Mortgage lending system of the United States until recently absolutely no interest in most of the world community. But since 2007 it is not discussed except that lazy. That system of mortgage lending was the main reason America collapse of the economy of world powers and small countries around the world. Recover from the financial crisis so far managed not to all countries. That "made it to flow" in unflinching lending system in America?
History of the American mortgage
Mortgage lending as a trend, originated in America in the 20-30s of the 20th century at the time of Roosevelt. It was then "boom" in the country's economic development was the acquisition of property in private housing by private persons.
At the same time have been established governing the process state and commercial bodies - the Federal National Mortgage Association, the Corporation of housing loans, the Government National Mortgage Association and Federal National Mortgage Association. The latter was established by the U.S. government in 1938 and was considered a major regulator of mortgage lending.
In the early 60s Mortgage Association of State was half-private, as 50% of its shares was put on the open-outcry trading for the U.S. population. In 1968, the agency and does divide into two separate structures: one - a fully commercial, the second state. The first was called upon to deal with technical aspects of the mortgage, the second one - to create and update the legislative framework related to housing loans in the country.
Every year the number of mortgages in the U.S. grew. So in 1980, 8.5 million families have bought their own homes with a mortgage, on what was spent about $ 12 million. Ten years later, in 1990, for the same purpose banks allocated 3.5 trillion dollars to borrowers. A record number of loans were issued in 2003.
"Pre-crisis mortgage"
The basic principle of providing advanced loans in the U.S. "pre-crisis period," was the creation of a guarantee fund for debt mortgage obligations. To create the Foundation of the World Bank lent the country the 15-year loan of U.S. $ 500 million with a 7-year deferred payment.
The purpose of the creation of this fund was to this organization bathed issued by U.S. banks long-term bonds. When the method of issuing mortgage loans began to mass-production, the quality of credit transactions has deteriorated dramatically. And in early 2006 - was at all disappointing. It was then that many lending institutions and reminded the obligation of the Fund to repurchase their long-term bonds.
But, as you know, so many loans this regulatory framework was simply not do. The result was the bankruptcy of many well-known banks in the country.
Suffered from the "collapse of the American Dream," and other state lending institutions which were taken by American loans low interest rates. At home, they resold them at higher rates, due to which there were. "There is no money in America - there is no money in the world" - a slogan vneglasny go in many EU countries over 2007-2009.
Russian banks have stopped issuing loans for the same reason - lack of liquidity. Their own money during the crisis had only a major Russian bank structures (Sberbank, Vneshtorgbank, Gazprombank), smaller banks had difficulty. Money for new lending they did not have. Attempts to draw liquid assets by increasing the flow of investments - have been ineffective, investors do not want to keep their savings in banks and, in contrast, closed early contributions.
Buy an apartment in Manhattan
Buy a two-storey house of 600 square meters with two bedrooms and gardens to the crisis in America could a 150-200 thousand dollars in any central state of the country. 45-50 thousand for the same house with all amenities, built-in furniture and appliances can be bought in Kansas, Alaska, and others not specifically listed areas.
The price of one square residential property ranges from 1-2 thousand dollars, too, depending on the state, region, number of storeys of the building, having a garden plot. For comparison - the average wage in the country - 5000 dollars a month.
One thing is certain, than a remote cottage from the city center - the more expensive it is. Studio apartment in downtown Los Angeles and Washington, most Americans prefer to rent as well as further plans to change this "good" in a cozy house in the suburbs.
Maintenance costs of housing in different states is also different, as in every state - their property taxes. The main topic of discussion, the experts in 2009 was that the price of luxury housing in Manhattan fell by 82%. Therefore, those who could buy a house at this time in the elite area - lucky enough. Throughout the country, reduction of property values was observed in the range - 30-40%.
Current mortgage terms
Unfortunately, it is difficult now to call certain limits and conditions in all the banks of America, as many lending institutions have not yet recovered from the financial crisis, but if you assess the situation in general, the terms of mortgage lending in the United States the following:
loan term - 1-30 years. While most banks are not yet issued a mortgage for more than 15 years.
interest rate - 6% per annum. Most often the interest rate - floating and pegged to a rate of LIBOR.
the size of the down payment - 10-20%. It is hard to tell if there are banks that issue a few years ago, loans with no down payment. Previously, it was a normal American practice, but after the crisis of credit structures began to behave more cautiously.
even after the crisis, real estate acquisition in the primary or secondary markets is not essential for the American Bankers. Therefore, buying a home in a newly built house, or have already finished object - will not affect credit conditions.
acquisition of real estate in the United States will not affect the conditions of your stay. That is, the ownership of American real estate does not automatically make you an American. To be eligible for permanent residence in this country should become the owner of "Green Card", which can be obtained after the marriage with an American, or if your relatives in the United States.
Also, for a "Green Card", which is both a national identity card of this country have the right to children adopted by citizens of this country. Get the precious document, you can also open your own business in the U.S., however, only the registration cost foreigner 25-50 thousand dollars. But it's still cheaper than investing in commercial real estate country. Under the terms of this program, a foreigner, buying commercial real estate worth at least $ 500 thousand, receives the "Green card" is 6 months.
How to get a loan to buy a accommodation in the U.S.