There are multiple adjustable rate mortgage programs designed for foreign buyers and investors in Florida. These loans can be amortized over 30 years and generally have a fixed rate for several years, depending on the program that best suits the buyer.
One of the programs most used by foreigners is the fixed rate for the first 5 years of the loan, which is then converted to an adjustable annual variable rate.
Some of these loans can be canceled before the stipulated time, paying the principal of the loan without any type of prepayment penalty.
Minimum conditions to qualify for a mortgage loan:
- In general, a series of documents must be provided to qualify, which vary depending on the institution where the loan will be presented.
- Banks typically require the following information:
- Verify that the client has at least two years of employment or more
- A certified letter from your accountant or attorney regarding your source of income
- Provide at least 2 or 3 bank and credit references (they can be from any country)
- Demonstrate that funds for down payment and closing costs have been deposited into US accounts. Funds for “reserves” can be verified in personal accounts in your country
- A copy of your passport
- Receipt of a service such as electricity or water, to verify your country of residence
Algunos datos importantes:
- Generalmente son requeridos un mínimo de 30% de inicial y va aumentando según el tipo de propiedad que se adquiere.
- La mayoría de los bancos empiezan a financiar a personas extranjeras a partir de un monto de compra de aproximadamente US$200,000.
- Las tasas de interés para préstamos extranjeros oscilan entre un 5.125% a un 7%
- En algunos casos, los intereses pudieran llegar hasta un 10% si es que se opta por un préstamo privado.
- Además de la inicial, deben tomar en consideración los costos de cierre: entre un 5% a un 8% del valor de la propiedad.
- En EE.UU. no hay discriminación de edad para otorgar préstamos hipotecarios.
- Si usted quisiera hacer pagos extraordinarios a su hipoteca, no disminuirá su cuota mensual pero sí reducirá el tiempo de su préstamo.
What would my monthly payment responsibilities be?
Most American mortgages are payable every month and your local bank can arrange to make the payment through them directly. Property taxes and insurance premiums are collected monthly by the lender and paid by the lender annually.
Generally, your bank will discount monthly:
- Mortgage
- Insurance (flood, casualty, hurricanes)
- Third party insurance (optional)
- Property tax
On the other hand, if there is an association or condominium board, you will be responsible for directly paying the monthly maintenance cost.
What is the process to apply for a home loan as a US resident?
The first step in acquiring a property with a mortgage loan is prequalification.
There are several government approved programs for those looking to obtain a loan, such as FHA, Conventional and VA.
FHA or First Time Home loans have the advantage of only requiring a 3.5% down payment and a credit score of at least 580, but they have the disadvantage that only single-family homes and most townhouses with a Lot / Description description qualify. block.
Conventional loans require a 5% down payment and a minimum credit score of 620.
VA loans for war veterans do not have down payment requirements, they only need to show the Certificate of Eligibility and the DD214 or document of discharge from military service.
The basic requirements to qualify for a loan are:
- Personal identification (driver’s license)
- Social Security number
- Last 2 bank statements and last 2 years of completed personal tax return
- For employees who receive a fixed salary, they must present the W2s for the last two years and the pay stubs for the last two months.
- For freelancers or business owners, they must file 1099s for the last two years and company tax returns for the last two years.
