Have you wondered how someone on H1B Visa and H4 Visa could afford $500,000 + Admin Fee + Attorney Fee, which add up to $575,000?
The minimum investment amount is $500,000 for the EB5 Visa for qualified projects. Then add the Administration Fee and Attorney Fee. There’s going to USCIS processing Fee on top of that.
Let’s look at how sources of funds used by H1B Visa and H4 Visa to apply for the US Green card via EB5 Investment Visa.
EB5 Fund Sources from H1B and H4 Visa
- Accumulated Savings
- Accumulated Savings + Other Sources
Other Sources can be one or more of the following sources:
- 401(k) – Loan
- 401k(k) – Cash Out
- Gift from Parents
- Sell Properties
- A loan from Parents, Friends, etc
- Cash Out Home Equity Finance
And, there can be other sources if the income that potential investor could use to fund the EB5 Visa investment.
Accumulated Savings for EB5 Visa Funds
- Husband and wife working on H1B & H4 EAD
- Both Husband and Wife working on H1B Visa
I know what you are going to ask next?
Are you telling that, if both husband and wife on H-1B (or H4 Visa) would have $575,000 lying around for “At-Risk” investment?
EB5 Visa option is not for everyone, and it comes with the risk of losing the entire investment.
Consider a hypothetical scenario for a couple working on H1B Visa and H4 EAD.
- Husband – $100,000 per year
- Wife – $100,000 per year
- 2 Kids in Elementry School
Wouldn’t you agree that one person’s salary would go directly into savings? And in fact, they could also save up to 30% on the second income.
They could be saving anywhere from $75,000 to $100,000 per year, and this number goes up if their income goes up.
Within 4 to 8 years, this family could save $575,000.
Accumulated Savings + Other Sources
Investing in EB5 from savings accrued from the salary earned while working on H1B Visa and/or H4 EAD along with a loan or other sources is another way to afford the required EB5 Visa investment funds.
The bulk of the required investment for EB5 Visa could come from the couple’s savings over some time, and a small percentage of funds can be in the form of a gift from parents or in-laws or loan from friends and family members.
And it can be another way around where high net worth parents can gift the required funds for EB5 Visa.
For a married couple on H-1B Visas or H4 EAD, waiting for U.S. Green card via EB2 or EB3 for 5+ years could potentially have sufficient savings to afford the required investment amount.
A side note about funds: the investor should document the source of funds. Where the money came from and how money was earned (Legally).
When you work with an Immigration Attorney, you’d realize why they charge so much in comparison to H1B Visa application fees.
They would have to trace the money from the origin and how it was earned (legally).
Everyone’s finances will be different, and there’s no one size fits all approach.
For some investors, it could take 2 to 3 months to get all the documents to prove the source of funds.
Read this Section Carefully About Source of Funds
Let’s say you get a gift from your parents for $50,000 for your EB5 Investment.
As per USCIS, every penny of the investment amount has to be accounted for and provide proof.
Now, you would have to get a document to prove how parents got that $50,000.
Let’s say; it was a loan they took from their home and gifted the money.
Then, USCIS wants to know how they purchased their home and what was the source fo funds for that.
Maybe, that home was a gift from your grandparents.
Then your attorney will ask how your Grandparents acquired that money.
Now, get the idea on how and what it takes to prove the source of funds and why would pay a lot more in EB5 Visa Attorney Fee (typically $20,000 or more).
What about Loan?
Here are three questions from readers about using funds from a loan for EB5 Visa Investment.
- Where can I get a loan for EB5 Visa?
- I don’t have any properties, is there a way to get a loan for $500,000 for EB5 Investment?
- I’m an F-1 student on OPT. I just got my first job. My parents don’t have any assets or money for EB5 Investment to be gifted. A loan is the only possible way I think about. Is there any way to get the Loan, where I can pay back using my salary from a Full-time job on OPT?
These three questions can be summed up in two one-line questions:
- Can the entire investment amoung $500,000 be from a loan?
- Where can I get such loan for EB5 Investment?
Here’s is a simple and direct answer to these two questions:
- Yes. One can 100% of EB5 Investment via Loan.
- Unlike an Education Loan, there aren’t banks that would give a loan for EB5 Visa investment. So, you are looking at a typical bank loan.
It’s just like any other loan – Home loan, Car loan or a Personal loan, you would need to get a loan to invest in EB5 Visa. And for such loan bank would require a collateral and verify the borrowers replaying capacity before approving the loan (especially in India).
As discussed how H1B and H4 Visa holders afford EB5 Visa
EB5 Loan: The bottom line
- EB5 Visa investor needs at least $500,000 or 1,000,000
- The source of money has to be documented. It can be from a loan, a gift or savings or combinations of sources.
I’m afraid that getting a loan for EB5 Visa Investment is not as easy as getting a student loan.
For Investors from India, the loan from a bank requires collateral and other required documents that are typically required by the bank. But, if you just started your first job, you don’t have a rich uncle who can gift you the money or lucky enough to win half a million-dollar lottery, then chances of EB5 is pretty slim.
I have seen ads for projects offer a loan if the investors have $250,000 in Investment funds.
EB5 Visa Series
- EB5 Visa Process for US Green Card – I-526, I-485, and I-829
- Glossary of EB5 Visa Terms
- 20 FAQ’s About EB5 Visa for H1B Visa Holders
- Source fo EB5 Visa Funds for H1B & H4 Visa Holders
- Can $500,000 Investment be Any Type of EB5 Projects?
- EB5 Investment – $900,000 or 1.8 Million
- EB5 Visa Investments: Direct, Direct Pooled vs Regional Center
- EB5 Visa – I526 Denied Due to Source of Funds – Example
- 8.4 Years for EB5 India vs 50 Years for EB2/EB3 India