Yes, whether you are a foreign national or a domestic out of state investor, you can finance the purchase of your vacation home or investment property. However, both types of investors should be aware of some common requirements and restrictions from many lenders.
For domestic investors, the process to finance your vacation home is similar to the one used to purchase your primary home. However, because you’ll most likely need to obtain a loan from out of state lender, the process can take a little longer.
Domestic buyers who want to finance also need to be aware that lenders can be strict about the reason for the home purchase. You also need to be prepared that your lender might require a higher down payment or charge a higher interest rate than they would for primary home loans.
Foreign investors will face some of the same hurdles that domestic out of state investors will face. However, if you want to buy a US property, be prepared for a tougher loan approval process than a domestic buyer.
It’s important to remember to choose a lender carefully. It might seem like all the loan terms are the same but the details could reveal a lot of limitations for foreign investors. Common differences you might encounter include:
- Limits to the minimum and maximum loan value.
- Higher down payments needed on reserve to close (at least 30% or more).
- Restrictions on which countries the lender will loan to.
- Higher interest rates.
- Restrictions to the type of property to be purchased.
In order to start the lending process, you’ll first need to obtain a U.S. bank account. Ideally, the bank you choose should have branches in the area you want to own property in. Foreign investors don’t have the same income, credit, or tax information domestic buyers have on record with the US government. Instead, international buyers might need a few months’ worth of bank or credit card statements or other financial records to qualify for the loan.
Whether you are a domestic out of state or a foreign investor, we can help you find the right lender to finance the purchase of your vacation home. Contact us today Milena@vivaorlando.com or 407.922.4620