US Mortgage

[Ron J]

Would anyone know if it is possible to take out a mortgage in the US for a US property. I am keen to buy an Apt. in NY and I am informed that without a Social Security no., a mortgage co. cannot do a credit check and so wont issue a mortgage ???. Havn't enough equity in Irish home to cover the purchase.

 

[Max Hopper]

Mmm, not exactly correct. An SSN is by federal statue to be used solely for matters pertaining to the federal government. Credit reporting agencies 'capture' the information when it is unwittingly divulged.

So no, you need not have an SSN for a credit check. You will be required by any mortgage-granting financial institution to provide one so that the mortgage interest paid can be reported to the IRS (a federal agency).

 

[Propman]

Yes you can but it is difficult.

Foreign mortgages in US have gotten more difficult to find since 9/11. Few of the banks are keen.

If it is a new property, talk to the developer and he will refer you to the lender(s) he is using for his US buyers; if they have approved the property to mortgage against, they may come up a with a special deal for you. They treat you as if you have no financial history - a no documentation loan - and you get pretty punitive rates as a result. Expect to pay 6.75%-7.5% and above.

The less you borrow of the value, the better the rate.

Re. the number you need, you need an ITIN (International Tax ID Number), not an SS number. A US accountant can get one for you for about €75.