Financing USA property ?

G’Day Propertinvestor,

2 Australian-based sources immediately come to mind, that I have read from other posts on this forum :-

– Loans USA (www.loansusa.com.au). One person said she got 6.75% fixed for 3 years for 2 Florida properties she bought. She was also offered 9.75% fixed for 15 years.

– Taylored Financial Solutions (www.tayloredfinancialsolutions.com.au), who apparently offer 4.25% variable for up to 65% LVR.

Note that I have not had any dealings with these entities myself, so I am not recommending them – only passing on what I have read elsewhere.

Otherwise, if you were going to visit the US as part of your DD, then I have read from another poster that he had no trouble with being offered a loan from the Bank of America, but you need to be over there when you apply for it. I don’t know if he was offering any security other than the properties he was intending to buy.

Cheers, TH

Rule change is not quiet correct and is more the implementation of the National Consumer Credit Protection Act which covers anyone in Australia when applying for credit.

We are still doing a number of applications for non residents (mainly UK investor clients) who buy all over the US.

Cheers

Yours in Finance

Yes very simply.

Brokers have 2 choices under NCCP they can go the Authorised Representative route or apply for their own Credit License.

The majority of Brokers have gone the AR route which means in most cases they are governed as to the lenders they can use by their aggregator who holds the master license.

Whilst some Aggregators are allowing brokers to step outside this panel others are not.

The Credit advice is only applicable to Australian residents and therefore all of our UK clients who do not reside in Australia are not covered by the Act. We can therefore still act for these clients without fear of breaching NCCP.

As a consequence we still take finance applications from a number of US investment groups based out of the UK.

Hope this clarifies the situation.

Cheers

Yours in Finance

Couple i can think of would include:

1) Approaching US lenders direct.
2) Using a non Australian mortgage broker.
3) Using a Australian mortgage broker who hold a full Credit License.
4) Moving to the UK or away from Australia.

Cheers

Yours in Finance

I agree the people at Loans USA seem to be quite busy at the moment, I did however call today (thinking I could leave a message) and the phones were answered!

I got more information on an investment property we are looking at buying in Cape Coral.  We were quoted rates starting from 4.5% depending on the property and some other incidentals.

So far we have spoken several times and purchased twice and a friend in WA has used the service to purchase a total of 12 properties using their service.  I must say we and our friend are just so pleased with the level of service we recieve with each transaction.

I would call and have all the property details ready to go. They can give you informaiton over the phone and via email and fax.

Achieving a mortgage for a non resident is almost impossible, but still able to be achieved, depending on a number of factors.

The biggest problem is that the almost sole source of liquidity for US lenders is Fannie Mae, and Fannie Mae (nor Ginnie Mae or Freddie Mac for that matter) extend credit to individuals who are not a citizen nor resident of the US.

There are some international banks that offer international mortgages to offshore investors, as well as some local state-based lenders that may consider credit to offshore investors – espcially in Florida or Texas for example. So the answer to your question is that the lender selection will depend on where the property is located, as well as the purchase price.

If you want to research this yourself, you can; but I promise your efforts will exhaust you. You are best to use a broker that specialises in this area.

I have a contact that will, at the moment though they will only lend in Florida, on condos which are FHA approved and single family homes, both have to be more than $70,000 in value however.  70% ltv, sub 6% apr.

I think you may find this quote incorrect.  Loans USA do finance outside of My USA Property, I called to check this quote and they have said that My USA Property are a prefered client, but they can deal with other clients.