How to obtain a mortgage loan as a foreigner?

There are multiple mortgage programs with adjustable interest rates designed for foreign buyers and investors in Florida. These loans can be amortized over 30 years and generally have a fixed rate for several years, depending on the program that best suits the buyer.

One of the programs most used by foreigners is the fixed rate for the first 5 years of the loan and which is then converted to an annual variable adjustable rate.

Some of these loans can be canceled before the stipulated time, paying the principal of the loan without any type of penalty for early payment.

Minimum conditions to qualify for a mortgage loan:

In general, to qualify, a series of documents must be provided that vary depending on the institution to which the loan will be presented. Banks typically require the following information:

1. Verify that the client has at least two years of employment or more
2. A certified letter from your accountant or lawyer regarding your source of income
3. Provide at least 2 or 3 bank and credit references (they can be from any country)
4. Demonstrate that funds for the down payment and closing costs have been deposited in US accounts. Funds for “reserves” can be verified in personal accounts in your country
5. A copy of your passport
6. Receipt of a service such as electricity or water, to verify your country of residence

Some important information:

• Generally, a minimum of 30% down payment is required and increases depending on the type of property being acquired.
• Most banks start financing foreigners from a purchase amount of approximately US$200,000.
• Interest rates for foreign loans range from 5.125% to 7%
• In some cases, interest could reach up to 10% if you opt for a private loan.
• In addition to the initial payment, they must take into consideration the closing costs: between 5% to 8% of the value of the property.
• In the US there is no age discrimination in granting mortgage loans.
• If you would like to make extraordinary payments on your mortgage, it will not reduce your monthly payment but it will reduce the duration of your loan.

What would be my monthly payment responsibilities?

Most American mortgages are payable each month and your local bank can arrange to make payment through them directly. Property taxes and insurance premiums are collected monthly by the lender and paid by the lender annually. Generally your bank will deduct monthly:

• Mortgage
• Insurance (flood, accident, hurricanes)
• Third party insurance (optional)
• Property tax (property taxes)

For your part, if there is a condominium association or board, you will be responsible for directly paying the monthly maintenance cost.

*Approval is subject to the financing and credit policy of the financial institution