All Topics / Overseas Deals / New Option For Foreign Persons Seeking To Borrow Money In The US

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  • Profile photo of Steve McKnightSteve McKnight
    Keymaster
    @stevemcknight
    Join Date: 2001
    Post Count: 1,763

    It has long been a struggle for foreign investors to borrow money in the US via mainstream channels.

    This is because without a social security number and a US credit score it was impossible to satisfy the requirements of mainstream lenders.

    Of course, purchasers could seek seller finance or hard money alternatives, but this can be expensive to set up and service.

    With that in mind, I was interested to read overnight about a service being offered by the First Florida Integrity Bank (FFIB).

    They are advertising:

    Looking for the best foreign national lender in town? Our Foreign National Loan Program is out of this world!

    • Adjustable Rate Mortgage Available
    • Secondary Homes Only
    • Conventional & Jumbo Loans Available
    • 19 Approved Countries
    • Single Family Home or Condominium
    • Construction/Perm Available
    • Reserve Requirements
    • Escrow Requirements
    • Income and Asset Verifications Apply
    • Translated Documents in English

    Documentation Required

    • Commercial Lending Available
    • Copy of passport for all borrowers
    • Address, phone number, email and length of time at current residence
    • 3 credit reference letters from banks in the Country of Origin
    • 2 most recent bank statements verifying a 60-day history of account for ALL asset accounts
    • Letter from employer verifying 2013, 2014 & year to date income, along with a copy of a current paystub
    • If borrower is self-employed, a letter from their CPA verifying 2013, 2014 & year to date income
    • At closing a US Agent must be assigned
    • At closing, borrower must open an account with our bank and the monthly payment must be set up on automatic debit from this account
    • 6 months PITI to be held in escrow for a minimum of 2 years – may be released at discretion of the Bank
    • All documentation must be translated in English

    This is all I have on it, but the contact is:
    Renee L. Harris, VP Residential Lending, Sales Officer
    Email: [email protected]

    – Steve

    Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
    https://www.propertyinvesting.com

    Success comes from doing things differently

    Profile photo of RedwoodRedwood
    Participant
    @redwood
    Join Date: 2013
    Post Count: 340

    Steve – Thanks for the post.

    No offence but in posting this – do you have an association with them? if yes, I think you should disclose this, its unusual for you to pop open a thread with a post like this? please take this constructively.

    My firm has been sourcing finance for US property purchases for over two years without issue. A number of people on this forum have used this successfully across a number of lenders. Loans, LLC and property purchases without visiting the US….

    Financing has been pretty easy, you don’t need to visit the states and we can set up an LLC and have a bank account in 2 weeks with an EIN. Finance can be pretty cheap for both individuals and SMSFs.

    We do pre-approvals through one of the lenders on the spot (we use their system) based on geographical location and zip code – some areas are tougher than others as you can imagine.

    I’m sorry but the attached post is ol’news in my opinion.

    Cheers Ivan

    Redwood | REDWOOD | SMSF | PROPERTY | FINANCE
    http://redwoodadvisory.com.au
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    SMSF - PROPERTY INVESTMENT - WEALTH CREATION AND FINANCE SOLUTIONS

    Profile photo of Nigel KibelNigel Kibel
    Participant
    @nigel-kibel
    Join Date: 2005
    Post Count: 1,425

    Hi Steve

    I agree with you about hard money especially for fix and flips infact because of demand the hard money rates have increased because of local demand however ivan is right when it comes to commercial property there are a number of banks will lend infact its easier to get commercial finance than residential.

    • This reply was modified 6 years, 6 months ago by Profile photo of Nigel Kibel Nigel Kibel.

    Nigel Kibel | Property Know How
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    Profile photo of CL1706CL1706
    Participant
    @cl1706
    Join Date: 2010
    Post Count: 11

    Hi Steve,

    Thanks for the contact details – I am not sure whether many others have been in touch with Renee, but I am an Australian based investor looking for US finance to increase my portfolio of single family homes, so reached out to Renee over the weekend.

    Her response was that the FFIB only lend to foreign nationals if the purchase is for a second home, not for investment purposes, and they will not lend to LLC’s.

    Just thought I’d share this reply, just in case others were in similar positions to me and looking to FFIB for finance.

    If there are other investors who know of finance alternatives available, please drop me a note.

    Cheers.

    Profile photo of Judith OttosenJudith Ottosen
    Participant
    @tallpoppy
    Join Date: 2014
    Post Count: 36

    What CL1706 said is about it. The second home must be for personal use only and not as an investment. I have a number of banks that will lend for investment purposes but the purchase needs to be in your personal name as your personal finances are used to qualify for the loan. Existing investment properties held in the USA can be used as a source of equity to strengthen your financial position. A year down the track you can transfer to your LLC with no questions asked. It would appear that this may be something Banks are looking at a little more favorably.

    Judith Ottosen | Outback Realty LLC
    Email Me

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