In recent years, foreign financing has become a very common practice in Orlando. In fact, in the United States the foreign investor has the advantage of being able to secure a loan with very attractive interest rates. Investors from nearly any country in the world can obtain a loan in Orlando. However, not many US banks offer financing to foreigners. For this reason, Orlando Homes For Sale is always on the lookout for the very best financing options for our foreign clients.
What Is A Foreign National Loan?
A type of financing that is designed specifically for foreign investors, a “foreign national loan” is in high demand, thanks largely to the many foreign investors who choose to invest in the beautiful state of Florida. Foreign national loans have become increasingly common in the United States in recent years.
What are the requirements to obtain a National Loan?
Any foreign investor interested in obtaining a foreign national loan must be a current US visa holder in good legal standing. Common visas, such as tourist, business, or student, are sufficient to obtain financing. In addition to the visa requirement, all foreign investors must be able to show proof of income in their country of origin. This income must be at least three times the amount of the monthly installment on the loan.
What are the documents needed to obtain a foreign national loan?
The most important documents required are a current passport with a valid US visa, 2 months of bank statements showing sufficient money for the down payment, and the last two years of income tax filings. Additional documentation may be requested, such as a letter of recommendation from your bank and a letter from your employer verifying proof of employment, and possibly even credit card statements.
How much down payment do I need & what are the interest rates ?
Down payment amounts and interest rates on foreign national loans are different from those of the typical US home loan. To purchase property using a foreign national loan, the home buyer must be able to make a down payment of at least 25% of the property value. Interest rates vary based on the amount of the down payment. For example:
- With a down payment of 25%, the interest rate will be approximately 8.5% annually
- With a down payment of 30%, the interest rate will be approximately 6% annually
- With a down payment of 40%, the interest rate will be approximately 4.5% annually
- With a down payment of 50%, the interest rate will be approximately 3.99% annually
What is the minimum amount of the loan?
Foreign national loans do come with minimum property requirements. Such a loan will only be made on a property of at least $175,000, or in cases where the amount financed is not less than $100,000.
How long does it take ?
On average, it takes approximately 45 to 60 days to purchase a financed property. This reflects the time required by the bank to investigate all documentation provided by the investor. By contrast, a property that is paid in cash takes approximately 15 to 30 days to close. Following the 2008 crash in the US economy, banks have become increasingly strict when it comes to documentation.