Immigrant investors have been able to secure property loans by leveraging existing EB-5 investments

The EB-5 program has been an incredibly successful way for immigrant investors to aid their visa applications while positively impacting their new communities through investment. Though there have been many ups and downs when it comes to reauthorization, the program continues to attract new investors eager to take part in direct investment or regional center projects.

However, one downside of the program is the time frame. Investors may want to purchase a home or continue using their money to grow their wealth, but much of their capital is tied up in their EB-5 investments and won’t be returned for some time. And since they haven’t established credit in the United States, many loans from traditional banks are not available to them.

One company has developed a way for these investors to use their deployed capital as collateral for down payments on new property. International Investors Mortgage has launched a mortgage product specifically for EB-5 investors. By leveraging the value of their EB-5 investments, investors can secure a mortgage within the United States before the capital of their EB-5 investment is returned.

To help investors better understand this process, IIM has put together a new set of case studies that demonstrate how its products have aided immigrant investors. It includes four different examples of how immigrant investors in different situations have secured loans to purchase or invest in additional property.

In one instance, an Indian Immigrant in Austin, Texas, was able to obtain a loan in just 14 days to cover the purchase of a townhouse. Without this loan, he would have had to wait a year or more until he could establish credit in the United States, likely losing out on the property he wanted to buy. Instead, he received a loan for up to 50% of his EB-5 investment value.

In another case, a young family in Richmond, Virginia, wanted to purchase a new under-construction home as a rental property. With the help of IIM, they were able to have the property re-categorized as an investment property and qualified for a rental property purchase loan with the ability to refinance once they had established a long enough credit history. Instead of being forced to wait, they could invest in their future immediately.

These case studies include examples of loans as small as $250,000 and as high as $1,490,000, with terms as short as 5 years and as long as 30 years. Whether clients were looking for homes to live in, rental properties, or commercial real estate, there were options that allowed them to obtain loans within the necessary time frame rather than losing out on opportunities because of EB-5 wait times.

EB-5 investors now have flexibility when it comes to their investments thanks to IIM’s products that give them the ability to borrow against the money they’ve already invested in the United States. Though EB-5 wait times can be frustrating, it’s important to work with the right partners who can ensure all regulations and compliance requirements are followed so as not to jeopardize visa applications.

IIM has enlisted JTC Americas to provide escrow administration services and to act as a knowledge partner, taking advantage of the company’s decades of experience in EB-5. JTC has been a leader in structuring escrows that protect investors while putting capital to work and following EB-5 compliance requirements.

JTC Americas offers a full suite of EB-5 administration solutions that provide an integrated approach to administering the entire EB-5 program life cycle, from navigating multi-faced escrow and depositary requirements to streamlining multi-level fund administration and providing audit trails for issuers, investors, and regulators. By ensuring regulations are followed and all necessary documents are easily accessible, issuers can offer greater security and peace of mind for investors.

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Read the International Investors Mortgage case studies today