Financing from a property out of country

[Kenji Tominaga]

Hi everyone! I would like to ask for a piece of advice if anyone has this experience.

I have a studio room property in Tokyo Japan, free from any collateral, and I wonder if it can be an option to borrow money using this in US.

I tried to borrow money from Japanese banks to purchase properties in US, but they didn't allow me as I didn't live in Japan. Residency requirement was strict in Japan.

This would be a niche question but I appreciate any insights from the community, thank you!

[Konstantin Ginzburg]

Quote from @Kenji Tominaga:

Quote from @Konstantin Ginzburg:

@Kenji Tominaga

To be clear: are you asking whether or not you can take capital out of this property through a HELOC to purchase properties in the United States or are you hoping to use the property itself as collateral on a loan to purchase property in the US?

Hey Konstantin, Thank you for responding to my post. Either of both can be an option to me, but my goal is to get a fund out of this property to buy a property in the US. This is a rental property and generating a cashflow, so I think there's a potential that US renders can consider it.

You may have a few options but it will not be easy. You are not likely to get a lender to use the property as collateral on another loan. Lenders typically have no interest in taking on another property when they are underwriting a loan; especially not one on foreign soil. You may attempt to ask lenders to allow you to take out a HELOC (home equity line of credit) on the property. This will be difficult to do as well since many lenders will not be interested in using a foreign property as loan collateral but you be able to find a lender that may be willing to work with you. Perhaps try local credit units in the region of the US that you want to purchase a property in. The best option I would suggest though if this is a cash flowing property is to use the property as a revenue source on a loan application; this will help lower your DTI (debt to income ratio). Residential properties in the US are typically given based on the credit worthiness of the individual as opposed to the commercial value of the property so your personal finances are being vetted during the loan process. Your DTI and personal credit score will be the two primary factors being judged when you apply for a home loan in the US.