Cheap American Mortgages for UK Citizens Available

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The 'silver lining' in the cloud that has been the credit crunch of the past few years is that many - arguably previously wildly overpriced - assets have depreciated in value to more affordable levels. Nowhere is this more true than in pockets of the US property market often popular with British buyers such as Florida, California and beyond. Here we have seen price drop by up to 60% and now many UK citizens are contemplating purchasing holiday properties. The only problem up to now has been getting finance but we're pleased to say this problem now appears to be resolving itself.

At Choice Loans we work with qualified and regulated US Mortgage brokers who specialize in organizing cheap American mortgages for UK citizens looking to buy holiday properties in the US. Lately there have been movements in this market that are worth mentioning. Mortgages are getting cheap - very cheap - and some very competitive long term fixed rate deals have come to the market that are proving popular.

We have access to two lenders in particular that are leading the way with cheap American mortgage for UK citizens:

Lender 1:

• Up to 70% LTV only
• In addition the client needs to place $50,000 with the bank to establish a banking relationship. In practice though once the loan has gone through this money can be withdrawn without penalty so it's just a question of having the finance to create this relationship in the short term
• Rates are 2.875% for a 15 year fixed deal or 3.875% for a 30 year fixed deal

Lender 2:

• Up to 75% LTV
• No need for a banking relationship as above
• Rates are 4% for a 15 year fixed deal or 5.5% for a 30 year fixed deal

So as you can see, one may suit better than the other depending on your circumstances. This finance coupled with the cheaper property prices may tempt many to take the step of buying that dream home in the sun. At Choice Loans we can help with this step but do be aware of some conditions that go with American mortgages:

• Minimum loan size is $100,000 (so with a 70% LTV this means the property you are buying must be at least $145,000 or so)
• Debt-to-Income ratio cannot be more than 36% i.e. the percentage of total monthly payments you are making on debt, including the mortgage you propose to take out cannot exceed 36% of your gross monthly income. The good news here is if you plan to rent out your American property we can add some of this to your income calculations

For further information you may also wish to read our Guide to American mortgages and for those thinking of buying in Florida we have a specific step-by-step guide to buying a house in Florida. To make an inquiry either call us on 0845 1260350 or complete our Overseas Mortgage inquiry form here.