Can UK Residents Get A USA Mortgage?



Are you curious about whether UK residents can get a USA mortgage? Read more.


Well, the answer is definitely yes. You can avail of a USA home mortgage if you are a resident in the UK. You can have a simple process, especially if you have a work visa or a Green Card. Meanwhile, before you buy a property, you must consider some factors. For example, if it is your first time buying a property in the USA, you need to pay some local taxes and home insurance in advance for its first year.


Should you use a US or UK mortgage?


You can have fewer options on funding your American property mortgage if you’re a citizen in the UK. It can also depend on your situations:


        ●        Get a mortgage with UK lender to purchase a home in the US

        ●        You can remortgage your UK home and buy a new home with cash

        ●        Purchase a property in America with a USA mortgage lender


It is also advisable to seek the assistance of a whole-of-market broker who specializes in overseas mortgages.


How do the USA mortgage loans work?


The mortgage market of the US is also well-developed, like the UK. You need to be conversant with the jargons used in the US mortgage and mortgage products. The most famous in US residents are long-term and fixed-rate repayment mortgages. You can also avail of variable interest rates and short-term deals with interest-only plans.


Documentation for US mortgage application


If you’re a British ex-pat who plans to purchase American property, you must provide the following with your application.


Permanent residents


If you’re a permanent resident in the US and has a green card, you must have:


        ●        Last month’s payslip

        ●        2 years’ worth of “W-2 forms”


Non-permanent residents


If you are a non-permanent US resident and not a green card holder, you must have:


        ●        Your last month’s payslip

        ●        Copy of your passport and visa

        ●        Your bank statements for the last 3 months

        ●        Copy of your UK credit report

        ●        Copy of your recent mortgage statement for your property in the UK

        ●        Last year’s W-2 form if applicable  


How much should you deposit for a US mortgage?


The FHA mortgages in the USA have lower deposit requirements. These are available for ex-pats who have permanent residency. Meanwhile, it can be hard for you if you don’t have a valid work visa or Green Card.


If you have a good credit history, you can deposit about 20 to 30%, which will depend on your individual circumstances and lender. If you’re a UK resident, you can get less favorable situations compared to US citizens. With this, you must have a specialist USA mortgage broker to get the most attractive interest rates.


How much can you borrow for USA mortgage?


Naturally, you want to get an affordable mortgage loan in the USA. Lenders estimate the amount you can borrow through setting a max monthly payment of about 25 to 35% on your gross income every month. With this, you can prove that you can afford your mortgage even your circumstances change.


Lenders can also check your monthly outgoings by assessing your bank statement or utility bills. These will help to make sure about your affordability for the monthly payments.


How does your career status affect your application for an American mortgage?


If you are self-employed, it can be quite challenging for you to avail of a mortgage because of the risk level they pose. Some US lenders need at least 2 year’s tax returns as well as your bank statements for the last 3 months.


On the other hand, your Individual Retirement Accounts or 401K plan can help if you’re retired. It can show your retirement income.


Process of US mortgage


The following is the step by step process for US mortgage.


        ●        Search for an agent

You must search for a reliable agent that can help you with the process. You don’t need to pay your agent, but you can divide the commission of the sale with her or him.


        ●        Search a property

You must also search for a property for your US mortgage. Then, you can deal with the price.


        ●        Purchase contract signing

There must be a purchase contract that will be signed by the seller and buyer. You can pay a deposit in Escrow. Then, you can make a mortgage funding arrangement, to avoid delay on the completion date.


        ●        Check the legalities

After signing the paperwork, you must check the legalities. You can use a Title Insurance company for coverage from third-party claims. If you’re not a citizen, you can have a lawyer that has knowledge in the American property industry.


        ●        Completion

You can now complete the sale. If there are no title issues or other problems, the completion can occur about 4 to 6 weeks after the initial offer. You can pay about 5% of the price of the purchase in closing costs. These may include the following:


        ✔        Title companies’ fees about $250

        ✔        Documentary stamps

        ✔        Local property tax which is equivalent on UK council tax

        ✔        Intangible tax

        ✔        Title insurance


Factors to consider when purchasing an overseas property


If you plan to buy overseas property, the best decision is to get financial and legal advice from a lawyer who is independent of people involved in the procedure. This may include the developer, seller, and real estate agent.


If you hire a UK legal firm, make sure that they are reliable. Monitor if they are registered with Law Society in the UK and have knowledge of property conveyancing and international transactions.




If you want to get a USA mortgage even, you’re a UK resident. You can follow the things mentioned above. Make sure to adhere to the legalities, rules, and regulations on availing a USA mortgage. You can also speak to a professional broker that can help you with the process. You can also get the best deal for your project. With that, you can get the best mortgage for your needs.  

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