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All Forum Posts by: Matt Wan

Matt Wan has started 8 posts and replied 24 times.

Quote from @Henry Lazerow:

@Matt Wan interesting. I wonder what would have happened if you just used a friend/family members US mailing address. There is a lot of conflicting info online in regards to these situations. 

I have an address in America that I use. I think having foreign pay stubs and the fact that I own property here with a mortgage made them decide it's too much of a headache. 
Quote from @Henry Lazerow:

@Nick Belsky these guidelines are for US Citizen living abroad with income on 2255? I don’t see anywhere that the guidelines changed in 2023 it appears foreign income still accepted? What are you calling NPR stand for? 

I don't want to name names, but I use a major US financial institution for my banking. A couple weeks ago I spoke to a loan officer about getting a mortgage. I fully explained by situation and he assured me that they provide mortgages for non-resident citizens.
I submitted my paperwork for pre-approval that day and waited. Every few days I emailed to ask what was going on, and he kept replying that they're working on my application. Today he finally admitted that their system can't handle non-US addresses, so they can't give me a mortgage. 

Post: How should I vet a small lending company

Matt WanPosted
  • New to Real Estate
  • Posts 24
  • Votes 14

Someone recommended a small lending company to get a mortgage for a buy and hold property. What should I do to make sure the company is trustworthy before working with them?

Quote from @Nicholas L.:

@Matt Wan

yes but... is that actually your biggest concern?  as @Marcus Auerbach alluded to, out of state / remote / out of country investing is difficult... do you have everything else lined up?


It's not my biggest concern, but it is a factor. If I have to buy a last-minute ticket or spend $1,000 or so for notarized signatures at a consulate, then it has a significant effect on my choices.

Quote from @Randall Alan:
Quote from @Matt Wan:

Can I purchase a property using a traditional mortgage without being physically present for any part of the process? A relative who does long-distance real estate investing told me that I have to sign the final loan document and the transfer of ownership document in person. Is this true? 

If the state matters, I'm interested in Connecticut

@Matt Wan

The key to understanding being “in person” is that you can be “in person” anywhere there is a notary or other person who can certify your signature… typically.  Some documents require “wet” signatures… meaning hand signed.  But when people are out of town / out of state the title company can hire a mobile notary near you and they will fedex the documents to your local area to sign.  There is usually extra charges on closing to pay for that service… but it is minimal.

All the best!

Randy


 Thanks for the quick and helpful answer. Do you know how it works if I'm out of the country? Can I use a local notary or would I have to go to a US consulate/embassy. 

Can I purchase a property using a traditional mortgage without being physically present for any part of the process? A relative who does long-distance real estate investing told me that I have to sign the final loan document and the transfer of ownership document in person. Is this true? 

If the state matters, I'm interested in Connecticut

And here is a PDF explaining it for both Fannie Mae and Freddie Mac: https://www.radian.com/-/media/Files/Enterprise/Training/QRG...

Understanding Foreign Income
Foreign income is defined as income earned by a borrower who is employed by a foreign corporation or a foreign government and is paid in foreign currency. The GSEs, Fannie Mae and Freddie Mac, both allow the use of foreign income under certain circumstances.
In the personal tax returns provided by a borrower, you may see an IRS Form 2555, which identifies the foreign earned income. Many borrowers file this form as an exclusion to their US federal taxes as they may have been taxed by the country where they are earning the income.

Required Documentation for Foreign Income
When it comes to processing foreign income for a loan, documents required may include:
» Most recent personal tax returns
» History of receipt
» Proof of continuance of foreign income earnings
» Conversion of the income from the foreign currency to US dollars
These documents must be translated or completed in English so that a loan reviewer can properly evaluate the information provided.

Fannie Mae & Freddie Mac Guidelines
Income from Foreign Source

Income from foreign sources must be reported on the borrower’s most recent U.S. individual federal income tax returns. Specifics can vary depending on the GSE:
» For a Freddie Mac loan file: A copy of the borrower’s most recent, signed US individual federal income tax return is required.
» For a Fannie Mae loan file: A copy of the borrower's most recent two years, signed US individual federal income is required.
Additionally, proof of continuance and conversion calculation to US dollars are necessary

To update an old post, I found this information on the Fannie May website (https://selling-guide.fanniemae.com/sel/b3-3.1-09/other-sour...):

Foreign Income

Foreign income is income that is earned by a borrower who is employed by a foreign corporation or a foreign government and is paid in foreign currency. Borrowers may use foreign income to qualify if the following requirements are met.

Verification of Foreign Income
Copies of signed federal income tax returns for the most recent two years that include foreign income.

The lender must satisfy the standard documentation requirements based on the source and type of income as outlined in Chapter B3–3, Income Assessment.

All documents of a foreign origin must be completed in English, or the originator must provide a translation, attached to each document, and ensure the translation is complete and accurate.

Post: Buying an investment property in the winter

Matt WanPosted
  • New to Real Estate
  • Posts 24
  • Votes 14
Quote from @Corby Goade:

You can't have it both ways. You'll get a better deal in the winter, but it'll take longer to rent. If the market was busy, you wouldn't get a good deal. 

The amount you'll save off of the purchase price will be significantly more than what the vacancy will cost. Small potatoes. 

I always look back at the previous year, and without fail, the best deals we get are in December and January. 


 That's encouraging. Thanks

Post: Buying an investment property in the winter

Matt WanPosted
  • New to Real Estate
  • Posts 24
  • Votes 14
Quote from @Robin Simon:

It could certainly be a concern - but depends on a lot of factors - are you looking multi or SFR? I think the winter market concerns are really primarily only really worrying if you are looking at a larger SFR attracting families to due the "school year" issue - but other types of strategies I don't think its as much of a concern


I am looking for a SFR. I assume it would be easier to offer student housing before the spring semester, but I don't think I'm ready for that.