Financing in Lake Mary>Question Details

Mrfinn, Home Buyer in Lake Mary, FL

Loan for Foreign National in Lake Mary, FL?

Asked by Mrfinn, Lake Mary, FL Tue Aug 18, 2009

Hi, I'd like to know is there are any place to get a loan in Lake Mary, FL. I.m a Foreign National planning to buy a second home for 60 000 dollars or less. Ready to pay 30% right away. But is the loan amount "too small"? And how difficult is the process (living in Northern Europe).

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The process is not difficult; however you will need to make at least 40% down payment + costs, or more.

One of the main advantages to investing in real estate is the ability to leverage capital, and so increase the overall return on your invested assets. So, in addition to the general HOA issue involved with condominiums, (including hidden problems such as inadequate reserves for replacements, commercial insurance, etc…), there is the additional dimension of financing to consider first.

Unfortunately, right now many condominiums, especially those purchased for investment purposes, do not qualify for low rate 'Agency' financing, or any financing at all. This is especially true here in Florida where many, if not most, condo associations are encountering problems related to non-payment of dues and fees…. which does and will continue to impact all of the share owners jointly.

While those problem can all be a benefit, in that the necessity for cash condo purchases has quickly deflated values and may present some attractive deals, it also increases your risk by tying-up more capital in only one particular property for an unknown period of time.

Whatever you decide, make sure you have your eyes-wide-open, and that you are working with someone experienced who understands, and can explain, all the financial issues which impact your investment decisions.

Ron Hobbs
Palm Springs Realty (Commercial & Residential)
Licensed Real Estate Broker, Mortgage Banker, CPA (inact.)
1 vote Thank Flag Link Sun Dec 27, 2009
Loans for Foreign Nationals in the state of Florida are hard to come by these day. Because the loan amount is so small you might want to consider a Hard Money loan.
Web Reference: http://www.flbestrate.com
0 votes Thank Flag Link Thu Aug 20, 2009
Most lenders require a $50,000 dollar loan and up.
0 votes Thank Flag Link Tue Aug 18, 2009
I don't know of anyone who is lending to foreign nationals. They're out there, I'm sure. After the subprime bust, it's been hard to finance these types of loans. That would be your first obstacle. It is possible to pull an international credit report and buy the property as an investment home (perhaps). The next obstacle would be the loan amount. When you start dipping below $60,000 in loan amount, discount points are assessed. A loan amount of $40,000 may be easier to go to a local bank and get a line of credit (even if the local bank is in the US). I would recommend this over going to a larger bank. The process is no different from any other. A local bank may be less difficult.
0 votes Thank Flag Link Tue Aug 18, 2009
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