UK to USA. How can I find financing with no credit rating in USA

11 Replies

Hey guys. I am a young Canadian who has lived and worked in the UK for 5 years with a great credit rating there. I am now looking to begin to invest in Houston TX and am worried that I won't be able to a quote any sort of loan since my credit rating from the UK is pretty much void and I have absolutely nothing in the USA. Any ideas on what I would be able to do?

Find a private buyer that is more concerned with the deal than the borrower.   

When I do loans I consider 1 thing:  If this borrower stopped paying, would I be okay taking over the property for the amount of the loan?  If so, the loan is safe.  If not, I don't do it.

I personally don't care who the borrower is 

It will be difficult for you to borrow money in the US as none US citizen or resident with no Credit history. but there are products for foreigner buyers out there, often they require larger down paymnet and have higher interest rates. 

try to google which US bank have branches in the UK and see if they could work with you.

How many units are you planing to buy?

@Jeff Hassler what is your current status here i' the USA? How long do you plan on staying here? If you plan on staying here for the long term, I'd advise you to open a credit card right away to start building your credit. I'm French and started building my credit by getting my first credit card in 2014 when I was still in college here. I was able to get financing very easily in 2016.

Find private lenders.  Use hard money.  Get seller financing, and do wraps.  Those are three things you can do, right there.

And what happens when a downturn hits and the banks stop lending?  Those are the times when you want to be buying and buying.  So it's not just you.

Seller financing. I have done 3 seller financed apartments in the past 2 years. The last one that I did was a 120 unit apartment. It can be done and you don't need to over-pay, you just need to ask!

@Jeff Hassler I'm an ex-pat Canadian living in the US. You're going to tear your hair out trying to find a hard-money lender and/or seller financing if you don't live in the US. 

As @Hadar Orkibi has pointed out there are a few lending products out there for foreigners but they are few and far between. 

If you're looking to buy a single family residence (don't call it an investment), you can always open an account with TD/RBC/BMO's US subsidiaries and they can leverage your Canadian credit history. They won't be able to do commercial financing. 

Alternatively, if you have liquid assets over $750K and have an account with HSBC/Citi/JP Morgan in the UK/Canada, your banker should be able to arrange financing in the US (not the same terms as most US folks would get). 

Alternatively, if you PM me, I can connect you with a single family mortgage lender who might be able to help you out as a Canadian.

If you live in the US, you can easily start your US credit history by opening US credit cards and beginning the process. 

Your profile says you're in Houston but your post suggests otherwise. Hence, both answers. 

@Jeff Hassler Depending on your long term goals in the US, you could also find a partner to team up with that has good credit until you get established, if you have something to bring to the table like a downpayment.  I actually have the opposite problem of you, I have excellent credit and track record (my credit score is over 800), but I am short on funds at the moment.

One thing about this business there is almost no problem that is not solvable if you get creative enough.

@Jeff Hassler Any reason you haven't considered partnering with a local resident to do investing? Leverage their credit history, and combine with your investment knowledge and capital? Picking the right partner is like marriage, has to be the right person, but when you do find the right person, it can work magically. 

Originally posted by @Tim Winter :

@Jeff Hassler Any reason you haven't considered partnering with a local resident to do investing? Leverage their credit history, and combine with your investment knowledge and capital? Picking the right partner is like marriage, has to be the right person, but when you do find the right person, it can work magically. 

Dear @Tim Winter, Sir would you be able to share how one could work with a local resident? The concern is on how to structure the deal? Do you set up a LLC with "2" members, or that the property is on Joint-tenancy where each of you own the property?

Thanks in advance.

We have done this with out of state investors before and currently are doing with a client from half way around the world. What we did was to have someone here in the United States join the LLC which was formed. That way, the US citizen was able to act on behalf of the foreign member and as an agent of the LLC. They used their banking relationships along with our connections to secure lending here in Wisconsin.