WHO ARE THEY?
International buyers come from all continents, all occupations, and varied lifestyles, each with different needs ranging from buying a condominium, to buying an estate. We have broad experience representing all types of purchasers and solving various obstacles with only the best team of professionals to advise you on financing, immigration, title issues and notaries, so that you can be confident in purchasing a US property. Below are answers to some frequently asked questions, however, if you need additional information or simply wish to discuss the real estate market, please contact us, so that we can make your investing a simple yet rewarding experience.
WHY BUY PROPERTY IN THE US?
Real Estate in America has an excellent track record of safe investment with good appreciation, making the risk factor very low. With the Euro and British Pound having a favorable upside trade, home buying is both affordable and easy; financing is available with low interest rates making US ownership a unique opportunity for investment, growth and a place to go for wonderful vacations.
There are many beautiful options to select from which include condominiums, condo-hotels, town homes, single-family residences, multi-family units, commercial ventures, and vacant land. Nowhere are there better choices for Vacation Homes, Permanent Residency, Investment Properties or just something to hold and sell in the future. With the real estate supply at an all time high, this is the best time to buy a piece of the American Dream.
FINANCING FOR FOREIGN NATIONALS
A “Foreign National”, is an individual with foreign citizenship, who is legally permitted to enter the United States for either personal or business purposes.
A Foreign National does not have a green card, work visa, or other legal document allowing them to work in the United States.
TYPES OF LOANS AVAILABLE
A variety of financing opportunities are available to Foreign Nationals, some of which include fixed rate mortgages, adjustable rate mortgages (ARMs), jumbo loans, option ARMs, convertible ARMs, interest-only ARMs, 40-year amortization terms, full doc loans, second home loans, and investment property loans.
FINANCING REQUIREMENTS FOR FOREIGN INVESTORS
Financing for Foreign Nationals may be available with as little as twenty (20%) percent down, assuming that you wish to verify your income and your assets through a fully documented loan process. With a down payment of twenty-five to thirty (25-30%) percent, there are options available which will require you to open up a stateside bank account so that mortgage payments can be automatically withdrawn from your bank account.
Different lenders may ask for different paperwork depending on their unique parameters, however, you will always be required to provide a copy of your passport to comply with the US Patriot Act, which was signed into law on October 26, 2001.
Income is verified, when required, through an accountant or CPA letter, translated into English and converted to US dollars. Income should be stated for the past two calendar years, as well as year-to-date. Assets are verified by obtaining all pages of the most recent two months of banking statements, and converted to US dollars. Most lenders require that the borrower have at least six months of mortgage payments remaining in the bank, after closing, for reserves to ensure that there is adequate money left over for the mortgage payments. Most lenders will also require credit reference letters to verify the repayment history in the Foreign National’s country of origin.
CLOSING COSTS (ADDITIONAL FEES TO ACQUIRE PROPERTY)
These costs will vary depending upon the type of loan, amount borrowed, the type of property purchased, and will include lender fees, title charges and miscellaneous charges like inspections and survey. For a quick estimate, you may figure that on a cash purchase the closing costs will be approximately 1.5% of the purchase price and if the property is financed (foreign national loan), the costs for acquisition, aside from the down payment, will range from 4 -7% of the purchase price.
For a complete explanation of the Foreign National Loan program, or to discuss your loan options, or to obtain a loan application, please contact us at