I'm from the UK, and have $300,000 to invest, but I'd like to buy a property for $1,000,000. Will I be able to get a loan for the rest?

Asked by Uk Buyer, Coral Way, Miami, FL Fri Sep 10, 2010

Alternatively, would I be able to buy a few properties (eg. 2 condos for $500,000 each) by only paying a 30% downpayment on each?

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15
George, Home Owner, Miami, FL
Sun Mar 27, 2011
Hi! my name is George, I'd like to sell my condo owner to owner, the property is located on Brickell Ave,Miami.
the building was built on 2008, if you're interested contact me at 786-231-7663 probably we can make some bussines.
0 votes
Steven Epste…, Agent, Coral Gables, FL
Tue Oct 5, 2010
Have you got your answer yet? Or do you need a professional to help you? If so, please call 786-581-1476 and ask for Steve Epstein. THanks
0 votes
ANDREW OLLICK, Agent, NAPLES, FL
Sun Sep 12, 2010
You might be able to get a Hard money loan for the 1mil property, however the rates are pretty high.

When it comes to fewer properties, as long as you still to a maximum $417K amount per property, you can get 30% down financing at good rates, given that your income supports the debts.

If you'd like to get pre-qualified and discuss your options, don't hesitate to call us: 239-206-4500 or skype: napleshomes. My husband and I own a mortgage brokerage and will be able to help you.

Elena Ollick
Amerivest Realty
Faith Home Loans
239-206-4500
eo@oceanhomesrealty.com
http://www.andrewollick.com/realestateblog
0 votes
Stephanie Le…, Agent, Miami Lakes, FL
Sat Sep 11, 2010
It can be done if you work with the right team (team meaning a Realtor and mortgage professional).

You will need to work with a Realtor who has worked with foreign buyers and can advise you regarding your specific situation. Usually a Realtor can recommend a mortgage professional to work with.

The key is knowing what your options are. With the right team working in your best interest you will be able to buy any property.

If you would like to know more about buying in Miami, FL feel free to contact me at stephanieleon@avantiway.com.

If you would like to browse properties and information on real estate in Miami check out the following link: http://www.letstalkmiamirealestate.blogspot.com

Looking forward to hearing from you,

Stephanie Leon
Avanti Way
786-664-77110
Web Reference:  http://www.sleonrealtor.com
0 votes
Don Kelbick, , Miami, FL
Sat Sep 11, 2010
I believe a lot of these answers are theoretically correct, but right now it is very difficult to buy a condo for 30% down, especially one for a foreign investor. Most lenders are looking for more.

It is not impossible, but very difficult to find a building that will qualify for financing at all. Would would be best served by buying into a new project where the developer is still selling and has financing agreements. You might find more success there.
Web Reference:  http://www.dkrealtor.com
0 votes
Karen Wantuck, Agent, Sarasota, FL
Sat Sep 11, 2010
Yes you can, and I have the names and numbers of brokerage companies that will lend to you but as stated below by one of the agents who works in my part of Florida..it is much more difficult for you to borrow than someone from the US (and standards have gotten a lot tougher for us as well).

This past year I have sold to a couple from Brussels, another from England and three from Canada. Last year to people from Norway, so my clientele is compatible to your needs. In all instances they found it easier to pay cash in the USA....

Not to deter you though. If you would like the names and contact info for borrowers who tell me they can help you, please email me.

Do you already have the property you want at hand in Coral Way? Are you working with a real estate agent at this time? If so, that agent should be able to help you.

If not, our system is quite different than yours (I'm married to a Manchester man, by the way....for 34 years and I was over recently as well). In the UK agents can only show and sell you property that they have listed. In the USA, one agent can show you and sell you EVERYTHING AND ANY piece of property (except for trailers that sit on land they do not own).

If you are not committed to an agent, or to Coral Way, then I would be happy to also send you fabulous homes from Sarasota/Bradenton along with the mortgage brokers who can help you borrow.
Web Reference:  http://sarasotakaren.com
0 votes
Jose Diehs, Agent, Doral, FL
Sat Sep 11, 2010
Yes you can. You have gotten very got input below, let me sumarize it for you and give you what I can get you.
In summary:
1.- 30-40% down payment on the property depending if it is (house or condo)
2.- Interest rates I can get for you aren between 5.75 and 7% currently. Keep in mind, that normally are adjustable loans. Like 3/1, 5/1, 7/1 which means they will remain fixed for the first 3,5 or seven years and then adjust every year based on a index(libor, treasury,prime, etc) plus a margin.
3.- The approval will be full docs. Meaning full disclosure of income and assets, etc.
4.- Also, you might not be aware that when you sell the property, you might have to pay 10% of the selling price as taxes. FOREIGN INVESTMENT IN REAL PROPERTY TAX ACT (“FIRPTA”).
5.- I am a real estate Broker and a Mortgage Broker. Let me know if I can of further help.

Jose Diehs, Miami, 786-487-1263
0 votes
Steven Epste…, Agent, Coral Gables, FL
Sat Sep 11, 2010
Hello UK Buyer, You may be able to get a 70% LTV mortgage so your numbers are okay, provided 1) you're buying a single family home versus a condo or townhome; 2) you're able to provide verification of income from your home country eg. 3 letters of reference from persons you have business relations with, suppliers, vendors, etc that can vouch for your creditworthiness, a letter from your accountant & profit & loss statements as applicable, there may even be a cross-reference credit reporting system between the US & UK that can be verfiied, a letter(s) from your banker(s). All of these are to show ability to repay the loan. Also be advised that you will NOT be paying the low interest rates afforded to US Residents & Citizens living & working here, eexpect to pay from 8% to 15% depending on your ability or willingness to provide all what the lender is looking for. These Foreign National loans are funded by different sources than the boiler-plate locals' loans & also there's NO government backed buyer on the secondary mortgage market for them (like FNMAE & FHLMC). So these loans are usually portfolioed by the lender & never sold, or they are private instituional and/or wealthy individuals funds. In today's market they are a "Niche maket loans" and when you're ready, with my over 30 years experience as a Real Estate Broker-Salesman I can put you in touch with a few private lenders that may work with you. Trust this helps along with some of the other answers and I look forward to the opportunity of earning your business. Steve E
0 votes
Melissa Ante…, , Boca Raton, FL
Sat Sep 11, 2010
HI UK Buyer,
As far as your first question yes you would be able to buy a home using your foreign income and a 41% debt to income ratio. I can go up to 70% Loan to Value (30% Down) up to 1 million loan amount for second home or investment of a single family home or townhouse and can go to 65% (35% down) Loan to Value from 1 to 3 million loan amount on a second home or investment (note the rate will be different for second home to investment) for a single family home or townhouse. Please also be aware you will incur closing costs for any transaction so on the above scenario you would put the 300k down on your mortgage and still have the closing costs. If you only have 300k to invest you need to adjust your numbers. For your second scenario should you want to purchase a condo you would be looking at 60% Loan to Value (40% down) for a second home and 50% Loan to Value (50% Down) for an investment condo purchase. I hope this helps and happy searching!
0 votes
Bill Eckler, Agent, Venice, FL
Sat Sep 11, 2010
UK,

In short, YES it's possible to make arrangements for US funding....but we always advise our foreign national borrowers to investigate borrowing options from their native country prior to doing so in the US. The results can be suprising.

Because of the recent banking woes it has become more difficult for all borrowers to obtain loans. With this said, some of the common financing guidelines for foreign borrowers may include:

1. primary and second/vacation homes only

2. single family, condo, townhomes

3. 70% loans

4. credit score minimum 700(international credit report)

5. maximun financing=$1,000,000-$1,250,000

6. minimum financing=$100,000

7. full documentation

8. expect interest rates to be higher than today's average rates(higher risk with foreign buyers)


These conditions will likely vary from lender to lender but again our recommendation is to begin locally with your gathering of information so you'll be able to use this as a basis for comparison.


Good luck,

Bill

Michael Saunders & Company
billeckler@michaelsaunders.com
941-408-5363
0 votes
Donna Concan…, Agent, NEW SMYRNA BEACH, FL
Sat Sep 11, 2010
If you have 30% down, debt ratios are in line, employment verification etc there should not be any issues with you getting a loan of $700,000. I'd HIGHLY recommend that you search for your new home in NEW SMYRNA BEACH! Please go to my website for a feel of our seaside community where every one still "smiles" their Good Mornings!
Donna Concannon
Prestige Properties
386-235-8588
Web Reference:  http://www.nsbhomes.com
0 votes
Nayla Benitez, Agent, Miami, FL
Fri Sep 10, 2010
Hi,

The best person to answer this question for you is either a Loan Consultant in a Bank or a Mortgage Broker, as Realtors we should only provide information relative to the property you are looking to buy when it comes to the financial aspect is best you speak to a person that specializes in that field. With all the issues going on today with banks their criteria's are often changed or modified constantly and a mortgage broker can tell you what you what can of loan you will qualify for based on your financial standing.

After you figure it out, give me a call and i will be more than happy to assist you on the real estate side.
0 votes
Gustavo Diliz, Agent, Aventura, FL
Fri Sep 10, 2010
Yes UK Buyer. You can buy in the USA with the 30% of downpayment and the rest to financing. You can call me any time at 1-305-692-9988 or fax 1-786-522-0071. My email: dilizmortgages@gmail.com. Good luck.

Gustavo Diliz
Lic. Mtge. Broker
0 votes
Beth Jenkins, Agent, Miami Lakes, FL
Fri Sep 10, 2010
Hi UK buyer,
I believe that as a foreign buyer you will need to put 50% down.
If you would like a referral to a mortgage person feel free to contact me. It may be a smarter move to buy several properties rather than one as you suggested.
I would be happy to assist,

Beth Jenkins
South Florida Brokers
786-374-4778
Web Reference:  http://www.arealtyteam.com
0 votes
Janet Nation,…, Agent, Baldwin, NY
Fri Sep 10, 2010
I'm from the uk too. Speak to a loan officer, we can't possibly answer your question.
0 votes
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