Best US Loans for EU Homebuyers

Whether you plan to live, vacation or invest in the US, we help you get there quicker and easier

Reasons for investing in US real estate

Issues

• Zero-yield or negative interest rates in European real estate
• No long-term capital preservation options locally

Answers

• US withholding tax exemption for foreign institutional investors
• Foreign stock funds and REITs* get tax-friendly investment options

Trends for EU citizens buying homes in the US

Nearly 12,000 EU citizens bought property in the US this year
11% of all foreign homebuyers in the US were from the EU
4% of the foreign buyers were from the UK and 2% were from Italy
Only 1k EU citizens leased residential property in the US

* COVID-19 affected the global real estate market by reducing the trends from the previous period around 25-35%

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Considerations for new homeowners in the US

One time costs

US property taxes have only one time costs

Recurring costs

Property utilities, security, maintenance and community costs

Optional costs

30% withholding tax on rental profits for non-residents

Conditions for mortgage approval

Residency

Mortgage offers differ based on the status of your residency

Employment

Type of employment contract significantly affects mortgage requirements

Credit history

Clean credit history in the US or EU

Down payment

Minimum 30% of property value for down payment

Income

Up to 30-50% of income reserved for monthly loan instalments

Mortgage collateral

Significantly better conditions with a US based property as collateral

Documentation you might need for approval

Non-residents living outside the US
	EU documents
Tax documents	Income Tax and Benefit Return and Notice of Assessment
Investment income	Last two years of investment slips
Salaried Employees	Last two years of income slips. Payslips for the past 30 days of income
Self-employed individuals	Last two years of business returns for any entity where ownership is 25% or more, with all pages and schedules
Retired individuals	Individual Retirement Accounts
Proof of citizenship	Copy of passport, Green Card or a US visa
Proof of identity	International Tax Identification Number (ITIN)
Proof of assets	Account statements for most recent two months per each account you hold*
Insurance documents	Current property owners need to provide copies of property tax notice and home insurance premiums for each residential property owned

Permanent or temporary residents living and working in the US
	US documents
Tax documents	1040 U.S. Individual Income Tax Return
Investment income	1040 Schedule B Interest and Ordinary Dividends, and/or Schedule D Capital Gains and Losses
Salaried Employees	W2 Wage and Tax Statement of Income
Self-employed individuals	1040 Schedule C Net Profit or Loss from Business, and/or 1065 K-1 Partner’s Share of Income, Deductions, Credits, etc.
Retired individuals	401k plan if available
Proof of citizenship	Copy of passport, Green Card or a US visa
Proof of identity	Social Security Number
Proof of assets	Account statements for most recent two months per each account you hold*
Insurance documents	Current property owners need to provide copies of property tax notice and home insurance premiums for each residential property owned

* Statements must include your name, account number, all pages, bank name, beginning and ending balances, and time period. Accounts include: personal checking and savings; line of credit (if using these funds to close on your new home); Retirement Savings Plan; Investments/ brokerage (if using these funds to close on your new home.)

Note: All EU asset amounts will be converted into US dollars for the purpose of your financial assessment. All documentation notin English must be translated into English by a Court Certified Interpreter.

Mortgage process duration

Typical process phase	Estimated duration
Registration and loan inquiry at Kredium	5-10 minutes
Mortgage pre-approval through Kredium	up to 24 hours
Personalized offers from Kredium	up to 24 hours
Mortgage application with a lender	1-5 days
Mortgage processing by a lender	30-45 days*
Mortgage closing with a lender	1 day