Bank Statements For Mortgage

Bank Statements For Mortgage – In the midst of economic instability and global turmoil, overseas buyers in recent years have seen real estate as an attractive place to invest their money in the United States.

But the increase in US housing prices and a strong dollar means that foreign buyers will need more money to buy a house here. Last year, 50% of foreign buyers paid in cash for residential real estate in the US, according to the National Association of Realtors (NAR). Mortgage financing, however, is another option.

How Many Bank Statements For Mortgage

How Many Bank Statements For Mortgage

 

“Most [overseas buyers] do not think they can get a loan, so they pay in cash, but they could take a loan, even if they have to put 40% (down payment),” says Chris Furie, Partner of Insignia Mortgage based in Los Angeles. “This allows them to be able to buy something a little more expensive.”

In the midst of economic instability and global turmoil, overseas buyers in recent years have seen real estate as an attractive place to invest their money in the United States.

But the increase in US housing prices and a strong dollar means that foreign buyers will need more money to buy a house here. Last year, 50% of foreign buyers paid in cash for residential real estate in the US, according to the National Association of Realtors (NAR). Mortgage financing, however, is another option.

“Most [overseas buyers] do not think they can get a loan, so they pay in cash, but they could take a loan, even if they have to put 40% (down payment),” says Chris Furie, Partner of Insignia Mortgage based in Los Angeles. “This allows them to be able to buy something a little more expensive.”…

Bank Statements For Mortgage

Bank Statements For Mortgage

Bank Statements For Mortgage

“The applicant goes through the standard classification process using alternative forms of credit verification, income and assets,” says Walsh. Total Mortgage can now lend from US $ 200,000 to US $ 2 million for non-resident foreigners who meet the requirements.

However, these loans require a higher down payment than most mortgages, of 30% and more for $ 1 million loans and larger loans for second home purchases, says Walsh. Interest rates range from 5% for adjustable five-year mortgages to 6.625% on a 30-year fixed-rate mortgage, says Walsh.

In California, Insignia Mortgage closed US $ 80 million for the purchase and refinancing of mortgages to foreigners in the last 12 months. The support comes mainly from regional banks, says Damon Germanides, a partner in Insignia. The available programs require a minimum loan amount of US $ 500,000 up to US $ 7 million for three, five or seven year loans with current rates that are between about 3% and almost 4% for the initial fixed rate period, says Germanides .

Foreign borrowers often find better rates and a less strict rating process through banks that have operations both in their home countries and in the US, says Mathew Carson, owner of West County Mortgage in San Francisco. HSBC London, which has offices in 71 countries and territories, has been a leader in this market and Citibank also has a program.

Chinese borrowers can use East West Bank based in Pasadena (California), which has offices in China. Other lenders include TotalBank, based in Miami, a member of Grupo Banco Popular based in Madrid and TD Bank based in Mount Laurel (New Jersey), a subsidiary of TD Bank Group in Toronto.

For example, TD Bank offers Canadian borrowers a “cross-border” program of adjustable-rate mortgages for second homes in the US, says Ray Rodriguez, the bank’s regional sales manager for the New York metropolitan area. “We charge the same rates as US customers and have the same approval process,” he adds. “An initial fee of 20% is required whether you are living in New York or Toronto.”

Borrowers do not have to have a TD Bank account to access the loan, says Rodriguez.

Some tips for foreign borrowers:

• What is needed. Since most foreign borrowers do not have a credit history or tax returns in the US, the rating is based on the tax returns and bank statements in their country of origin, says Germanides. Alternative forms of documentation may include a letter from an accountant or tax advisor on the status of income and assets and at least six months of credit card account statements, he adds.

• Do not be surprised. The approval process for a US mortgage It is very different from other countries, says Rodriguez. For example, US mortgages They require more documentation than Canadian loans, which also often close in just a week, compared to the usual 30 days or more for a US loan, he adds.

• Apply in advance. Since the approval process is more complicated and time-consuming, it is advisable to advance the documentation and obtain a pre-approval, says Furie.

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