foreign national mortgage Archives

Investing in the largest real estate market in the world – the United States – can be a fantastic way to create future passive income. If you’re a non-US passport holder (foreign national) or a U.S. expat living overseas (Singapore or Hong Kong, for example), you may find it can be very complicated if not impossible when looking for a mortgage loan to buy real estate in the U.S.. Even American expats returning home and buying property in America fail to qualify for a mortgage loan from U.S. banks. Mainly because they don’t have a credit footprint or earned income in the U.S..

Read on to discover how you can easily obtain a U.S. mortgage loan regardless of your passport or place of residence.

America Mortgages happy family in front of property in the US

Meet the American mortgage loan experts right here in Singapore!

Creating a portfolio of real estate or a single property investment is a proven way to build wealth and pass down a legacy to your family. Asset appreciation, high rental yields, no stamp duty, low barrier to entry and a stable market are some of the factors that make the U.S. real estate market a fantastic investment.

However, before you go shopping for that new home with a pool in Florida or a penthouse apartment in Manhattan, the first step is getting a non-committal approval for a mortgage loan.

America Mortgages (AM) was set up in Singapore earlier this year to unlock the U.S. real estate market for buyers living outside America. The company is a subsidiary of Global Mortgage Group (GMG), the largest international mortgage ‘originator’ for U.S. real estate.

GMG was co-founded in 2019 by Donald Klip and Robert Chadwick, both ex-institutional bankers. The two Americans met in Singapore in 2018 and became friends. Robert’s professional experience was in U.S. mortgages, and he was a seasoned investor in U.S. real estate. Donald was a hedge fund manager and investment banker in Asia with global real estate investing experience.

As expats themselves, both Donald and Robert realised that obtaining a mortgage from a “traditional” bank in a country where you don’t live and/or hold a passport is frustrating and often impossible. This led to them establishing GMG. GMG now has loan options in the U.S., Canada, Australia, Hong Kong, Singapore, UK and various locations in Europe, to name a few.

How America Mortgages helps you get a mortgage loan in America

While GMG specialises in residential, commercial, construction and bridge financing in different countries, America Mortgages’ sole focus is providing market rate mortgages specifically for the U.S. 100% of their clients are either U.S. expats or foreign nationals living overseas. Due to a very focused expertise, AM approves 97% of loans submitted.

Here are the key highlights of a U.S. mortgage loan for foreign nationals and U.S. expats:

For a non-U.S. citizen: maximum loan-to-value (LTV) is 75% for purchase and 70% for refinance and equity release
For a U.S. expat: maximum LTV is 80% for purchase and 80% for refinance and equity release
Minimum loan amount of US$150,000 and maximum of US$50,000,000
Fixed term options of 5, 10 and 30 years
All loans amortised over 30 years, regardless of borrower’s age
10-year fixed interest-servicing-only payments available
Mortgage loans available in all 50 states
Self-employed and employed borrowers allowed
No U.S. credit or footprint required

So, whether you’re a global investor, buying a holiday home for yourself, an apartment for your child when they attend university or simply growing your investment portfolio to pass down to your children, it’s possible for you to buy property in America!

* Indicative values; rates are terms are subject to change

Property in the US America - America Mortgages

The biggest myth of buying real estate in the U.S.

Although AM suggests that buyers should get advice from their attorney or tax advisor on investing in any real estate market, the myth of the States being a highly taxed country for buying U.S. real estate couldn’t be further from the truth.

For one, regardless of whether you’re an American citizen or a foreign national, there’s no stamp duty when purchasing property in the U.S. There are also no government limitations or restrictions on when or where a foreigner can purchase or sell property in America. Since there aren’t any cooling measures, this means that savvy investors are able to take advantage of properly researched locations and asset types. Yields and appreciation galore!

America Mortgages has been featured in Yahoo! Finance, The Mortgage Daily, Canadian Business Journal and other notable publications for its open architecture approach as well as providing borrowers with access to both in-house AM and third-party solutions to make informed decisions.

The AM team says that it shouldn’t have to be confusing, overwhelming or foreign to obtain a U.S. mortgage to buy property in America; they have loan officers throughout Asia and around the world with the depth of experience and knowledge required for resolving complex issues foreign national and expat borrowers may have that U.S. banks and brokers don’t know how to handle.

Far from being on the outside looking in, now what real estate investors get is a front-and-centre window into the U.S. market. You can open and close a transaction all while sitting in your living room in Singapore without ever getting on a plane!

Hear from an America Mortgages client

“The service and personal attention that we received from Donald and Robert was exceptional. They were patient and took the time to answer all of our questions while leading us through the mortgage process. Everything was handled professionally, efficiently and faster than the service we usually receive from our banks. We will definitely recommend America Mortgages to our friends and colleagues.” – Janey Schueller, Singapore

Written in collaboration with:
America Mortgages
americamortgages.com

US Mortgages for non Residents

Yes, you read that correctly. You don’t have to be a citizen to get a U.S. mortgage.

If you’re a permanent resident alien, you’ll need your green card and your social security number. Your mortgage application process will be very similar to that of U.S. citizens.

If you’re a non-permanent resident alien, you don’t have a green card, but you have a social security number or ITIN. You can finance a home if you produce a work permit (Employment Authorization Document) or special employer-sponsored visa. Lenders must verify that you’ll be able to live and work in the country for at least three years.

Non-U.S. citizens without lawful residency in the U.S. are not eligible for Fannie Mae, Freddie Mac, or FHA home loans. There are two sorts of non-citizen homebuyers in the United States — the resident who wants a primary residence and the non-resident who wants a vacation or investment property in the U.S. Each buyer may finance a property with a foreign national mortgage, but the loans are not alike.

Permanent resident aliens

Both permanent and non-permanent resident aliens can obtain mortgages in America, pretty much like everyone else. They can even get Fannie Mae and Freddie Mac home loans with as little as three percent down once they live in the U.S..

The documentation requirements depend on the borrower’s status.
If you’re a permanent resident alien, you’ll need your green card and your social security number. Your mortgage application process will be very similar to that of U.S. citizens.

Non-permanent resident aliens

Suppose you’re a non-permanent resident alien, meaning you don’t have a green card, but you have a social security number. In that case, you may be able to finance a property if you produce a work permit (Employment Authorization Document) or special employer-sponsored visa.

Lenders must verify that you’ll be able to live and work in the country for at least three years. If your permit is going to expire within a year, your lender must evaluate your likelihood of remaining in the country and decide accordingly.

Foreign national loans for non-residents

Before America Mortgages’ Foreign National Mortgage programs, it was a lot harder for borrowers outside the U.S. to finance second homes or investment properties in the U.S. These are riskier for lenders. Hence, they carry higher interest rates, often above 8%.

Borrowers also used to have to make much larger down payments — on average, 50 percent. However, that has all changed with America Mortgages’s specialized programs.

Two of the most popular programs;

– America Mortgages FNSTATED: This is a perfect program for borrowers that either can’t show the required income for various reasons such as self-employment, lumpy income, or just a privacy concern. This program doesn’t require any income verification, U.S. credit, or residency and has a high LTV of 70 percent.

– America Mortgages FNFull: This is a perfect program for a borrower to show their foreign tax returns and income statements just as a U.S. citizen would. Rates are on par with what a U.S. citizen would pay, and the LTV can go as high as 50 percent without reserves required.

America Mortgages is the ONLY Asia-based U.S.-focused Real Estate financing firm with offices in Singapore, Hong Kong, and Shanghai. The ability to open an application and close a loan without ever leaving Asia may be unique, but we do it every day.
Borderless mortgages. Easy.

What about U.S. credit scoring?

One challenge foreign borrowers face is the lack of credit history. It can take years to accumulate enough credit history to generate a good score. Or any score.

However, there is help for those with so-called “thin files” or No Credit. America Mortgages can accept either a bank reference letter or a foreign credit report instead of a standard U.S. credit report. This is a unique feature and sets America Mortgages apart from other U.S. based lenders and brokers.

What about U.S. Expats?

Are you a U.S. Expat, files U.S. Taxes but work for a foreign company and don’t receive a W2? Oh, boy! We’ve got a great program for you! Our America Mortgages Expat mortgage program is as easy as walking into your local bank in “Small Town, USA.” We look at your foreign income just as we would if it was paid in USD. Your W2 is offset with other documents, and your loan is processed just as it would if you were in the U.S. It’s that easy! Although it does require sufficient U.S. credit for these programs.

However, if U.S. credit isn’t an option because you’ve been abroad for many years … we have thought of that as well. We have programs for these borrowers as well.

America Mortgages welcomes everyone!

With over 40+ combined years of experience in U.S. mortgage banking and Asia private banking, America Mortgages knows the type of borrowers, their problems and hurdles, and how to resolve these issues in the same time zone, without the learning curve, U.S. based banks/brokers may have. America Mortgages welcomes anyone looking to invest or refinance U.S. Real Estate. We have programs for almost every type of borrower regardless of their passport.

For more information, please contact [email protected].