All posts in Foreign Nationals

Different Loan Choices For Your Fort Lauderdale Mortgage

by Justin Miller on July 12, 2011 in Conventional Loans, FHA Loans, Foreign Nationals, HomePath, Jumbo Mortgages with No comments

There seem to be a lot of different choices out there right now so you need to make sure you are dealing with a mortgage professional that will go over the best options for you.   I am a big fan of a big, long mortgage.  I would rather you put less money down making sure you have 12 months of reserves in the bank, are maxing out retirement, never having too much money tied up in any one asset, etc.  I prefer a 30 year fixed mortgage over a short time period because you can always make a 20 or 15 year payment but on a 15 or 20 year mortgage you can’t make a 30 year payment if money gets tight. 

I would be typing for days if I went into detail on the options below but I am going to list some of the options for now:

  • Conventional mortgage with less than 20% down with Borrower Paid Mortgage Insurance
  • Conventional mortgage with less than 20% down with Split Premium Mortgage Insurance
  • Conventional mortgage with less than 20% down with Lender Paid Mortgage Insurance
  • Conventional mortgage with more than 20% down
  • FHA 203(b) Mortgagte
  • FHA 203(k) Rehab Mortgage
  • VA Mortgage
  • Jumbo Mortgage
  • Fannie Mae’s HomePath Mortgage
  • Freddie Mac’s Homesteps Program (this is not a mortgage)
  • Fixed Rate Mortgage
  • Adjustable Rate Mortgage
  • Portfolio Mortgage
  • Foreign National Mortgage

I will try to write about each loan over the next few weeks.

Fort Lauderdale Foreign National Loans

by Justin Miller on June 16, 2011 in Foreign Nationals with No comments

I continue to read so many articles about how many foreign investors are buying up property in the US especially in Fort Lauderdale and South Florida.  It obviously has to do with falling home prices and a weak dollar on their side but nonetheless they see an opportunity which I would agree with.

Let’s talk about what is involved in getting a loan if you are a foreign national.  In most cases you have to put down 30% but with condos and larger loan amounts (above $500,000) depending on the bank, product, etc.  you are working with it could be more.   The following documentation is some of the documentation you will need because any bank/lender/broker can ask for more or less if they choose to:

  • Copy of a valid Visa, Passport, & Cedula
  • If you are self-employed you will need an original CPA letter showing income for the past 2 years, year to date income, percentage of the business owned, along with a copy of the CPA’s current license.  The letter must be on their letterhead showing the CPA’s address and phone number plus it must be AN ORIGINAL with Original signature. 
  • If employed- you will need an employment letter stating your income for the past 2 years, year to date income, position, and time on the job as long as the company appears on the internet.
  • 2 Original bank reference letters addressed To Whom It May Concern.  The reference can only be based on a depository relatinonship NOT A Credit Card.  The relationship must be for a period of 2 years.  You must be mentioned by name ande the letter can be a joint letter referencing more than one borrower.  If it is used to document liquid assets, it must have the current balance and an average balance for the past 2 months.  It must be on the bank’s letterhead containing the date issued, address, and phone number of the bank and original signature of the signing officer. 
  • You will need to have at least 6 months reserves that must be transferred prior to closing into the bank account of the investor lending the money.  Many banks want much more than just 6 months.

For further details feel free to contact me.

Foreign National Mortgage Financing

by Justin Miller on June 25, 2010 in Foreign Nationals, Mortgage Education 101 with No comments

I guess the best place to start is by defining what a foreign national is.  A foreign national is a non-US citizen that is a non-resident.  A permanent or non-permanent resident could be eligible for financing that any US citizen would be able to receive under Fannie Mae, Freddie Mac, and government guidelines contingent upon meeting their lending requirements. 

So why would you not want to be classified as a foreign national?  The reason is because these loans are not eligible for delivery under Conventional and government guidelines which will give a typical borrower lower down payment requirements and better interest rates.  A lender that offers financing to foreign nationals holds the loan in their portfolio (on their balance sheet) and services the loan because these types of loans are not eligible to be sold on the secondary market.

Every bank is different when it comes to foreign nationals but most require at least 30% down and a little more if you are buying a condominium.  There are banks that are doing fixed rate mortgages but typically most offer adjustable rate mortgages (ARMs).  For instance, one of my investors only allow ARM’s up to a maximum of 5 years and another that allows up to a 7 year ARM along with a 15 and 30 year fixed rates. 

The documentation that is required on these types of loans also varies from lender to lender but for the most part a copy of a valid Visa or Passport is required along with credit reference letters from a banking institution that they have had a relationship with for at least 2 years, a CPA letter showing income and employment history, 2 to 3 months worth of bank statements with a lot of reserves, a bank account opened in the US to hold the reserves, and making sure everything is translated into English and US dollars and originals of all.