Foreign National Lending

November 19, 2008

Recent changes in lending practices have added some complexity to the loan process for foreign nationals.  It is important for any foreign buyer desiring to purchase Florida Real Estate to work with professional brokers who are familiar with the process.  Because banking institutions have been caught with so many bad loans they have raised the minimum down payments requirements to 30 percent in most cases.  Additionally, down payments and closing costs are now required to be “seasoned” or deposited in the lenders bank for a 30 days prior to close of the loan.  Additionally, escrow accounts for taxes and insurance are now mandated by the Treasury Department under the HOEPA statutes passed this July.



  1. I’m surprised these loans still exist.

  2. These loans do exist but they are no longer being sold on the secondary market. Banks originating foreign national loans and keeping the loans in their portfolios. Not all banks are willing to provide financing to Foreign Nationals but the ones that do often charge addtional origination fees in the area of 1 to 2 points. I have also had clients borrow funds against assets overseas to pay cash and take full advantage of the exchange rates.

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