Financing property as a foreigner

19 Replies

We have lenders who will do it, but they typically want 25-30% down and interest rate might be around 8%....

I am buying turnkey through Midsouth Home Buyers - They offer finance for "anyone" including foreigners at 40% down, 7.5% interest with a 10 year mortgage.

My experience with them can only be described as hassle free, one stop shop with excellent service. 

Originally posted by @Brandon Zeng :
@Bruce Lynn thanks for your kind reply! 8% sounds very high. I guess it I s find any cash flow properties with it;(

 Thats not really accurate if you are buying multi unit. Buy value add, partner with rehabber, refinance into a commercial loan base on gain.

Couple bits of advice if you haven't already started.

-Build US credit anyway you can

-Make sure to have a US bank account

Many commercial lenders will loan to foreign nationals as long as you have a visa, ssn or tin, US credit, and a US bank account.  You will typically face slightly higher rates and slightly lower LTVs but it can be done and you can still cash flow!

What is your current citizenship status?

@Brandon Zeng You can build credit the same way anyone does.  You need to take out lines of credit and show responsibility with using them.  

Do you have any credit history?

Besides a good score they will want to see some time in the saddle so best to get started right away.  There are many little hacks to get your score up as well.  

-"piggy backing"

-Paying more than the minimum multiple times per month

-Lower your utilization by expanding credit available 

etc etc etc

MOST important is just paying before its due every single month.  

What types of properties are you looking at or what is your overall RE strategy?

@Alex Bekeza thanks for your answer amd sorry for the late reply. Seems I couldn’t receive any notifications for the reply. Actually I’m looking for SRH as rental properties. My goal is accumulating $2,000 net cash flow in 2 years and $10000 in 5-10 years. I would also like to help my FRIENDS on RE investment. Currently I am working with realtors in Dallas and Denver. Due to the credit issue, I can’t get a good option of loan to cash flow the potential properties. I heard one way to build up credit for foreigners is buy a property first (maybe a relatively cheaper one) and pay for the mortgage on time each month. What do you think? Thanks! Brandon

@Brandon Zeng Having prior real estate investing experience is very helpful in getting financing as a foreigner.  I would definitely consider partnering with someone to get the first deal under your belt and this will also establish some positive mortgage payment history.  

Hi Brendan, I have a local lender than has loan programs for foreigners. They are pretty good deals and there are many different options for investors. I'll send you his information and you can see what is available. 

@Brandon Zeng   I'm an American living in Shanghai for almost 15 years, also buying properties in the US.  I have some Chinese friends here we have also been discussion how to work on deals together so that the deposit and rates are better.  I also have a wechat group here in Shanghai that has an interesting mix of foreigners and locals from all over China interested in all things real estate. We can connect here on BP and/or wechat (ID troy7845). 很高兴认识你!