“With my income, every bank ought to be delighted.”
Mr M. said this sentence not with arrogance, but with honest bewilderment.
Information
For eleven years the 46-year-old specialist doctor had lived with his family in Boston. He worked at a renowned clinic and had an annual income that many German borrowers would never reach.
As an investment he wanted to acquire an apartment building in Leipzig.
The financing seemed a pure formality.
But after four weeks two rejections were already on the table.
One bank pointed to internal guidelines for clients outside Europe.
The other rejected because of the American income.
Mr M. no longer understood the world.
The starting situation
The doctor planned to buy a well-kept apartment building with six residential units.
The property was fully let and generated stable rental income.
The key figures:
- Purchase price: 1,180,000 euros
- Equity: 430,000 euros
- Financing required: 825,000 euros
The monthly rental income already covered a considerable part of the financing costs.
Even so, the first meetings with banks were disappointing.
Why American income presents German banks with challenges
At first glance a high income seems sufficient.
In practice, however, banks have to review considerably more.
This includes, among other things:
- an employment contract under US law
- the tax situation
- income statements
- asset structure
- currency risks
- compliance requirements
- documentation obligations
Many institutions simply have no standardised processes for this.
The consequence is often blanket rejections.
The real strength lay in the overall assets
The analysis showed an exceptionally solid overall picture.
Mr M. did not only have a high income.
In addition, there were:
- extensive investments
- liquid reserves
- debt-free securities portfolios
- a long-term professional perspective
- excellent creditworthiness
The planned property itself also represented a convincing financing object.
The rental income was sustainable.
The location was regarded as economically stable.
The right approach
Instead of forwarding the application unchanged to further banks, it was first checked which institutions regularly handle international financings.
All the particulars were explained in advance.
In particular:
- income in US dollars
- tax residence
- asset structure
- origin of the equity
- property valuation
- the long-term letting strategy
This allowed the financing bank to assess the case in full.
The financing
After the pre-check was completed, the credit decision proceeded swiftly.
The bank assessed not only the income.
It looked at the entire economic picture.
This included:
- a sustainable income situation
- assets
- equity
- property quality
- rent development
- long-term sustainability
The financing was successfully committed.
A few weeks later the apartment building changed owner.
Why this case is typical
Many Germans in the USA have excellent economic conditions.
Even so, they often experience rejections at German banks.
Not because of a lack of creditworthiness.
But because international matters lie outside the standard processes of many lenders.
A targeted selection of specialised financing partners is therefore worthwhile.
What other Germans abroad in the USA can learn from this
An American income is in principle no obstacle to a property financing in Germany.
What is decisive, rather, is that income, assets and property are documented in a comprehensible way.
The more complex the asset structure, the more important careful preparation of the documents becomes.
Frequently asked questions
Can income in US dollars be taken into account?
Is a German SCHUFA required?
Can apartment buildings be financed too?
Do I have to return to Germany?
Which documents are particularly important?
Conclusion
This case shows that international income is often assessed differently from classic domestic income.
Anyone who relies solely on their high income not infrequently experiences surprising rejections.
Anyone who, by contrast, selects banks with experience of international financings early creates the basis for a successful property financing — even with a residence in the United States.
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