+1-800-997-1228
Questions & Answers

How can I use a loan secured by the property of my father to invest in EB-5?

I want to mortgage the property of my father and secure a loan against the property to make an investment in an EB-5 project. I will be the principal borrower and my father will be guarantor of the loan. Is this a valid source or do I have to transfer the title of the property to my name?

Answers

  • Avatar

    Daniel A Zeft

    Immigration Attorney
    Answered on

    If a loan is the source of funds for an EB-5 investment, then this loan must be secured by the personal collateral of the EB-5 investor. You must have title to the property.

  • Avatar

    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    Your father has to gift you the money before it is invested. If he gifts you the property, that is much better.

  • Avatar

    Julia Roussinova

    Immigration Attorney
    Answered on

    Loan proceeds can used for EB-5, but a loan must be in your name and secured by collateral owned in your name as the principal EB-5 investor. Property must also be appraised to show an appraised value equal to or more than the loan proceeds. Alternatively, your father may gift you the loaned money but loan documentation must be reviewed with the EB-5 attorney.

  • Avatar

    BoBi Ahn

    Immigration Attorney
    Answered on

    Since it is your father's property, he would have to be the one to mortgage it. Then perhaps he can loan you the money from that transaction. You should have a loan document evidencing the transfer of funds to you, or your father can gift the funds to you as well.

  • Avatar

    Lynne Feldman

    Immigration Attorney
    Answered on

    This can work, but documents will need to be drafted to show the legal source of funds.

  • Avatar

    Robin J Gray

    Immigration Attorney
    Answered on

    You can use a loan or money from a mortgaged property to use toward the EB-5 visa. You would need to keep all of the paperwork to show the mortgage, the value of the home, the amount of money taken out, etc. USCIS will also look at your financial viability other than the money you obtain from the mortgage to ensure that you are able to follow through with the requirements of the EB-5.

  • Avatar

    Dale Schwartz

    Immigration Attorney
    Answered on

    Either have your father borrow the money (using the property as collateral) and then give you the money as a gift (not a loan), or deed the property to you as a gift (not a loan). And then you borrow against the property (using the property as collateral).

  • Avatar

    Belma Chinchoy

    Immigration Attorney
    Answered on

    This is not a valid SOF; collateral must be owned by the investor.

  • Avatar

    Jinhee Wilde

    Immigration Attorney
    Answered on

    The current policy is that a loan must be secured by a property/asset secured by an investor. This is the new indebtedness policy since about three years ago.

  • Avatar

    Abhinav Lohia

    Immigration Attorney
    Answered on

    This can cause an issue. USCIS has in the past taken issue with investors taking a loan against a property that is not theirs. To overcome this, your father can take a loan against property and gift the proceeds to you.

  • Avatar

    Salvatore Picataggio

    Immigration Attorney
    Answered on

    USCIS has required loans to be secured by personal assets. Working with an immigration attorney will help you properly document the source and transfer of funds.

Add your comment

Use a Facebook account to add a comment, subject to Facebook's Terms of Service and Privacy Policy. Your Facebook name, photo & other personal information you make public on Facebook will appear with your comment.