In the past decade, there has been an increasing demand from Chinese people to buy houses in the United States. The most frequently asked question is, “Do I not have a green card to buy houses in the United States? Are not American citizens allowed to borrow money?”
The answer is: Of course you can!
If you want to buy a home in the United States, you don’t need to be an American citizen or a green card. You don’t even need to have a U.S. visa. You can buy a home in China.
There are three common situations in which Chinese people borrow money to buy houses in the United States: 1. It is convenient for their children to study abroad; 2. 3. Invest in real estate, because the value of real estate in the United States keeps its value.
Through this COVID-19 epidemic period, the housing price of New York City increased rather than decreased, which shows that the property value of New York City can not be underestimated!
What are the steps for a foreigner to apply for a loan?
To prepare data
Data required for foreigners to apply for loans
Housing address, loan amount, ID card, down payment certificate and bank deposit certificate
For Chinese working/studying in the US:
No matter green card, OPT, H1B work visa, as long as you have income in the US, file tax legally, and have good credit history, you can enjoy the same lower down payment and interest rate as Americans.
For Chinese not working/studying in the US:
Since there is no income or credit history in the United States, then the interest rate will be different than if there is income. For housing loans, the loan interest rate is about 3.5% for native Americans, 4%-4.5% for foreigners, and the highest is 5.2%. The loan interest rate will also vary according to personal qualifications and bank requirements.
Choice of Lending Institution
What are the ways for Chinese people to borrow money to buy houses in the United States?
Through a commercial lender, mortgage lender, or loan broker.
What kind of loan interest rate does the bank of the United States borrow to buy a house divide?
They are fixed loan interest rate and floating loan interest rate. Generally, the 30-year fixed loan rate is more common. You can also choose 5 years, 7 years, 10 years, 15 years, 20 years or 40 years according to your ability to repay.
(1) Floating interest rate loan (ARM) is usually divided into 3/1, 5/1, 7/1ARM, which means the interest rate is fixed for the first 3 years, 5 years and 7 years, and then the interest rate will float according to LIBOR and other indicators. For example, on November 16, 2011, I bought a house of $300,000 in Los Angeles, California with a down payment of 40% and applied for a 5/1ARM loan with an interest rate of 4 for the first five years. 132%, fluctuating from the sixth year.
(2) Fixed interest rate loans. A common fixed-rate loan has 15 or 30 years with a fixed annual interest rate. For example, on November 16, 2011, when I bought a $300,000 house in Los Angeles, California, with a 40% down payment, I applied for a 30-year fixed loan with an interest rate between 4.799% and 5.540%.
How much can Chinese people borrow to buy a house in the United States?
Foreigners buy 30% of homes in the U.S., which means 70% of loans, but check with your local bank for details
Start the loan
First, get the pre-approval letter of the bank loan
Once you’ve found a lender, the next step is to pre-qualify for a loan. This is before the loan process starts, after the initial contact with them. The broker will ask you to provide your personal information, including income and debt. They will determine the amount of loan you can afford according to their lending criteria (which vary).
A pre-qualification check can help you find out if you are eligible for a loan, and how much you are eligible for. This step will also help you find out if the lender is willing to give you a loan.
In deciding whether to grant “pre-qualified” status, banks take into account a combination of seven main factors:
(1) a steady source of income (such as a job);
(2) Have you had a stable job in the past two or three years?
(3) whether the current income is reliable;
(4) Whether the payment record is good;
(5) Whether there is not much long-term borrowing, such as buying cars with loans;
(6) Whether there is a deposit for the down payment;
(7) Whether they are able to make monthly payments and the increased costs each month.
Assist the bank to submit the documents to complete the loan qualification audit
Once the Mortgage Officer recognizes your eligibility, the next step is to review.
Generally required materials are as follows:
1) Income certificate: employer’s letter or company’s business license
(2) Certificate of Deposit: a bank statement of nearly one month, with the down payment required
(3) proof of identity
(4) Housing Purchase Contract
(5) mortgage application
(6) Asset proof: the total amount of your assets
(7) Credit history: your credit history
If everything goes well, the loan can be approved. It seems to be a very complicated process from contacting the lending institutions to the pre-examination of the bank, and then to the qualification examination until the loan is made. In fact, it is not that difficult. As long as the bank provides sufficient, effective and true information according to the requirements, it is not a simple thing to borrow to buy a house in the United States!
If you are interested in buying real estate in the United States, and would like to consult, please feel free to contact us, we have a professional loan broker, as well as a team of lawyers, to help you to buy a house, escort!