1. Can an offshore investor without status take out a loan?
Yes. Clients can apply for a loan with or without a visa, including international students, people with work visas in the U.S. and new immigrants.
2. What kind of banks are willing to lend to overseas clients?
You can go directly to the borrower and ask if they have their own vetting department or if they have worked with other banks.
This is because this type of bank can save overseas customers the time of going to major banks to compare interest rates, check if the property will be approved by the bank, and check if their situation meets the loan requirements.
Such banks are usually very efficient in identifying problems and providing various solutions quickly, which can help customers save a lot of time and provide an efficient one-stop solution to their problems.
In addition, investors should be aware that not all U.S. banks offer loans to overseas customers.
Most large local banks are relatively conservative and are not willing to take the risk of lending to overseas clients.
Usually these banks have very strict vetting documents, low loan success rates, and are time consuming.
3. How much can overseas investors borrow? And what are the requirements to meet the approved loan requirements?
Typically, overseas clients can obtain loans of 50%-65%, and investors with H1B visas can even obtain loans of up to 80%-90%.
Proof of income and assets are usually required, and overseas income and assets can be approved.
Some banks may require an account opening deposit at first.
However, some banks can accept any bank deposit and can be approved without opening an account or making a deposit.
4. What are the interest rates and fees for overseas investors? Are they much higher than local customers?
The interest rate for overseas customers will be slightly higher than that for citizens in good condition in the United States, but the actual difference is not far.
Relatively speaking, new immigrants can get some preferential interest rates, and the cost of the loan is the same as for local customers.
In the case of low tax returns and bad credit, U.S. citizens actually receive a higher interest rate than the rate approved for overseas customers.
5. What paperwork and documents are required for a loan?
Five things are usually required.
Purchase contract, proof of identity, proof of funds, proof of income, and proof of creditworthiness.
Different loan products may require slightly different documents.
6. Why do I need a loan?
For overseas individuals with jobs in the U.S., the loan is tax-deductible and the interest on the monthly loan repayment offsets the tax on wages or rental income.
The principle of leverage helps investors to allocate their assets wisely and earn extra income.
Foreign exchange control. In some cases where homes are particularly sought after, sellers often do not have the patience to wait for funds to be remitted and will require up to 60 days to close.
This is when banks that can approve quickly are asked to solve cash flow problems through loans.
7. What is the typical loan term for a new construction property?
Loans for new real estate projects range from 45-60 days to six months, depending on different conditions such as delivery time, construction or material review and home appraisal reports.
8. Do overseas clients need to come to the U.S. to complete the paperwork and attend the closing?
No. There is no need. The client's loan application and signing documents can be done online, and the closing can be done by an attorney without having to travel to the U.S. in person.
