Express Capital Mortgage has seen Canadians scooping up real estate in Arizona. US investment homes are very appealing in price that most all have paid for these properties in cash. Many presume financing is dried up? "Not so" Says AzMortgageMan. With 2007 went Foreign National Financing....why?
1. Express Capital Mortgage on Risk
Like all loans everything is measured in risk. We don't have to break into charts and graphs and data to explain this risk. It's common sense really. Investment loans in themselves carry a higher risk. Higher risk means higher rate and more money done (major factors). If some dreaded event happened to the the borrower then the first thing to go is another home, not the one their living in. In another country you as a borrower are a even higher risk of flight because there is less personal recourse. The international buyer is not going to care about their US credit. They will have no relationship or attachment to the property because chances are they have only seen it a few times. It simply becomes an investment on paper.
2. Express Capital Mortgage on Values
I don't think there is much need to comment on this except the fact that the decline of values pretty much drove the risk so high that any lending for Foreign Nationals simple blends in to hard money. or asset based lending.
3. Express Capital Mortgage on Mayhem and Closed Lenders
Lending is back to the basics period! Anything and everything has been scaled back to conforming loans.
This leaves us to one good question.... Should their be more options for this type of ffinancing now that their is more stabilization to our housing crisis? Undoubtedly buying by Foreign investors should help our crisis right?
Express Capital Mortgage Inc.