Why Aren’t There Loan Programs for Foreign Investors?
Call me crazy but I don’t understand why there aren’t any lending programs for Foreign Investors. Right now in Las Vegas, home prices are at historic lows and it’s drawing the interest of real estate investors from all over the world. I get numerous emails and phone calls every day from people outside the United States inquiring about Las Vegas Home prices and the process of buying a home in Las Vegas. Unfortunately, I have to inform them that if they don’t have cash for the entire purchase, they won’t be buying an investment property in Las Vegas.
Doesn’t real estate play an important role in the economy? I think we all know the answer to that question is an emphatic “Yes”! So why aren’t there Loan Programs for Foreign Investors? Many of these large Banks like Wells Fargo and Bank of America could easily create Loan Programs for Foreign Investors that required Foreign Investors to put down at least 30%, open a bank account in the US and anything else they would need to lower their risk. In most real estate markets like Las Vegas, home prices have pretty much bottomed out thus minimizing the risk for the Banks if the Foreign Investor defaulted, especially if they required 30% down.
Creating loan programs for Foreign Investors will benefit local real estate markets and the economy in several ways.
- More buyers will enter the local real estate markets absorbing many of the foreclosures that are plaguing neighborhoods.
- Requiring a minimum of 30% down will generate a large cash infusion for banks, increasing their ability to lend money.
- It will generate much needed tax revenues for local and state governments.
I am sure we could list numerous reasons as to why there should be loan programs for Foreign Investors but what I want to know is “why aren’t there any loan programs for Foreign Investors.” What am I missing?