USA mortgage

stockmarket-diva

I am in the process of looking at property to buy in America.

I want to raise a mortgage along the lines of a buy to let mortgage that we would have in the Uk. Does anyone know if such a thing exists in America?

Also any recommendations of where to go for this type of mortgage?

Doozergirl

Each state has it's own rules but if you're looking in Florida I can refer you to my mortgage broker. He's an Independent, whole of market over here and one of four brokers in the UK with the relevant certificates to deal in mortgages over there.

If it helps...

stockmarket-diva

Thank you for that but no, the property is not in Florida. Its in Vermont. Can your contact deal in that area? Thanks again.

lynnzal

As an aside....
If you are based in the uk, have you considered the exchange rate risk? A lot of people seem to over look this but it could have massive implications on the debt.
e.g. you buy a $200,000 house in 2006 with exchange rates at 1.8800 (£106,382).
15 years later after recovering $100,000 in rental payments your debt is $100,000 but the exchange rate is say 1.4100 (as it was in 2001/2002) the equivalent debt is £70,920.
Therefore a third of the capital is paid off in USD but only a third in GBP due to exchange rate effect.

PoorDave

lynnzal wrote:

As an aside....
If you are based in the uk, have you considered the exchange rate risk? A lot of people seem to over look this but it could have massive implications on the debt.
e.g. you buy a $200,000 house in 2006 with exchange rates at 1.8800 (£106,382).
15 years later after recovering $100,000 in rental payments your debt is $100,000 but the exchange rate is say 1.4100 (as it was in 2001/2002) the equivalent debt is £70,920.
Therefore a third of the capital is paid off in USD but only a third in GBP due to exchange rate effect.

Don't you mean half in USD, a third in GBP?