Finance for US Property

Hi Sonic81,

Do you have a particular location in mind? As it's definitely possible to get US Finance in that price range, and get good quality well located property as well.

There are a number of claims to get all sorts of low rates, but some are through local banks and only lend locally, or in that state, or, they have certain lending criteria  that might not be that attractive, so you have to know what your paying for, and if the loan repayments include the property tax and insurance.

I have been working very closely with a particular finance company that lends at 8.25% and for a 30 year period, also lending in a number of states, so you don't have to be concerned about refinancing in a few years.

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Jeff

As Nigel has mentioned standard finance is available in FL due to the influx of UK buyers.

For outside FL you need to be having minimum loan of $100K

Again i am unsure why you buy something out in the depths of nowhere when you could buy a quality investment in FL.

Why not talk to Nigel and see what he can suggest.

He has vast experience in the US market.

Cheers

Yours in Finance

Hi Sonic 81,

Citibank USA will provide any foreign national including Australians with a one-off US property loan.

Its a 4% interest with a 30 year term home mortgage and you need 30% deposit which you can have as cash or borrow in Australia from your property as a line of credit.

We have two clients doing these one in Australia and one in Singapore. I would be happy to provide you with the citibank lenders name and contact details, she is in Houston Tx.

Beyond that some bigger banks like Citibank and HSBC will do lending for higher amounts like $500K USD loans but they will do this on Australian property and at 2.1% yes 2.1%. You must be able to qualify for the premium loan though.

In the US there are several state bank options, we deal with two texas banks that will lend to foreign nationals and a Georgian bank that also will lens.

Rates are 6% – 7% and most are 30% deposit required and 30 year term. The rate is fixed for 3-5 year depending on the bank but you are free to refinance anytime to another bank.

AVOID VENDOR FINANCE PROVIDED BY TURN-KEY OPERATORS – Stick to actual US bank loans with real terms and no trick interest rate hikes. If vendors are financing their own property then they are usually unable to get true bank finance as the property is 20-30% over-priced.

Unfortunately the industry is rife with these operators, many on this forum which is why i try to stay off it…

Let em know if you need any help navigating these shark-infested waters.

Mark

Loan Terms:

These are important as the repayments will be higher and tax deductibility lower for the shorter terms upto 15 years. We recommend that anyone looking to maximise cash flow and after tax returns go with the standard 30 yr term.

Rates are available for 4% – 7% on these 30 yr terms and 30% deposit in most states. shorter terms equate to a higher overall rate of payment and are meant to lure in investors.

Mark

There are more and more banks prepared to lend money in the United States especially  for Commercial property at rates of around 5%.

I agree stay away from hard money lender good finance is becoming more widely available

One of the most asked questions i get is how does a buyer know that they are paying the right price to start with, and that they are not getting ripped off, never mind any work that has to be done, or has been done, that is included in the selling price, even that can be questionable.

Going to places like Zillow or in fact most online appraisal sites still don't give you the true pricing, and can in fact be very misleading.

Over time in this business, a number of companies over here selling US property have been caught out adding / marking up the price by $20K-$30K or even much higher to the unwary buyer, and then the buyer also finds out that the property still needed a lot of money spent on bringing it up to scratch.

You can go to the MLS sites  ( Multi listing Service ) and get the true pricing of what places like Banks, Courts, HUD Homes, etc, are really selling the properties for through various listing agents, and then check with Zillow, Trulia, etc, and they will normally give the same true current market prices on these mainly foreclosed / short sale homes.

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As for the US Finance,  i get approached all the time from both private and institutional lenders, all over the place in the US, with all sorts of rates, percentage of deposits, and other lending criteria.

Many sound really good…..on the surface, dig deeper, and what sounded a real good deal at very low rates, at maybe 70% lend etc, can be fraught with many dangers, and locked in terrible terms and fees etc.  The one company i have used for the past few years, and has also lent against Aussies using their SMSF, who have been terrific with my buyers, are not the cheapest, at 8.25% and 30 Year mortgage loan, etc, but are certainly one of the best i have ever come across, and this same company is used by a large number of US Companies selling property in many states to clients both locally and overseas, so they have a great track record.

Knowing who you are dealing with in the US and their track record etc,, is part of any due diligence, and should always be included in the many questions you should be asking.

Thanks for reading this message.

Kimberly,

Whoever told you this was giving incorrect information. The last client of mine who purchased in Phoenix got a loan at 5.08% with a 50% down payment from a local bank.

Hi Peter,

Is there a minimum amount criteria for the loan? I would like to know more about your product

Thanks and Regards,

LRK

2 year rental experince and history is one of the main underwriting guidelines these days… Cash out refi's are tough no matter the cirumstances.. Lenders got killed with these loans in the GFC.. tons of fraud