Are you a foreign national buyer looking to invest in Florida Homes?
Here are some frequently asked questions regarding Foreign National Mortgage loans in Florida:
Are there any upfront fees to be paid?
There are no upfront fees to be paid to the bank on mostForeign National loans. However there are certain costs that will arise throughout the property purchase process. Some examples of these expenses may include an appraisal to verify the value of the home and an insurance policy to protect your investment.
What different repayment methods are available?
There are many different repayment methods available to our clients, we will customize your loan to fit your specific needs.
What is the interest rate that I will be charged and for how long does this rate apply?
These figures will vary by loan type and will be customized to your personal situation. Interest rates start in the 4% range and adjust from there. Most foreign national loans will be amortized (spread out) over 20-30 years and have a fixed introductory period of 2-10 years.
What is the lenders normal variable rate?
Rates will be determined by your specific scenario. However, most of our clients obtain financing in the 4-6% range.
Are there any penalties for repaying the mortgage early?
This is also determined by your specific scenario. The lowest rate mortgage option may have a prepayment penalty but you help to determine the terms of the loan by letting us know your short term and long term goals. We can structure a mortgage product to fit your specific investing needs.
I take it there will be no mortgage indemnity premium for this loan %?
Correct. Since all mortgage programs for foreign investors require at least a 20-30% down payment there is no mortgage indemnity premium (referred to as mortgage insurance in the US).
Is there an arrangement fee to pay and if so will I get this back if my application does not proceed?
We do NOT charge upfront application fees or arrangement fees on our loan programs for foreign investors. We make it easy to apply for a real estate loan and encourage everyone to apply and see if they can improve their investment portfolio.
Is the mortgage portable to another property if I decide to move?
No, mortgages in the US are directly tied to the property.
Am I allowed to make partial repayments of capital or increase my monthly repayments if I wish to repay the mortgage early?
This will vary by loan program. While there are prepayment penalties on some of our properties, they are typically only for the first year or two. You may pay down your loan in any increment after that period is completed without penalty. Also, you may be allowed to prepay up to a certain percentage per year without penalty.
Are there any other conditions attached to the mortgage? Will I have to buy your insurance?
The purchaser of the property does not have to buy our insurance, we do not sell insurance. We can recommend an insurance agent if you would like. Property insurance is a must on home purchases in the USA. You want to protect your investment and insurance is the way to do that.