home or land owner out side USA ,can we us for American bank loan?

Question

we have land in south america why cant we use it for collateral here in the states from a bank to use for a home loan ?

Answer 1

Because the property is not in the United States, so the lender is prohibited from accepting it as collateral for a loan by Federal Reserve regulations.

It's also beyond reach of United States Courts and law enforcement.

Due to better rates in the US, it's usually worthwhile to get loans against property here in order to buy property outside the US for cash.

But US lenders can't lend against foreign properties.

Answer 2

banks here in the US know nothing about foreclosing on foreign property in order to force repayment of such a loan, thus they won't lend based on the value of such property.

worse, foreclosure laws in foreign countries may not be stable [not to mention land ownership laws], so a US bank considers such properties as far too risky for their depositors' money.

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you might be able to get a loan anyway, and it would be based on your US income and assets [plus credit history], not on the foreign property.

a bank located in the foreign country where the property is might lend based, in part, on the security of the property. You'll find that most countries' banks are far more conservative than US banks in this regard and a lona for more than 1/2 what you provably paid for the property [if recent] is unlikely.

property actively producing income would have other lendability standards.