We recently hosted a webinar with Donald Klip, Co-Founder of America Mortgages, to unpack how today’s high-interest rates, surging tariffs, and shifting migration patterns are creating unexpected opportunities in U.S. real estate—especially for foreign nationals and U.S. expats.
For those who missed it, the recording is available here.
During the session, Donald Klip (DK) addressed key questions, covering market trends, property performance comparisons, and tailored financing solutions designed specifically for foreign nationals and U.S. expats investing from abroad.
Remarks have been edited for clarity and brevity.
Is now a good time to invest in U.S. real estate?
DK: Absolutely. Despite high interest rates and global uncertainty, home prices in the U.S. still rose over 10% in 2022—during one of the steepest rate hikes in history. Why? A severe housing shortage. The U.S. is short 5–7 million homes, and tariffs are further stalling new builds by raising costs for materials like Canadian lumber and Chinese tools. That imbalance means prices and rental yields continue to climb. It’s a landlord’s market.
How do rising tariffs affect real estate?
DK: Tariffs increase the cost of construction inputs, which discourages homebuilders from starting new projects. That slows down supply even further—driving up home values and rent. In short: rising tariffs are inflationary for housing, which benefits investors holding real estate assets.
How do tariffs affect the cost of new construction, and what does that mean for buyers of existing homes?
DK: Builders rely heavily on imported materials—tools from China, lumber from Canada. Tariffs have made these essentials significantly more expensive, which is discouraging new construction. That benefits buyers of existing homes: low supply means higher prices and stronger rental yields for current inventory.
Are there signs that gentrification is slowing?
DK: Not at all. America has a deep-rooted culture of migration. Cities continue to gentrify as people relocate for affordability, jobs, and better schools. What’s different is where the action is. We’re seeing massive movement into the Southeast corridor—Texas, Georgia, the Carolinas—thanks to major job creation (like EV and semiconductor factories) and no state income tax.
Should we prioritize no-income-tax states for investment?
DK: Yes, it’s smart to consider. States like Texas, Florida, and Tennessee are seeing population surges because of their favorable tax policies. If tenants are moving there, investors should follow. We often advise looking at school rankings, employment growth, and cost of living alongside tax rates when deciding where to buy.
With talk of possible Fed rate cuts later this year, should we wait or lock in financing now?
DK: Don’t wait. Prices are more sensitive than interest rates. When rates are cut, prices will spike—possibly overnight. If you’re looking at a $200,000 home and wait for a rate drop, it could jump to $250,000. Lock in now and refinance later for better terms and equity gains.
How does rental income-based qualification work?
DK: It’s simple. If the projected rent covers the mortgage, you’re approved. We don’t need U.S. credit, tax returns, or employment documentation. That’s the foundation of our Rental Coverage+ loan program, designed specifically for foreign nationals and U.S. expats.
Besides West Virginia, are any other states becoming affordable?
DK: A few states like Kentucky, Mississippi, and Arkansas still fall under “moderately affordable,” but the affordability map is shrinking. West Virginia remains the only state labeled as “affordable.” That’s why migration is such a big deal—it’s people chasing affordability and better opportunities.
How fast can a bridging loan be approved and funded?
DK: Typically within 1 to 4 weeks, depending on the structure. It’s especially popular now because many banks aren’t lending aggressively. Bridging loans offer flexibility—whether you’re buying time to close, tapping equity, or grabbing an urgent opportunity.
What are some unexpected ways clients use bridging loans?
DK: We’ve seen clients use them to pay for healthcare, purchase businesses, invest in gold, or fund overseas property buys. Recently, a client refinanced three debt-free U.S. properties to buy a home in Singapore. It’s all about liquidity at the right moment.
How do migration trends shape investment decisions?
DK: Migration is the new investment map. Americans are moving to states with better job prospects, lower taxes, and affordable housing. These migration patterns are driving rental demand and price appreciation. “Follow the migration” is our mantra—it’s where infrastructure is expanding and yields are strong.
What’s your forecast for U.S. interest rates?
DK: The market is pricing in four rate cuts by year-end. If rates fall, expect property prices to jump. If you buy now, you benefit from today’s pricing and refinance later for better terms and potential cash-out equity. That’s the U.S. game.
What loan-to-values (LTVs) can foreigners expect?
DK: Up to 75% LTV with no U.S. credit history required. For U.S. expats, it’s even higher. Our most popular program qualifies borrowers purely on rental income. We also offer options based on overseas income and high-net-worth portfolios.
Can I get pre-approved before finding a property?
DK: Yes. We can issue a pre-approval within 24 hours. You’ll use that to start house hunting with proof of financing. Once you’re ready to go into contract, we’ll finalize the loan with minimal fuss. We even connect clients with realtors in top investment cities.
Do you work with self-employed or digital nomads?
DK: Absolutely. Many of our clients don’t have traditional income documentation. That’s why our rental-based qualification model is so effective. You don’t need pay slips or HR letters—just a solid rental appraisal. If the rent covers the loan, you’re good.
What should someone do today if they want to take advantage of these trends but don’t know where to start?
DK: Just reach out. We’ll guide you through the full process—help you select the right city, introduce you to trusted realtors, structure your mortgage, and even assist with LLC formation and taxes. You’re not alone in this. Let us help you get started.
