How Peruvian Nationals Can Get Mortgages in Florida
In Florida, you don't need to be a U.S. citizen to buy a house. Even if you're from Peru, you can still purchase property. You also don't need a green card to become a homeowner in the United States. There are many loan options designed to help people from other countries buy homes in America, including Florida.
This information will cover everything you need to know, specifically focusing on home loans available for people from Peru who want to buy property in Florida. There are several important things to think about when buying a home in the U.S. as someone from another country.
Table of Contents
- Mortgage Loan Requirements for People from Peru Buying Property in Florida
- Eligibility for Mortgage Based on Citizenship Status
- Types of Mortgages in the United States for People from Peru
- Mortgage Options for Peruvians Buying Homes in Florida
- Steps for First-Time Peruvian Home Buyers in Florida to Apply for a Mortgage
- Bottom Line
Mortgage Loan Requirements for People from Peru Buying Property in Florida
A mortgage is a special kind of loan you get from a bank or another financial company to help you buy a house. The house you buy is used as security, meaning if you can't pay back the loan, the bank can take your house and sell it.
To get a mortgage in Florida as someone from Peru, you need to have certain papers ready. Mortgage companies want to see these papers before giving you the money to buy a house.
Length of Stay in the U.S.
You don't need a green card, but if you have one or a work visa that's good for at least three years, the bank will want to see it.
This shows you're allowed to be in the U.S. People from Peru without a green card or a long-term work visa can still get a special kind of mortgage called a "foreign national mortgage."
This is often offered by banks and private loan companies to people who want to buy a vacation home or other property in Florida.
Proof of Money
The bank will want to see that you have enough money to pay for the down payment on the house and other costs like taxes.
You'll need to show that you've had a stable income for the past two years. If all your money is in Peru, you can get someone to translate your bank statements and pay slips into English.
Having a good credit history in the U.S. makes getting a mortgage easier.
If you don't have much credit history in the U.S., banks might look at an International Credit Report (ICR) to see if you're a good person to loan money to for buying a house in Florida.
If you recently switched jobs, mortgage companies in Florida will ask for pay stubs, employment verification, and income details from your old job.
If you're self-employed, you'll need to provide extra papers to prove your income.
Other Required Documents
To get a mortgage loan in Florida, people from Peru need to prepare a lot of paperwork. Here is a list of additional documents you might need:
Employment Authorization Document (EAD) - Shows you can legally work in the U.S.
Proof of Income - Confirms how much money you make.
Ability to Make Mortgage Payments - Shows you can afford to pay for the house over time.
- Visa Status - Shows if you're allowed to be in the U.S.
Commonly Required Forms
Most of the time, lenders will also ask for these papers:
W-2 forms from the last two years - These forms show your yearly income.
Names and addresses of employers for the past two years - Tells the lender where you've worked.
Pay stubs from the most recent month - Shows how much money you're currently making.
Bank statements for the past 2 months - Gives a snapshot of your financial health.
Tax returns for the last two years - Offers more detail about your income.
Current year's profit and loss statement (P&L), if self-employed - Shows how your business is doing financially.
Proof of other income like alimony or child support - Confirms additional money coming in.
Statements from investment accounts - Helps prove you can afford the down payment and will be able to pay back the loan.
- Credit score or proof of regular bill payments - Demonstrates your history of paying back money you owe, like utility bills or rent.
All these documents help the lender decide if you're a good candidate for a mortgage loan for buying property in Florida.
MakeFloridaYourHome is available to assist people from Peru in purchasing property in Florida. We can discuss various loan programs with you to determine the specific requirements based on your unique situation.
Additionally, we can help connect you with lenders who specialize in providing mortgage loans to foreign nationals. This makes the process of obtaining a mortgage more accessible for you.
Eligibility for Mortgage Based on Citizenship Status
Your citizenship status affects how you can get a mortgage in the United States, including Florida:
Permanent Resident Aliens - If you have a green card and a social security number, getting a mortgage works much like it does for U.S. citizens. You'll go through the usual application process.
Non-Permanent Resident Aliens - If you don't have a green card but have a social security number, you can still get a mortgage. You'll need a work visa or a special visa from your employer. It helps if you can show you'll be in the U.S. for at least three more years.
Immigrants or Asylees - If you're an immigrant or have been granted asylum, you can get a mortgage much like a resident alien. You'll need to show proof that you're a refugee or asylee to qualify.
- Ineligibility for Some Loans - If you're in the U.S. without legal status, you can't get home loans from Fannie Mae, Freddie Mac, or the Federal Housing Administration.
Knowing your citizenship status will help you understand what kind of mortgage you can apply for when buying property in Florida.
Types of Mortgages in the United States for People from Peru
In the United States, there are three main types of home loans that people from Peru should know about if they're considering buying property in Florida: fixed-rate, adjustable-rate, and interest-only mortgages.
A fixed-rate mortgage has an interest rate that stays the same for the entire time you're paying back the loan. The most common length for this type of loan is 30 years, but you can also get 15- or 20-year loans.
With fixed-rate mortgages, your monthly payment remains the same, making it easier to plan your budget. This is a good option if you plan to live in the home for a long time, at least five years, and want predictable payments.
Adjustable-Rate Mortgages (ARMs)
An adjustable-rate mortgage has an interest rate that can change. The most common kind is called a 5/1 ARM. For the first five years, the interest rate stays the same. After that, the rate can change once every year.
This might be a good choice if you plan to sell the home soon. However, you should be prepared for the risk that your payments could go up over time.
Interest-only mortgages let you pay just the interest on the loan for a set period, usually between five and ten years. After that, you start paying the loan principal, which is the original amount you borrowed.
While this lowers your initial payments, it's riskier because you're not building any ownership in the home, known as equity. These loans are better suited for those who are certain they can sell or refinance the home before higher payments kick in.
Mortgage Options for Peruvians Buying Homes in Florida
If you're from Peru and considering purchasing a home in Florida, there are various loan types available to you. These include conventional home loans as well as loans specifically tailored for individuals from other countries. One option to consider is the DSCR loan.
A DSCR loan is for people who earn money from properties they already own, instead of those who have a traditional job.
Lenders use this type of loan to quickly see if you can pay it back, based on the money your property is making. This can be beneficial if you have expenses related to your property that might disqualify you for a standard loan.
Who should consider a DSCR Loan
Individuals who prefer not to share employment documents like tax records or salary slips.
Those who plan to buy a property and sell it, provided they keep it for at least 6 months after securing the loan.
- People who already own investment properties and are looking to expand their holdings.
For an in-depth understanding of DSCR Loans, you can consult a comprehensive guide on the topic.
Whether you're a permanent or temporary resident in Florida, MakeFloridaYourHome can assist you in securing the loan that best suits your needs.
The service reviews your specific case and connects you with a U.S. lender who aligns with your goals and requirements.
No U.S. Credit History Mortgage
A No U.S. Credit History Mortgage is aimed at individuals who don't have a credit history.
This could be due to various reasons such as not having credit accounts in their name or having a limited credit history. Several lenders offer this mortgage type, with terms and conditions differing from one lender to another.
To qualify for a No U.S. Credit History Mortgage, you need a steady source of income and a down payment ranging from 20% to 25%.
Documentation like tax returns or pay stubs will be required to prove your income. If approved, be prepared for the possibility of a higher interest rate compared to standard mortgage options.
Specific Requirements for Peruvians
If you're from Peru and interested in this type of loan, you need to meet the following conditions:
Reside in the United States for a minimum of five years.
Demonstrate employment in the United States for the subsequent three years.
Use the loan for buying a single-family home or a condominium where you will live.
- Make a down payment of at least 20%.
By meeting these criteria, Peruvians can take steps to secure a home in Florida even without a U.S. credit history.
Foreign National Mortgages
If you're a Peruvian national interested in buying a home in Florida, a Foreign National Mortgage might be an appropriate option for you.
Unlike traditional mortgages, these are specifically crafted for individuals who are not U.S. citizens and may not have credit or income history in the United States. These loans often require higher down payments and carry higher interest rates.
Peruvians who don't have a Social Security number, green card, or U.S. visa can still secure a loan through these programs. A FICO score is not mandatory; creditworthiness can be established through other means such as a credit report from Peru.
Commonly referred to as ITIN loans or loans for non-permanent resident aliens, these programs make it possible to own property in Florida without having all the usual documents U.S. citizens might need.
Qualification Requirements for Foreign National Mortgages
The smallest loan you can get is $75,000, and the largest is $1.5 million.
If you're also considering a DSCR program, your cash flow needs to match the loan amount (1:1 ratio).
You must have funds that are sourced and have been in the bank for at least 60 days; at least 30 of these days must be in a U.S. bank insured by the FDIC.
You should have enough money for 12 months of loan payments in a U.S. bank.
Automatic payments from your bank (ACH) are required.
Loans are not provided to individuals from countries on the U.S. sanctioned list, nor are they available in Osceola County, Florida.
Eligible visas include B-1, B-2, H-2, H-3, I, J-1, J-2, O-2, P1, P2.
Third-party gift cards are not acceptable as a source of funds.
- If the loan amount is more than $1,500,000, you'll need a second appraisal of the property.
Jumbo Loans for Peruvians in Florida
Jumbo loans are designed for buying properties that cost more than what conventional loans can cover. While they typically come with higher interest rates and down payments, they can be a viable choice for Peruvians looking to buy more expensive homes in Florida.
Specific Requirements for Peruvians
If you're a Peruvian citizen, you'll need to meet the following criteria to be eligible for a Jumbo loan:
Live in the United States for at least five years.
Show that you will have a job for the first three years after getting the loan.
Use the loan to buy either a single-family home or a condo that you will live in.
- Make a down payment of at least 20%.
Required Documentation for Peruvians
When it comes to documentation, you will need:
An Employment Authorization Document (EAD) along with an I-140 form.
Applicable visas such as H-2B and H-1B.
- A valid passport from Peru, along with a stamped I-94 form indicating authorized employment in the U.S.
Steps for First-Time Peruvian Home Buyers in Florida to Apply for a Mortgage
For Peruvians buying a home in Florida for the first time, the mortgage application process involves multiple steps.
Below is a simplified, step-by-step guide for applying for a mortgage loan:
Fill Out the Loan Application Form - Complete the necessary paperwork to start your loan process.
Submit Required Documents - Provide all necessary documentation such as income proofs, identity verification, and more.
Pay Processing Fee - A fee may be required to process your application. This fee varies by lender.
Await Preapproval or Approval - Once your documents and fees are submitted, wait for the lender to either preapprove or fully approve your loan.
Offer Letter Processing - If approved, you will receive an offer letter detailing the terms and conditions of your loan.
Legal Verification - Your property documents will go through a legal review to ensure they meet the lender's criteria.
Technical Check and Site Estimation - The lender will evaluate the condition and value of the property you intend to buy.
Finalize Loan Agreement - After successful completion of the previous steps, you will sign the final loan deal that formalizes the mortgage terms.
- Sign Legal Documents - After the loan deal is finalized, you will sign the official loan agreement.
By following these steps, first-time home buyers from Peru can navigate the mortgage application process to buy a home in Florida.
The process of buying a home in Florida for individuals from Peru involves multiple loan options and documentation requirements.
Whether you are a permanent resident, non-permanent resident, or even a foreign national, there are specialized mortgage programs available to facilitate your home purchase.
Options range from conventional fixed-rate and adjustable-rate mortgages to specialized loans like DSCR, No U.S. Credit History Mortgage, Foreign National Mortgages, and Jumbo Loans.
Eligibility criteria, down payment requirements, and interest rates can vary based on your residency status, employment situation, and financial health.
Documentation forms an integral part of the loan application process. Required documents commonly include employment verification, income proof, credit reports, and in some instances, specific visas or employment authorization documents.
For those without a U.S. credit history or Social Security number, alternative forms of creditworthiness assessment are available.
MakeFloridaYourHome provides services to connect you with lenders who specialize in offering loans to foreign nationals, thereby making the mortgage process more accessible.
Understanding your options and the requirements involved can significantly simplify the mortgage application process, enabling you to make informed decisions when buying property in Florida.
With over 50 years of mortgage industry experience, we are here to help you achieve the American dream of owning a home. We strive to provide the best education before, during, and after you buy a home. Our advice is based on experience with Phil Ganz and Team closing over One billion dollars and helping countless families.
About Author - Phil Ganz
Phil Ganz has over 20+ years of experience in the residential financing space. With over a billion dollars of funded loans, Phil helps homebuyers configure the perfect mortgage plan. Whether it's your first home, a complex multiple-property purchase, or anything in between, Phil has the experience to help you achieve your goals.