Investing in the United States can become very profitable for the French because of the considerable advantages it offers. However, it can be difficult to find a loan at an attractive rate in the USA, especially when it is not your main place of residence! Less confidence on the part of banks abroad, and therefore less chance of success! But it is not impossible ! Here are all THE tips to allow you to obtain your mortgage in the USA in the best conditions!
Credit in the United States, how does it work?
How to obtain a loan at an attractive rate for the purchase of a house or another type of accommodation? If you are used to French banks, be aware that loans in our country and in American lending organizations do not work in the same way.
It is therefore to help French investors and borrowers to borrow without risk that we have designed this guide.
How to get a home loan at a good rate in the United States? A key tool to know, the credit history!
First of all, do not hesitate to be accompanied by your real estate agent who can help you in these steps and the creation of your file.
To understand how to invest in US real estate , it is important to know how it works. An essential element that makes it possible to obtain a mortgage in the United States is the credit score .
Indeed, it allows lenders to have more information about the financial reliability of the borrower. It is generally a history of the use of your finances and thus, of your capacities for loan repayments. Depending on these results, this is what will allow you to obtain a loan in the USA. Whatever amount you ask for and your income, all US banks and lenders will ask you!
Thus, an American bank will consider that you can be a good candidate for a loan from the moment your score is high. However, unlike American citizens, when one is not a resident of the United States, it is difficult to have a credit history. And therefore, difficult to prove that one is reliable and in capacity!
Rest assured, there are still other financing solutions to obtain your mortgage! By choosing to contact either a local bank or by staying close to your bank in France , the choices are many!
How to make a loan in France for an investment in the United States?
how to get a home loan
Obviously, the simplest and fastest financing solution would be the contribution thanks to your own funds, and your own liquidities. This saves you from having to go through a bank loan.
You are unable to provide a contribution? It’s not serious ! Thanks to this guide for foreign borrowers, you will be able to put the odds on your side for a successful mortgage in the United States!
One of the solutions that can be offered to you to buy a home across the Atlantic, is to contact French banks. They offer very interesting easy solutions.
One of them will be the mortgage loan. Only one condition: you must have assets located in France.
By opting for this option, you will therefore commit to applying this mortgage to part of your assets in France.
Once the repayment of the loan is finalized, the mortgage will thus be lifted from your property. You will therefore have obtained your credit in the USA and will be able to take full advantage of your investment !
The solution of mortgage loans does not suit you? Don’t worry, there are many more!
Cash advance, a solution!
If you have a life insurance contract, you can use it to obtain your mortgage in the United States!
By using an estate advance, you will be able to obtain a loan of up to 90% of the value of your insurance contract!
Another solution may also be available to you: the use of your cash placed in your bank account. It is simply a question of using them as a bank guarantee.
In another case, if you own shares or shares in a company, you can also use them to pledge securities!
All in all, a cash advance provided using a life insurance policy, cash or stocks can be a very good solution for obtaining a mortgage in the USA!
This allows you to use your property, and thus avoid the guarantee by a mortgage!
How to make a home loan in the USA? Help from local banks!
In order to attract more foreign investors, the United States has managed to put in place solutions to facilitate internal real estate investment.
For foreign investors who are not residents of the territory, the administrative burden as well as the involvement in obtaining your mortgage in the United States remains, of course, more substantial.
Indeed, being a foreign investor takes away the advantage of using your credit history. However, you can contact American banks with branches in France! On the one hand, the communication will be simpler, and the examination of your financial resources will be facilitated.
Thus, American banks will also be able to allow you to obtain a mortgage in the USA.
But how to choose? Local banks can offer you two solutions: real estate loans or mortgage loans.
For each of these financing solutions, you will have to provide a personal credit report that will allow you to prove your creditworthiness and provide a status of your financial information.