Move to US - Health insurance and mortgage questions
Discussion
Hi All,
I’m considering a move to Houston with my wife and two kids. Our eldest has a congenital heart defect but she’s now in good health, however, we’d need good cover in case she needs anything. I understand that we should be able to get medical/health insurance but I am concerned the premium will be astronomical. Can anyone advise?
Secondly, part of the appeal of the move would be the prospect of owning a nice home. I realise prices are spiralling but what are the chances of getting a mortgage? We won’t be on a permanent visa, but will have a large deposit, perhaps 50%. Any thoughts or advice would be much appreciated.
Thanks!
I’m considering a move to Houston with my wife and two kids. Our eldest has a congenital heart defect but she’s now in good health, however, we’d need good cover in case she needs anything. I understand that we should be able to get medical/health insurance but I am concerned the premium will be astronomical. Can anyone advise?
Secondly, part of the appeal of the move would be the prospect of owning a nice home. I realise prices are spiralling but what are the chances of getting a mortgage? We won’t be on a permanent visa, but will have a large deposit, perhaps 50%. Any thoughts or advice would be much appreciated.
Thanks!
Edited by Onetrackmind on Saturday 26th June 05:39
The healthcare question very much revolves around whether you have an employer or if you will be self employed? Healthcare if a great standard will be available - it’ll just work out significantly cheaper for you if you have an employer who subsidize/pay for a family plan.
In terms of the house purchase/mortgage, a 50% down payment is going to help. For most financial institutions, if it didn’t happen in the US, it didn’t happen. In fact, that’s true for most things here!
Having said that, I do know of one broker who will do full international loans so it will be possible to get a mortgage, but you won’t pay 2%. The 50% down is a great position to be in for this.
If you want to talk through either question in any further detail, feel free to shoot me a PM
In terms of the house purchase/mortgage, a 50% down payment is going to help. For most financial institutions, if it didn’t happen in the US, it didn’t happen. In fact, that’s true for most things here!
Having said that, I do know of one broker who will do full international loans so it will be possible to get a mortgage, but you won’t pay 2%. The 50% down is a great position to be in for this.
If you want to talk through either question in any further detail, feel free to shoot me a PM
Pretty much any decent job will give you great full family health insurance (including dental/vision) with service way better than the UK. If you are buy on your own for a family you are probably looking at 1.5k a month for a very good plan. Job market is fantastic right now and wages much higher than UK. Taxes also much less. Possible to get top rate down to 12% maybe in TX with a family on your first 100k.
Its pretty easy to get a mortgage with 20% down with no US credit history. You can buy while still an expat and some specialised banks offer this service or you can settle in to the US and borrow from a local bank/broker. We had no problem with putting 20% down with Wells Fargo after 6 months in US working.
I would rent first for a year and not rush into buying, you will save more than the rent by learning the areas first and not making a mistake. In the US like US good public schools are very important so make sure you go and review local school ratings even if you are going private. Generally not a good idea to buy into a home within any city limits as generally your property taxes will be much higher and services worse.
Its pretty easy to get a mortgage with 20% down with no US credit history. You can buy while still an expat and some specialised banks offer this service or you can settle in to the US and borrow from a local bank/broker. We had no problem with putting 20% down with Wells Fargo after 6 months in US working.
I would rent first for a year and not rush into buying, you will save more than the rent by learning the areas first and not making a mistake. In the US like US good public schools are very important so make sure you go and review local school ratings even if you are going private. Generally not a good idea to buy into a home within any city limits as generally your property taxes will be much higher and services worse.
Edited by blackrabbit on Monday 28th June 11:22
Onetrackmind said:
Thanks, both.
To clarify, I'd be an employee. It looks likely that an employer would cover my medical insurance and at least partly subsidise medical insurance for the family. I'm not sure about visas - assume the visa would be sponsored by my employer.
If this move is looking like a possibility, rather than an idea, then I would urge you, in the strongest possible way, to find out which visa your employer is intending to utilize. There is a broad variance in the scope of employment based visa petitions and you really should educate yourself in this regard.To clarify, I'd be an employee. It looks likely that an employer would cover my medical insurance and at least partly subsidise medical insurance for the family. I'm not sure about visas - assume the visa would be sponsored by my employer.
For example, your spouse would be authorized for employment for one type of visa, but not another. Your visa might be renewable multiple times, or only once. Your visa may provide a path to naturalization - or it may not.
This isn't the kind of thing to just hope for the best on. Please make it your business to determine what type/class of visa is being petitioned.
Hey, I moved from the UK with wife and kids in 2018 and bought a house near Austin in 2020. In my experience visa status was no concern, only credit rating. I have colleagues that bought houses with 5% deposits on E2 visas.
Health Insurance is astronomical if not subsidized by your employer. I pay around $800 per month for my package. They are not allowed to factor in your age or pre-existing medical conditions. You still pay for visits due to the deductible system - you can pay more for insurance and get a lower deductible which could prove more cost effective if you know you will be using the service.
I’d definitely suggest renting for a year to see if you like it and build up a credit rating. HSBC will “convert” your Uk credit score if you bank with them which was definitely a good start for me. I don’t think there are HSBC branches in Houston though.
Happy to talk more if it helps - it’s hard to find useful information from Google searches.
Health Insurance is astronomical if not subsidized by your employer. I pay around $800 per month for my package. They are not allowed to factor in your age or pre-existing medical conditions. You still pay for visits due to the deductible system - you can pay more for insurance and get a lower deductible which could prove more cost effective if you know you will be using the service.
I’d definitely suggest renting for a year to see if you like it and build up a credit rating. HSBC will “convert” your Uk credit score if you bank with them which was definitely a good start for me. I don’t think there are HSBC branches in Houston though.
Happy to talk more if it helps - it’s hard to find useful information from Google searches.
Matt Harper said:
Onetrackmind said:
Thanks, both.
To clarify, I'd be an employee. It looks likely that an employer would cover my medical insurance and at least partly subsidise medical insurance for the family. I'm not sure about visas - assume the visa would be sponsored by my employer.
If this move is looking like a possibility, rather than an idea, then I would urge you, in the strongest possible way, to find out which visa your employer is intending to utilize. There is a broad variance in the scope of employment based visa petitions and you really should educate yourself in this regard.To clarify, I'd be an employee. It looks likely that an employer would cover my medical insurance and at least partly subsidise medical insurance for the family. I'm not sure about visas - assume the visa would be sponsored by my employer.
For example, your spouse would be authorized for employment for one type of visa, but not another. Your visa might be renewable multiple times, or only once. Your visa may provide a path to naturalization - or it may not.
This isn't the kind of thing to just hope for the best on. Please make it your business to determine what type/class of visa is being petitioned.
Just echoing what others have said. Visa will be dependent on your employer sponsoring it. If possible, go for an L1 or an L2. Others are OK, but situations vary and I would really recommend contacting your company and their HR / immigration team. Getting a Visa usually isnt too hard, but depending on what it is, it could impact your ability to move to a Green Card later down the line if you want to stay longer. I came into the US on an L1 and then after a couple of years started the process for a Green Card, all pretty simple and easy and supported by my employer too. I would also check with how much support the company will offer - it really helps if they put together a package for you (some of which is taxed, so be careful and the company will be limited on some options) and see if they can include immigration / lawyer support.
Recommend renting for the a period too. Its common in the US to rent and the workforce is, in general, fairly mobile. Its really not uncommon for US natives to move to a different city, state or coast for a promotion or new opportunity. So there is a pretty vibrant rental scheme, even for family homes etc. Renting isnt cheap, but (depending on state) you will usually find that the houses / apartments come with appliances as standard. Some will even come with gardening and other things included too, so its really minimum hassle. All you do is pay the rent and put some furniture in. Again, states vary, but the home owner is responsible for property tax (poll tax), but do check local state stuff. Locations, sub-divisions and even districts can vary massively, so rent first to get a good feel. Then select carefully before buying.
Getting a mortgage is pretty easy and most of the conditions from 2008 have gone. However, most lenders will really push for a 20% deposit, though you can get as low as 5%. Some lenders will insist on an additional 'insurance' payment to cover the missing 15%, which will impact you. Additionally, the more you can put down as well as the better credit rating will mean you get a much better interest rate. It can be that brutal - you will pay for it and there isnt much you can do to avoid it. Remortgaging is pretty easy, but be aware that it usually costs money to do so, including taking out a mortgage! All of the fees, costs and other stuff, it can add up quickly. Also, I really recommend finding a good realtor (real estate agent) before doing anything. There are lots around and some are better than others. Go with a recommendation from someone who is local - get references (they will usually be happy to do this) and do some background checking. A good realtor is worth their weight in gold! They will save you money, be honest and fair and as an industry, are much tighter controlled than an estate agent in the UK. Its not always the case, as there are some bad apples, but a good one will absolutely strive to get a good deal and really help in the process.
As others have mentioned, credit rating is the key though. If you can transfer something from the UK, thats great. Amex do something and I believe HSBC have a service too. If not, see what your company can do - some big companies have deals with a credit union or bank, so can usually set you up with an account, debit and credit cards. I had this and was able to start building a rating quickly, but again, its something that will impact you and you wont get good rates until you are into the 700+ range. Suddenly everything gets simpler when you do, but just be aware. Financial products here are pretty competitive though, so absolutely do shop around! Oh, and dont ever look at one of those 'credit guaranteed' companies - interest rates are massive and you are on the hook for all sorts of additional fees etc. Usually a bank or credit union will help, just will ask for a deposit or something.
Be prepared to provide deposits for a lot of things too. From your local cable / internet to your energy provider too - common in some states. I had to provide a few hundred bucks for both PGE and Comcast to get service, but I was prepared.
As for health insurance, its actually pretty simple and easy. Most larger companies will provide something in the package (its supposed to be 45% or something), so do check. Its usually part funded by the company, so they pick up 50% or more and you pay the rest. Since pay periods are usually twice per month, expect to be paying $300 - $500 based on the number of insured people and package (per period). It sounds like a lot, but actually its not bad when you factor in taxes and higher pay overall. Check the coverage too - they will talk a lot about deductibles and maximum pay-outs. Basically, you typically have some sort of minimum payment (like for me its $20 for each Dr visit) and then they usually max out at a pretty large number per year. However, this is the maximum 'out of pocket' that you will have to pay. It could be something like $3500 per year per person insured. This means you could be on the hook for $3500 out of pocket, but once you go over that, you dont have to pay. You can see what they are doing here - basically they want something for general or simpler medical stuff, but for the bigger issues, they have it covered.
My wife had to have her gaul bladder removed. Total invoice came to $42k!!!! Total out of pocket for me was about $1500. Of course, compared to the NHS that sounds terrible, but that covered all medicines, follow up care, private room, free parking and an ambulance to take her to the hospital! Given the level of care and quality of service, I was happy with that to be honest! You will probably hear of stories of people running up $500k bills with ease on say heart surgery and similar - thats common, but again, covered by insurance. I have to say that in general the medical coverage that I have had is good. Its been prompt, effective, high quality and without corners cut. You just pay for it. Expect to pay though. Oh, and company offered plans will be very variable so check VERY carefully. Dont always go for the cheapest. There are PPO's HMO's and HD plans.... check with your HR team, who can walk you through this based on personal circumstances. I have a PPO, but will likely switch in the next few years as my kids age out of the program. But Highly Deductible plans are becoming very popular. Basically they offer the minimum coverage with massive deductibles - but what you save on the plan, you put into a roll-over savings plan. You use this (tax free) to cover the difference from the deductible and it can work out well. But if you have younger kids, play a lot of sport or have other health issues, it gets expensive really quick. If you are healthy, havent got any known underlying issues and dont usually use the medical services, well you get the picture - BUT DO TALK TO A PROFESSIONAL, not some random moron on the internet!!! Circumstances are different for all.
Oh, and you may be asked to fill out a form or declaration for your insurance or life coverage (again, usually offered in the benefits package), but you wont be expected to have a medical or anything like that. As others have mentioned, they cant exclude you for something you dont know and they cant test you to see if they can be bothered to insure you! However, what they can do is refuse a claim if you knowingly didnt mention something if asked.
Recommend renting for the a period too. Its common in the US to rent and the workforce is, in general, fairly mobile. Its really not uncommon for US natives to move to a different city, state or coast for a promotion or new opportunity. So there is a pretty vibrant rental scheme, even for family homes etc. Renting isnt cheap, but (depending on state) you will usually find that the houses / apartments come with appliances as standard. Some will even come with gardening and other things included too, so its really minimum hassle. All you do is pay the rent and put some furniture in. Again, states vary, but the home owner is responsible for property tax (poll tax), but do check local state stuff. Locations, sub-divisions and even districts can vary massively, so rent first to get a good feel. Then select carefully before buying.
Getting a mortgage is pretty easy and most of the conditions from 2008 have gone. However, most lenders will really push for a 20% deposit, though you can get as low as 5%. Some lenders will insist on an additional 'insurance' payment to cover the missing 15%, which will impact you. Additionally, the more you can put down as well as the better credit rating will mean you get a much better interest rate. It can be that brutal - you will pay for it and there isnt much you can do to avoid it. Remortgaging is pretty easy, but be aware that it usually costs money to do so, including taking out a mortgage! All of the fees, costs and other stuff, it can add up quickly. Also, I really recommend finding a good realtor (real estate agent) before doing anything. There are lots around and some are better than others. Go with a recommendation from someone who is local - get references (they will usually be happy to do this) and do some background checking. A good realtor is worth their weight in gold! They will save you money, be honest and fair and as an industry, are much tighter controlled than an estate agent in the UK. Its not always the case, as there are some bad apples, but a good one will absolutely strive to get a good deal and really help in the process.
As others have mentioned, credit rating is the key though. If you can transfer something from the UK, thats great. Amex do something and I believe HSBC have a service too. If not, see what your company can do - some big companies have deals with a credit union or bank, so can usually set you up with an account, debit and credit cards. I had this and was able to start building a rating quickly, but again, its something that will impact you and you wont get good rates until you are into the 700+ range. Suddenly everything gets simpler when you do, but just be aware. Financial products here are pretty competitive though, so absolutely do shop around! Oh, and dont ever look at one of those 'credit guaranteed' companies - interest rates are massive and you are on the hook for all sorts of additional fees etc. Usually a bank or credit union will help, just will ask for a deposit or something.
Be prepared to provide deposits for a lot of things too. From your local cable / internet to your energy provider too - common in some states. I had to provide a few hundred bucks for both PGE and Comcast to get service, but I was prepared.
As for health insurance, its actually pretty simple and easy. Most larger companies will provide something in the package (its supposed to be 45% or something), so do check. Its usually part funded by the company, so they pick up 50% or more and you pay the rest. Since pay periods are usually twice per month, expect to be paying $300 - $500 based on the number of insured people and package (per period). It sounds like a lot, but actually its not bad when you factor in taxes and higher pay overall. Check the coverage too - they will talk a lot about deductibles and maximum pay-outs. Basically, you typically have some sort of minimum payment (like for me its $20 for each Dr visit) and then they usually max out at a pretty large number per year. However, this is the maximum 'out of pocket' that you will have to pay. It could be something like $3500 per year per person insured. This means you could be on the hook for $3500 out of pocket, but once you go over that, you dont have to pay. You can see what they are doing here - basically they want something for general or simpler medical stuff, but for the bigger issues, they have it covered.
My wife had to have her gaul bladder removed. Total invoice came to $42k!!!! Total out of pocket for me was about $1500. Of course, compared to the NHS that sounds terrible, but that covered all medicines, follow up care, private room, free parking and an ambulance to take her to the hospital! Given the level of care and quality of service, I was happy with that to be honest! You will probably hear of stories of people running up $500k bills with ease on say heart surgery and similar - thats common, but again, covered by insurance. I have to say that in general the medical coverage that I have had is good. Its been prompt, effective, high quality and without corners cut. You just pay for it. Expect to pay though. Oh, and company offered plans will be very variable so check VERY carefully. Dont always go for the cheapest. There are PPO's HMO's and HD plans.... check with your HR team, who can walk you through this based on personal circumstances. I have a PPO, but will likely switch in the next few years as my kids age out of the program. But Highly Deductible plans are becoming very popular. Basically they offer the minimum coverage with massive deductibles - but what you save on the plan, you put into a roll-over savings plan. You use this (tax free) to cover the difference from the deductible and it can work out well. But if you have younger kids, play a lot of sport or have other health issues, it gets expensive really quick. If you are healthy, havent got any known underlying issues and dont usually use the medical services, well you get the picture - BUT DO TALK TO A PROFESSIONAL, not some random moron on the internet!!! Circumstances are different for all.
Oh, and you may be asked to fill out a form or declaration for your insurance or life coverage (again, usually offered in the benefits package), but you wont be expected to have a medical or anything like that. As others have mentioned, they cant exclude you for something you dont know and they cant test you to see if they can be bothered to insure you! However, what they can do is refuse a claim if you knowingly didnt mention something if asked.
off_again said:
Getting a mortgage is pretty easy and most of the conditions from 2008 have gone. However, most lenders will really push for a 20% deposit, though you can get as low as 5%. Some lenders will insist on an additional 'insurance' payment to cover the missing 15%, which will impact you.
If you borrow more than 80%, the usual is to have to pay what they call PMI on your mortgage. Private Mortgage Insurance. This runs approx 1% per year (can be as little as 0.5% and as high as 1.85%).Having said that, I unfortunately came across one broker who, for first time buyers (which you would be), had a lender that would do a 3% down loan...with a separate 5% personal loan to cover the down payment and some closing costs...and all with no PMI. IMHO, it's immoral so I will never recommend - but that is the kinda crap you can get if you really try!
If you don't have an AMEX card, I would recommend getting one in the UK. You don't need a fancy one - just one you can put a few quid through and generate some history. That was the single biggest thing that helped here. Once AMEX transferred our accounts to the US, and we had spent on the card for 1 month and paid it off, we then had no problem with getting utility credits etc.
The Moose said:
Having said that, I unfortunately came across one broker who, for first time buyers (which you would be), had a lender that would do a 3% down loan...with a separate 5% personal loan to cover the down payment and some closing costs...and all with no PMI. IMHO, it's immoral so I will never recommend - but that is the kinda crap you can get if you really try!
Holy crap! I didnt have that. I bought a larger house before I sold my smaller one here, so had to take the PMI thing on the new mortgage as all of my money was tied up in the smaller one! It was a good $500 a month extra with the costs, fees and insurance. At least I didnt have to do the loan thing! Saved money, did some home improvements and had it assessed again after 2 years. Dropped in the saved money and hey presto, 20% covered and suddenly my mortgage dropped! Nice. I mention that, because its worth flagging that its not a permanent thing - if you can get the money or the value of the house goes up enough, you can remortgage out of the PMI, hopefully in a short period of time.
off_again said:
The Moose said:
Having said that, I unfortunately came across one broker who, for first time buyers (which you would be), had a lender that would do a 3% down loan...with a separate 5% personal loan to cover the down payment and some closing costs...and all with no PMI. IMHO, it's immoral so I will never recommend - but that is the kinda crap you can get if you really try!
Holy crap! I didnt have that. I bought a larger house before I sold my smaller one here, so had to take the PMI thing on the new mortgage as all of my money was tied up in the smaller one! It was a good $500 a month extra with the costs, fees and insurance. At least I didnt have to do the loan thing! Saved money, did some home improvements and had it assessed again after 2 years. Dropped in the saved money and hey presto, 20% covered and suddenly my mortgage dropped! Nice. I mention that, because its worth flagging that its not a permanent thing - if you can get the money or the value of the house goes up enough, you can remortgage out of the PMI, hopefully in a short period of time.
You're totally right and I should have added that about getting out of the PMI.
Hi All,
Just wanted to pass on my thanks for the advice and info that you’ve shared - Matt Harper, the moose, off again, stigproducts, shawtec. Some incredibly detailed responses!
I feel much better informed. I don’t know which type of visa it would be, but now realise this is a critical factor in making a decision.
Thanks again,
Matt
Just wanted to pass on my thanks for the advice and info that you’ve shared - Matt Harper, the moose, off again, stigproducts, shawtec. Some incredibly detailed responses!
I feel much better informed. I don’t know which type of visa it would be, but now realise this is a critical factor in making a decision.
Thanks again,
Matt
I was in the same boat moving from the UK to the US a few years back and one thing that actually really helped get a decent credit score was using VAG's international relocation programme to get a car. Basically it seems like they credit check you in the country of origin so I was able to get a nice 911 with no real hassle and about a year later that loan showed up as a foundation for a decent credit score. It was actually easier to get a 150k car that getting a damn mobile phone on contract....
Mortgage should not be hard depending on the type of visa. You'll probably want to rent for a short while and build up your credit while you decide where you want to live. Texas has gone up in price but it's still very affordable compared to the rest of the country. The killer here is property taxes which is annually about 2.5-3% of the appraised value of the property.
if you're getting insurance through your company then you can check out their policy. It will b a group rate and offer the best benefits. Getting your own coverage will be high. Most companies have either a high or low deductible plan where the insurance kicks in after a certain amount is paid.
if you're getting insurance through your company then you can check out their policy. It will b a group rate and offer the best benefits. Getting your own coverage will be high. Most companies have either a high or low deductible plan where the insurance kicks in after a certain amount is paid.
Edited by alabbasi on Thursday 21st October 15:06
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