The Client

A married Singaporean couple in their early 70s living in Singapore with a small portfolio of U.S. investment property. The wife works and owns a small marketing company whilst the husband is retired. In addition to their home, the pair also own two rental properties.

On advice from their trust attorney they were also hoping to increase their LTV to mitigate U.S. inheritance tax, and convert their current rental mortgage into an interest only to increase their yield.

The Property

A large six-bed family home in Vail, Colorado. The couple had purchased the house over 20 years ago when living and working in the U.S..

The pair were looking to reduce their credit card debt, and help their son purchase a home in Singapore.

The Deal

In total they were looking to raise $300,000. They had requested a five-year fixed rate on interest only terms.The clients felt that their advanced age of the applicants and their low income would decrease the finance options available.

The Challenge

The clients were not current on their U.S. tax filings for their rental property, were in their late 70s and had sufficient but not well documented income.

The Solution

As a significant amount of their income was based on future contracts, but their cash flow was sufficient to service their debt, we suggested our FNStated program which would enable to the borrowers to qualify for a higher LTV based off projected income and net rental income from the property.

Age wasn’t a factor, as it is illegal to discriminate against age in the U.S.. GMG was able to structure a 30 year amortized mortgage with a 5 year interest only period giving the needed $300,000 cash in hand and reducing their monthly debt servicing by 13%, thus increasing their yield.

Loan Details

The Client

A self-employed real estate investor with a British passport living in Hong Kong. He owned and managed a small boutique investment firm and wanted to diversify his holding in U.S. real estate.

The Property

A self-employed real estate investor with a British passport living in Hong Kong. He owned and managed a small boutique investment firm and wanted to diversify his holding in US real estate.

The Deal

The client needed to raise capital in order to purchase the three unit property. To raise the money, the client wanted to refinance/cash out their existing 4 bedroom beachfront rental property lowering their current rate for a 5 year ARM which was maturing in 6 months and get into a lower rate fixed mortgage.

The Challenge

The main challenge we had with this case was that the client had a complicated income stream. The income from the business was extremely “lumpy” and although the total earned income was high, the consistency was sporadic. This made the accounts difficult to interpret and created a mortgage experience with a well-known international bank to drag out three months to eventual be declined in the end.

The Solution

Although the clients’ business was very niche in his field, he had been running this successful firm for over a decade with an exceedingly good accounts track record. We were able to highlight the stable business history to the lender, structure the income documentation in a clear and precise manner in order to satisfy the lender. The lender subsequently released the equity portion from their other property, and approved the loan on their new purchase.

Loan Details