Applicable to Investment (non-owner
occupied) transactions only.
How to obtain a
mortgage on a Florida property purchased as an investment - when you
are an overseas buyer.
Important:
Purchase of a home
for your personal use (2nd home, holiday/vacation home) may not be
considered an investment and is therefore not subject to the restrictions shown
below. Loan amounts up to $1.5M are available for these transactions.
It is easier to
apply for a mortgage when initially buying a property for investment purposes than
applying for refinancing (cash out) at a later stage – this is because the bank that
grants these loans have found a greater default rate with refinance mortgages. Indeed only
one bank will underwrite refinance transactions which severely limits the choice of
programmes.
Short-term rental
properties (which are determined by the area the property is zoned in as opposed to the
owner’s intention to rent) are subject to a 5% reduction in maximum loan-to-value.
Properties titled to
a corporation or LLC are subject to a 5% reduction in maximum loan-to-value.
Even when property
is titled to a corporation or LLC an individual is still
considered the borrower and must supply the required personal
identifying information.
The above conditions
apply to self-certified transactions. See exceptions below for fully documented
transactions.**
A strong asset base
(cash, equities, bonds etc) shown by borrower and documented by statements is always a
major plus point and can lead to exceptions being made.
** In a fully
documented investment property purchase (proven income, assets, source of funds and use of
property) loan amount exceptions can be made to increase the maximum loan to $1,500,000
These are the facts. Obtaining a mortgage
as a Foreign National in Florida is quite straightforward and does not need to be
complicated as long as you are in possession of the facts. Check
references before acting on any advice. |
