The light is green. Investors who have followed the US market in the last weeks, months, and years realize now: their time has come. The development of the US house prices, the interest rates and the USD exchange rate point in one clear direction - if you are thinking about investing, do it now!
Often times you can afford more than you would expect. But also, in some cases not as much as you were wishing for ... Regardless of whether it was something you have always wished for or a spur of the moment decision - when looking for a vacation home in Florida you should know in which price range you should be searching.
In almost all regions of Florida foreign investors can finance up to 70%. 70% - of what exactly? Of the purchase price? Of the published tax value? Furnished or unfurnished? And what about the boat?
In preparation for the purchase of real estate in the USA, the question about payment always arises first: cash payment or financing? And in the case of financing - do I finance in my home country or in the USA?
In every case, early organization of the required documents is an essential part to speed up the loan process. But it is possible to wait until the purchase contract is already signed. However, experience has shown that the available period from contract signing until the transfer of ownership is calculated to be relatively short, so it is more reasonable and important to take care of all documents in advance.
(This article is only available in German)
Once you have found your dream house after several trips, numerous viewings, and days of negotiations and got it under contract you will most likely wish you could move in right away, furnish it, set it up nicely, rent it out, vacation in it ... right?
In general you should expect an equity requirement of 30% when financing in Florida plus capitaln acquisition costs, reserves and contingencies. The exact amount this comes out to in your specificn case is a moving target and we will be happy to determine this for you in advance, so that you can run through different scenarios for your US financing and precisely plan for your capitalrequirements.
A few years ago the U.S. banks still offered a number of different loan programs. They differed in fixed interest rates, proof of liability, repayment arrangements, maturities and other features.
Due to the U.S. economy and the existing home inventory in the banks´ portfolios over the last few years, U.S. banks were only offering purchase mortgages.