Florida Vacation Homes With as Little as 25% Deposit - Mortgage Options for International Buyers are Back
By: Justine Assal •
With mortgages finally available again for international investors looking to purchase Florida real estate, owning a villa or condo in Orlando, Sarasota, Naples, Miami and many smaller cities through-out the state has never been more popular. It is the last piece of the puzzle to really fuel real estate investment throughout the state in what is arguably the hottest market in years.
Bidding wars have once again become quite commonplace with property values on the rise and buyers competing to jump into the market now. Over the past couple of years, there was a slight slowdown amongst certain international vacation home buyers with a strong US dollar exchange rate, uncertainty surrounding BREXIT and rumors about US intolerance for immigration. Each of these issues seems not to be standing in the way of a wave of vacation home buyers from around the world and is being fueled by confidence from the mortgage industry which has been very hesitant about offering US dollar mortgages to international buyers since the Great Recession 2007-2009.
For the past few years, buying vacation homes and investment property in Florida has largely been for the cash investor. This has become more challenging for some investors giving the strength of the USD against other currencies but the winds of change are upon us. After sitting on the sidelines for several years and making it quite difficult for international buyers to qualify for a mortgage, there are many mortgage lenders and banks who have re-entered the market with programs for the Non US resident or foreign national (the terminology given to a Non US resident mortgage program). The programs vary between city, lender and property type and offer as little as 25% deposit – almost where they were before the recession and collapse of the industry. Now that doesn’t mean that they are giving them away as easily as they used to and applicants should assume that they will be put through the ringer with a 60 day processing quite common and proof of at least 2 years of income and sufficient assets. For qualifying applicants, this is a game changer for many however as a less than desirable exchange rate is not necessarily a viable reason not to purchase now and with prices increasing so rapidly in the market and buyers trying to outbid each other to purchase, waiting for currency adjustments could actually cost far more in the long run as values continue to climb.
If you have considered buying a vacation home near Disney, a condo in Miami, or a waterfront home in Sarasota, we would advise taking a serious look now and not waiting as this hot market is not showing signs of a bubble and in fact is largely considered a correction to get back to where the market should have been as Florida real estate is still quite below the national average. With more financing tools available, construction at an all-time high and the possibility of rental income to help supplement the on-going cost of the property, buyers can find themselves in a 3-9 bedroom villa 5 minutes from Disney with a purchase price of $300,000 to $800,000 and only a 25% deposit. Beachfront, riverfront and lakefront property is still available through-out the state, at varied pricing, with both detached villas and condos that allow you to walk out onto the sand and drink your morning coffee (perhaps a give-away as to my location while writing this article). We should probably be well advised to stop telling everyone how great it is here but the Florida real estate market is truly on fire and the mortgage industry must agree as they are back to support what they see as a sound purchase.
If you have interest in learning more about whether you qualify for a mortgage and what options are available in your budget, possible fly and buy programs available, new and exciting developments, and ahead of the market opportunities, we would be happy to connect you with top industry professionals, please click below for more information.
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