Buying a non-US house using a US lender

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nomad
Posts: 95
Joined: Sat Mar 27, 2010 5:31 pm

Buying a non-US house using a US lender

Post by nomad » Sun Apr 11, 2010 11:06 am

Are there any ways to buy a house in Europe, using a US-based mortgage lender?

Presumably, most lenders would not be comfortable with the extra risk of trying to forclose in a foreign region. However, they exist.. eg. some UK banks will loan money for a Spanish home. Are there any banks in the US that offer this?

JDCPAEsq
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Location: Southwest Florida

Post by JDCPAEsq » Sun Apr 11, 2010 11:16 am

Look for a bank with offices in that country such as Citi, HSBC, etc. I very much doubt if any US bank without an office in that country would lend on such a mortgage.
John

nomad
Posts: 95
Joined: Sat Mar 27, 2010 5:31 pm

Post by nomad » Sun Apr 11, 2010 11:52 am

JDCPAEsq wrote:Look for a bank with offices in that country such as Citi, HSBC, etc. I very much doubt if any US bank without an office in that country would lend on such a mortgage.
John
The local lenders are not very competitive (they all have prepayment penalties). International banks that operate locally exploit the same lack of competition by not offering prepayable penalty-free loans. So I'm interested in finding other options from banks that do not have a local office.

smcgrath12
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Post by smcgrath12 » Tue May 04, 2010 10:51 pm

I am very interested in this as well. I wanted to buy property overseas, but the banks in that country don't offer fixed rate mortgage and charge astronomical interest rates. It can very helpful if banks here can lend for overseas property.

FoolishJumper
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Location: Chicago

Re: Buying a non-US house using a US lender

Post by FoolishJumper » Thu May 06, 2010 5:40 am

nomad wrote:Are there any banks in the US that offer this?
This is an old topic, so not sure if the OP will see the response, but the answer is mostly no. U.S. banks will not give a mortgage for non-U.S. property. Most EU countries will, but U.S. will not, for whatever reason.

You do have two options though: HELOC or a Margin 'Loan' (also 401k loan). You can borrow against your own money at very low rates in the U.S. But if you don't have the cash (or home equity), then a bank isn't going to loan you money that they will have lots of trouble obtaining the collateral (i.e. the property) if you default.

My wife and I (U.S. citzen, E.U. resident) are planning to get a Spanish mortgage in the next few months. We have possibility of mortgages from both our country of residence (not U.K.) and Spain, and Spain gives much better options. Unfortunately fixed is not an option, but we can do a 15 year mortgage that has 3 year fixed at 2.2% and then variable at EURIBOR + 1% after that.

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