In a Nutshell
- Wide range of mortgage products
- Plenty of help for international buyers
- Mortgage prequalification process can be started online
- No information about extra charges
- Application can’t be done online
HSBC at a Glance
Loan types: Purchase, refinance, HELOC
Featured Loans: Jumbo, conforming, affordable and regional mortgages. Financing for international borrowers and family assisted financing available.
- Jumbo fixed rate mortgages – 15-, 20-, 25-, and 30-year terms
- Jumbo adjustable rate mortgages – 3/1, 5/1, 7/1, and 10/1 terms
- Conforming fixed rate mortgages – 15-, 20-, 25-, and 30-year terms
- Conforming adjustable rate mortgage – 5/1, 7/1, and 10/1 terms-
Minimum Down Payment: From 3% (fixed-rate) and from 5% (ARM)
Minimum Credit Score: Varies
Best for: International buyers, first-time buyers, and jumbo mortgage options
HSBC is one of the top leading international banks. HSBC offers options for clients looking to purchase, refinance, or tap into their home’s equity. It provides jumbo, conforming, affordable, and regional mortgages. HSBC’s ability to lend to international borrowers is a niche for the organization and they allow borrowing up to $3 million.
- 15-30 year fixed rate loans and ARM mortgages, with ARM rates fixed for the first 3/1,5/1, 7/1, or 10/1 years
- Mortgage loans for international buyers
- Multiple mortgage plans offering assistance to first-time buyers
HELOC up to $350,000, or up to $1 million for HSBC Premier Customers, with an option to lock in up to three fixed rate segments.
HSBC offers so many different mortgage products, almost anyone could find a suitable mortgage. International buyers will appreciate having tailored expert support in getting a mortgage in the US, as well as being able to access many of the same mortgage products as US citizens.
HSBC offers four jumbo mortgage options with features, benefits, and pricing based on your HSBC banking relationship. They even offer a jumbo mortgage without an HSBC banking relationship.
First-time buyers who need help buying a home can benefit from one of HSBC’s affordable mortgages: CommunityWorks®, HomeReady, and SONYMA, each of which provide a different form of financial assistance. HSBC also has a program to make it easy for family members to help you buy a home.
Types of Loans
Customers can get preferential rates based on their banking relationship with HSBC.
- Minimum down payment 10% or 20%
- Maximum loan amount $3 million
- Up to $1,500 towards closing costs
- Family Assisted Financing
- Competitive rates
- Options for international borrowers
Conforming Fixed and Adjustable Rate Mortgages (ARM)
HSBC offers conforming mortgages with either fixed rates or adjustable rates. If you choose an ARM mortgage, you can fix your interest rate for the first 5, 7, or 10 years.
- Minimum down payment 3% for fixed rate, or 5% for ARM mortgages
- Terms - 30 years ARM and 15, 20, 25, or 30 years fixed rate mortgages
- Fix your interest rate for 5, 7, or 10 years with an ARM
- Maximum loan amount $484,350 for a single-family residence, or up to $726,525 in high cost areas
Affordable & Regional Mortgages
HSBC offers government backed VA and FHA mortgages for qualifying applicants. They also have affordable and regional mortgage programs for first-time buyers.
- CommunityWorks® offers a competitive interest rate and enables borrowers to make a lower down payment. This program provides up to $7,000 of assistance for closing costs and can be combined with eligible grants. CommunityWorks® is available in Washington, D.C., and specific counties in CA, CT, DE, FL, MD, NJ, NY, PA, VA, and WA.
- HomeReady® mortgage offers an affordable low down payment option designed for but not limited to first-time home buyers with minimal out of pocket funds. SONYMA provides affordable mortgage rates and terms for buyers in New York.
HSBC offers both cash-out and rate/term refinancing to help you lower your monthly payments, shorten your term, access home equity, or switch from an ARM to a fixed rate mortgage.
HSBC’s HELOC stands for Home Equity Line of ChoiceSM. There are no application or annual fees, and no closing fees on lines of up to $500,000. Unlike regular HELOC lines, the HSBC product allows you to convert all or part of it to a fixed-rate loan, so you won’t need to worry about rising interest rates.
- Borrow up to $350,000. Premier customers can borrow up to $1 million
- No closing costs on loans up to $500,000
- No application or annual fees
- Convert your HELOC into 3 fixed-rate loan segments
HSBC has the experience to provide home financing solutions for international borrowers. They can help customers buy a home in the U.S. to live in or use as an investment property. International borrowers with qualifying documentation do not need U.S. credit history to apply for an HSBC mortgage. HSBC orders an international credit report.
- Up to $3 million in financing
- Loans up to 75% of appraised property value or purchase price, whichever is lower
Jumbo mortgage options with competitive rates
Family Assisted Financing
This allows buyers to list up to 4 borrowers on the mortgage agreement so that family members can help you buy or refinance a single family residential property. In addition to lending money for a down payment, Family Assisted Financing lets buyers combine the annual income and debt of all of the borrowers, which could help you to be eligible for a lower interest rate or better mortgage terms.
- List up to 4 borrowers
- Use a family member status to get a better rate
- Can be used for purchase or refinance
At least one borrower must hold an Advance or Premier banking relationship with HSBC to b eligible.
The Application Process
HSBC doesn’t share a lot of information about the mortgage application process. They do provide a digital channel on their public website to begin the process of obtaining a mortgage pre-qualification online.
It's not clear how long it could take or exactly what you'll need to provide, but you'll probably be asked for:
- Your Social Security number, or passport number for international buyers
- Your name, date of birth, and address
- Proof of employment
- Proof of income
- If you already found the property you want to buy, you’ll be asked about its location and value
- Any existing debts, such as car loans or student loans
Pros and Cons
HSBC’s biggest strength is in the mortgage types it offers to people at the top and bottom of the customer market. Existing HSBC users who have a certain minimum balance in their HSBC accounts can access preferential rates, credits against their closing costs, and borrow larger amounts. For first-time buyers, HSBC offers low down payments options, assistance with down payments and closing costs, and grants programs.
HSBC lives up to its reputation as an international bank by providing plenty of support for international buyers. They can also get credits toward closing costs, low rates, and access Family Assisted Financing.
On the other hand, HSBC is frustratingly shy about sharing hard information. There’s no information online about minimum credit scores, closing costs, application fees, or extra charges.
Rates and Fees – The Bare Basics
HSBC’s rates are reasonable for a big mortgage lender.
HSBC doesn’t reveal how much you’ll have to pay in closing costs, application fees, or other charges, which is a drawback. The HSBC Elite Mortgage come with up to $1,500 in credits against your closing costs.
If you take a HELOC through HSBC, you won’t have to pay any fees at all on lines of up to $500,000. Above that amount, closing costs can come to anything between $270 and $19,900.
HSBC mortgage terms:
- Jumbo Fixed Rate Mortgages – 15-, 20-, 25-, and 30-year terms
- Jumbo Adjustable Rate Mortgages – 3/1, 5/1, 7/1, and 10/1 terms
- Conforming Fixed Rate Mortgages – 15-, 20-, 25-, and 30- year terms
- Conforming Adjustable Rate Mortgage – 5/1, 7/1, and 10/1 terms
HSBC shows all mortgage rates clearly on the website, so you can keep track of your current rate.
Help & Support
HSBC offers mortgage calculators and tables showing sample mortgage rates. It does offer plenty of personal customer support; live chat is available 24/7 and customers are encouraged to call. You can also access customer support through Twitter, but there’s no email address for support.
HSBC offers a full range of mortgages, including HELOC and refinancing. HSBC’s affordable mortgages are ideal for veteran sand first-time buyers looking for low down payment options. HSBC also stands out for offering help to international buyers and for a uniquely flexible form of Home Equity Line of ChoiceSM that lets borrowers fix their interest rates.
Q: What is the maximum I can borrow for a home mortgage?
A: You can borrow up to $3 million with a jumbo mortgage, or up to $484,350 with a conforming mortgage. If you're buying in some high-cost areas, your loan amount can reach $726,525.
Q: Can I use Family Assisted Financing if I'm not an existing HSBC customer?
A: Yes, you can access Family Assisted Financing as long as one of the borrowers listed on the loan agreement is an HSBC Advance or Premier customer.
Q: Do I need a US credit history to get a mortgage as an international buyer?
A: No, HSBC will order an international credit report for your loan. You don't need a US credit report.
Q: Can I switch my ARM mortgage to a fixed-rate mortgage?
A: Yes, you can refinance your mortgage to change it to a fixed rate instead of a variable one.
452 Fifth Avenue
New York City, New York