My wife and I live in the UK and we own a couple of properties in the US. Both of these properties are free and clear and are worth about $300K - $350K in total. My wife is a US citizen but I am not. I've been talking to some mainstream banks in both the UK and the US about borrowing against these properties with the intention of getting into REI. No luck so far.
To give a little more background, one of the properties is a SFH in Tennessee that my wife's Mother lives in. It's worth about $100K to $120K. We make no rent on it. The other property is a 10 acre vacant plot in North Carolina that we hope to one day build a family home on. We paid $230K for it 4 years ago. It also makes no income.
Ideally, I'd like to get a line of credit against one or both of these properties but being a non-resident has proven to be a stumbling block for conventional lenders. Does anyone have any advice on what other options I should look at?
@Kevin Stembridge have you tried establishing an LLC in NC? Maybe talking to smaller, local, more investor friendly banks? I have a line of credit through my LLC. It may help mitigate the non-resident issue.
Hi @Chris Puckett,
Thanks for the suggestion. I hadn't thought of forming an LLC before. I've spent a little time looking into it today and I think it would be best for me to leave that as a backup plan if simpler options don't work out.
I think the main concern that the lenders I've spoken to so far have is the ability to repay because they are not able to take foreign income into account.
@Kevin Stembridge I understand why the UK banks would be hesitant. Why are the U.S. banks hesitant to loan?
The conventional loan will require lots documents and basically includes:
Past few year tax return
Bank statements ....
The top two may stop you to get the conventional loan.
Why don't you ask bank why they reject you to get the conventional loan?
Lots foreigners get loan from US banks and they are not citizen but have jobs in US.
Hi @adamschneider and @huiping,
The 2 issues that the banks have is that they don't lend against vacant land and they won't take foreign income into account when considering ability to repay.
There's not a whole lot I can do about either of those things so I'm guessing I need to find a lender who has more lenient criteria.
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