Immigrants with large loans

Under the premise of strict foreign exchange control, "I have money, but how can I maximize the income from buying a house?" "I have money, but I can't leave the country at the moment. What if I want to buy a house? " Many buyers who are interested in buying or investing overseas will be more or less confused. In fact, these problems can be solved by buying a house with a loan in the United States. "Who can get a loan? Is it difficult to buy a house with a loan? How to get to the specific process of loan chess? " Next, I will provide you with a comprehensive loan to buy a house and answer your doubts.

1. What is the difference between choosing a loan and paying in full when buying a house in the United States?

The two payment methods for house purchase have their own advantages and disadvantages, but in a nutshell:

(1) Full cash payment

Advantages: fast transaction speed, low transaction price and faster transfer procedures.

Disadvantages: unable to enjoy interest tax exemption, unable to effectively use capital leverage, and great financial pressure.

Suitable for the crowd: buyers with sufficient purchase budget who need to buy a house in the short term.

(2) Loan payment

Advantages: reduce the financial pressure, use the leverage of mortgage funds and enjoy tax reduction and exemption.

Disadvantages: the examination and approval procedures are cumbersome and time-consuming, and high-leverage investment is risky, which is not conducive to obtaining more favorable housing prices.

Applicable people: property buyers with insufficient purchase budget or weak investment awareness.

Buying a house with a loan sounds good. China people choose loans to buy a house for other reasons?

2. What are the main reasons for China buyers to choose loans?

(1) The interest rate of American loans to buy a house is low, which can maximize the leverage effect.

Buyers in China can make use of their own capital advantages to keep the flexibility of personal capital operation, which will attract the attention of many domestic buyers.

(2) China's foreign exchange exit policy has tightened, making it difficult for funds to leave the country.

In the United States, housing loans can be repaid with rent (paying mortgage with rent), which reduces the pressure of capital expenditure and is conducive to the formation of positive cash flow. At the same time, the pressure of difficult exit will force some China buyers to take the form of repayment.

"The loan is quite suitable for me, so can I borrow money to buy a house in the United States?"

3. What kind of China people can apply for an American loan to buy a house?

First and foremost, it is clear that the loan interest rates and policies of different visas (B1B2 visa for foreigners, L 1 visa for American immigrants, green card status, citizenship status and work card status) are quite different.

Speaking of this, many friends may be confused. There are so many kinds of visas, which ones are suitable for loan purchase?

Take the most common green cards, tourist visas +F 1 and H 1B as examples to make a detailed analysis:

1. Green card holder: The loan policy is the same as that of citizens.

The rights and obligations of green card holders are not much different from those of American citizens, so having a green card means that you will follow the policy for American citizens when you buy a house with a loan. For example, a green card is equivalent to a lifetime pass, while other related American visas are temporary passes with different time limits. Therefore, having a green card status can enjoy the treatment of low down payment and low interest rate for American citizens.

2.H 1B visa

Many friends will ask me: "How to buy a house in the United States with a H 1B work visa?"

There is such a doubt because H 1B has natural advantages when buying a house with a loan, and there are naturally many people concerned.

(1) H 1B draw:

Enjoy the same low down payment and low interest rate as American citizens.

(2) H 1B is not drawn, but it is still within the validity period of OPT:

You can still enjoy the same low down payment and low interest rate as American citizens.

(3) H 1B is not drawn, so OPT is invalid:

The visa becomes a B or F visa, losing the same low down payment and low interest rate treatment as American citizens.

Loan conditions: the choice of lending institutions is relatively loose, and many lending banks can provide it. It is also relatively simple to meet the conditions. As long as you live in the United States for a long time and can provide tax returns and income certificates for the past two years, the bank will give loans according to your income ability.

Most buyers who can successfully apply for housing loans in the United States are holders of green cards or H 1B work visas.

Then the problem is coming. If I meet one of the conditions, what kind of loan project is more suitable for me?

There are four common loan projects in the United States: regular loans, (FHA), veterans loans (VA), subsidized loans from the Rural Housing Service Bureau (USDA), and subsidized loans from low-income governments (FHA). If foreign buyers hold green cards and H 1B work visas, they will generally apply for formal loans.

So, for example, if you are a green card holder or an H 1B visa holder, the loan you can apply for is likely to be like this:

Loan project: voluntary (ordinary loan)

Conditions: minimum credit score of 620, no income limit, tax declaration for at least two years.

Down payment ratio:

(1) The loan amount is less than $4 1.7 million, and the down payment ratio is 3%-5% of the total house price.

(2) If the loan amount exceeds $465,438+07,000, it is a large loan, and a down payment of 20% is required.

Loan approval time: 10- 15 days.

Other expenses:

(1) There is no agency fee and no application fee.

(2) When the down payment is 3%-5%, the mortgage insurance is much lower than the FHA loan. When your loan amount is repaid to 20% of the market value of the house, it will disappear automatically. 20% down payment: no housing loan insurance fee.

"But there are still many friends who have green cards, and H 1B doesn't. How can I apply for a loan to buy a house? "

First of all, the above four common loans in the United States do not apply to such buyers. Generally, if foreign buyers are interested in buying a house in the United States, they need to contact real estate agents or commercial banks to find a suitable loan bank, which is more troublesome to operate.

F 1 visa or B-2 visa

It is difficult to get loans because they are all loans from foreigners. Even if there is, the interest rate is high.

Lending institutions: Generally, only companies or institutions that provide loans to foreigners can be found.

1. China Trust Bank

2. Sterling Bank. Trust Hua Fu Trust Bank

3. Cathay Pacific Bank

4. Guaranteed interest rate

*5. HSBC HSBC (B 1, B2 is not accepted, only those with green cards but no tax returns are accepted).

At present, these banking institutions are providing loans to foreigners, but the conditions and interest rates are different. You need to contact the bank again and choose the bank that is most beneficial to you.

Down payment ratio: generally, a higher down payment ratio is needed, which is basically above 35%.

4. What are the steps for China people to borrow money to buy a house in the United States?

When buying a house with a loan in the United States, the process of applying for a mortgage is similar to that in China. The specific steps can be divided into the following seven steps.

(1) Select a lending institution.

There are two mainstream ways to choose American lending institutions: loan brokers or commercial banks.

A loan broker is a middleman who helps borrowers find lending institutions. He can negotiate with the buyer directly to help the buyer achieve the lowest loan interest rate and the least cost.

Applicable conditions: I am not familiar with the American loan to buy a house, so it may be a better choice to choose an excellent loan broker to promote the whole process.

Fee Description: The loan broker usually charges 65438+ 0% of the loan amount as the service fee.

Go directly to a commercial bank, not through a third party;

Scope of application: familiar with the overall process, you can choose commercial banks such as Citibank and Bank of America.

Preferential measures: If you have a checking account or a deposit account in these commercial banks, you can also enjoy preferential loans.

(2) After comparing the interest rate and term, determine the lending institution that can provide the most suitable affordability for the buyers.

The common loan term in the United States is 30 years. You can choose different loan terms of 5 -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.

Floating rate loans (ARM) are usually divided into: 3/ 1, 5/ 1, 7/ 1 ARM, that is, the annual interest rate is fixed for the first three years, five years and seven years, and then the interest rate is adjusted according to market conditions, but the maximum change range is limited. According to the data of Freddie Mac in July 20 17, the average adjustable interest rate of 5- 1ARM remained at 3.2 1%.

Loan to buy a house, fixed interest rate loan. Common fixed-rate loans are 15 or 30 years, and the annual interest rate is fixed.

According to the data of Freddie Mac from July 2065438 to July 2007, the average fixed interest rate of 30-year mortgage in the United States is maintained at around 3.96% (the fixed interest rate of foreigners' loans to buy houses will be higher, usually at 4%-9%), and the average fixed interest rate of 15-year mortgage is maintained at around 3.23%.

Loan 654.38+0.4 million to buy a house:

In the short term (3-5 years)

Interest rate comparison: the loan interest rate of floating rate loans is about 0.5- 1% lower than the fixed interest rate.

Applicable people: For short-and medium-term investors, floating interest rate loans are worth considering.

in the end

Interest rate comparison: Compared with the fixed interest rate, floating interest rate loans have the risk of a sharp rise in interest rates.

Applicable people: For buyers who pursue safety and have low long-term risk tolerance, fixed interest rate is more suitable.

Property buyers should choose according to their financial situation and repayment ability.

(3) Obtain the prequalification of the lending institution that accepts the financial and identity information of the buyer.

This step is required to be completed before the loan process begins, and the broker will ask the buyer to provide personal information, including income and debt. They will decide the amount of loans they can afford according to their own lending standards (each lending institution is different). Pre-qualification can help buyers to know whether they are eligible for loans, whether lending institutions are willing to provide loans and the amount of loans.

(4) According to the instructions of the lending institution, provide all relevant information such as income and identity for review.

Different lending institutions have different loan policies and conditions, but lending institutions are more inclined to lend to overseas applicants with higher comprehensive qualifications. Generally, China people need to meet the following basic conditions when applying for a mortgage in the United States (the specific requirements depend on the lending institution and project):

1, valid US visa, such as B 1/B2 visa;

2. Proof of work income;

3. American local banks have accounts and deposit down payment;

4. China Credit History Report;

(5) The mortgage company conducts real estate appraisal to determine the value.

The evaluation of real estate mortgage loans must be carried out by an evaluation institution designated or entrusted by the lending bank. Once the appraisal result is confirmed, it has legal effect and forms a legal document, which is binding on both banks and lenders.

(6) employees who handle mortgage loans.

At this point, this step has entered the final review stage. When the mortgage loan salesman confirms that your financial and identity information is correct, he can enter into a loan with you.

(7) loan transaction package fee settlement institution

According to the agreed house valuation, loan items, labor costs and other expenses will be settled in this step. Completing this step means that the loan has been successfully used to buy a house.

5. What are the tax benefits of buying a house with a loan in the United States after it is successful?

When buying a house with a loan in the United States, the interest on the house loan and the points charged by the lending bank are tax-free.

Housing loan interest:

The monthly mortgage interest can be deducted as a sub-item. A few years before buying a house, most of the mortgages paid were interest, so the amount that can be deducted is particularly large.

Points charged by the lending bank:

In the United States, the loan bank usually charges a certain fee, which is called "points". Points are also tax deductible. If the loan is used to buy self-occupied housing or expand self-occupied housing reform, the points can be deducted in full in the year of issuance, and in other cases, the points can be deducted in installments according to the loan period.

According to the latest announcement 936 of the Internal Revenue Service (IRS) and related information, lenders are allowed to deduct the interest and local taxes of housing loans from the tax base of the current fiscal year. This policy not only covers the first mortgage house and the second mortgage house of taxpayers horizontally, but also covers various borrowing methods such as "house purchase loan", "house equity loan" and "credit loan" vertically.

As long as the loan items are secured loans and meet the conditions of the house itself, taxpayers can enjoy corresponding relief through the "statutory deduction items". Among them, the total amount of housing loans shall not exceed $6,543.8+0,000, and the total amount of the other two loan methods shall not exceed $6,543.8+0,000. In addition, the IRS also provides corresponding "tax credit" for first-time loan buyers. It can be seen that the tax policy of the US government encourages and stimulates the loan projects of the banking industry on many levels.