Table of Contents
US Mortgages
Step by Step Guide to apply for a USA Mortgage:
1) Calculate your budget – speak to our US consultant at Baydonhill International Mortgages (BIM) and obtain a free decision in principle from one of our lenders
2) Decide on a property. Sign the sales agreement and transfer the initial deposit with Baydonhill FX to secure the property.
3) Appoint a US legal representative to act on your behalf.
4) Submit full mortgage application to BIM with all required supporting documentation in order to obtain full approval.
5) Obtain full approval for your mortgage application, upon return of a positive valuation report from the bank’s appointed surveyor.
6) Arrange Buildings and Contents Insurance for your property, ensuring to assign the policy to the US lender. Send this on to the lender.
7) Receive Mortgage Offer letter from the Lender confirming terms of mortgage
8) Set up an International Regular Payment Plan with Baydonhill FX to cover monthly mortgage repayments, utility bills etc and give you greater peace of mind.
9) Transfer purchase price balance and legal fees to your US legal representative.
10) Arrange mortgage closing date with your legal representative, who will register the mortgage and release the funds to the designated beneficiary.
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Eligibility & criteria
Mortgages can be in either US Dollars or the currency in which you receive your primary income (e.g. Sterling for the majority of UK residents). The maximum loan to value available is 50% of the purchase price in the states of California, Florida and Nevada, and 60% of the purchase price for states of Washington, Colorado, New York, Oregon, New Jersey, Connecticut and Hawaii. The minimum purchase price/property value accepted by our lenders (whichever is lower) is $400,000.
Mortgages are not available to US residents.
In terms of financial eligibility, this is calculated using two separate measures. On one hand, Income multiples (either sole income for sole applications or joint income for joint applications) of 5 are used to calculate maximum loan amount. On the other hand, an affordability ratio is also used. All monthly financial commitments must not exceed 50% of net monthly income. All lending affordability assessments will be undertaken using a funding rate of 5% plus the interest rate margin. Speak to our US consultant to find out the maximum that you are able to borrow.
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Types of US Mortgages
Mortgages can be obtained for the purchase of new and existing residential properties. Properties must be purchased for investment purposes only.
The refinance of your existing French mortgage in order to take advantage of a more competitive interest rate, is widely acceptable in France. However, refinancing will incur legal and administrative costs. Furthermore, we recommend that you check with your existing lender if any penalties will be payable for cancelling your existing mortgage and corresponding land registry deed.
Capital raising is available on your property in USA and the amount you can borrow will be determined by a valuation arranged by the lender. The maximum loan to value that you can obtain is 50% / 60% of the current value of the property (depending on the state as stated above in “Eligibility and Criteria” section).
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US Mortgage Products
A variety of products are available ranging from interest-only to capital repayment mortgages on a variable rate basis. Terms can be from 5 to 30 years however loans must be repaid by the time applicants are 70. All products incur early redemption penalties for the first 3 years, whereafter none apply. For an initial idea of rates and monthly repayments, use our quick quote online mortgage calculator, or else complete a personalized quotation request form and we will send you a tailored quotation.
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Documentation required
Our lenders are legally required to request full documentation proving that the borrower can afford the mortgage repayments, and therefore you will be required to submit a significant number of supporting documents. Please see below for a summary of what will be required. A detailed list will be compiled based on your situation and sent to you with your personalised quotation.
* Proof of identity & residence
* Proof of income and outgoings
* Property details
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US Bank account
You may be required to open a US bank account before completion although this is not mandatory.
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Monthly mortgage repayments
Please be aware that missing a monthly mortgage payment may have serious consequences and we therefore strongly advise participation in our International Regular Payment Plan; This service gives you peace of mind in the knowledge that your mortgage repayments will be met automatically each month.
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Insurance Requirements
Life assurance is not compulsory with our Lenders although it is strongly recommended.
Buildings Insurance is compulsory. The interest of the lender must be added to the policy and the cover should equal or be greater than the reinstatement value of the property, as deemed by the bank's independent valuer.
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Completion
Mortgage funds will be released by the lender to Title Company for completion of the purchase.
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Typical Set up costs for US Mortgages
Mortgage funds will be released by the lender to Title Company for completion of the purchase.
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£1 = 
$1.5124 / 
€1.1695
