Investing in the largest real estate market in the world – the United States – can be a fantastic way to create future passive income. If you’re a non-US passport holder (foreign national) or a US expat living overseas (Singapore or Hong Kong, for example), you may find it can be very complicated if not impossible when looking for a mortgage loan to buy real estate in the US. Even American expats returning home and buying property in America fail to qualify for a mortgage loan from US banks. Mainly because they don’t have a credit footprint or earned income in the US.
Read on to discover how you can easily obtain a US mortgage loan regardless of your passport or place of residence.
Meet the American mortgage loan experts right here in Singapore!
Creating a portfolio of real estate or a single property investment is a proven way to build wealth and pass down a legacy to your family. Asset appreciation, high rental yields, no stamp duty, low barrier to entry and a stable market are some of the factors that make the US real estate market a fantastic investment.
However, before you go shopping for that new home with a pool in Florida or a penthouse apartment in Manhattan, the first step is getting a non-committal approval for a mortgage loan.
America Mortgages (AM) was set up in Singapore earlier this year to unlock the US real estate market for buyers living outside America. The company is a subsidiary of Global Mortgage Group (GMG), the largest international mortgage ‘originator’ for US real estate.
GMG was co-founded in 2019 by Donald Klip and Robert Chadwick, both ex-institutional bankers. The two Americans met in Singapore in 2018 and became friends. Robert’s professional experience was in US mortgages, and he was a seasoned investor in US real estate. Donald was a hedge fund manager and investment banker in Asia with global real estate investing experience.
As expats themselves, both Donald and Robert realised that obtaining a mortgage from a “traditional” bank in a country where you don’t live and/or hold a passport is frustrating and often impossible. This led to them establishing GMG. GMG now has loan options in the US, Canada, Australia, Hong Kong, Singapore, UK and various locations in Europe, to name a few.
How America Mortgages helps you get a mortgage loan in America
While GMG specialises in residential, commercial, construction and bridge financing in different countries, America Mortgages’ sole focus is providing market rate mortgages specifically for the US. 100% of their clients are either US expats or foreign nationals living overseas. Due to a very focused expertise, AM approves 97% of loans submitted.
Here are the key highlights of a US mortgage loan for foreign nationals and US expats:
- For a non-US citizen: maximum loan-to-value (LTV) is 75% for purchase and 70% for refinance and equity release
- For a US expat: maximum LTV is 80% for purchase and 80% for refinance and equity release
- Minimum loan amount of US$150,000 and maximum of US$50,000,000
- Fixed term options of 5, 10 and 30 years
- All loans amortised over 30 years, regardless of borrower’s age
- 10-year fixed interest-servicing-only payments available
- Mortgage loans available in all 50 states
- Self-employed and employed borrowers allowed
- No US credit or footprint required
So, whether you’re a global investor, buying a holiday home for yourself, an apartment for your child when they attend university or simply growing your investment portfolio to pass down to your children, it’s possible for you to buy property in America!
* Indicative values; rates are terms are subject to change
The biggest myth of buying real estate in the US
Although AM suggests that buyers should get advice from their attorney or tax advisor on investing in any real estate market, the myth of the States being a highly taxed country for buying US real estate couldn’t be further from the truth.
For one, regardless of whether you’re an American citizen or a foreign national, there’s no stamp duty when purchasing property in the US. There are also no government limitations or restrictions on when or where a foreigner can purchase or sell property in America. Since there aren’t any cooling measures, this means that savvy investors are able to take advantage of properly researched locations and asset types. Yields and appreciation galore!
America Mortgages has been featured in Yahoo! Finance, The Mortgage Daily, Canadian Business Journal and other notable publications for its open architecture approach as well as providing borrowers with access to both in-house AM and third-party solutions to make informed decisions.
The AM team says that it shouldn’t have to be confusing, overwhelming or foreign to obtain a US mortgage to buy property in America; they have loan officers throughout Asia and around the world with the depth of experience and knowledge required for resolving complex issues foreign national and expat borrowers may have that US banks and brokers don’t know how to handle.
Far from being on the outside looking in, now what real estate investors get is a front-and-centre window into the US market. You can open and close a transaction all while sitting in your living room in Singapore without ever getting on a plane!
Hear from an America Mortgages client
“The service and personal attention that we received from Donald and Robert was exceptional. They were patient and took the time to answer all of our questions while leading us through the mortgage process. Everything was handled professionally, efficiently and faster than the service we usually receive from our banks. We will definitely recommend America Mortgages to our friends and colleagues.” – Janey Schueller, Singapore
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