Buying property in the USA
If you're planning to buy a property in the USA you will find they are generally available in US dollars or Sterling. Repayment and interest only loans are available and the maximum loan-to-value is 70%. The maximum term is 40 years and the minimum loan amount is £100,000.
Affordability and proof of income
There are no non-status/self-certification mortgage facilities available in the USA. Therefore all loans need to be supported by a minimum of, proof of income.
If you're employed you'll need to show your last three months' payslips, your latest P60 and employer's reference and your last three months' personal bank statements.
If you're self-employed you'll need to show your last two years' audited accounts, tax returns and accountant's reference as well as your last three months' personal bank statements.
To qualify for a mortgage, a calculation will be used to establish whether you can afford to keep you with your repayments.
If you want to get a mortgage in US dollars, your existing outgoings such as your UK mortgage, loans and credit card payments will be taken into account with your USA mortgage payments. This must not exceed 38% of your monthly gross income.
If you're taking out a mortgage in Sterling, the lender will calculate your gross annual income multiplied by five, minus any existing debts. The amount left will be how much you can borrow.
Need to know
You should seek advice from an overseas solicitor before you buy a property overseas. You also need to ensure you will have the full title to the property on completion and that you have the right documents.
You also need to take account of all the costs you will have to pay. Costs you'll need to pay for include stamp duty, title insurance, mortgage insurance, inspection fees, loan fees and down payment.
There's also income tax and capital gains tax to consider and you'll need to have a survey – Inspection Report – carried out.
