How much down payment do you need to prepare for a US loan to buy a house?
In the United States, the key to issuing housing loans is that the collateral has sufficient use value. The applicant has a good reputation and a fixed income, which is not directly related to the identity and nationality of the applicant. At present, in most states in the United States, foreigners (without American green cards) can buy American real estate by stages, but the down payment is generally 40-50%. At the same time, because there is no American personal credit record and proof of the source of funds, the loan company will additionally stipulate that the borrower will pay interest higher than the sales market level 1-2%.
The down payment ratio should not be too low: more than 20%: generally, you can get a better interest rate. It must be noted that many housing loan companies have fixed interest rates, such as 20%, 10%, 5% and so on. If your down payment is only 19%, you'd better try your best to find more money to make up for 20%, and the interest rate may be much lower. In addition, many housing loan companies stipulate that the down payment for apartments is not less than 20%.
10%-20%: Single-family villas and townhouses can usually make a lower down payment, but this generally means higher interest rates. If your down payment is only 9%, you'd better make up 10%.
5%- 10%: Fannie Mae housing loan, with a down payment of at least 5%; JumboLoans down payment shall not be less than 10%.
3.5%: This is also the minimum down payment for FHA housing loans. It is difficult to apply for a successful housing loan below 3.5%.
In the United States, the federal government's low-interest loans are stipulated by the US government departments, and the down payment only needs to be 3.5% of the total house price, but the federal government's low-interest loans need to bear the commercial insurance of house mortgage. So although the down payment is low, there are still extra expenses.
What will happen if you can't get a mortgage in America?
1. The down payment will be given to the real estate agent for free.
You have to pay a down payment before you can apply for a mortgage at the bank. Therefore, if your housing loan is not repaid, it is impossible for you to repay the down payment.
2, the cost of buying a house has also gone down the drain.
Buying a house is not an easy task, especially in terms of expenses. What real estate deed tax, housing maintenance fund, urban supporting fees and decoration fees are all consumption. Therefore, if your housing loan is not paid back, this kind of expenditure will be wasted.
3. Personal credit report is damaged.
It's bad enough that the house is gone, but the owner's personal credit report will also bring stains after the mortgage is cut off. And if you are likely to be in a state of working capital difficulties, it is already difficult to get through the crisis according to the loan after the personal credit report is damaged. Because, after the personal credit report has caused a stain, it is basically impossible to apply for a loan.
4. Debt collection
Financial institutions are afraid that you will not pay back the money. After you cut off the loan, the financial institution will definitely make a debt collection. As for the means of debt collection, it depends on the mentality of the debt collection company of the bank, but life will never be easy.
This house was auctioned off.
The worst result is that the house is auctioned by the bank, and the proceeds from the auction are used to offset the accounts. Moreover, financial institutions want to bid for your real estate through the people. After the financial institutions appeal successfully, you still need to pay the lawyer's agency fees, legal fees, protection fees and other expenses.
6. Money owed to the bank
After the house is auctioned, if the proceeds from the auction cannot cover the bank loan. Then we not only lost our house, but also owed a lot of money to financial institutions.
Therefore, if the mortgage is not paid, the most appropriate choice is to apply to the insurance company for an extension, even if it costs several hundred yuan a month, the house can survive, and it is too late to start again after the difficulties have passed!
Frequently asked questions about China people buying houses with loans in the United States.
The United States is the most developed country in the world, so what are the common problems in buying a house with a loan in the United States? In this pure slide, I sorted out the common problems of China people buying houses with loans in the United States, hoping to help you.
First, the way China people buy a house with loans in the United States
A: There are three ways: through commercial loan banks, mortgage institutions or loan brokers.
2. What information do I need to prepare to buy American real estate through bank loans?
A: Each bank has different requirements, such as cash certificate, asset certificate, passport, income certificate, credit record, American bank account and proof of current address.
3. What is the loan interest rate of American bank loan to buy a house?
A: There are fixed loan interest rates and floating loan interest rates. Generally, the 30-year fixed loan interest rate is more common.
4. How much can China people borrow to buy a house in the United States?
A: The down payment ratio of foreign citizens in the United States is as low as 30%, which means that the loan ratio is as high as 70%. However, the local bank should be consulted for the specific situation, and the bank will approve a specific loan amount according to the specific situation of customers.
5. What is the loan interest rate for China people to buy houses through American loans?
A: The local bank mortgage interest rate in the United States is about 3% to 5%, but it depends on the specific interest rate of each bank and the loan situation of customers.
Conditions for China people to borrow money to buy a house in the United States
Nowadays, vicious and successful people know how to invest, especially in real estate. I hope to maximize the investment income with the help of capital advantages. So, how can China people get loans smoothly in the United States? Let me talk about the conditions for China people to borrow money to buy a house in the United States.
First of all, let's find out, as a foreigner, are you eligible for a loan?
Is it higher for foreigners to apply for mortgages in the United States?
It's normal!
In the United States, the core principle of mortgage loan issuance is that the collateral value is sufficient, and the applicant has a good reputation and a continuous source of income, which is not directly related to the applicant's identity and nationality.
As an overseas person, the requirements for obtaining a mortgage in an American bank are relatively high. If you have relevant deposits, investments or other active accounts in the bank, or if the work visa holder has a long-term and stable income and expenditure record, loans in the United States are "extra points"!
At present, in most states of the United States, foreigners (without American green card) can purchase American real estate through loans, but the down payment is usually 40-50%, and because there is no American credit record and proof of income source, lending institutions will additionally require lenders to pay interest higher than the market level 1%-2%.
Green card holders have lower requirements for applying for mortgage in the United States?
Not necessarily!
As permanent residents, that is, green card holders, they also need to establish relevant personal credit records in the bank before they can apply for housing loans. Different banks have different loan policies and conditions, but as long as they meet the requirements, banks are still willing to lend to overseas applicants with higher comprehensive qualifications.
Before and after the green card, or more accurately, before and after the first tax return, the operation of buying a house with a loan is very different. It is much easier to get a loan as a foreigner before obtaining the status. Once they get their identity, it is almost impossible for newcomers to get a mortgage, because some hard requirements are simply not met, such as tax return records, credit, income and so on.
American mortgage application process
First of all, understand the process of applying for a mortgage in the United States. The process is similar to the domestic mortgage application process, which is roughly divided into:
Choosing a lending institution-obtaining the prequalification of the lending institution-examining the applicant's qualification by the lending institution-real estate appraisal-lending by the lending institution.
Specifically divided into the following seven steps:
(1) Consult the lending institutions that can provide you with loans.
(2) After comparing the interest rate and the term, determine the lending institution that can provide you with the most suitable for your affordability.
(3) Obtain the prequalification of the lending institution that accepts your financial and identity information.
(4) According to the instructions of the lending institution, provide all information about income, identity and other requirements for review.
(5) The mortgage company conducts real estate appraisal to determine the value.
(6) employees who handle mortgage loans.
(7) loan transaction package fee settlement institution
Types of American mortgage loans
If you meet the conditions of buying a house with a loan, then you can consider the type of loan.
The usual loan period in the United States is 30 years. You can also choose 5 years, 7 years, 10 years, 15 years, 20 years and 40 years according to your repayment ability.
At present, the average loan interest rate in the United States is around 4-5%, and there are two main types of loans, floating rate loans and fixed rate loans.
(1) floating rate loan (ARM)
Usually divided into: 3/ 1, 5/ 1, 7/ 1ARM, which means that the interest rate is fixed in the first three years, five years and seven years, and then the interest rate fluctuates according to Libor and other indicators.
For example, on 2011116, I bought a 300,000-dollar house in Los Angeles, California. I made a down payment of 40%, applied for a loan of 5/ 1ARM, and the loan interest rate for the first five years was 4.1. Starting from the sixth year,
(2) Fixed-rate loans
Common fixed-rate loans are 15 or 30 years, and the annual interest rate is fixed.
For example, on 2011116, I bought a house of $300,000 in Los Angeles, California, with a down payment of 40% and applied for a 30-year fixed loan interest rate of 4.799%-5.540%.
The interest rate of short-term (3-5 years) floating rate loans is relatively fixed, and the interest rate is about 0.5- 1% lower. However, in the long run, the interest rate of floating rate loans may rise sharply. Therefore, for short-term investors, floating interest rate loans are more worthy of consideration.
For buyers who pursue stability and have low long-term risk tolerance, a fixed interest rate is more appropriate. These two kinds of loans have their own advantages and disadvantages, and buyers can do it according to their own financial situation.
How do foreigners approach American lending institutions?
(1) loan broker
More than half of housing loans in the United States are completed through loan brokers, who act as intermediaries between borrowers and borrowers. The loan broker can negotiate the fees directly with the buyer, and can achieve the lowest loan interest rate and the least fees for you. Therefore, it is a good choice to find a "reliable" loan broker for people who are not familiar with American loan purchase affairs. However, professional services will also charge a certain fee, and loan brokers usually charge 1% of the loan amount.
(2) Commercial banks
Commercial banks such as Citibank and Bank of America offer very competitive loan interest rates. If you have a checking account or a deposit account in these businesses, you can also enjoy loan concessions.
(3) mortgage bankers
Mortgage banks can provide loans for you on behalf of one or more banks, but such loan services are limited to the customers of these banks. For most China investors, consulting American commercial banks with branches in China is the main way to borrow money.
When contacting American mortgage agencies, you must discuss with employees who have been trained in foreign mortgage loans. When you are in contact with mortgage employees of different banks in the United States, find out the interest rates, qualification requirements and regulations applicable to foreigners. Discuss with a number of lending institutions and choose the bank that can provide you with the best interest rate for the loan you need.
What is the process of buying a house in America? What are the precautions?
To buy a house in the United States, you need to prepare funds and passports first. If it is the first time to buy, it is recommended to choose a professional broker to help. After choosing a house, you can submit a bid letter to the seller. If you need a loan to buy a house, you need to prepare a bank pre-approval letter at the same time. After the buyer and seller reach an agreement, they can sign a house purchase contract, and the buyer pays a small amount of house money as a deposit. After the contract is signed, the buyer needs to hire house inspectors to inspect the house and communicate with the seller in time when problems are found. If there is no problem, the buyer needs to pay the house price and complete the delivery of the house.
1. What is the process of buying a house in full in the United States?
Buying a house in full is roughly divided into five steps: preparing to buy a house, bidding to see the house, signing a reservation, inspecting the house and handing over the house.
1. Ready to buy a house
Before buying a house, you should make good preparations in three aspects: first, funds and passports, which are the premise of buying a house in the United States; The second is to choose a real estate brokerage company or broker; The third is to understand the appropriate purchase area and property type, and initially determine the housing.
You don't have to find a broker to buy a house abroad, but brokers know more about the housing and know more about the local real estate market dynamics and transaction processes, which is necessary for buyers with less experience in overseas home ownership. In America, the broker's commission is paid by the seller.
2. Bidding to see the house
After choosing a house, you can go abroad to look at the house in person, or you can entrust a broker or someone else to look at the house on your behalf. In addition to looking at the internal facilities of the house, we should also observe the surrounding traffic conditions and even the situation of the neighbors. Brokers will also inquire about housing information, including housing history, market statistics, government estimated tax and fee prices, etc.
After the house is confirmed, the broker submits an offer to the seller instead of the buyer. Usually, the price mentioned in the offer letter is lower than the price listed by the seller, and the buyer and seller will determine the transaction price after several bargains.
Schematic diagram of bidding letter of American real estate transaction
The picture shows a blank bid letter, and the buyer needs to fill in the real estate information, quotation, proposed transaction date and other information.
Sign a contract to reserve a room.
The broker or lawyer will arrange the formal signing time, and before signing the contract, the broker or lawyer will explain the terms of the contract in detail for the buyer. Matters needing attention in signing the contract: Since buying a house in the United States involves house inspection, the risks that may be faced in this link can be written into the additional clauses of the contract, such as "If there is a major hardware problem, the buyer has the right to terminate the contract, and for general problems, the seller can be required to pay the maintenance fee". The buyer and the seller can sign the contract after confirming the contents, and the buyer needs to pay 10% of the house price as the down payment. Legal provisions that should be paid attention to when signing a house purchase contract
4. House inspection
New york, Long Island and other areas in the United States need to do house inspection before signing the house purchase contract, and other areas need to do it after signing the contract. Buyers need to hire a licensed house inspector to inspect the house, and the inspection fee is paid by the buyers. The contents of the inspection include the basic structure of the house, power supply system, heating and cooling equipment, etc. The inspector will provide a detailed inspection report and list the places that need maintenance and submit it to the buyer. The broker will communicate with the seller or pay the maintenance fee instead of the buyer. If the problem is serious, the buyer has the right to terminate the contract.
Schematic diagram of American housing inspection report
The picture shows the first page of the inspection report of a two-story villa in Las Vegas, USA, with information about customers and real estate.
If you buy a new house, the builder will provide a one-year warranty period, and you don't have to do house inspection before the transfer. However, it is recommended to have a check-up after ten months. If you have any questions, you can contact the warranty company for maintenance.
5. Real estate delivery
Next, the buyer can pay the house price. When buying a house in the United States, the funds are paid to a third-party supervision account, not directly to the seller, which fully guarantees the security of the transaction funds. When transferring ownership, if necessary, the buyer can ask the transfer lawyer for assistance, and the lawyer will verify the property rights of the house, including whether there are any debts left over from the house. If there is no problem, the transfer lawyer will assist the buyer to sign the transfer document, and the buyer needs to pay the corresponding transfer fee. After the document is signed, the transfer formalities are completed, the buyer can get the key, and the transfer lawyer will go to the local land management bureau to register the title deed for the buyer.
Second, the difference between buying a house with a loan and buying a house in full?
When buying a house with a loan in the United States, you need to get a pre-approval letter from the bank before choosing a house. After signing the house purchase contract, formally apply for a loan from the bank. The bank's valuation of the property may be lower than the actual selling price. In order to reduce the risk, protective clauses can be attached to the tender letter. American loan purchase process
1. Loan time
(1) Pre-approval
If you choose to buy a house by loan, you need to provide three blank materials, namely income certificate, bank running water and asset certificate, to the bank for pre-approval before choosing a house. After approval, the buyer will get a pre-approval letter, valid for 30 ~ 60 days. The pre-approval letter needs to be provided to the seller for reference together with the tender letter in the future, because the pre-approval letter proves that the bank has verified that the buyer's credit status meets the requirements, and the seller can also see the loan amount.
Schematic diagram of pre-approval letter of mortgage loan of a bank in the United States
The pre-approval letter contains the bank's pre-approved loan limit for the loan applicant and the temporarily locked interest rate standard.
(2) Formal loans
After the signing of the purchase contract, the buyers need to submit the contract and the materials required by the bank to the bank to formally apply for a loan. Bank approval time is generally 45 ~ 60 days. If approved, the bank will directly pay the house payment, and the buyer and seller will complete the transfer procedures; If the bank refuses the loan, the buyer needs cash to complete the transaction or deal with it according to the contract.
Schematic diagram of loan application form of American lending institutions
The loan application form needs to indicate the lender's own situation, loan purpose and other information.
2. Bank valuation
After the buyer submits the loan application, the bank will ask the appraiser to evaluate the house. Therefore, two clauses can be attached to the tender letter, namely, house evaluation and loan approval, and the validity period of the clauses is generally 15 days. If the house valuation is lower than the contract price in the future, the buyer can submit the house valuation notice to the seller within the validity period, and attach the house valuation report, requesting the seller to reduce the contract price to the house valuation. If the buyer receives a written notice rejecting the loan application within the validity period, the contract can also be terminated as long as the notice is sent to the seller.
Third, what should I pay attention to when buying a house in the United States?
When making the purchase budget, in addition to the cost of the house itself and the commission of brokers, lawyers and other related personnel, we should also consider two expenses: one is transfer fees, and the other is insurance. Precautions for viewing houses in America
1. Transfer fee
The day before the transfer, the transfer company will provide an accurate list of transfer fees, and the buyer can write a cash check in the bank according to the transfer fees listed in the list. Transfer fees include property-related fees, transfer tax and property registration tax. If you buy a house with a loan, it also includes the loan-related expenses, the advance payment of the loan bank and the withholding of the intermediate account. If it is purchased in cash, all kinds of expenses add up to 1% to1.5% of the house price; For the house purchase by loan, the total transaction transfer fee is about 2% to 4% of the house price, subject to the actual transaction.
2. Insurance premium
Buying a house in the United States may involve homeowner insurance, mainly to cover the losses caused by fire. There are many other reasons for the losses caused by houses or personal property. The insurance premium is 600 ~ 1000 USD a year. If you buy a house in California, California law stipulates that you must buy homeowner insurance when you buy a house; If it is a loan to buy a house, the bank also stipulates that buyers must buy homeowner insurance.
The United States also has landlord fire insurance, which is suitable for buyers of non-commercial housing. In addition to fire, it also includes losses caused by snow, ice, storms and mold. Buyers can consider for themselves.
The system of buying a house in the United States is perfect, and relevant professionals can be hired to assist in all aspects to reduce or even avoid risks. In addition, the regulatory system for third-party funds in the United States is also very mature, and there is no need to worry about the safety of trading funds.
American loan to buy a house, American loan inquiry domestic credit introduction ends here. I wonder if you have found the information you need?