Are you a U.S. Expat living abroad, filing U.S. income tax, but earning income from your overseas assignment? If you answered YES, we created a U.S. Home Loan Mortgage program specifically for you! America Mortgages PrimeSelect allows you to use two years of your U.S. tax returns, along with your monthly foreign income, to qualify just as you would if you were back home in the U.S.
The credit crunch, which was primarily caused by the U.S. banks’ cavalier attitude to mortgages and other loans, has paid for the previous days of easy credit. It is now much more challenging to obtain a mortgage from a U.S. lending institution. For example, guidelines introduced in January 2013 encouraged lenders to demand full documentation from potential borrowers and to be more precise about the consequences of low early repayment rates.
As an expat, you will find getting a mortgage even more difficult. Many lenders will not even consider lending to foreign income earned, so you would need to be persistent and shop around. Note that, as in many cases, mortgage programs may vary from state to state. With America Mortgages PrimeSelect, you are now able to purchase U.S. Real Estate as an investment, second home, or if your intention is moving back to the United States, owner-occupied at prime rates, terms, and programs.
Requirements
You will need to prove that you have sufficient employment and enough funds to repay the loan. Bear in mind that the more cash you have readily available to pay for a deposit, the broader choice of mortgage you will have. America Mortgages PrimeSelect will allow up to 90% financing for a second home purchase.
America Mortgages PrimeSelect mortgages are ‘fully documented,’ meaning you will need to prove your income by supplying two years of U.S. tax returns. In addition to this, you will also need to show your last two months’ bank statements to show you have money sufficient to cover both down payment and closing costs. We will also require one month of pay statements in the country you are working in. If these accounts, pay, and banking is in a language other than English, it will require a professional translation.
Here are the requirements:
- – Two years of U.S. Tax returns
- – Two months bank statements (foreign okay)
- – One month of pay statements
- – Passport or drivers license
- – Social security card
- – U.S. credit score (FICO)
Debt to Income Ratio
Most lenders will want your debt-to-income ratio to be no more than 35%. America Mortgages PrimeSelect will allow up to a 45% ratio. This is somewhat aggressive but often needed due to the fluctuation of the U.S. dollar to other currencies. LTV (Loan to Value)
Unlike many programs that restrict LTV for U.S. Expat foreign earned income, America Mortgages PrimeSelect Loan-to-value ratios are generally around 80-90%. The maximum full term is 30 years, regardless of age.
Mortgage Types
A wide range of mortgage products is available for U.S. expats looking to purchase or refinance U.S. Real Estate. Mortgages can be variable or fixed-rate, with flexibility over the fixed-rate term. In addition to the standard principle and interest U.S. mortgage loans, there are also interest-only mortgages, allowing for more cash-flow. As most of these loans do not have pre-payment penalties, you can pay towards the principal at will.
Do you have the income but doesn’t show on your U.S. tax returns? No problem either, America Mortgages StatedSelect allows you to only state your income. We will not request or require proof of income, including tax returns or monthly pay statements. LTV and rates vary for these programs, but qualifying can be extremely simple.
One of our associates or partners will be happy to answer any questions you may have regarding America Mortgages’ various loan programs.
Please send us a message at [email protected].