Author: Premela R.

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

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. 

Every week, our loan officers based around the world speak with U.S. real estate investors with a multitude of short—and long-term goals. As 100% of America Mortgages’ clients are living and working abroad but obtaining U.S. mortgages, this insight is unique to a mortgage firm. With each client interaction, our loan officers increase their knowledge of real estate investing from a global perspective, building a community of like-minded investors. 

As we all know, obtaining a mortgage in the U.S. can be an exciting and potentially lucrative venture. However, for foreign nationals and U.S. expats, the process can feel like a maze. Without guidance from professionals who know all the “ins-and-outs” of U.S. mortgages for non-residents, navigating it can be challenging. With the help of America Mortgages, navigating the complexities of Loan-to-Value (LTV) ratios, credit requirements, foreign earned income, qualifying standards, and securing the right financing becomes easier and more straightforward.

In this article, we answer frequently asked questions from new and seasoned U.S. real estate investors. So, whether you’re investing in U.S. property for the first time or you’ve been investing for years, this roadmap will hopefully answer any questions you may have. 

What’s the LTV for a Foreign National?

America Mortgages offers LTVs for foreign nationals, typically up to 75% for purchases and 70% for cash-out refinancing/equity release. This means foreign nationals can finance up to 75% of the property’s value​.

What’s the LTV for a U.S. Expat?

America Mortgages offers an LTV of up to 80% for U.S. expats, depending on the specific program and the borrowers’ financial profile. Our goal with U.S. expats is to make it as easy as if they were living and working in the U.S. and walking into their local U.S. bank, however, no W2 is required and foreign income and assets are accepted.

Do I need U.S. credit?

For Foreign Nationals, U.S. credit is not required. If a formal credit history from your home country or country of residence is not available, America Mortgages accepts other forms of financial credit if the loan program requires it. Don’t have any credit history in any country? No worries. We also have programs for no-credit references. 

For U.S. Expats: To qualify for a conventional mortgage, you need to have U.S. credit and maintain a minimum FICO score of 640+. However, America Mortgages does understand there are U.S. expats who have been abroad for many years and may have limited or no U.S. credit history. If so, we have loan programs that will still allow you to obtain a mortgage. 

In which U.S. states can I get financing?

America Mortgages offers financing solutions across all 50 U.S. states. Foreign nationals and U.S. expats can purchase or refinance properties in any state.

What’s the minimum and maximum loan amount?

The minimum loan amount offered by America Mortgages is $100,000; the maximum loan amount is in excess of $100 million (High net worth mortgages). 

The LTV for HNW mortgages can vary depending on the specific loan program, property and the borrower’s financial profile​.

What documents are needed to qualify as an Expat?

To qualify as a U.S. expat, you need to provide the following; 

1. U.S. Passport   
2. Two years of U.S. tax returns
3. No W2 is required 
4. Two months’ pay statements
5. Two months’ bank statements (foreign accounts are accepted)
6. U.S. credit report (if available)

What documents are required to qualify as a Foreign National?

1. Passport  
2. Foreign credit report (if applicable 
3. Two months bank statements (foreign accounts are accepted) showing available down payment and closing costs 

What’s the best market to buy investment property in the USA?

That is a big question. The “best “market depends on your investment goals. Major cities like New York, Miami, and Los Angeles are popular for their strong real estate markets, but emerging cities like Austin, Ohio and Detroit also offer great opportunities. 

America Mortgages’ loan officers are very knowledgeable about investment properties, and as a company, we provide free resources to help you evaluate market conditions based on your specific needs​​.

How long does the process take?

Getting pre-approved for a loan is easier and quicker than most people expect. The pre-approval process takes 24-72 hours once all documents are received. 

The entire mortgage process typically takes around 30 to 45 days from application to closing.

I own a property in the U.S. but never had a mortgage. Can I still refinance?

Yes, America Mortgages offers refinancing options, even if you have never had a mortgage before. We provide cash-out refinancing and other options depending on your property’s equity and current value​​.

What is the age limit for getting a U.S. mortgage?

There are a lot of unique benefits to U.S. real estate investing and age happens to be one of the biggest. There is no age limit when getting a U.S. mortgage. What does that mean? It means that if you’re 19 or 99, you still qualify for the longest amortization. This allows U.S. investors to maximize their yield. 

I’ve heard U.S. taxes are high. Can you advise on how to reduce or mitigate this? 

This is probably the biggest misconception of people living outside the U.S. With proper planning and tax advice from experts, the taxes on investment property are likely significantly lower than what you’d pay in any other country. The U.S. economy relies heavily on real estate, and therefore, it is one of the best countries to be a real estate investor. 

How many mortgages can I have as a foreign investor in U.S. real estate? 

Real estate is a tremendous way to build wealth in the U.S. Unlike many countries that have restrictions on foreign ownership or cooling measures in place to limit the appreciation of real estate; the U.S. is truly a free market. There are no limitations on the number of mortgages one can have as long as they qualify. This gives savvy investors the ability to buy, cash out, and buy again using leverage. Building a real estate portfolio in the U.S. with expert guidance and proper leverage is definitely achievable.

How are your mortgage loans underwritten? 

America Mortgages has several ways to qualify you for a mortgage, and with a 97% approval rate, we know this type of lending is better than anyone else in the market. The most popular program is;

Qualify only on the rental income. What does that mean? It means common sense underwriting. When you buy a property for investment, you qualify based on the cash flow generated from the property. You do not need to provide personal income. As long as the rental income covers the mortgage, tax and insurance, then the loan qualifies. In a situation where the rent isn’t sufficient to qualify for the entire monthly debt, it doesn’t mean the loan doesn’t qualify; it simply means you may need to increase your down payment. 

Introducing our new online mortgage platform

America Mortgages recently launched our new application platform which gives our clients a simple application process and an encrypted platform to communicate and upload documents required for obtaining a mortgage. Now, you’re able to follow the process of your mortgage in real time from application to closing. 

Now, qualifying for a mortgage is even easier and more straightforward. If you’d like to apply for a pre-approval U.S. mortgage on our platform, you can apply here.

Securing a mortgage as a foreign national or U.S. expat doesn’t have to be an uphill battle when you partner with America Mortgages. With a clear strategy and the right support from America Mortgages, you’ll be well on your way to turning your real estate aspirations into reality—whether it’s a smart investment or the perfect place to call home in the U.S.

Start your U.S. real estate journey today! America Mortgages approves 97% of loan applications—connect with our expert loan officers through our 24/7 link and make your investment a reality.