Becoming a real estate investor is often seen as one of the most universal signs of personal financial achievement, no matter what your age. While, technically, in the US there is no age limit for getting a mortgage, there are some age-related home buying guidelines you should keep in mind.

How old is too old to get a mortgage?


Because a mortgage is a legally binding contract that allows you to finance the cost of a home over a long period of time, some people might wonder if there are age limits involved. For example, if you’re 75, could a lender refuse to let you take out a 30-year mortgage? After all, the average life expectancy in the United States is 78.6, according to the Centers for Disease Control and Prevention.

The good news for seniors who are looking to buy a house is that it is against the law for a mortgage lender to discriminate against you based on age. The Equal Credit Opportunity Act (ECOA), which came out of the Civil Rights Act of 1964, says lenders cannot deny you credit based on age, as well as other criteria like race, color, religion, national origin, sex or marital status. The Fair Housing Act of 1968 adds even further protections, specifically stating that it’s against the law to discriminate in any residential real estate transaction.

However, there are some instances in which a lender could consider a lendee’s age indirectly. A lender may look at whether you are close to retirement age and make a decision based on your having enough income to handle the loan, according to the Consumer Financial Protection Bureau. But again, in this instance, the disqualifying factor is not your age but rather your ability to manage loan payments.

How young is too young to get a mortgage?


Can age be a discouraging factor when it comes to getting a mortgage if you’re closer to high school graduation age than retirement?

Lenders can’t deny a mortgage application solely because of your age, but states do have laws that determine the age at which a contract can be negotiated. For example, in Virginia, you must be 18 to enter into a legally binding contract, which would include a mortgage.

Your age may also affect your ability to meet other requirements for being approved for a mortgage loan.

• Lenders evaluate your income to see that you have enough to make the mortgage payments. If you’re under 18 or even in your early 20s, it’s unlikely that you’ll have a job in which you make enough to take on a mortgage.
• Lenders also typically require you to have a certain credit history, meaning they may not have enough of a credit history to meet lender’s requirements. Young people who haven’t had time to build a credit history by using credit cards or taking out loans are likely to fall in this category.
• Finally, homebuyers typically need to make a down payment. For example, minimum down payment for a non citizen is 30%. US citizens living abroad and purchasing a second home or investment property may be able to put down as little as 10% if they still maintain a US credit score.

The risks of taking out a mortgage at an older age

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Just because you can legally take out a US mortgage at any age, doesn’t mean it’s always be the wisest move. A mortgage is a long-term commitment, and you want to make sure you’re ready for it. If you’re a senior and thinking about taking out a mortgage, consider the following risks.
• Mortgage debt can hamper your day-to-day finances. When people retire, they typically live on a fixed income. There are no more promotions to look forward to, or year-end bonuses to give your finances a boost. Some seniors may find it challenging to make those mortgage payments month after month, along with their other expenses on a fixed income. If a financial crisis hits, they could experience a financial disaster. The Consumer Financial Protection Bureau points out that this did, in fact, happen during the Great Recession of 2007-09. Many older homeowners struggled to pay their mortgages and eventually foreclosed on their homes.
• Unexpected repairs can throw your budget for a loop. Your mortgage payment isn’t the only thing you’d have to worry about. Most homeowners at some point experience the sticker shock that comes with appliance replacements and major repairs. If you’re living on a fixed income, replacing a roof or buying a new furnace may be too much to handle on top of the regular costs of homeownership. Also keep in mind that if you’re handy around the house and have been able to do your own repairs, you might not be able to do as much physical work as you age. In that case, you’d likely have to pay someone to do the jobs you used to be able to do.

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You’ll likely have less time to build equity. One reason people buy real estate is so they will have something to pass down to their heirs. If you buy a house at an older age, there’s a higher chance you won’t live in the house long enough to build a lot of equity. In that case, if you die and your house is left to heirs who want to sell it, there may not be much of an inheritance for them to split.

The bottom line …


Age plays a role in many of our biggest decisions. Whether we’re thinking about marriage, starting a business or retirement, we often consider whether the timing is right to pursue these goals. While age can’t legally deter you from buying a house, you should always weigh the pros and cons of real estate investing.

Global Mortgage Group has programs which does not require income proof which may assist with obtaining a mortgage at an older age where income may be sporadic. For more information please email – hello@gmg.asia.

Investors sometimes ask if it makes sense to buy a rental property in another country when they live so far away. Often, they’re curious about exploring other areas because there are few good deals left where they live, or they’ve heard that certain locations have excellent returns.

During the peak real estate years of 2003–2007, investors from all over the world were calling Realtors in U.S. states like Arizona, Georgia, and Florida, to snap up investment properties — often without even seeing the homes in person. Mainly the purchases were cash; however, if they would have applied for a mortgage, they could have been assured that a bank or private lender will not lend on a property that does not meet certain specifications or values. It is certainly the best way to make sure you’re buying at the right price, and the right condition.

Regardless if you live in Singapore, Hong Kong, Shanghai, or Seoul, it’s important that investors are prudent and take certain precautions when purchasing global assets. As one of the only Asia-based U.S.-centric mortgage brokers, Global Mortgage Group can assist you with honest advice and guidance on financing these investments.

Why be a Long-Distance Landlord?

There are pros and cons inherent with long-distance real estate investing. Let’s take a look at the pros first:

1. You have the freedom to invest in more affordable areas. By not restricting yourself to the area in which you live, you open up a whole new world of investing possibilities. Many investors in high-cost-of-living areas such as Singapore, Hong Kong, Tokyo or Seoul can no longer afford to buy investment homes where they live, but are finding the Midwest and Southern U.S. states to be much more affordable. In addition to cheaper sales prices, these areas also have lower taxes and dwelling (i.e. rental property) insurance premiums.

2. You can fund your future retirement home. Some global real estate investors buy a home in a retirement town with an eye toward living there or as a second home one day. They may buy a condo near the beach or a ski cabin in the mountains. Then they rent the home out with either short- or long-term leases, and in the process, their tenants pay down the loan principal until the investor is ready to retire or visit. By then, the mortgage might be fully paid off.

3. You may gain new tax deductions. Many parents have children who attend college in the U.S. state. Instead of spending a fortune on a dorm room and semi-annual visits, they buy a modest three-bedroom home near campus. The student lives in this home and rents the other two bedrooms to some friends. The parents save on dorm fees and offset a good part of the total mortgage payment with the rent collected from the other students (or better yet, their parents). Furthermore, each time that the parents travel to visit the child, 50% of their total trip expenses can be legally written off on their income taxes because they’re also inspecting their property (please consult your U.S. tax advisor).

Handling the Disadvantages of Long-Distance Real Estate Investing

Make no mistake: owning rental property far from home can be a complex undertaking. There are several challenges long-distance landlords often encounter:

1. Lack of knowledge about the area in which they’re investing

2. Lack of familiarity with good local service providers

3. Relying on others to take care of day-to-day problems or repairs

4. Difficulties in getting the rent paid on time

But these obstacles don’t have to prevent you from purchasing long-distance rental property. Global Mortgage Group has Asia-based associates familiar with either the U.S. or Australian market. They can answer questions you may have and often can refer you to agents they have worked within these areas.

Here are some ways to make your global real estate investment a success;

1. Do your homework and learn about the area. Begin by hiring a good Realtor from the area you’re interested in. You can browse websites such as Realtor.com, Zillow.com, or Trulia.com to get the names of several Realtors in the area who regularly sell investment properties. Interview each Realtor by phone, and ask those you like best to send you listings of homes for sale that meet your criteria. Browse rental properties online to get a feel for the return that you can expect on homes in your price range.

Because there are more expenses involved in buying and managing long-distance real estate—such as the travel expenses you’ll incur to visit the property—don’t rule out foreclosures, short sales, and other distressed properties that can be purchased at a substantial discount to comparable homes in the area. This type of home probably won’t be move-in ready, but after you make the necessary improvements, it should yield some start-up or “sweat” equity. It is important to keep in mind that in order to obtain a good mortgage, the property must be in “liveable” condition. If you find a great deal and it needs work, Global Mortgage Group has several non-citizen, foreign national mortgage programs that can give you the purchase and the renovation financing.

2. Find a reliable and affordable property management agent. It’s not very difficult to make the necessary calls as problems arise, but if you find that landlord duties such as managing repairs and collecting rents is becoming too stressful, ask your Realtor or search online for a reliable and affordable property management services. The monthly fee for property management will range from 10%–12% of the rent. Do your homework and research their reviews fees and responsibilities.

3. Automate or simplify rent collection. There are a couple of ways to handle collecting rents on time. Some tenants can have their rent automatically deposited into your bank account.

You can also have tenants deposit the money into an account at a local bank—you’ll get the rent faster than if they mailed you a check. To encourage timely payment, send them an email or text reminder as the first of the month approaches.

Once you’ve rehabbed the property and your tenants are in place, your rental should run on autopilot for quite a while. If your tenant calls with an occasional repair problem, you can simply pick up the phone and put them in contact with your property manager.

In summary, there are many advantages to buying long-distance real estate, and while there are some disadvantages, they can be easily handled if you’ve done your initial research and set up a network of reliable resources. If you are a non-citizen or an expat and thinking about buying U.S. real estate with a mortgage loan, we can help. Global Mortgage Group only focuses on buyers that either do not live in the country which they intend to purchase or do not carry the passport. We do this every day, all day.

One of our associates or partners will be happy to answer any questions you may have regarding mortgage financing for your investment. Please send us a message at hello@gmg.asia.

Yes, you read that correctly … You don’t have to be a citizen to get a U.S. mortgage.

If you’re a permanent resident alien, you’ll need your green card and your social security number. Your mortgage application process will be very similar to that of U.S. citizens.

If you’re a non-permanent resident alien, you don’t have a green card, but you have a social security number or ITIN. You can finance a home if you produce a work permit (Employment Authorization Document) or special employer-sponsored visa. Lenders must verify that you’ll be able to live and work in the country for at least three years.

Non-U.S. citizens without lawful residency in the U.S. are not eligible for Fannie Mae, Freddie Mac or FHA home loans. There are two sorts of non-citizen homebuyer in the United States — the resident who wants a primary residence, and the non-resident who wants a vacation or investment property in the U.S.. Each buyer may finance property with a foreign national mortgage, but the loans are not alike.

Permanent resident aliens

Both permanent and non-permanent resident aliens can obtain mortgages in America, pretty much like everyone else. They can even get Fannie Mae and Freddie Mac home loans with as little as three percent down once they are living in the US.

The documentation requirements depend on the borrower’s status.

If you’re a permanent resident alien, you’ll need your green card and your social security number. Your mortgage application process will be very similar to that of U.S. citizens.

Non-permanent resident aliens

If you’re a non-permanent resident alien, you don’t have a green card, but you have a social security number, you may be able to finance a property if you produce a work permit (Employment Authorization Document) or special employer-sponsored visa.

Lenders must verify that you’ll be able to live and work in the country for at least three years. If your permit is going to expire within a year, your lender must evaluate your likelihood of remaining in the country and decide accordingly.

Foreign national loans for non-residents

Prior to Global Mortgage Group’s Foreign National Mortgage programs it was a lot harder for borrowers outside the U.S. to finance second homes or investments properties in the U.S..

These are riskier for lenders, so they carry higher interest rates often above 8%.

Borrowers also used to have to make much larger down payments — on average 50 percent. However, that has all changed with GMG’s specialised programs.

Two of the most popular programs;

1. GMG FNSTATED – This is a perfect program for borrowers that either can’t show the required income for various reasons such as self employment, lumpy income or just a concern for privacy. This program doesn’t require any income verification, U.S. credit or residency and has a high LTV of 70 percent.

2. GMG FNFull – This is a perfect program for a borrower to show their foreign tax returns and income statements just as a U.S. citizen would. Rates are on par with what a U.S. citizen would pay and the LTV can go as high as 50 percent without reserves required.

MG is the ONLY Asia-based U.S.-focused Real Estate financing firm with offices in Singapore, Hong Kong and Shanghai. The ability to open an application and close a loan without ever leaving Asia may be unique, but we do it everyday. Borderless mortgages. Easy.

What about U.S. credit scoring?

One challenge foreign borrowers face is the lack of credit history. It can take years to accumulate enough credit history to generate a good score. Or any score.

However, there is help for those with so-called “thin files” or No Credit. GMG can accept either a bank reference letter or a foreign credit report in lieu of a standard U.S. credit report. This is a unique feature and sets GMG apart from other U.S. based lenders and brokers.

What about U.S. EXPATS?
Are you a US.. Expat, files US Taxes but work for a foreign company and don’t receive a W2? Oh, boy … we’ve got a great program for you! Our GMG Expat mortgage program is as easy as walking into your local bank in “Small Town, USA”. We look at your foreign income just as we would if it was paid in USD. Your W2 is offset with other documents and your loan is processed just as it would if you were in the U.S.. It’s that easy! Although it does require sufficient U.S. credit for these programs.

However, if U.S. credit isn’t an option because you’ve been abroad for many years … we have thought of that as well. We have programs for these borrowers as well.

GMG welcomes everyone …

With over 40+ combined years of experience in the US mortgage banking and Asia private banking, GMG knows the type of borrowers, their problems and hurdles and how to resolve these issue in the same time zone, and without the learning curve US based banks/brokers may have. GMG welcomes anyone looking to invest or refinance US Real Estate. They have programs for almost every type of borrower regardless of their passport.

GMG also offers direct mortgage programs for Canada, The UK, Australia, Thailand, Japan and most of Europe.

For more information please contact hello@gmg.asia.