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Mortgage for US Property

  • 19-03-2008 1:53pm
    #1
    Raskolnikov
    Registered Users, Registered Users 2 Posts: 10,148 ✭✭✭✭


    I'm an Irish citizen working in Ireland who is soon to be transferred abroad to the USA. I'm considering buying a house over there when I do arrive. Is anyone familar with how you would go about getting a mortgage for a place over there? Could I get one from an Irish lender or do I have to get one from an American lender? If I am to get an American mortgage, would it even be possible due to my lack of a credit history over there? Would having a big deposit and having a fairly low Loan to Value ratio be of any help?

    Thanks in advance!


Comments

  • #2
    DublinDilbert
    Registered Users, Registered Users 2 Posts: 5,421 ✭✭✭DublinDilbert


    Raskolnikov wrote: »
    I'm an Irish citizen working in Ireland who is soon to be transferred abroad to the USA. I'm considering buying a house over there when I do arrive. Is anyone familar with how you would go about getting a mortgage for a place over there? Could I get one from an Irish lender or do I have to get one from an American lender? If I am to get an American mortgage, would it even be possible due to my lack of a credit history over there? Would having a big deposit and having a fairly low Loan to Value ratio be of any help?

    Thanks in advance!

    There's no chance an irish lender will give you a mortgage for property in the US. Lots of people have bought foreign property, but usually re-mortgage an irish property to pay for it, so the banks have something they can get their hands on if the person defaults on the loan.

    Credit rating is key over there... when i was living there i could not even get a visa card from my bank there, even though i had an Irish visa card with $15K limit... i wanted one from there for convince, i ended up just using my Irish one when i needed to use one and paying the bill online...


  • #3
    Dub13
    Moderators, Recreation & Hobbies Moderators Posts: 21,250 Mod ✭✭✭✭Dub13


    There is something like a Non Resident mortgage you can get with the US banks from here,sorry I don't have anymore info a mate was looking into this a couple of years ago.


  • #4
    galwaydude
    Registered Users, Registered Users 2 Posts: 1,390 ✭✭✭galwaydude


    As you dont have any credit rating here in the states then it will be very hard to get a mortgage unless you are willing to put alot upfront as downpayment. With the subprime crisis overhere it is hard to get a mortgage even with a good credit rating.

    What part of america are you thinking of?


  • #5
    Victor
    Registered Users, Registered Users 2 Posts: 78,647 ✭✭✭✭Victor


    Also be aware of local and state property taxes, which add up to a lot.


  • #6
    BJJDUB
    Closed Accounts Posts: 58 ✭✭BJJDUB


    Raskolnikov wrote: »
    I'm an Irish citizen working in Ireland who is soon to be transferred abroad to the USA. I'm considering buying a house over there when I do arrive. Is anyone familar with how you would go about getting a mortgage for a place over there? Could I get one from an Irish lender or do I have to get one from an American lender? If I am to get an American mortgage, would it even be possible due to my lack of a credit history over there? Would having a big deposit and having a fairly low Loan to Value ratio be of any help?

    Thanks in advance!

    In the past when Foreign Nationals sought mortgages in the USA they usually obtained a sub prime mortgage in the USA - due to the fact that they had no credit rating in the US. Due to the sub-prime collapse it has become more difficult for foreign nationals to get a mortgage in the USA.

    That said - banks need to lend - its their primary business. Some of the larger banks, are still lending. Generally you will need a high percentage deposit - about 30% of the appraised value or asking price - whichever is the lower - i.e. an LTV of about 70%. The location could also be key as a bank will want collateral they can sell in case of default.

    In a nutshell - The higher the percentage deposit you can place on the property the easier it will become to get a mortgage in the USA - don't expect a low interest rate.


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  • #7
    Ken Dooley
    Closed Accounts Posts: 2 ✭Ken Dooley


    Irish Buyers are actively purchasing Real Estate in Chicago and New York with no intention of ever living in the homes/condos or even residing in the U.S. Instead, these units are rented out and held as an Investment for the long-term. There are lenders that will provide a loan at an Interest Rate comparable to the Market Rate. These lenders are specialists in this area and do require a downpayment of between 20-30%. As a Credit history hasn't been established, these lenders will accept alternative documentation that can confirm assets, income, employment etc. If you plan to live in the U.S you'll have fewer hoops to jump through.


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