What Is Going On With Foreign Home Buyers?
According to CNN Money they are buying cash. The article goes onto say that it is so difficult for them to secure a mortgage. I wouldn’t necessarily agree with that because at Great Florida Bank we do them and I don’t find them that difficult. The only down fall I see are that rates are higher than for US Citizens and you have to put 30-40% down.
The reason for the rates and down payment is because the foreclosure process is much harder and longer with a foreign national. I read an article about a year ago in The Wall Street Journal that stated the foreign national loans had the lowest default rate in the industry.
My suggestion to a foreign buyer would be to not listen to the media because you are just going to get confused about the process and about interest rates. Whatever the case may be, consult a mortgage expert.
“American real estate has always been a good investment for a long- term hold,” Hildebrand said. “It’s relatively easy for internationals to hold real estate in the U.S. than in other countries where there are more caveats.”