How can you apply for a mortgage loan in the USA as a foreigner? Real estate has become a highly attractive business model because, in addition to safeguarding the investment and obtaining returns on it over time, also represents a space that is always available for habitation. In recent years, governments and associations around the world have provided facilities and benefits for foreign investors seeking a second home in another part of the world.
Earlier we talked more about how to obtain the Golden Visa when applying for a mortgage loan in SpainWe invite you to take a look at this information as it will be very useful in the future if you are looking to migrate by investing in real estate projects abroad.
Today we will tell you more about everything you need to know to apply for a mortgage loan in Houston, Texas, and what benefits you will be entitled to if you decide to do it as an investment or as a second home. Let’s take a look at it below.
What types of mortgage loans are there?
- Residential
Single-family homes, townhouses, condominiums, condo hotels, etc.
- Commercials
Hotels, stores, points of sale, etc.
- Private
Bridge loans (these are for 2 years, the rate is higher, it doubles compared to a residential rate).
How to know which type of mortgage loan to choose?
To do so, it is important to answer the following questions based on your medium and long-term needs:
- I want to buy a second house to live in for part of the year.
- I want to buy a property to rent and have a return.
- Mix (a and b). I want to live there for a few weeks a year and rent it for the rest of the year.
- Buy to live in it and therefore reside in Houston most of the year.
Key points to know when applying for a mortgage loan in Houston
- As a foreign investor, you can expect to receive a loan from 40% to 75% of the total value of the property issued by any American bank.
- Fixed interest rates range from 5.76% to 7.6%*.
- The U.S. mortgage law only allows 33.3% of your total income to be borrowed.
- The term of the mortgage loan can be 15 or 30 years with no age limit.
- The minimum mortgage loan amount is $150,000 USD .
- The minimum value of the property you wish to acquire must be $250,000 USD.
- It is recommended to purchase life insurance for the amount of the loan.
- Some banks ask for reserves of a certain number of monthly payments in your US bank account at the time of closing; they may ask that this amount be frozen for at least 6 or 12 monthly payments .
- Your US bank account needs to be at least 2 weeks old.
- Rates may be fixed for the 30 years of the loan .
- Fixed rates can be from 3, 5, 7 years. For example, for the first 3 years it is fixed, after 4 years it is variable rate according to the market, but they are capped, they go 2 points up or one point down from where you closed, they are protected during the life of the loan.
- The final rate is known until the results of the appraisal and credit analysis are available. There may be several options for the client to choose the one that best suits his needs.
What kind of projects should you invest in?
There are a variety of real estate projects in United States where the value to be invested can go to from $800,000 USD to $1,050,000 USD. This value is calculated depending on the type of area where the project is located; for example, in rural areas with a high unemployment rate, the investment tends to be lower, as opposed to a large city or a city with a better quality of life.
Certainly it will always be a better option, in order to obtain higher yields and access to a better quality of life, to invest in cities that are already consolidated and desirable to live in .
The Allen Parkway in Houston, Texas, is an impressive luxury real estate development that is perfectly located at an intersection that stands out as a meeting point for business and the area’s top lifestyle .
Allen Parkway has an incredible view of the Buffalo Bayou Park, containing 160 acres of beautiful, lush trees. In the park you will find a lake with calm and peaceful waters, which creates an ideal atmosphere for walking, biking, walking your pet or just walking to restaurants and events in the area.
Allen Parkway is the first real estate development of its kind in Houston and is setting a precedent for a new lifestyle concept.
What are the requirements to apply for a mortgage loan in the USA?
- Completed application.
- Tourist visa.
- Resume (as complete as possible) level of studies, where you work, income, companies where you have worked.
- Proof of address.
- Letter of income (if they are independent the accountant prepares it and if they are salaried, the employer prepares it) income with history of 2 years.
- Professional license.
- Professional degree.
- Bank reference model.
- Bank reference letter.
- Business card.
- Down payment of your property of 25% or 30%.
- Have at least 7% of the purchase costs in the bank account.
At Nolab we have the best luxury properties in Mexico, Spain, Portugal and the United States, ideal to secure your investment and live where you have always dreamed of. Contact us at Our real estate agents are ready to provide you with all the information you require.
*Data updated as of June 2022.
