Will US Banks Finance Foreign Property?
In the world of finance, making a profit is the ultimate goal for banks. US Banks are no exception to this rule, and they are often willing to go to great lengths to achieve this objective. However, there are still limits to what they will do in order to make money. Many real estate investors are now curious about whether US Banks will provide financing for the purchase of foreign properties located in exotic destinations, and at a discounted rate.
This is a common question among investors, and it raises some interesting points about the relationship between US Banks and the real estate market. In this article, we will explore this topic further and shed light on whether US Banks are willing to finance foreign real estate investments.
Try Your Local Bank
Almost all of you that are reading this article have a bank account with at least one US bank. Some of your local banks might be offering mortgages on overseas properties according to hsbc.com. In their article, they make it clear that most local banks don’t support these kinds of transactions, but if they do you should know the advantages of getting the financing through your main bank.
Firstly the mortgage will be in your own language so it will be much easier to understand the terms and conditions. This is vital when applying for any loan and you should contact a lawyer that helps you understand the contract or negotiate changes to it.
Transactions can be problematic when you want to send funds overseas with the transfer needing to be thoroughly checked, papers needing signatures, and logistical problems that could arise. When you use your local US bank these problems will be far less likely to occur ensuring a much smoother transaction. Fees are also a concern for many when purchasing properties outside the US. This issue will not be as grave when using your own bank to handle the transaction.
Lastly, the process of obtaining the mortgage will go a lot quicker, because the bank already has access to your credit score. Obviously, the better your credit score you have the larger your chances will be.
What Banks Can I Use?
On wise.com you can read that most US banks usually don’t help their clients with these transactions. Some might be open to it, because they have international affairs, for example, Bank of America and HSBC.
They will have certain requirements for you to be allowed to procure financing from them. For example, HSBC requires that you are 18 years old or above, reside in an approved country and meet certain income requirements and affordability requirements. The banks might also have a limit on how old you can be to obtain this type of financing.
Most likely the age limit will be there to ensure that you have money to pay off your mortgage and make your interest payments on time.
So Can You Get Financing from US Banks?
On ledingtree.com you can read that buying international properties with financing from a US bank can be a bit tricky. The bank will need to have an office in the country that you want to buy real estate in or a presence for starters. Many residential transactions regarding real estate are fancied by other methods than a mortgage.
In short, the answer is yes, but there will be certain hurdles that you need to get over.
