Issues financing first time rental in GA from abroad
I’m looking for advice on how to finance a rental property in GA. I’ve made an offer on a house for just over 56,000. Unfortunately the national bank I was preapproved with has a 50k loan limit, so I’ve been looking for other options. I’m getting rates like 5.8% and 6% on a 45k loan, even with paying several hundred or even thousand in discount points. Those seem steep to me. Are these rates high because the loan amount is low, or I’m a first time investor? Or do I need to just keep looking? Any recommendations for lenders who have dealt with US citizens living abroad?
Another hurdle I’m coming to is getting approved. I live file a Foreign Earned Income Exclusion when doing taxes. I’ve had some lenders tell me that this in effect means I don’t have income, and can’t approve me because of this. Has anyone had experience with this?
All thoughts are welcome and thanks! :)
Hey @Adam Matteson!
I am not very familiar with financing as an abroad investor. I do know that you could solve the financing issue if you find someone here in the states to partner with. Doing so is as easy as being active here on BP and knowing what value you can provide to another investor. If you can find someone that you can provide value to who can help with the financing issue, you'll be all set.
That being said, I think @Mitch Messer may be able to give you some further insight on the topic.
Please, feel free to message me anytime with questions or just to chat!
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Real Estate Agent Georgia (#401878)
- 404.737.0018
- [email protected]
@Brenden thanks for that. When I apply for mortgages, there is usually a space for a co-applicant. Would having a co-applicant apply with me for the mortgage help me get around the tax issue?
@Brenden Mitchum Thank you sincerely for the mention!
@Adam Matteson I just got off the phone with my "Million Dollar Money Guy" to describe your situation and see if he can help, and he can! I'll DM you shortly with his contact info.
For the record, I receive ZERO compensation for making this referral. He's just a terrific mortgage banker that I've worked with for years!