Guest Mortgage Expert Oltin Roshi, Loan Officer at US Mortgage of Florida hosted by Bernie
Foreign national financing is designed for those living outside of U.S. seeking to purchase a property for vacationing, investment to let/rent, or relocation of family from abroad. There are options for securing a loan with or without a social security number for non-U.S. residents. The down payment is higher and more documentation is required.
#1 Assess Intent
Decide on these considerations to proceed:
—Do loan financing terms meets your purchase preferences?
—Are you prepared to complete and provide all necessary paperwork?
—What is intent of the property?
#2 Documentation & Diligence
When borrowing, the lender determines issuance of loan with thorough review of financial worthiness and solvency on basis of assets. Depletion is assessed to assure asset protection; ratio of assets to equal income 10 - 12 months. A list of verifiable documents required to be submitted include government identification and passport, bank statement accompanied by bank letter, et al. A bank account opened in U.S. for at least 2 years can replace bank letter from country. All documents must be supplied in English. Due diligence and processing of documentation requires up to 45 days.
#3 Financing Terms
Down Payment — Higher than conventional, loan-to-value is 50 - 60% for an existing property and 70% for new development.
Loan Minimum — After down payment, loan amount minimum is $200,000 for a single family home and $175,000 for a condo.
Loan Rates — Rates subject to lender evaluation and dependent on existing vs. new development. Rate type is typically recommended for short hold or fast resell (flip) is adjustable rate and if will hold longer fixed rate.
Note: Bank may require an account and minimum balance, direct lenders do not. Opt for a loan with no repayment penalty.
Maximize Investment
Setup an exit strategy such as cash out conversion to refinancing then establish a portfolio.
In addition to the keys above, explore tax protection, life insurance and these other areas of foreign national investment.
Please contact me to discuss more.