By Dustin R Burke, Adonai Financial

Foreign National loans are loans made to international clients, or clients who do not keep their primary residence in the United States.  In recent years foreign national loans have become increasingly popular because of the waning US dollar.  The weaker dollar makes Florida real estate, and other US real estate, very appealing to purchasers from other countries.

It is relatively simple for foreign nationals to obtain competitive dollar financing in the US for a property secured in the US.  The borrower cannot have diplomatic immunity and it’s preferable if they participate in the Visa Waiver Program (most countries do).

The current mortgage market requires that the borrower put at least 25 percent deposit, document their income via an accountants or employer letter, and verify the funds for deposit belong to them.

If a borrower cannot provide income documentation and need to do what is called a “stated income” loan, then the borrower can place an extra 5 percent down towards the deposit.

The bank requires an appraisal or valuation report on the property and some banks require an international credit report.  It takes anywhere from two to four weeks to complete the loan paperwork and is very simple process.

What are your thoughts on loans to foreign nationals?  Send me an email at dustin.burke@adonaifinancial.com.

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Copyright © 2008 Dustin R Burke

Portions Copyright © 2008 Adonai Financial Corporation