
  • Underwritten on Property cash flow
  • No U.S. credit required
  • No personal income required

Our seasoned mortgage advisors specialize in navigating the complexities of securing financing for multifamily properties. With personalized guidance from pre-qualification to closing, we ensure a seamless and hassle-free experience every step of the way.

Experience the simplicity of our streamlined approval process, specifically designed to meet the unique needs of foreign national investors. We consider factors such as projected rental income, making it easier than ever for investors to qualify for a mortgage.

With nationwide availability across all 50 states, you can confidently invest in the best markets for multifamily properties, whether bustling urban centers or high-growth suburban areas. Let America Mortgages be your partner in unlocking the potential of your multifamily investment journey! 

For more information, visit www.americamortgages.com or contact us at [email protected].

LLC and Tax Strategies for U.S. Real Estate Investors

LLC and Tax Strategies

What is an LLC or Limited Liability Company

Investing in U.S. real estate can be an amazing opportunity for non-U.S. residents, offering opportunities for substantial yields, capital appreciation, stability and portfolio diversification. However, navigating the complexities of the U.S. tax system and legal environment requires expert advice, and America Mortgages, besides being your mortgage partner, is there with you at every step of the process. One of the most common and effective strategies for foreign national investorsis to use a U.S. Limited Liability Company (LLC) combined with smart and logical tax planning. Here’s why;

1. Liability Protection

An LLC offers liability protection, meaning that investors are typically not personally responsible for the debts and liabilities of the company. This is crucial for foreign investors who may not be familiar with U.S. litigation risks. Should any legal issues arise, the LLC structure can help shield personal assets from lawsuits or creditors.

2. Flexible Tax Treatment

LLCs provide flexible tax options. By default, a single-member LLC is treated as a disregarded entity for tax purposes, meaning income is reported on the investor’s personal tax return. Multi-member LLCs are treated as partnerships. However, an LLC can also elect to be taxed as a corporation. This flexibility allows foreign investors to choose the tax treatment that best suits their financial situation and goals.

3. Simplified Estate Planning

Every investor should be aware of U.S. estate tax laws, especially in the event of the property owner’s death. By holding property through an LLC, foreign investors can structure ownership in a way that may mitigate these estate tax implications. For example, ownership interests in the LLC can be transferred more easily than direct ownership of property, simplifying estate planning and succession.

5. Operational Efficiency

Owning U.S. real estate through an LLC can simplify the daily operations, especially if the LLC holds multiple properties. This centralization can streamline property management, accounting, and tax filing processes, making owning and managing real estate from abroad as easy as owning it in their home country (maybe even easier).

6. Proper Tax Planning

While an LLC offers numerous benefits, proper tax planning is essential to maximize those benefits and ensure compliance with U.S. tax laws. America Mortgages works with professionals who understand the complexities of foreign-owned or U.S. expat-owned real estate. Here are key considerations for foreign investors:

7. Understanding U.S. Tax Obligations

The U.S. tax filings are not as complicated as many people believe. It is important that foreign national investors understand their U.S. tax obligations, including federal, state, and local taxes. Engaging a tax professional experienced in international taxation can help navigate these obligations and identify opportunities for tax savings.

8. Utilizing Tax Treaties

The U.S. has tax treaties with many countries that can provide benefits such as reduced withholding rates on dividends, interest, and other income. Investors should review applicable treaties and incorporate them into their tax planning strategy.

9. Structuring Investments

Proper structuring can minimize tax liabilities. For example, layering LLCs or using a combination of LLCs and other entities, like corporations or trusts, can provide tax advantages and additional asset protection.

10. Consulting with Experts

Given the complexity of U.S. tax laws, consulting with legal and tax professionals who specialize in real estate and international taxation is essential. They can provide tailored advice, ensuring compliance and optimizing the investment’s tax efficiency.

In conclusion

For foreign nationals, investing in U.S. real estate through an LLC offers significant advantages, including liability protection, flexible tax options, and simplified estate planning. However, these benefits can only be fully realized through careful tax planning and compliance with U.S. tax laws. By leveraging the expertise of professionals and utilizing strategic planning, foreign investors can navigate the complexities of the U.S. real estate market effectively and achieve their investment goals.

Contact us today at [email protected] for a seamless investment experience.

Want to learn more?

We are excited to invite you to our month-long webinar series, offering a wealth of information on U.S. real estate investment.

First, join us for an informative session on Why and How to use an LLC for U.S. Real Estate Investing. Discover the benefits of forming an LLC for overseas property investment, including legal protection, asset security, tax advantages and cost of set-up. 

Webinar: Why and How to Use an LLC for U.S. Real Estate Investing

  • Date and Time: June 7, 2024, 07:30 AM SGT
  • Registration Link: Register here

Next, don’t miss our session on “3 Tax-Smart Strategies for U.S. Real Estate Investing” Learn how strategic tax planning can enhance rental income for overseas investors, offering insights into U.S. tax strategies that reduce liabilities and boost cash flow.

Webinar: 3 Tax-Smart Strategies for U.S. Real Estate Investing

  • Date and Time: June 13, 2024, 6:30 PM SGT
  • Registration Link: Register here

Get ready to elevate your investment game! We can’t wait to see you there.

Why Foreign Real Estate Investors Choose the U.S.

America Mortgage - Foreign Mortgage Loan

Why are foreign real estate investors choosing the U.S. over every other country in the world? Is it the world’s largest real estate market, with over $2.3 trillion transacted last year alone? Perhaps the staggering $53 Billion of U.S. residential homes purchased by foreign nationals in 2023? Maybe they are following Blackstone’s playbook as they also purchased more than $6 Billion in single-family homes across the U.S. My guess is it’s a combination of everything amongst the standard appeal of high returns, diversification, and a stable environment. Let’s dig into the reasons behind this intriguing trend and uncover the answers.

Huge Market Potential

There is a wide range of investment opportunities, including commercial and residential properties and real estate investment trusts (REITs). Foreign investors are motivated by a variety of factors when investing in U.S. real estate. These include the potential for high returns, diversification of their investment portfolio, and the stability and security of the U.S. political and economic environment. Let’s take a look at why these facts attract foreign investors to residential real estate in the U.S.

Capital Appreciation and Cash Flow

The benefits of investing in U.S. real estate are often undervalued. You can make money by renting out your property, and over time, your property’s value can increase. Even though home values have had their ups and downs, here’s the bottom line: in the last 20 years, the average home price in the U.S. has gone up from roughly $140,000 to around $340,000 as of April 2023. So, when you combine rental income and property value appreciation, foreign investors have the chance to see a solid return on their investment.

Diversification

The most important concept in investing is diversification, which helps reduce risk and increase returns over time. Investing in U.S. real estate can help foreign national investors diversify their real estate investment portfolios by spreading their investments across different countries. By reducing risk and increasing returns through diversification, non-resident investors can achieve their investment goals more effectively.

Secure and Stable Investment

The stability of the U.S. political and economic environment makes it an attractive destination for foreign investors seeking security. This is further enhanced by its legal framework and property rights protection. These protections include the right to own, use, and dispose of property and the right to exclude others from the property. 

Tax Benefits

Certain tax advantages exist when investing in U.S. real estate, such as deductions for mortgage interest payments and property taxes. However, tax regulations can be complex, so it is important to consult with tax professionals to ensure that foreign investors take advantage of all available tax benefits. Consulting with tax professionals can help foreign investors gain clarity on tax regulations and ensure that they are making informed investment decisions.

No Stamp Duty 

The U.S. is one of the few countries that does not have stamp duty for both foreign and U.S. citizen investors. This factor can potentially save you tens of thousands of dollars when compared to markets such as the U.K. or Australia. 

Factors to Consider When Buying Real Estate

Regardless of the market, as most people are aware when making investment decisions, it is important to consider personal goals and risk tolerance. With real estate, each property presents a unique set of variables. Here are some important factors to consider:

Market Trends: Research current and historical market trends in the area of investment property. Understanding supply and demand dynamics, price trends, and rental market conditions can help make informed decisions.

Location: Location, Location, Location. It’s often considered the most crucial factor in real estate investing. A desirable location can lead to higher property values, rental income, and demand. Consider factors like proximity to schools, workplaces, amenities, and the overall neighborhood’s reputation.

Budget and Financing: Determine the budget for the investment, including purchase price, property taxes, and ongoing expenses. Explore America Mortgages’ financing options, such as LTV and qualifying criteria. 

Property Type: Decide whether to invest in single-family, multi-family, condos, townhomes, or apartment buildings. Each property type has its own set of considerations and advantages.

Mortgage Type: The most popular loan program allows the borrower to qualify based on the cash flow of the property, not personal income.

Property Condition: Assess the condition of the property. Renovations and repairs can significantly impact investment costs and potential returns.

Cash Flow: Calculate the potential rental income and expenses associated with the property. Ensure that the property’s rental income covers all costs and leaves room for a positive cash flow.

Property Management: Decide whether the property will be directly managed by you or by a property management company. Explore property management companies that allow you to live and work abroad from where the property is located, stress and hassle-free.

Ready to Make a Move?

Investing in the largest and most stable real estate can provide foreign investors with a wide range of benefits, including high returns, diversification of their investment portfolio, and the stability and security of the U.S. political and economic environment. By generating cash flow through rental income and capital appreciation, foreign investors can achieve their investment goals more effectively. America Mortgages has one focus: providing market-rate mortgages for non-U.S. citizens, foreign nationals, and U.S. expats. This is 100% of our clients; no one does it better. If you’d like to find out more, please register to speak with one of our U.S. mortgage specialists today.

www.americamortgages.com