INTRODUCTION
TO
MORTGAGE FINANCING IN USA
US MORTGAGES:
Our recommended programs for US mortgages for purchases are based on 20% down with employment or accountant letters and paper trail for the source of the required funds, including six month reserves in a US bank account. With 25% down or more, same as with 20% but no need for an employment or accountant letter. At 30% down or more, there is no income or funds documentation required.
The different loan programs recommended have the following characteristics:
30 YEARS FIXED: Self-explanatory, fixed for thirty years.
3 OR 5 YEARS FIXED: Fixed for the first three or five years and converts into a one-year variable for the remaining term of the loan. That rate will be determined at the conversion period and will be subject to market conditions. This program has the option of paying interest only.
PAY OPTION MONTHLY VARIABLE: This is a potentially differed interest loan. The indexed rate at the present time is 7.54% and you will have three payment options every month; interest only, full repayment or minimum payment of 1.20% with repayment terms of up to 40 years. The differed difference between the 1.20% and the 7.54% will be added onto the principal. You can pay this differed amount at any time.
The above loan programs include a limited prepayment penalty if within the first three years you pre prepay more than 20% of the original loan or sell the property. You can, however, buy out the prepayment clause.
STERLING MORTGAGES:
Sterling loans are mortgage loans tailored to UK mainland residents only where you pay your monthly installments in British Pounds in the UK for your property in the US. They are for 5 years to 25 years term and can be 20% down with full income certification and 25% down and over self certification. These loan programs have no early redemption penalties, no mortgage repayment reserves required, no lien on UK property, gifts from family members for down payment permitted, interest only option on all products for entire term of the loan, fully US tax deductible mortgage interest payments and payment holidays available subject to conditions.
The different Sterling Loan programs are as follows:
FLEXIBLE TRACKER: UK Variable Base Rate (at present time 4.75%) plus 2.54%.
ONE YEAR FIXED: Initial rate of 5.09% with reversionary rate of UK Variable Base Rate plus 3.50% after first year at which time becomes a Flexible Tracker.
THREE YEARS FIXED: Fixed rate of 6.99% with reversionary rate of UK Variable base rate plus 3.50% after third year at which time becomes a Flexible Tracker.
FIVE YEARS FIXED; Fixed rate at 7.29% with reversionary rate of UK Variable Base rate plus 3.50% after the fifth year at which time becomes a Flexible Tracker.
If you have any questions, please do not hesitate to contact me.
Please click here to enquire regarding American Mortgages.
