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oneday

Looking for a Bank with Half a Brain

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My girlfriend and I are looking for a bank or financial institution to loan 1.5 million after we put 2 million down for a pristine, beautifully landscaped house with almost 1/2 rai of land in Chiang Mai.

 

It's obvious to me or almost anyone that the bank would not only "not lose money", they would make a good profit if the person getting the loan could not make the payment. And yet they still insist on asking about income and this and that.

 

My girl makes good money (21,400/mo), but has no wage slip to show because it's under the table, but she can show regular deposits over 3 years. She has a car in both our names, but I don't see what that has to do with anything, yet it was asked about. She has a fully owned motorcycle in her name and land in her name alone and land in both her and her fathers name. Again, I don't know what any of that has to do with anything, since the house is far more than enough collateral for the 1.5m we are asking for.

 

It seems to me you must work for the government in this country and then loans are virtually thrown at you.

 

I have the full 3.5m, but it would lower my liquid assets to an unexceptionable low level, in case of emergencies. I assume banks would ignore any income I have because I'm not her husband and naturally the house needs to be bought in her name.

 

Anyone know any banks that can recognize a good deal when they see one or has a manager with half a brain? Or any other suggestions.

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With a low-enough loan-to-value ratio, and the property itself as collateral, and perhaps yourself as a co-signer (you don't have to be on the title to be a co-signer, or at least I assume that's so in Thailand)....and maybe some money under the table to the right person...? Do you or your girl know any local Thais who might be financially qualified & willing to act as co-signers? Is it possible to walk into a bank in Thailand and just start working your way up the chain until you're sitting across a desk from someone who can accept your "incentive payment" and have the authority to deliver the loan decision you need? I don't know - just thinking out loud.

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..........

My girl makes good money (21,400/mo), but has no wage slip to show because it's under the table, but she can show regular deposits over 3 years.

................

 

No offence mate, but your girlfriend seems to have a history of financial wrongdoing and tax avoidance. Why should any bank trust her with that?

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yet they still insist on asking about income and this and that.

 

Yeah, banks are pesky like that.

I think you're up against a brick wall when it comes to getting a loan from a Thai bank while there's a foreigner involved (aka YOU).

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It's obvious to me or almost anyone that the bank would not only "not lose money", they would make a good profit if the person getting the loan could not make the payment.

 

Banks aren't actually in the business of selling property. That's why they try to ensure that the borrowers won't default on the loan.

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Just look at all the property banks are stuck with in the US.

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My girlfriend and I are looking for a bank or financial institution to loan 1.5 million after we put 2 million down for a pristine, beautifully landscaped house with almost 1/2 rai of land in Chiang Mai.

 

It's obvious to me or almost anyone that the bank would not only "not lose money", they would make a good profit if the person getting the loan could not make the payment. And yet they still insist on asking about income and this and that.

 

If you were back home (USA) in this situation, you'd be trying to get a "no income" loan, where income is not verified by the lender.

 

Such loans were popular for years, but because of the mortgage/foreclosure meltdown, they have pretty much stopped them in the USA now. See this article http://qna.mortgagenewsdaily.com/questions/no-proof-of-income-home-loan

 

Thailand banks are even less flexible with loans, and they do require proof of income to show you can service the loan. Assets or equity in the property is not generally a consideration.

 

I'd be very surprised if you can get such a loan, but if you do, let us know where you got it.

 

Good luck.

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"Thailand banks are even less flexible with loans, and they do require proof of income to show you can service the loan. Assets or equity in the property is not generally a consideration."

 

Mate had exactly the same problem with his wife trying. she has a 30k a month pension from australia but the bank wouldnt lend her 2 million baht because she had no permanent job. they seem to be very inflexible.

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"they seem to be very inflexible"

 

That has been my experience with Thai banks.

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"they seem to be very inflexible"

 

That has been my experience with Thai banks.

 

Try to get a loan in the USA without any provable income.

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but the retirement/pension would be recognized by a bank in North America.

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You seem overly critical of Thai banks being cautious.......

Since many western banks went belly up and needed bail-outs due to non performing loans perhaps that is a good thing.

 

Be careful over extending yourself and investing too deeply with this

 

I think a loan would be obtainable using her and her father's land as collateral, has that option been explored.

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but the retirement/pension would be recognized by a bank in North America.

It might be, though if it came from another country, I wouldn't know.

If acceptable, it would be provable income, so it wouldn't apply to the question put to you, would it?

 

He didn't mention any pensions that I recall.

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but the retirement/pension would be recognized by a bank in North America.

 

A retirement or pension with a sufficient income stream yes, but cash assets, including even substantial IRAs or 401Ks, no. Fannie Mae and Freddie Mac have "annuitization procedures" acceptable to them, but not all banks, maybe not even most banks, follow them. 'Can be difficult for retirees to refi in the US.

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mates wife brought documented proof of pension from australia to the bank, she is an australian resident but thai citizen. He has a war service pension (Vietnam) and she gets a wifes pension, which continues even if he dies. They were not interested, but if she had a cleaners job for 4500 a month then that would be ok, strange logic.

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Income & equity

 

To 'throw six to start' with the Thai Banks regarding income - your GF will need income from a Bona Fide job (thats why they like gov workers) that has some security of tenure, or income from her own Bona Fide (read tax paying) business. After that hurdle is overcome it seems income ie throughput of the account can be enhanced with 'money from pet falang' etc with little problem and hardly an eyebrow raised (imagine how a Thai policeman goes about a loan ;)). A g'tee from yourself might even squeeze the last few 100K out of them but thats the sequence of events.

 

Property needs the usual valuation from the banks surveyor/assessor but forget any notion that you've brought with you from the west about big equity = diminished requirements. Thai banks seem to have only myopic interest in 'are we covered or not' ie they simply follow the banks formulaic procedures.

 

But also never lose sight of the fact that whatever song the bank manager sings the decision will be made at the 'big bank' and likely as not may/will result in a lower advance(at the eleventh hour) than that agreed with the man you sat down with :(

 

All of which will be huge fun if you anticipate being dealt with by a western yardstick

 

 

 

 

;)

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