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Remington
03-03-2014, 14:58
Let's take a break from Ukraine-Russian crisis threads...

My wife and I are running into some barriers in getting mortgage to buy a house. We have PRP (now we know it means squat on paper) and foreign income. The banks we've called and visited told us that they need Russian income and most required Russian citizenship.

I have apostilled document proving my foreign income but that doesn't seem to satisfy the Russian banks. Does anyone know which banks or investment group that caters to foreigners with foreign income? We've tried Sberbank, Gasprombank, DeltaCredit, smp bank, uralsib bank, bank moscow, and promsvyazbank. We're talking to VTB24 but we know DeltaCredit works with them so its unlikely it'll work. Any advices beside packing up and return to USA where I can easily get mortgage? I'm not going to wait 4 years before I'm eligible to get Russian passport and it's not easy for me to find a job since I'm software engineer and my Russian isn't good enough.

okiey
03-03-2014, 15:02
Its a long shot, but Raifeissen bank is a bit more foreigner-friendly. Citi bank might also be worth a try.

Remington
03-03-2014, 15:14
Its a long shot, but Raifeissen bank is a bit more foreigner-friendly. Citi bank might also be worth a try.

Haven't tried Raifeissen bank yet. Citibank Russia don't do mortgage but they do offer car loans.

FatAndy
03-03-2014, 15:37
My wife and I are running into some barriers in getting mortgage to buy a house. We have PRP (now we know it means squat on paper) and foreign income. The banks we've called and visited told us that they need Russian income and most required Russian citizenship.
Well, I'm not a great specialist in the bank affairs but you may organise ИЧП (individual private entrepreneur) with Russian-bank-based account and transfer some income there, either in RUB or in USD/EUR, to show funds acquisition. Or two ИЧПs here - for you and your wife. It should have no big issues with PRP.

Remington
03-03-2014, 15:44
Well, I'm not a great specialist in the bank affairs but you may organise ИЧП (individual private entrepreneur) with Russian-bank-based account and transfer some income there, either in RUB or in USD/EUR, to show funds acquisition. Or two ИЧПs here - for you and your wife. It should have no big issues with PRP.

They may ask for bank statement going back 5 years to show I have steady income. Unfortunately my bank is in US where i get direct deposit.

FatAndy
03-03-2014, 15:50
They may ask for bank statement going back 5 years to show I have steady income. Unfortunately my bank is in US where i get direct deposit.
And they are unable to issue the statement? Or our local banks just don't accept foreign statements?

Remington
03-03-2014, 16:06
And they are unable to issue the statement? Or our local banks just don't accept foreign statements?

They won't accept foreign bank statement. It has to be Russian bank statement. :(

I called Unicredit and Raiffeisen... they won't do it.

FatAndy
03-03-2014, 16:10
Shiat. I only may recommend you to visit central office of Sber at Vavilova, 19 - maybe, there you'll be able to find smbd of decision makers?

Remington
03-03-2014, 16:27
Shiat. I only may recommend you to visit central office of Sber at Vavilova, 19 - maybe, there you'll be able to find smbd of decision makers?

Already contacted Sberbank... they won't do it.

I am contacting international mortgage broker. They might know a lender who assist expats living abroad.

SV1973a
03-03-2014, 16:43
Already contacted Sberbank... they won't do it.

I am contacting international mortgage broker. They might know a lender who assist expats living abroad.

Great. Please share your information with the forum. I hope for you that it works out OK.

tonytony
03-03-2014, 17:30
I would suggest that you would be very unlikely indeed to get any sort of mortgage in Russia without a Russian source of income.

You are also likely to find it impossible to get a mortgage for a Russian property from a non-Russian lender. Particularly at the moment.

I would suggest that the most likely way of raising any money is to take out a second mortgage on any property that you currently own in the USA and use this to fund the purchase of your Russian property.

Many people from the UK used this method of second mortgages to buy holiday homes in places like France, Spain and Greece so that repayments would be in their local currency rather than having to worry about exchange rates etc.

EDIT

You might be able to find a lender that will lend in Russia if you're looking at a couple of million dollars or more, and have got the income to support this. That tends to be a bit more of a different market

Remington
03-03-2014, 19:23
Well, I'm not a great specialist in the bank affairs but you may organise ИЧП (individual private entrepreneur) with Russian-bank-based account and transfer some income there, either in RUB or in USD/EUR, to show funds acquisition. Or two ИЧПs here - for you and your wife. It should have no big issues with PRP.

It looks like I may have to do this or create OOO entity. It might work as long as the bank don't ask for monthly bank statements dating back 6 months minimum or more. I will have to provide an official letter with income and stamp. I hope that'll be enough.

FatAndy
03-03-2014, 20:04
It's better to consult a reputable local financial/banking lawyer what is better, I don'say easier - just challenges may vary and differ... in those cases with OOO, ZAO, IChP etc.

Simpson
03-03-2014, 21:41
It looks like I may have to do this or create OOO entity. It might work as long as the bank don't ask for monthly bank statements dating back 6 months minimum or more. I will have to provide an official letter with income and stamp. I hope that'll be enough.

For banks it's never enough only official letter from legal entity (OOO, ЗAO, OAO) or ИП (it's not ИЧП now) - they will ask you for confirmation of your entity business activity and fulfilment of tax obligations over a period of a year (I guess).
The list of documents will be about a dozen points, I'm afraid.
And I wouldn't advise to launch a company here only for mortgage. Really. It's easy to start, not to finish))

inorcist
05-03-2014, 01:12
I also think remortgaging is probably the only way to do it.

As a foreigner you generally mean a higher risk to a bank than a local. There is always a chance your next visa won't be granted or you simply say 'bye bye Russia' and never return ... A Russian could do so, too, but would eventually have to visit a Russian embassy to renew his / her passport. Also, the cost of an international law suit is possibly disproportionate to the profits from giving out a mortgage. This obviously looks different if you're planning to invest in high class real estate as tonytony was saying. With foreign income it becomes even more tricky.

Just my thoughts ... I'd still try though. And keep us posted.

frankjohn2
05-03-2014, 09:10
It might be worth checking in to HSBC Premier in the US.

To open an account you are supposed to have $100k on deposit with them, but it is not mandatory. If you do not meet the monetary requirement the fee is $50 per month.

I do not know if they will do a mortgage in Russia now that they no longer have retail banking in the country. Still, it might be worth checking in to.

Remington
05-03-2014, 11:31
I do not know if they will do a mortgage in Russia now that they no longer have retail banking in the country. Still, it might be worth checking in to.

I plan to call Citibank and HSBC as I have accounts with them in US. HSBC is possible but again like you said.. they don't offer retail service any longer in Russia so it could be a problem. Citibank operates as a separate entity in Russia and it also could be a problem. I will have to look into this.

hemal
05-03-2014, 17:28
I remember being told in SberBank that its better to get divorced then my wife can apply for mortage, after approval you can get married again :)

Hans.KK
05-03-2014, 18:56
I remember being told in SberBank that its better to get divorced then my wife can apply for mortage, after approval you can get married again :)Interesting point of view.
But what consequence does a divorce have for a TRP/PRP? is it all over again from zero?

BTW. My wife kindly informed me once that in case of a divorce she will kill me, so many things to take into considerations here I will say.

hemal
06-03-2014, 12:00
it had something to do with the oformleniye bumag, but VTB approved without a divorce :)

Remington
11-03-2014, 14:37
I plan to call Citibank and HSBC as I have accounts with them in US. HSBC is possible but again like you said.. they don't offer retail service any longer in Russia so it could be a problem. Citibank operates as a separate entity in Russia and it also could be a problem. I will have to look into this.

I contacted both banks in US and its no go. HSBC Russia don't have retail banking so they don't offer mortgage. Citibank Russia don't offer mortgage either. Both of them said they offer mortgage in US or selected international branches with retail banking.

We'll try VTB but I'm concerned about US planned sanctions against Russia over Ukraine crisis since US could block my fund from being transferred to Russian bank. If it does happen then I won't be able to pay mortgage thus I will be forced to leave Russia. I'm not in the mood to transfer fund to off-shore account before transferring to Russia to evade US sanction rules which could be illegal.