Hi, I'm a US citizen currently living in London. I have a stable job working at a British company, but have not had any US income in the past 9 years. Looking to invest in the US real estate market again, and have enough for a down payment, but curious how feasible it will be to get a mortgage. Anybody have any experience getting a mortgage while living abroad? Thanks!

It won't be a problem...you'll want to approach a bank that does business in London as well as in the US and there's no shortage of those. The mortgage lenders are actually in "go mode" so you should find rates to be competitive as well. What might be limiting is the type of property they will be willing to take as collateral. Multi-family is generally limited to 4 units or less - if accepted at all. SFH, TH, Condos are all readily acceptable.

Sounds like political life where you are - is as wild as it is here...you must feel right at home!    

@Patricia Steiner totally incorrect, I don't understand how can you give financial advise as a real estate agent?

@David Choe do you currently have a credit score? If so, you just go on conventional market on Fannie or Freddie under US Citizen Abroad, same rates as you would live here. Your first property can be second home with 10% downpayment and the following purchases will be investment with 20% downpayment on 1 unit and 25% downpayment on 1-4 units. 

Originally posted by @Patricia Steiner :

It won't be a problem...you'll want to approach a bank that does business in London as well as in the US and there's no shortage of those. The mortgage lenders are actually in "go mode" so you should find rates to be competitive as well. What might be limiting is the type of property they will be willing to take as collateral. Multi-family is generally limited to 4 units or less - if accepted at all. SFH, TH, Condos are all readily acceptable.

Sounds like political life where you are - is as wild as it is here...you must feel right at home!    

Ah that sounds great, thank you for the detailed advice! I will definitely try to find a US lender that does business in my area. 

Originally posted by @David Choe :

Hi, I'm a US citizen currently living in London. I have a stable job working at a British company, but have not had any US income in the past 9 years. Looking to invest in the US real estate market again, and have enough for a down payment, but curious how feasible it will be to get a mortgage. Anybody have any experience getting a mortgage while living abroad? Thanks!

 Hi David.  I have experience getting a mortgage while living overseas.  Although you don't have any "US" income, you have "income" and your worldwide income is subject to tax according to the IRS which I'm assuming you've been reporting on Tax Form 2555 each year.  In addition, any bank accounts you have where you're depositing your non-US income is supposed to be reported by your foreign bank (in London I assume) according to the Foreign Account Tax Compliance Act (FATCA) where you also need to comply by filing a FBAR FinCEN Report 114. 

All this to say, your compliance to these will certainly allow you to qualify for a mortgage (not that its a requirement, but supports your claimed income) - which is what I've done many times while living overseas. 

The only problem I've encountered is that lenders are not familiar with the the figure that Form 2555 generates and drops into your 1040 because its listed as a credit - currently $103,900.  So, it just takes a little explaining for them to understand what's going on. I've always been successful clearing that up with the lender and get approved.  Hope that helps.  

Originally posted by @Patricia Steiner :

It won't be a problem...you'll want to approach a bank that does business in London as well as in the US and there's no shortage of those. The mortgage lenders are actually in "go mode" so you should find rates to be competitive as well. What might be limiting is the type of property they will be willing to take as collateral. Multi-family is generally limited to 4 units or less - if accepted at all. SFH, TH, Condos are all readily acceptable.

Sounds like political life where you are - is as wild as it is here...you must feel right at home!    

 Huh???  you'll want to approach a bank that does business in London as well as in the US and there's no shortage of those.  

Having successfully applied for several loans as an American while living overseas to purchase RE in the US, I've never heard of such a thing.  And, what does that have to do with applying for a loan.  Can you please expound on your advice.  I'm intrigued.

@Matthew McNeil

You know all that "little explaining" you had to do...you won't have to with banks that already have that knowledge.  I too lived overseas.  I gave my opinion, you gave yours, think that does it.  

@Diana Muresan

I was a long-time former wealth banker running the division for an international bank; I also ran the joint venture for an international ocean front builder and a national mortgage lender. I didn't know that I needed to give you my resume in order to give my opinion on a post.   I'm embarrassed for you.

@Matthew McNeil yes, I’ve done lots of US  Citizen Abroad, Foreign Nationals and Expats. We actually use the income docs from the country where borrower works and we do verification of employment there. We don’t need proof where payroll is deposited, we do need tax returns and finds to close need to be deposited by in a US bank 10 days before closing. 

Originally posted by @Patricia Steiner :

@Matthew McNeil

You know all that "little explaining" you had to do...you won't have to with banks that already have that knowledge.  I too lived overseas.  I gave my opinion, you gave yours, think that does it.  

@Diana Muresan

I was a long-time former wealth banker running the division for an international bank; I also ran the joint venture for an international ocean front builder and a national mortgage lender. I didn't know that I needed to give you my resume in order to give my opinion on a post.   I'm embarrassed for you.

The "little explaining" I had to do wasn't for your benefit.  It was a reply to the OP.  I sincerely asked if you could explain to me what you wrote to the OP in your original response to his question and expound on it because it was somewhat ambiguous.  I think you read me wrong.  

Originally posted by @Patricia Steiner :

@Matthew McNeil

You know all that "little explaining" you had to do...you won't have to with banks that already have that knowledge.  I too lived overseas.  I gave my opinion, you gave yours, think that does it.  

@Diana Muresan

I was a long-time former wealth banker running the division for an international bank; I also ran the joint venture for an international ocean front builder and a national mortgage lender. I didn't know that I needed to give you my resume in order to give my opinion on a post.   I'm embarrassed for you.

continued from above after computer glitch....

The "little explaining" I had to do was to give advice to someone who asked for input.  It was NOT directed at you.  Your reply to me was that I didn't need to because banks already have that knowledge.  Do you realize what you implied with that statement?  Should we just reply to every BP member seeking advice to go get it from the bank, lender, accountant, laywer, etc. because we don't need to provide any "little explaining," as you wrote.  Its obvious you took my "little explaining" personally which was not directed at you, but you made it to be.  

As for my post directed to you, I sincerely asked if you could explain to me what you wrote to the OP in your original response to his question and expound on it because it was somewhat ambiguous.  Peace.  

I am also trying to get a mortgage while living abroad. I currently live in Peru, but am employed by a us non-profit. I plan to move back to the US in about 9 months, but would like to purchase a property so my family can move directly into it. I currently outright own a SFH I rent and have 20% to put down on the mortgage. Can anyone recommend any banks that will give a mortgage to a US citizen living abroad? I have banked with Bank of America for years, but they denied me saying it was against their policy.

@Diana Muresan Hi there, I came across this old thread, hoping i could get a little more direction on the Fannie Mae and Freddie Mac financing you referred to for Americans abroad. I cant seem to find any information on their sites. I would greatly appreciate if you could share a link or some more information to learn more on the options to get started. Thanks again and happy holidays...

@David Choe I know a great lender that should be able to help in your situation. Shoot me a message and I will connect you. Same goes for you @Justin Ryan

Thank. We are in a similar place.  Looking for a mortgage (US mortgage, Uk expat mortgage or a Dutch lender that will lend on London property).  We 

Any referrals will help 

Also in a similar spot.  Was about to close on a property and using better.com, all was smooth but now they are potentially going to deny it because "I can't prove I'm a US resident".  I'm not sure why that matters as I'm not required to be a resident as far as I'm aware.  Disappointed with better.com telling me this last minute, even though all other requirements are fully checked. Any lender suggestions are appreciated for US expats.

+1. I've also been unsuccessful applying for a mortgage while living abroad. I live in China and file a Foreign Earned Income Exclusion so that I don't get double taxed. I've been turned down by several lenders, including USAA and a few credit unions and local banks. The reason for the decline was always some version of "your foreign earned income reported on form 2555 is reported as a negative towards your gross income, so we are not be able to qualify/approve you." I found a great partner to go 50/50 on some cash deals instead, but in this climate would really like to use leverage :) Any lenders who can help out feel free to message me. 

I am having similar problems getting a home mortgage with mainstream banks like Bank of America. As soon as they figure out that I am working overseas, they drop me. Look at this response from a BoA Loan Officer: "Good Afternoon XXX, hope all is well. I have been informed I am unable to contact you via by phone or email or to conduct business due to your living and working in a foreign country to ensure regulatory compliance. I must discontinue all communication, until you have established residency and employment within the US. Guidelines for residency within the US means, Living and Working in the US full time."  But then I went to Quicken Loans and they said this would not be a problem as long as my overseas income was declared to the IRS and I could present the 2555EZ Form for verification. Maybe the person I was talking to may yet deny me a loan but he said they give other expats mortgage loans so if anyone is looking for a house loan, try Quicken Loans and stay away from banks like Bank of America. 

Big Box Bank is the hike up a mountain pathway. A US Citizen can get a conventional loan when they work out of country and funds in foreign accounts. You will have to pay for translations of all paperwork and statements, be able to transfer funds into a US bank account, have good credit and income to qualify. We us a single website for you to securely upload the paperwork needed, and you can see the progress rather than email to a black hole.