This week we’ve been looking at some commonly asked questions about Financing Your Purchase of real estate.  Earlier in the week, we looked at potential options if you can’t or do not want to have a mortgage.  Now we’re going to look at a question from an overseas investor.

Q: I’m a British citizen looking to buy in Miami.  I have looked at the option of taking out a mortgage in the UK for my potential purchase.  However, I was wondering what I would need to do to obtain a mortgage against the property from a US based bank?

This is Curt Dyer, from South East Bankers.  Here’s a list of the items needed (they would be specifically itemized depending upon your particular situation):

•        A valid Visa and Passport, as you are from the UK.  If you were from a country where a   US visa is not required, a second photo ID could be used.

•        Copies of ID’s for all Borrowers   appearing on title and for spouse even when not on title

•        Document providing proof of Borrowers address in country of origin

•        Original CPA (Accountant) Letter (if self-employed)   showing income for the past 2 years and YTD income for both the Borrower and   the business, % of business owned, along with a copy of the CPA’s current   license.  Letter must be on   letterhead showing CPA’s address and phone number plus it must be AN ORIGINAL   WITH ORIGINAL SIGNATURE.  The CPA  must be an independent CPA, cannot be an employee of the Borrower’s   company.  If the Borrower is not   self-employed, an employment letter is acceptable stating income for the past   two years, YTD income, position and time on the job AS LONG AS THE COMPANY   APPREARS ON THE WEB AND CAN BE VERIFIED.    CPA LETTER OR EMPLOYMENT LETTER MUST BE IN   ENGLISH

•        Two ORIGINAL Bank Reference Letters   addressed to “To Whom It May Concern”.    The reference can only be based on a depository relationship and NOT A   CREDIT CARD.  The relationship   must be for a period of 2 years.    The Borrower must be mentioned by name and the letter can be a joint   letter referencing more than one borrower (Spouse etc.).  If used to document liquid assets, it   must have current balance and an average balance for the past two months.  If must be on the bank’s letterhead   containing date issued, address and phone number for bank and original   signature of signing officer.    Bank Reference Letter MUST BE IN   ENGLISH

•        Documentation of funds necessary to   close plus 12 months of reserves must be documented in one of the   following ways:  ALL FUNDS MUST BE   SOURCED (1) Verification of Deposit (2) Banking reference letter showing   account number, name of account holder, current balance and average balance   past 2 months, date account opened (same information normally found on   Verification of Deposit) (3) Most current two consecutive months of bank   statements.  ALL CASH   TO CLOSE TO BE ON DEPOSIT IN A US BANK PRIOR TO   CLOSING

Foreign National loans require a 35% down payment and have a minimum loan amount of $100,000.00.  You’ll need to reflect a minimum of 24 months of mortgage payment in your bank account.  These funds can be reflected in several accounts and they do not have to be “liquid” nor transferred to the US.  The bank is only interested in seeing that you have the capability of making the payments if necessary.  Keep in mind that because you have no credit history in the US there must be other compensating factors to prove that you’re credit worthy.  Large assets is one criteria that is given serious consideration when a loan is being approved.

Kelly Charles specialises in helping overseas investors find their dream home in Miami Beach.

www.britishmiamirealtor.com