The down payment is more than adequate for obtaining a loan here in Miami if you are a foreign national,however banks and non-private lenders still require that the income you receive to be in line with the debt to income ratios. If your rental income plus the current income from your line of work are sufficient you should have no problem. If not you may consider a private equity lender were the rates are much higher and usually require a 2-3 yr lockin and prepayment penalty.
If you are flipping and the return is there, that might be a viable choice. If not you may contact me and I can steer you to some lenders I have worked with for many years that will cut to the chase and give you a realistic
Carlos del Amo is a Florida real estate broker and President of Smart Growth Realty,LLC with over 20+ yrs experience in real estate and the financial services industry.
Now as far as getting an additional foreign national loan for the newer properties, it is possible but every case is different and additional information would be needed such as:
- It's not clear from your question but I should assume you have a mortgage on the Missouri properties, Correct?
- Did you buy the Missouri properties under a US corporation? If so, Have you claimed any of the rental income yet? If not, then you may have to qualify with all 5 mortgage payments plus the new one. Even if you did claim it in your corporate taxes, we can only use a certain percentage of the rental income for qualification.
Down payment could be between 30-50% depending on property type. There are certain minimum loan size requirements as well. And you would have to have certain amount in reserves depending on the lender. Rates will vary accordingly. These are just some of the requirements. Every case is different and has to make sense to the lender. Call or email me to discuss your situation if you want more information.
Provided by Jaci Shambley, Access e*Mortgage
Contrary to popular belief many mortgage lenders will lend to foreign nationals to purchase or refinance real estate in the United States and these loans are relatively easy to obtain.Â
First and foremost, a foreign national mortgage applicant will need to prove that they are in the United States legitimately.Â This documentation will need to be provided to a mortgage lender to get a foreign national loan approved.
Foreign nationals generally have access to the same types of mortgage loans as American citizens, including:
Â· 30 year fixed
Â· Interest only loans
Â· Minimum payment option loans
Â· FHA (No this is not a typo)
You may be able to buy a home in the US with an FHA foreign national home loan.Â An FHA mortgage is a mortgage loan in the United States insured by the Federal Housing Administration and allows a minimum low down payment of 3.5% to borrow money for the purchase of a home.
You arenâ€™t required to be a US citizen. If you hold something other than U.S. citizenship, the lender must ask for and examine additional documentation and determine your residency status.
If FHA is not the way to go for you, greater news is some lenders will often allow a borrower to purchase a property with as little as 10% down.
As well as other lenders will allow a borrower to refinance (no cashout) up to 90% of the property value. This type of refinance, where no cash is taken out, is a rate and term refinance that serves to lower the monthly payment.
Lenders will often lend up to 80% of the value of a property for a cashout refinance.
Property types that a foreign national may borrow on include single family residences, condominiums, and townhouses.
Loan amounts vary from $100,000 to $5 million.
You will need to check with a specific lender to see what guidelines they follow.
And getting the loans approved through underwriting is generally a snap.Â One condition to watch out for is that most lenders require the amount needed for reserves to be in a US bank account, just as the down payment â€“ if required.Â There are only about 6 US based banks that allow for true foreign nationals to open up accounts while out of the country.Â Having these funds transferred can take a couple days and a paper trail is needed.Â Of course, if youâ€™re using no documentation loans then this wouldnâ€™t apply.
As you can see programs and options are available to help non-U.S. citizens understand the process and overcome the obstacles of financing a home in the United States.Â So next time someone says you can't tell 'em Jaci from Access e*Mortgage says,
South Florida is a great area and there are amazing opportunities in today's market throughout the region. I can tell you that, in my humble opinion, there is no safer investment with better returns than buying the right investment properties, in the right locations and the right price in southern Florida. I deal daily with investors in Palm Beach and Martin Counties and the biggest obstacle is getting contracts as the best deals get snapped up very, very quickly and most often it is a multiple bid situation. Fannie and Freddie now require that investors sit on the sideline for their listings for 15 days+/- to give owner occupants the first crack. I tell anybody who will listen to buy as much of the right properties as you can as this is a unique opportunity to position yourself for financial security in the future. You may be interested in reading one of my previous blogs on the subject;
Most of the projected returns I deal with are well in excess of 10% annually for those paying cash and planning on a hold period of at least 4 to 5 years. We run a detailed financial analysis on each deal before making offers and if you would like to take a look at how I put that together please feel free to contact me at your convenience. We look closely at recent rental rates, inventory and absorption in each community to ensure your risk is limited.
If you would like to borrow funds for investment your returns will be significantly lower but as prices rise the leverage may provide you a better overall return. Loans are available but underwriting is more stringent than in the past. The best thing you can do is speak with a qualified lender who can provide detailed guidance on what the loan costs will be as they are changing daily. If you need any help locating a lender here in the area I have some wonderful professionals who would be good to speak with.
Most of the best returns are found on smaller deals ($50,000 to $125,000). Do not overlook the paradise we enjoy here in the Jupiter area as there are great opportunities around here and I think because of the quality of life long term returns will be better than other areas. Over the last few months I have assisted three buyers trying to escape Ft. Lauderdale and Miami and are moving to the north county area. Here is another blog you might enjoy;
If you have may have any interest in Palm Beach or Martin Counties or if I can answer any other questions, just let me know.
Always at Your Service,
Tom Priester e-PRO
"Results Driven Real Estate"
Keller Williams Realty