Getting a loan through an Austrian bank

Huge thanks, Terry Ross11! That’s exactly what I was looking for. This guy actually mentioned to me that it might be a good move to leverage some real estate. He suggested using a property as collateral, though I’m honestly not sure how that would fly given it's just a house in a small rural town. Still, it’s worth more than $15,000 and all the paperwork—including the building permits—is perfectly in order. I didn't want to even bring it up until I was certain getting a loan this way was actually on the table. It’s honestly mind-boggling that American banks won't just look at the property itself; instead, they insist on a co-signer. They told me that regardless of the collateral, they care strictly about your credit score and the stability of your employer. And that was before I even mentioned the value of the place (maybe I should have just offered up a $30,000 property right off the bat 😂). Terry Ross11, if you could share a few more details—feel free to DM me—I’d really appreciate it. Things like interest rates, specific terms, which broker you used here in the States, and the fees they charged... Thanks a million in advance!

It’s like Terry Ross11 reads my mind! I haven't even finished typing before she jumps in.😂 Thanks, Terry Ross11!

Terry Ross11 said:That’s exactly how it works. My husband and I both run small businesses, and since we couldn't get traditional domestic financing, we went with RBA in Leibnitz—specifically a mortgage-backed loan. That's all they care about: whether the title is clear and the equity is unencumbered. We send our payments to Leibnitz, not locally.
We didn't overextend ourselves, so even with a five-year term, the monthly payments are manageable. For the most part, we're comfortably ahead of the curve.

So, what kind of interest rate did you end up getting on a loan like that?

The interest rate is sitting at 9%. I’m sure banks here offer better deals, but what does it matter when we didn't even qualify for credit in the first place?

Honestly, 9% is a killer interest rate. My Amex charges me around 14%, and don't even get me started on overdraft fees at my local bank. It actually makes me wonder if securing a loan abroad might be a safer bet than dealing with the banks here in the States.🤷 I’m planning to hit up some smaller credit unions tomorrow to see if they can beat that, but if they come up empty, I might just pull the trigger on this deal. If anyone else has gone through this, please weigh in. I want to hear it all—even the horror stories. Specifically, I'm curious about that whole mess regarding altering pay stubs😲.

Paul Williams9 is spot on, and honestly, I’d be perfectly fine with a 10% rate too... When I was looking into those loan options myself, they didn't even care about Indianapolis; they were strictly focused on Washington, D.C., California, and Florida... I'm not sure if the terms have shifted since then, but the mortgage ratio was 1:2... interest rates hovered around 7 or 8%, and that was the deal... the monthly payment could easily eat up half your paycheck...

Anyway, if you manage to dig up any more info tomorrow, please post it here...

Sure thing. I’m going to do a bit more digging on some other boards, then we’ll see. From what I’ve gathered so far, that figure shouldn't be sitting at 7-8%; it ought to be much lower, maybe around 2%. Once I get the full story, I’ll let you all know.👍

And why did all that absolute garbage go down with the American banks in the first place? It’s pretty simple—they were handing out mortgage loans left and right without checking a single thing.

With a 1:3 mortgage ratio, the bank is covered regardless—they’ll make their money back even if someone defaults. Given how much borrowing costs have spiked lately, I’m not entirely sure where we stand right now. Is interest still sitting at 9%, or has it climbed even higher?

Just wanted to drop an update on what I figured out today. I spent some time hitting up Chase, Wells Fargo, and Bank of America. If your credit score is a mess or you’re stuck on a blacklist, forget about getting a loan—even if you have collateral. You’re going to need a guarantor or a co-signer from a solid company, preferably someone with zero debt of their own. Honestly, I’m not even sure if having a high-paying job at a major corporation would change much, but my gut says probably not.
I called again regarding those loans through the RBA branch in Austria, and it seems like the truth lies somewhere in the middle. The loans themselves are legitimate—not some predatory payday lender scam. You actually send the money to Austria and handle the repayments via automatic transfers here in the States. He claims he gets his commission directly from the bank🤷, meaning I don't owe him anything out of pocket. You’ll still have to cover the court appraiser and some minor paperwork fees; for a smaller loan like mine, it could end up costing about 7% of the total. He also insists they have absolutely no access to American banking data, so apparently, your credit score or being blacklisted doesn't matter to them.
Now for the weird part: they aren't asking for W-2s or even a letter from an employer confirming you actually work there. They just want the last three pay stubs (I asked twice to be sure). He did mention that if the property isn't in a prime location—like Washington, D.C., for instance—it might be a hurdle, but they'll let the appraiser decide the value. I also asked what happens if there's a wage garnishment involved, which obviously complicates things, and he just told me they'd "work around it." I didn't press him on how much extra that would cost...
Bottom line: the loans seem fine, but don't let anyone mess with your official documents. I don't want to know what the legal fallout of that would be. Luckily, I don't have any garnishments. I'll be submitting my wife's last three pay stubs too, even though her company is tiny, she carries her own debt, and she's basically making minimum wage. He says that shouldn't be an issue. If it fails, I'll figure out another way, but I'm sticking to legal routes.
All in all, I think I'm going to give it a shot, once I've had a chance to consult with my better half, 🙂. I'll keep you guys posted on how it goes. If any of you have intel on this, please reach out—my inbox is open.
Best to everyone,

Whatever you do, just make sure you actually read what you’re signing. I’m telling you—don't go signing anything in a rush or while you're out and about on the fly. Take those papers home, sit down, and really dig into them before you put pen to paper. Better yet? Get some actual legal advice first. Good luck.

Don't you dare hand over your payroll statements to just anyone. You have absolutely no idea what kind of moves they’re capable of making. To a bank, the creditworthiness of your employer doesn't mean a thing because they’re already protecting themselves with your mortgage as collateral. If you miss even one or two payments, I am telling you straight: you could lose your house. They aren't interested in negotiating. And if they start stalling by asking questions about the property's location? That’s just code for "I'm keeping you on ice until I can squeeze a commission out of you." Look, I genuinely want you to succeed here, but please, watch your back. These people know every trick in the book, believe me. If anyone tries to convince you they're trustworthy, ask them how the market is looking in Indianapolis, then get back to me. There are plenty of us stuck in this same bind, especially on this side of the country.

Brenda Rogers41 said:Honestly, 9% is a killer interest rate. My Amex charges me around 14%, and don't even get me started on overdraft fees at my local bank. It actually makes me wonder if securing a loan abroad might be a safer bet than dealing with the banks here in the States.🤷 I’m planning to hit up some smaller credit unions tomorrow to see if they can beat that, but if they come up empty, I might just pull the trigger on this deal. If anyone else has gone through this, please weigh in. I want to hear it all—even the horror stories. Specifically, I'm curious about that whole mess regarding altering pay stubs😲.

Greetings. Here is a bit of my own experience. My husband and I found a car through an online listing, and naturally, we loved it and went to pick it up because the monthly payments seemed manageable. But, as Terry Ross11 mentioned, if you aren't considered "creditworthy" here, you run into walls. We ended up going through an Austrian bank in Vilah, or however it's spelled. Out of an abundance of caution, we reported the loan to the Federal Reserve so it would be registered here in America. It wasn't a problem at all since everything was ultimately handled through a law firm in Cleveland. We didn't have a huge amount to pay back either; on a loan of 9,300 dollars, we ended up paying back 11,200 dollars total. The takeaway? You simply have to do your homework properly.😛

nimblebadger15 said:Greetings. Here is a bit of my own experience. My husband and I found a car through an online listing, and naturally, we loved it and went to pick it up because the monthly payments seemed manageable. But, as Terry Ross11 mentioned, if you aren't considered "creditworthy" here, you run into walls. We ended up going through an Austrian bank in Vilah, or however it's spelled. Out of an abundance of caution, we reported the loan to the Federal Reserve so it would be registered here in America. It wasn't a problem at all since everything was ultimately handled through a law firm in Cleveland. We didn't have a huge amount to pay back either; on a loan of 9,300 dollars, we ended up paying back 11,200 dollars total. The takeaway? You simply have to do your homework properly.😛

Mary, I am wondering how you actually managed to finalize that loan. I am looking into getting a personal loan to deal with some credit issues while living in Cleveland, so if you could share some specific details, I would really appreciate it.

Hey everyone,

So, I gave it a shot last year trying to secure a loan through an Austrian bank,
but it wasn't just about being too far from the coast—there were other hurdles involved, too.16 miles
I’m honestly not sure what their current terms look like—whether everything stayed the same or if they've moved the goalposts on us since then.

On top of that, we’re also looking into getting an ino-loan.

THANKS!

I've been following this thread closely too. Is it actually cheaper to take out loans abroad? We’re looking at a mortgage for about $75,000, and with two co-signers, we have the credit standing to qualify at Chase, but I'm wondering if we'd get a better deal by looking outside the country. How can I research this without having to hire a translator just to cross the border? thanks.

We actually went out and pulled a mortgage-backed personal loan through RBA
It’s totally legal—none of that radical activist nonsense here
We put up the house as collateral and secured the loan without any drama
We just headed straight over to the bank in Austria to grab the cash
The interest rate sits at 7.58%—they don't care about your credit score or whatever status you have
All they care about is the mortgage; if you miss a few payments—though you can usually work something out then—they just sell the property
The loans run for 15 years, and honestly, my monthly payment is lower than what I’d end up with here once I sit down to crunch the numbers
I’m perfectly happy with how they handle things, whereas the banks here just brushed me off
The whole process took somewhere between 30 and 45 days
Plus, my lawyer pointed out it’s smarter to pay the installments directly in Austria; otherwise, they’d have to report the loan to the Federal Reserve, which basically flags you as having taken out a loan in America immediately

ruggedhawk182 said:I've been following this thread closely too. Is it actually cheaper to take out loans abroad? We’re looking at a mortgage for about $75,000, and with two co-signers, we have the credit standing to qualify at Chase, but I'm wondering if we'd get a better deal by looking outside the country. How can I research this without having to hire a translator just to cross the border? thanks.

Over there, you might only get a 15-year term max, whereas banks here will offer you much longer stretches.
You don't need a translator to cross borders—you handle all the paperwork right here domestically.
Your best bet is to find a professional loan officer, send them everything you've got, and let them run the numbers
so you can coordinate with them—then just compare the math yourself to see whether staying local or going international makes more sense.

Could someone please provide a detailed breakdown of the required documentation and the specific verification processes involved? I am also looking for information on who conducts the official assessment and, if anyone has a reliable contact for a proven broker, please reach out via DM. Thanks in advance.

Anyone here actually dealt with loans at Canadian banks? I heard they might have some killer lines open toward America.