Best US Loans for Chinese Homebuyers
Invest in your future - invest in US real estate
Challenges for Chinese homebuyers in the US
Challenges
- No loan offers from Chinese banks
- Foreign purchases limited by Chinese government
- All-cash payments reserved for the rich
Answers
- Finance your investment with a US mortgage
- New US opportunities for the Chinese middle class
- US residence increases approval chances and conditions
Reasons for buying a property in the US
- Primary residence - 48%
- Residential rental - 18%
- Vacation and rental - 10%
- Other - 7%
- Vacation home - 5%
- Student use - 4%
Trends for Chinese buying homes in the US
- Nearly 18.5k Chinese citizens bought property in the US that year
- Chinese citizens spent $11.5 billion in US home purchases
- The median purchase price for a property was around $450K
- 50% of Chinese homebuyers financed a home with a US mortgage
Considerations for new homeowners in the US
One time costs
US property taxes have only one time costs
Recurring costs
Property utilities, security, maintenance and community costs
Optional costs
30% withholding tax on rental profits for non-residents
Conditions for mortgage approval
Residency
Mortgage offers differ based on the status of your residency
Employment
Type of employment contract significantly affects mortgage requirements
Credit history
Clean credit history in the US or China
Down payment
Minimum 30% of property value for down payment
Income
Up to 30-50% of income reserved for monthly loan instalments
Mortgage collateral
Significantly better conditions with a US based property as collateral
Documentation you might need for approval
| Non-residents living outside the US | |
Chinese documents
|
|
| Tax documents | Income Tax and Benefit Return and Notice of Assessment |
| Investment income | Last two years of investment slips |
| Salaried Employees | Last two years of income slips. Paystubs for the past 30 days of income |
| Self-employed individuals | Last two years of business returns for any entity where ownership is 25% or more, with all pages and schedules |
| Retired individuals | Most recent retirement awards letters |
| Proof of citizenship | Copy of passport, Green Card or a US visa |
| Proof of identity | Tax Identification Number |
| Proof of assets | Account statements for most recent two months per each account you hold* |
| Insurance documents | Current property owners need to provide copies of property tax notice and home insurance premiums for each residential property owned |
| Permanent or temporary residents living and working in the US | |
US documents
|
|
| Tax documents | 1040 U.S. Individual Income Tax Return |
| Investment income | 1040 Schedule B Interest and Ordinary Dividends, and/or Schedule D Capital Gains and Losses |
| Salaried Employees | W2 Wage and Tax Statement of Income |
| Self-employed individuals | 1040 Schedule C Net Profit or Loss from Business, and/or 1065 K-1 Partner’s Share of Income, Deductions, Credits, etc. |
| Retired individuals | Social Security or Awards Pension letter |
| Proof of citizenship | Copy of passport, Green Card or a US visa |
| Proof of identity | Social Security Number |
| Proof of assets | Account statements for most recent two months per each account you hold* |
| Insurance documents | Current property owners need to provide copies of property tax notice and home insurance premiums for each residential property owned |
Mortgage process duration
| Typical process phase | Estimated duration |
|---|---|
| Registration and loan inquiry at Kredium | 5-10 minutes |
| Mortgage pre-approval through Kredium | up to 24 hours |
| Personalized offers from Kredium | up to 24 hours |
| Mortgage application with a lender | 1-5 days* |
| Mortgage processing by a lender | 30-45 days** |
| Mortgage closing with a lender | 1 day |
Contact us
Single Business Tower, 14th Floor
Office 1406, Business Bay (Dubai)
2020 Silver Creek Rd, Bullhead City,
AZ 86442 (USA)