How to get a 5% loan/mortgage as a non US resident/citizen?

34 Replies

Hello all,

here comes a real challenge and I hope you can help.

I live in work in Europe with plan to invest in US.

After good research I know where and what to buy. The last problem I want solve is to find a way to finance part of the properties (50%) via a mortgage or lean with max 5% interest rate. So far I only have seen offer starting from 7%. All above 5% damages the caprate too much. 

Any creative idea?

Thx Andreas 

depends where you're looking to buy.  In WA state here there is a portfolio lender that may offer under 5.5%...otherwise you'll be looking at ARMs

options are limited

Options are basically nil unless you can get seller financing. We have spent 4 years looking for local money. Takes 3 years to qualify and is hard work but doing it from the start is impossible if you are a non resident alien.

@Dean Letfus  

  for the rates this investor wants for sure ... there is a few that do it for more.. one in Mem.  then you have peak.. we do it as well but its not 5.5%

Oh I know but Peak bend you over and rape you in year 3 and all the other cheap money is on deals they have added the points into buy price. The enquirer should just use hard money at 50% the deals all still cash flow but he did ask......

The thing about the US is houses are so cheap you pay the loan off in 5 to 7 years anyway so interest rate is irrelevant.

We have table mortgage sin New Zealand that take 25 years to pay off and can be 6 to 8% interest.

You end up paying a milion dollars on a 350K note :-(

Gotta love America, build a freehold portfolio in under a decade. You guys don't know how lucky you are!!

@Dean Letfus  

  correction I know how lucky I am .. :)  so offer your clients my 50% down financing better than peak and NOn recourse and not nearly all the BS peak puts you through.

we are funding 10 to 20 deals a month to US IRA clients and a lot of singaporians.. AU investors have seem to fall of the map we did a bunch of them 2 to 3 years back but as I stated they seem to have gone off the feed

Your rates are the same as our hard money lenders so no benefit. And their loans report to credit agencies.......
i didn't mean YOU in fact I was going to say, (except Jay he knows already)  :-)

Originally posted by @Patrick Britton:

depends where you're looking to buy.  In WA state here there is a portfolio lender that may offer under 5.5%...otherwise you'll be looking at ARMs

 Hi Patrick,

my starting point will be Philly with SFH...

Thansk Andreas

Originally posted by @Dean Letfus:

Options are basically nil unless you can get seller financing. We have spent 4 years looking for local money. Takes 3 years to qualify and is hard work but doing it from the start is impossible if you are a non resident alien.

 Dean,

thanks for the input. I just will not leave any stone unturned.

Andreas

@Dean Letfus & @Jay Hinrichs  

Hey guys,

I corresponded with a few branch managers in the past that said it could be possible but a longer term relationship would need to be established with the bank.

Start of with a normal account and progress to secured credit card, then unsecured. Buy 2-3 cash properties with rents to be deposited into the above account.

Then they might consider lending as the decision would be kept in house and the money would be coming direct from the bank and not another lender.

Haven't yet looked into these options as of yet. Seemed like quite a process lol

Thanks for reading

@Engelo Rumora  I am 4 years in to that process. Yes it works but you need the patience of a saint to get there......
The patriot act changed everything making it ALMOST impossible.

Originally posted by @Dean Letfus:

@Engelo Rumora I am 4 years in to that process. Yes it works but you need the patience of a saint to get there......
The patriot act changed everything making it ALMOST impossible.

Crazy stuff Dean,

I don't even want to go into the details with getting Visas to be able to stay and do business lollol

It all comes down to an interpretation of your intentions haha

Sunk in enough $$$ into the visa process I could have bought another B class property in Ohio lollol

Thanks

No this is nothing to do with getting visas this is just to get a loan as a non resident alien. You need a fico score in the high 700's, (takes about 3 years when you don't live there), to have filed at least 2 personal tax returns and have enough of the right sort of credit activity with the bank. Then you have to hope someone in the bank is having a really, really good day when you apply :-)

@?  the easy way to get a loan is to simply deposit the amount you want to borrow in the bank and pledge it as security for your loan.  Most banks will lend you your own money.

@Dean Letfus  

We have found a couple of smaller banks in the rust belt who have offered 5.5%, but have not proceeded with it as we can pull money from our corporate line of credit here in Canada at 3.5 - 4% and simply pay cash for the asset.

It MAY be easier for you being Canadian do you think? We haven't found any banks who will touch any non resident aliens from further afield. Happy to try anybody you suggest may be worth trying?? I am not sure if Canadians are considered as foreign as I am if that makes sense :-)

@Dean Letfus  

Perhaps, but we are operating though a U.S.A. registered entity which is a 100% child subsidiary of a Canadian corporation.   Most U.S.A. banks, with the exception of those owned by a Canadian bank, cannot say "No thank-you" fast enough.

We use USA LLC's but the absence of a social security number seems to be a killer everytime.

Partnering with a local might help your chances.

@Dean Letfus  

@Andrew Syrios  beat me to my next response.  When initially going into a new area, we look for knowledgeable boots on the ground (both in Canada and the U.S.A.) with whom to partner.  This should help you with your missing SSN issue ;-)

@Jay Hinrichs  we could do that but it kind of defeats the purpose of leverage.
@Andrew Syrios  yes we have had 1 offer of that but I like a simple life. Partners always =

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Shouldn't there be some rule about total nonsense from fake named people being not allowed? Or is there any way you can block a particular poster so it doesn't appear in your feed?

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