The U.S. real estate market has been one of the strongest property markets globally with no signs of slowing down. If you are a Hong Kong citizen looking to diversify your portfolio or simply get the most out of the booming U.S. economy, now is the time!
According to the National Association of Realtors (NAR), China (including Hong Kong) emerged as the top country among foreign buyers in 2021! Between 2010 and 2021, they purchased an average of $18 billion worth of U.S. property annually, acquiring around 27,000 units each year.
Can Hong Kong citizens buy property in the U.S.?
Yes, Hong Kong citizens can buy property in the U.S.
There are no limitations towards any foreign nationals to purchase real estate in the U.S. If you are ready to invest in U.S. real estate simply apply for a mortgage as a non-citizen.
We’ve noticed an uptick in foreigners from various Asian countries investing in U.S. real estate owing to better housing prices. If you are considering obtaining a mortgage in the U.S. but are cautious about the process, you are not alone.
There are significant differences in how the mortgage system works in Hong Kong vs the U.S. So let’s clear them out. We’ll share the ins and outs of obtaining a U.S. mortgage as a Hong Kong citizen.
How do home prices in the U.S. compare to Hong Kong?
Hong Kong is notorious for its sky-high property prices. In fact, it’s one of the most expensive real estate markets globally. Let’s take a look at the average prices per square meter for comparison, Hong Kong is USD 28,570
In contrast, some major U.S. metro areas have significantly lower prices:
- San Francisco, California: USD 7,180
- Miami Area, Florida: USD 2,660
- Orlando, Florida: USD 1,940
- New York Metro Areas: USD 3,070
- Austin, Texas: USD 2,620
Source: NAR
Difference between mortgages in Hong Kong vs. U.S.
| Feature | Hong Kong | USA |
| Down Payment | Ranges between 40-50% | Ranges between 20-25% for non-residents (foreign nationals and U.S. expats) |
| Loan-to-Value (LTV) Ratio | Between 50-60% | Up to 80% for non-residents (foreign nationals and U.S. expats) |
| Repayment Options | Monthly fixed or floating-rate payments | Monthly fixed or adjustable-rate payments |
| Prepayment Penalties | Common in some loans | Less common |
| Legal Fees | Higher due to stringent regulations | Generally lower, varies by state |
| Tax Considerations | No mortgage interest deduction | Mortgage interest can be tax-deductible |
Types of U.S. mortgages available for Hong Kong citizens
1. Foreign National Mortgage
A mortgage that is designed for foreign nationals, or non-U.S. citizens. So if you don’t have a U.S. social security number or a green card this is the perfect option for you. A Foreign National Mortgage generally has a down payment of 25% of the property value and requires proof of payment and substantial financial reserves.
2. Debt Service Coverage Ratio (DSCR) Loan
This loan is based on the property’s income potential and not the borrower’s income. This means that even if you don’t have a high personal income or a strong credit history, you can still qualify for a loan if the property itself is profitable. It’s a great option for investors who want to leverage rental income to finance their property purchases.
3. Bridge Loans
Bridge loans are a short-term loan used to bridge the gap between purchasing a new property and selling an existing one. They are ideal for acting quickly and seizing the investment opportunities but haven’t yet sold your current property yet.without waiting for your existing property to sell.
4. Portfolio Loans
These are mortgages that lenders keep on their books rather than selling on the secondary market. Since the terms are customizable these loans offer more flexibility. Portfolio loans are especially great for high-value properties, unique properties, or borrowers with unconventional financial profiles.
How Can Hong Kong Citizens Get Mortgages in the U.S.?
America Mortgages helps foreign nationals obtain U.S. mortgages. 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.
FAQs
Can Hong Kong citizens get a mortgage in the U.S.?
Yes, Hong Kong citizens can obtain mortgages in the U.S.
Do Hong Kong citizens need a Social Security Number to get a mortgage in the USA?
No, lenders offer mortgages for foreign nationals without a Social Security Number.
