If you are a foreign national looking to purchase property in the Miami area, you will need to apply for a foreign national loan. Before you jump into the process, there are a few things which are helpful to know about loans for foreign nationals. Let’s go over them now.
1. You will need to meet the foreign national loan requirements.
As a non-citizen of the US, you will want to start out by familiarizing yourself with the requirements to apply for foreign national commercial loans or foreign national home loans.
Items you will need to provide when you apply include an accountant’s income letter, an employer’s income letter, two credit card reference letters, two bank reference letters, and two recent bank statements. You will also need to bring a copy of the purchase contract, and you will need to fill out and sign your application.
Additionally, you will have to bring an escrow letter, a copy of your USA Visa and passport, and proof of residence in the country you are from. Additional documentation may also be required.
If you are self-employed, do not worry. This is a very common situation for foreign national loans. View a detailed list of foreign national loan requirements, and feel free to contact us if you have questions.
2. Be prepared for a significant down payment.
When you purchase a commercial or residential structure as a foreign national, that is seen as inherently riskier than a domestic real estate transaction. For that reason, the down payment which you need to provide will be higher than it would otherwise. You can expect to put down 25% at a minimum.
3. Interest rates may be lower than you expect.
You may have heard that interest rates on foreign national loans are higher than they are for conventional loans, but that is not necessarily the case. US citizens applying for conventional loans sometimes end up paying higher interest rates than foreign nationals do.
Plus, the good thing about putting more money down at the outset is of course that it means you will pay less in interest over the long run. Do the math carefully to figure out how much to pay upfront.
4. The home you are purchasing cannot be used as your primary residence.
For a lot of special loan programs, it is a requirement that the house being purchased will serve as the buyer’s primary residence. With a foreign national loan, the situation is the exact opposite. If the structure you are purchasing is residential, you must not be planning to live in it the majority of the time.
You can live in it part-time as a vacation home, but you will need to make sure that you are not encroaching on the definition of “primary residence.” Alternatively, you may acquire the building as an investment, or you can rent it out.
5. The application process may be surprisingly quick.
You might think there is more involved in processing a foreign national loan than a conventional loan. But in many situations, foreign national loans can be faster and easier to process because the credit history and tax return issues which US citizens must deal with may not be applicable in the case of a foreigner.
Not all lenders are well-versed on the task, since specialized knowledge is needed. So, plan and choose your foreign national loan company in Miami with care. Make sure that they have the expertise necessary and can work with you on your timetable to get your application processed.
Need Help with a Foreign National Loan? Give Us a Call
Lending Bankers Mortgage is an experienced residential and commercial lender in Miami, FL which works with foreign nationals on a regular basis. We can walk you through the entire process and answer all your questions, efficiently processing your application so that you can close on the Miami property you want to invest in. Please call (786) 220-1100 today to get started.