Us Real Estate Financing For Foreign Investors-vidalia

Business US Real Estate Financing has experienced quite a dip lately. With the US economy struggling, and banks tightening their requirements, the ability for foreign investors to secure a loan has gotten much tougher. Due to the US credit crisis, the facts show that cash deals have be.e more prominent in the last year for purchasing US real estate for non US residents. Fortunately, lenders are slowly beginning to relax their requirements in tandem with the slow recovery of the economy. If you are considering getting a loan for US real estate, here’s what the current process involves. Amount Financed Unlike loans offered to US residents, foreign investors are usually only allowed to finance 70%, or less, of a homes value. In addition to a sizeable down payment, interest rates and fees are also generally a little higher. Property Usage Youll get better terms (more .petitive rates and lower down payment) if your purchase is to be used as a second home rather than a rental property. Property Ownership Typically, banks are more receptive to lending to foreign individuals than to foreign corporations. Credit Worthiness Banks rely heavily on your credit history for US Real Estate Financing. Given that many investors don’t have a history with American .panies, it is wise to have at least 3 creditors that can present proof of timely payments. It’s also a good idea to use letters from institutions to demonstrate your credit worthiness, which may also be acceptable. Asset Verification This may not be required to obtain a loan but it can help you get better rates or less of a down payment. The best asset verification .es from international banking institutions who can verify the amount you have on deposit and the amount of time your account has been active. Property Chosen You may have exemplary credit and still get turned down for a loan. This is because the banks look closely at the type of property youre investing in as well. For example, there are many banks that would not consider lending money on property that is already heavily controlled and owned on investors. They feel this increases their risk of default, and just arent willing to take the chance. Similarly, many banks wont lend on property that is not yet built, as there is the risk that the project will never sell enough units to reach .pletion. The US real estate market offers low risk, and high profit potential, making it a very appealing option for foreign investors. Even if you don’t have any cash on you, US real estate financing still represents a great alternative to gain access to this valuable market. About the Author: 相关的主题文章: