Great finance options are now
available for Australians investing
in the USA property market.

By utilising finance as part of your purchasing plan for USA property you benefit in the following ways:

  • Start by purchasing one or two USA properties (dip your toe in, so to speak) secure your tenants and rental manager and thereby get the cash flow started. If you are happy you have additional cash reserves to continue investing, if you want to stop at this point you have not used up all your cash.
  • Purchase more properties than is possible using straight cash. At some point the cash will run out for all of us. Using this technique takes advantage of the power of leverage.
  • Leverage is an investment technique in which you use a small amount of your own money to make an investment of much larger value. In that way, leverage gives you significant financial power.

The following information can give you an overview of the finance options available:

Loan to valuation ratios:
Lenders offer loan to valuation ratio’s from 50% up to 75% for foreigners looking to finance American property. What this means for a loan to valuation ratio of 75% is that you will provide 25% deposit plus costs and the finance company will cover the additional 75%.

Lenders Available:
Loans USA has developed a network of financiers to choose from including National Banks, Regional Banks, Community Banks, Insurance Companies, Private Lenders and Vendor Finance. Lenders are generally geographically based. This means that the location of your property will determine the lender/s and your finance options.  Only until you purchase will be sure we can finance you.

Property Types:
There are many different property types to choose from in America. Loans USA can provide finance options for Single Family Homes, Townhouses, Condos (units or apartments), some multi-family homes, Condo Hotels and Commercial properties. Multi-family homes are houses that have been divided up into smaller units which remain on a single title. As a result, it is quite possible to have rent coming from two or three (or more) different tenants. However, obtaining finance for multi-family homes can be difficult in certain locations so please contact Loans USA prior to confirming a multi-family purchase.

Products:
Adjustable Rate Mortgages (where the interest rate can increase and decrease after an initial fixed period) and Fixed rate options are available.

Structure:
Full Document and Low Document loan options are available. The best finance options are available on full document loans.

Fees:
Lender fees average about $900. Some lenders offer a points option whereby you can pay an extra 1% fee upfront to have the interest rate reduced by say 0.50% for the life of the loan. However not all lenders have this option. Some lenders also charge extra points depending upon the risk of the loan.

Loan Amounts:
Some lenders have no minimum loan amount whereas others have a minimum starting at $30,000. The minimum loan amount varies from lender to lender.

Credit History:
Some lenders require an Australian credit report which Loans USA will organise for you if required.

Loan Process:
The loan process is similar to Australia. However the entire process is often very quick with the property and finance option taking approximately two to four weeks to complete.

Loan Documentation Required:
The loan documentation varies between lenders but generally will include proof of income via an employment or Accountants letter. Also a credit reference letter may be required. Loans USA will help you to organise all the paperwork that is required.

Loans USA will walk you through the various options that are available to you, liaise with the lender and ensure each step is completed all the way from application to settlement.

Contact Us

Workshop Registration
A Loans USA workshop will give
you comprehensive insight into
purchasing and financing property
in the USA.



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Insightful video Interview with Stephen
McClatchie, Founder & Managing
Director of Loans USA Click here to view