Using the Web and social media to sell real estate

When dealing with international buyers purchasing US real estate I see that sometimes the issue of credit history comes up. People wonder how can it be possible that somebody with no credit score at all can get a loan from a US bank while a US citizen maybe can’t. The fact is that it has become hard for all, foreigners and residents, but as far as foreigners are concerned some US banks have pre-defined programs that allow international buyers to get a loan provided they can come up with 30% of down-payment, which is absolutely normal for an European buyer.

In  fact 30% is the usual down-payment that is required out of most European home buyers when they get a loan in their own country. In addition to that the US bank requires to demonstrate the availability of assets and income enough to cover the monthly payments, which should not be higher that the 30% of the overall net monthly income. And again many European buyers qualify also on that. Once these two key factors are established, banks can lend with no previous credit history.

Now this can vary greatly from state to state since banks have really tightened up on new loans in some areas of the US, but this again does not eliminate international buyers from the picture because they can still get a loan in their own country and buy here.

In that case the mortgage would be for example on an Italian property and the cash would be used to buy a US property. Or again, with the falling market values and especially with the growth in number of bank repossessed properties, ona can often buy cash using some spare money they have in their account or in some lower return investment.

Italy and other European countries have gone through two world wars. My parents were actually starving at some point in time and my mother was due to be shot by the nazis because of her partisan affiliation. She escaped it because the execution had been scheduled after Apri 25^th, when the allied armies and the partisans freed the country.

We have all been grown up with the culture of saving and having a reserve for worse time because we know that we cannot rely on anybody, much less the state, to provide for us.

This cultural financial divide makes it possible today for any average European family to have enough money in reserve to be able to make investments. That is very cherished money, though, so they must be convinced that it is really a very good investment.

Roberto Mazzoni