If you're considering buying a home in South Florida, either as an investment, vacation home, or permanent residence, it's important to consider the terms and conditions of getting a mortgage loan. Many financial institutions offer mortgage loans, from local and national banks to online financial institutions and private lenders.
Getting Approved for A Mortgage Loan
With low mortgage rates (ranging between 4 and 6%) many buyers choose to finance their purchase. The following are some of the most common factors that influence the terms and conditions of the loan:
Your nationality (if you are a foreign national)
Legal status in the United States
Your credit history (if you have one)
Your income and bank accounts
Requirements for getting a mortgage as a foreign national:
An entry visa is required, depending on the buyer's nationality. All non-resident foreign buyers must submit a copy of their passport with a valid tourist visa (B-1 or B-2).
At least 20% to 30% of the value of the property as a down payment.
At least 30% to 50% of the value of the property as a down payment for condominiums.
Proof of income:
Reference letters from your bank or credit institution
Two forms of identification
The costs of obtaining a loan vary from institution to institution and depend upon the services of a mortgage broker, if you are using one.
You can use the following guidelines as a reference:
Getting a mortgage loan directly from a local bank tends to be cheaper. However, it will be limited to that institution's specific financial products.
Hiring the services of a mortgage broker is very common and, despite usually being more costly than going directly to a financial institution, you'll have a much wider range of options.
The interest rate varies. The interest rate you’ll be offered depends on your credit history, monthly income, debts, type of property, and bank accounts. If the client doesn't have an established credit record, they will be required to pay a higher interest rate or be required to increase the down payment.
The down payment varies, depending on:
The type of property that will be purchased:
Condominiums require the highest down payment (typically from 10% to 40%). However, some lenders are starting to finance with as little as 3% to 5% for Fannie Mae approved condos or on portfolio financing programs.
Townhouses require between 10% to 30% down payment for condominiums and 3% to 10% for Fee Simple Townhouses
Single-family homes have the lowest down payment (usually 3% to 10%)
Foreigners with no established credit history are required to pay a 30-40% down payment. This payment increases depending on the home country risk.