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Buy to let in usa

Buy to let in usa

Old Jan 26th 2019, 7:19 pm
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Default Buy to let in usa

I have family living in NJ.
im wanting to buy a buy to let .
As I've seen bank foreclosures cheap.
Compared to Uk prices .
Does any one know how mortgage process if you live in UK.
And best way to go about it
Thanks in advance
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Old Jan 26th 2019, 7:37 pm
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Default Re: Buy to let in usa

Uk credit cannot be transferred to US. As you have no SSN, and no US credit, you won't get a US mortgage.

Cash is your only way.
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Old Jan 26th 2019, 7:42 pm
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Default Re: Buy to let in usa

But I've heard of people getting mortgages???
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Old Jan 26th 2019, 7:48 pm
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Default Re: Buy to let in usa

https://www.us.hsbc.com/home-loans/p...nal-borrowers/
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Old Jan 26th 2019, 7:49 pm
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Default Re: Buy to let in usa

Originally Posted by mplaster
But I've heard of people getting mortgages???
You have?

How did they do it?
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Old Jan 26th 2019, 8:03 pm
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Default Re: Buy to let in usa

Originally Posted by mplaster
But I've heard of people getting mortgages???
What is commonly known in the US as a "mortgage" is a highly specific and heavily regulated loan type which is only available if you have a SSN. In the US almost all mortgages are sold, either to an investment bank, or to one of a couple of federal government agencies, but either way, the mortgages are used as security to issue loans to investors, and without an SSN attached to the mortgage, signifying that there is a genuine borrower behind the mortgage, the mortgage can't be sold, and of it can't be sold then no bank or broker will lend you the money on a mortgage in the first place.

If you can find a small bank or credit union that doesn't sell their mortgages (beware, many banks tell borrowers that they don't sell their mortgages, but that usually only means that the bank remains the collecting agent, receiving each monthly payment, but the underlying loan HAS BEEN sold, because that is almost always what happens)., then they MAY be willing to lend to a non-resident foreigner, with no SSN. But you should expect to have to put down a large deposit, say 30%, or more, and to pay a significant premium on the interest rate - at least 2% over regular mortgage rates.

​​​​​​​Another possibility would be a "hard money lender" - essentially an investor lending their own money. They will lend under some very odd circumstances, but again, expect to have to make a large deposit, and to be roundly screwed on the interest rate - think 8% as a starting point, and quite possibly higher!
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Old Jan 26th 2019, 8:55 pm
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Default Re: Buy to let in usa

The big question is, why do you want to own property in the USA? Is your family going to look after the place whenever you're not here? It's a hassle to maintain property and be a landlord from overseas. I assume you don't have a visa to live in the USA so you'll just be making some trips using the VWP?

Rene
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Old Jan 26th 2019, 8:58 pm
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Default Re: Buy to let in usa

Originally Posted by mplaster
I have family living in NJ.
im wanting to buy a buy to let .
As I've seen bank foreclosures cheap.
Compared to Uk prices .
Does any one know how mortgage process if you live in UK.
And best way to go about it
Thanks in advance
You should also look at how the tax would work. In the US its pretty efficient as you can deduct the interest, tax, maintenance, depreciation etc from the rental income to minimnise the income tax you owe. Not sure how that would work form the UK.
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Old Jan 26th 2019, 9:06 pm
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Default Re: Buy to let in usa

In addition, some communities have strict regulations regarding renting out houses, so you would need to ensure it is permitted before purchasing. Also, if a foreclosure is such a good deal, it’s going to be snapped up. If it’s sitting, there’s probably a reason.
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Old Jan 28th 2019, 8:21 pm
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Default Re: Buy to let in usa

Cheap compared to the UK does not mean cheap compared to the market you are buying in, which is really the only market you should be concerned with.

I got some junk mail from HSBC that did offer some expat mortgage products allowing us to buy properties in other countries, but I don't think it applied to the USA.

The US housing market is highly regionalized and in many places, kind of stagnant (or worse). If you are looking for a better return overseas there are probably hotter property markets you could invest in than New Jersey.
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Old Jan 28th 2019, 9:16 pm
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Default Re: Buy to let in usa

You could also research investing in a REIT.

https://www.reit.com/what-reit
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Old Jan 29th 2019, 2:39 am
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Default Re: Buy to let in usa

Although REIT's may not satisfy your desire for risk...
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