EB-5 investors often find it difficult to obtain a mortgage loan in the US because most traditional loan programs or lending institutions require a US credit history and a social security number.
To help EB-5 investors achieve their goals of home ownership in the US, International Investors Mortgage (IIM) has launched a program where mortgages to purchase homes or investment real estate assets become attainable by leveraging the value of their EB-5 investments.
We spoke with IIM’s Gregory Sweeney and Andy Lewis, who are both Lead Operating Partners based in IIM’s US offices, to learn more about their new mortgage program.
Why did International Investors Mortgage launch this program for EB-5 investors?
Gregory Sweeney: As EB-5 experts, we understand the pain points that EB-5 investors face when wanting to purchase property in the US. We noticed an alarming gap in the mortgage market – the ability for EB-5 investors who are accomplished, high net worth, foreign nationals to access good quality credit in the US, especially for home loans. After consulting with mortgage lenders and underwriters to address this, we decided to establish International Investors Mortgage.
Andy Lewis: We are founded and managed by experienced professionals from the residency by investment and mortgage industries, with the mission of providing attractive financing and credit solutions to foreign nationals, especially EB-5 applicants.
Our tailored solutions ensure that having EB-5 investment capital locked-up for anywhere from 5-15 years does not limit an investor’s purchasing power when considering real estate in the US.
What are some of the challenges that international investors face when purchasing a property in the US?
Andy Lewis: Moving to the US poses many challenges for foreign nationals, especially when trying to purchase property and get a mortgage in the US.
Traditional lenders in the US are either not permitted to provide a mortgage loan to a borrower without a US credit history and social security number or they may impose excessive down payments and interest rates.
Gregory Sweeny: Even though EB-5 investors typically have substantial assets in their home countries, wealth overseas does not translate to an ability to access property loans in the US.
A large number of EB-5 applicants are recent immigrants to the United States, who entered the country as students, on work visas, or even as recently approved EB-5 Green Card holders. These investors have not been in the US long enough to build a domestic credit history, let alone establish the strong credit rating needed to access high-quality mortgage loans.
In addition to having capital locked up in an illiquid EB-5 investment, many EB-5 investors come from countries with foreign exchange and/or capital controls, making additional investments beyond the EB-5 investment amount difficult to manage in a timely manner.
Why is it important to partner with JTC Americas, Formerly NES Financial?
Gregory Sweeny: JTC Americas is the gold standard for fund administration in the niche EB-5 business. Their experienced team understands all the complexities of the industry, as well as the challenges that EB-5 investors can face when making their move to the US, especially with regard to the lack of transparent, investor friendly, customer focused solutions in the space.
IIM reached out to JTC Americas a few months ago to discuss this exciting new opportunity for EB-5 applicants, as we believed that our two companies share common goals and values: providing excellent customer experience and services to ensure client success. Both teams have worked tirelessly to establish best practices in their respective operations.
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