Realtor · Fall River, MA · Member since 2015 · 82 posts · 16 votes
Hello BP Community. Merry Christmas.
I have a situation. I am from Russia but I have been living in Boston, MA for 7 years and I will become a citizen of USA soon.
I have parents in Russia who due to a health issue need to move to the city of Saint-Petersburg. I need to buy 2 bedroom apartment for them. Since I am not a resident of Saint-Petersburg, Russia I cannot take local loan/mortgage to buy an apartment. The property management and financial offices there representing apartment buildings are not accepting financing from oversee.
Does anyone know international banks who can loan money to buy apartments in Russia if I reside here, in United States of America.
Perhaps, there are some builders in Russia who are willing to sell their new constructions to United States Residents?
Investor · Princeton, TX · Member since 2014 · 1k+ posts · 1k+ votes
9y
@Darina Pogodina The many current sanctions against Russia and Russians will make it very difficult to get an international loan. Once you become a US national it will also be even harder for you to get a loan in Russia.
Most analysts say Donald Trump will lift the current sanctions. Congress may impose more sanctions. There are also EU sanctions. I believe the EU sanctions would block any bank in the US that would do an international loan to the Russia.
I wish I had better news. I love Saint Petersburg. It is certainly not a cheap place to buy a place to live.
Realtor · Fall River, MA · Member since 2015 · 82 posts · 16 votes
9y
Hi @Account Closed,
Thank you for your response.
I am researching on Russian banks that give loan to USA residents to purchase real estate. I am sure interest rates will be high. I will keep my Russian citizenship, so this will be a goo thing.
I really hope it will work out and I buy and an apartment without involving my relatives out there for any mortgage commitment,
Rental Property Investor · Concord, CA · Member since 2016 · 499 posts · 219 votes
9y
Take a personal loan in the US to buy property in St Petersburg. Not sure what your budget is but I noticed properties on the outskirts are cheaper in Russia (at least in Moscow)
Thank you, I could probably take a personal loan - have you ever practiced that for buying a property outside of USA?
To buy in Russia will be cheaper for me then here because of the power of the dollar there now. I guess, I need to make sure the seller will be able to work with dollar currency and accept transfer of payments from USA.
I will be calling those apartment complexes this week to find out,
Rental Property Investor · Concord, CA · Member since 2016 · 499 posts · 219 votes
9y
@Darina Pogodina Yes we bought a condo outside Moscow but instead of personal loan I did a HELOC... Also Russian banks allow accounts for dollar, euro and rubles separately. So you can transfer in dollar and it will remain in dollar in a dollar account or you could transfer it to the ruble account and it will be converted.
I would suggest you to transfer money to your or your parents account first and then to the seller (this is what we did).
So, basically, you were just transferring from your personal bank account here in Usa to your parents bank account in Russia? I would prefer dollars to dollars, will the mortgage rate be effected? I just know, if establishments see a foreign person, they charge them more. I am not sure if this will be the same with banks.
How do banks to their underwriting process? What have you experienced?
I was also wondering If I could be sharing the deed with my parents and be a partial owner while living in USA. Or will I be just their sponsor?
I transferred money from my account here to my wife's account in Russia ... We paid for it in cash so no mortgage or underwriting but my wife did mentioned she could get a mortgage though the interest rate in Russia is high 9%+. We have the condo in my wife's name.
I think you should first figure out the price range you are looking at. If you can swing that amount with personal funds/loan here in the US, great otherwise contact some local banks in Russia and ask them about loans and the underwriting process. Usually some of the above info will be available from the sellers agents as well.
If you are planning to buy a new build, be prepared to set aside a chunk of money for interiors as new builds in Russia comprises of brick wall. You will have to do the finishes yourself including the kitchen and bath.
Saint Petersburg · Member since 2018 · 7 posts · 2 votes
8y
Hi Avi! I understand this is an old thread but wondering about the HELOC that you applied for; was it in Russia or back in the States? Was it under one or two persons? Lastly, which bank did you use? Thanks in advance!