Like any other type of property, you can get financing for your condotel. Qualifying for condotel financing does not have to be an issue if you have a 680 FICO credit score. However, if you are a foreign national, qualifying for a home loan can be problematic.
With that said, here are a few points you need to know to secure condotel financing:
Who is a Foreign National?
A foreign national is anyone who is not a citizen. You may be visiting or living in the country legally, but you are not a citizen.
Borrowing by foreign nationals has increased in recent times, with many foreigners investing in real estate. They may not be citizens, but they have played a massive role in recovering the real estate economy.
Since home loans for foreign nationals are not common, every lending institution has its own set of rules and guidelines as far as this type of financing is concerned.
Condotel Financing Eligibility for Foreign Nationals
As earlier mentioned, qualifying for condotel financing can be a hassle if you are a foreign national. Banks and other lending institutions rarely give out loans to foreigners unless under exceptional circumstances.
Lenders usually avoid offering loans to foreign borrowers since the process can be somewhat tedious and complicated. They have to verify your debt to income ratio from your country through a certified letter from an accountant since there are no federal income tax returns or W2 forms to compare.
Another way a lender can determine your income is by comparing the rental income from a prospective property to property taxes, mortgage payments, and home insurance. The lending institution will divide the total mortgage by the gross monthly rent to calculate the debt service ratio, at least 1.25% of the qualifying amount.
To qualify for a condotel loan, your lender must determine your assets and verify your credit score. The process can be complex if you don’t have any assets and are yet to open any credit in the United States. For this reason, the lender may ask for a 20-30% down payment to acquire mortgage loans from your condotel.
The money used to pay the down payment must come from a bank account that has been active for at least two years, and you must provide a 12-month bank statement during your application.
If you have any credit in the US, your FICO score must be at least 680, with three open trade lines. The credit report must be at least two years old.
How We Can Help You Qualify For Condotel Financing
As you can see, obtaining condotel financing as a foreign national can be a long and strenuous process. Fortunately, this does not have to be the case when you engage a mortgage professional like Movement Mortgage.
We have a team of experts who can help you navigate foreign national credit quickly and conveniently. Here’s a breakdown of our hassle-free condotel financing process:
While other lenders require a certified letter from an accountant in your home country to verify your income, we accept verification letters from either your employer or a CPA.
Income Tax Returns
We do not require federal income tax returns to issue loans to foreign national borrowers. Besides, the maximum debt-to-income ratio to receive a loan is 50%.
It is somewhat difficult to secure home loans if you do not have open credit in the US. However, this is not the case when dealing with Movement Mortgage. We accept foreign credit reports as long as it is the latest document.
Whether you need a loan for a condolet or a townhome, we issue financing for all types of properties except for Texas properties bigger than 10 acres
Our loan sizes and financing options are incredibly lucrative. We offer cash loans up to $500,000. Moreover, our loan to value ratio is up to 75%.
Unlike other lenders who may have issues with your visa type, we accept all types of visas. We accept B-2, B-2, H-2, H-3, I, J-1, J-2, O-2, P1, P2, and F-1 visas. However, your visa must be valid during the time of application.
So, what’s the next step?
Foreign nationals usually face a hard time securing financing for real estate investments. However, this does not have to be the case when partnering with a credible company like Movement Mortgage.
Whether you need a loan for a condolet or a townhome, you can trust us to lend you up to $500,000 without asking for much. Contact us today to learn more about our hassle-free condotel financing options.