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When studying in the United States, housing is one of the major expenses. If you can "use housing to support your studies", it will be a win-win situation. Usually, houses around some university campuses are more popular and are also the preferred investment targets for many parents of international students. Buying such a house is not only more convenient for you to live in, but you don't have to worry about tenants and can easily share it with other students. After graduation, you can sell the property to get added value. So, can international students get loans to buy real estate in the United States?
1. Identity Issues for Real Estate Investment by International Students in the United States
The purchased U.S. property can be in the name of the international student or his/her parents. Since China limits the purchase of foreign exchange to $50,000, most families choose to purchase a home with a loan. There are various types of lending institutions in the United States, but the loan principles are similar. As a home buyer, you must first have proof of income and employment in the United States. If you do not meet the requirements, it is basically difficult to get a loan.
However, as we all know, students studying in the United States have F-1 visas and M-1 visas. As a student visa, you cannot work in the United States, which means there are no career opportunities and income during the study period. So, is the path for international students to purchase US real estate with loans blocked?
In fact, as an international student, you do have the opportunity to get a loan to buy a house in the United States, but compared with "normal" Chinese buyers who buy houses in the United States, you have almost no advantage. (Here "normal" refers to Chinese people who do not have a US green card and live in China for a long time, buying houses in the United States on a tourist visa)
2. Bank Down Payment Ratio and Account
What is the minimum down payment for buying a house in the United States? If you are an international student, you will not be able to get low-interest loans and down payment ratios of 20%, 10% or even lower. Compared with American citizens, Chinese with green cards or work visas, there is almost no "preferential treatment" for loans, and there are fewer lending institutions to choose from. Currently, banks such as Huamei, HSBC, and Cathay Pacific are known to provide loan services.
1. Down payment ratio The above-mentioned banks have their own advantages and disadvantages in terms of loan policies. The advantage is that loan applicants do not need to provide proof of employment and income in the United States. They only need proof of domestic assets, such as deposits, real estate, other investment products, etc., as long as they can prove that they have no problem repaying the loan within 5 years. The disadvantage is that the down payment ratio is very high, generally around 40%, and the loan interest rate is relatively higher.
2. How to open an account How can international students buy real estate in the United States? If you are already in the United States, it is very convenient to open a bank account. Prepare the purchase funds in advance, because the purchase funds remitted to the US account cannot be used immediately. Generally, they need to be parked for about two months to prove that there is no abnormality in the funds.
3. Can International Students Adjust the Loan Interest Rate After Buying a House in the United States?
1. After changing your status, you will have the opportunity to re-loan to study in the United States. If you can stay in the United States to work after graduation, your status will change at this time. The income from work will lower your loan threshold and get a lower loan interest rate than before. You can consider re-applying for a loan.
2. Improve your personal credit score. In the United States, you can’t get anywhere without credit, so you need to start from scratch to accumulate credit scores, which is very important when you apply for a loan. The higher the credit score, the higher the loan amount you may get, and the lower the interest rate for home loans in the United States. So, you should pay attention to the rhythm of credit card swiping and repayment performance records during your study in the United States, and make sure you have good self-discipline before opening a credit card, otherwise it will affect your credit score.
