It’s been a hectic week with several conferences in town and F1 next week. As we are all waiting for the Fed’s decision this week, I wanted to update everyone on a new loan program that has been very popular since we launched it.
Did you know you can qualify for a U.S. mortgage by using ONLY the rental income of your investment property - there is no need to show personal income!
Introducing - GMG U.S. Rental Coverage Ratio 1.0 Program
“PROJECTED” RENT ÷ [ MORTGAGE + TAX/INSURANCE/HOA ] ≥ 1.0 = YOU QUALIFY!
We use the rental income generated from the property investment, and there is no need to qualify using your personal income!
It’s common-sense underwriting, designed specifically for overseas investors, including both foreign nationals and U.S. expats.
What Factors Affect the Rental Coverage Ratio 1.0
GMG U.S. Rental Coverage Ratio 1.0 is affected by Operating Income and Debt Service. I’ll talk about this below, but Operating Income (rent) is trending up, and Debt Service (mortgage rates) is trending down. That is to say, future margins will be higher (income up + costs down).
There are 2 constants in the U.S. real estate market:
1. Property/Rental prices will go up (income)
2. Rates will eventually be lowered (cost)
Here’s why:
1. There is a shortage of 7M homes in the U.S.
With mortgage rates where they are now, the marginal buyer cannot afford to purchase a home and is forced to rent. Many institutions like Blackstone are also trying to buy up as much supply as possible so they can dictate pricing.
Trend = income up
2. We can assume there will be a 25-50bps cut this week in the Fed Funds rate. Mortgage rates have already factored this in and are at multi-year lows now.
Trend = costs down
What makes the U.S. real estate market so unique is that you can buy a home today and then refinance it at a lower rate when rates fall or when the price goes up.
Here is a snapshot of our U.S. mortgage solutions:
No age restrictions on loan tenure: Maximize your yield potential with 30–40-year amortization. Regardless of whether you are 19 or 99, you can qualify for the longest tenure possible. (This is a U.S. government anti-discrimination policy)
No limit on the number of properties owned with maximum LTV financing: We understand building a real estate portfolio requires leverage. Global Mortgage Group’s loan programs allow you to obtain the maximum LTV available regardless of the number of properties owned.
30-year loan program with 10-year fixed interest only: Global Mortgage Group features a 30-year amortization on many of our loans. The 10-year interest-only option is a fantastic way to lock in a long-term fixed rate with the flexibility to keep it for 30-years without seeing any rate adjustment. Rates go up; your payment remains the same. Rates go down; refinance into a lower rate or stay with the comfortable payment you have locked in. It’s that flexible!
Refinance when rates go down: When rates decrease, your Global Mortgage Group loan officer will analyze the lower rate options and present a clear and concise proposal that shows a breakeven point for any costs incurred in the refinance.
Loan programs in all 50 U.S. states: Our loan programs are available in every city and state. Want to buy a condo on the beach in Waikiki, Hawaii, or refinance a single-family home in Houston, Texas — We have loan programs.
No U.S. credit required: Our loan programs do not require the borrower to have U.S. credit. We’re able to use your home country credit if available. If you don’t have a credit reporting agency in your home country, no problem – speak with one of our U.S. loan officers for an exception. We do it all the time.
U.S. expat loans with no W2 and foreign earned income: Are you a U.S. expat frustrated by the lack of a W2 or dealing with foreign-earned income? These are not problems for Global Mortgage Group. For U.S. expats, we make it as easy as if you were living and working in the U.S. and walking into your local bank. There is no premium in pricing, and it’s truly that easy.
Free pre-approval letters in 72 hours: The first thing we recommend for anyone looking to purchase a property is to get pre-approved. This is for a couple of reasons: 1) You should fully understand and be comfortable with the mortgage loan term and tenure you’re obtaining 2) You will need a pre-approval rate before any offer on U.S. property will be taken seriously.
There has never been a better time to own U.S. residential real estate as an investment!
In summary, GMG U.S. Rental Coverage Ratio 1.0 offers a groundbreaking solution for both U.S. expats and non-resident investors. By focusing on rental income instead of personal earnings, this program helps people overcome typical mortgage hurdles. With a dedication to clear and accessible mortgage options, Global Mortgage Group remains at the forefront of real estate financing. Secure your path to financial success with GMG U.S. Rental Coverage Ratio 1.0today. Contact us to learn more.
