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USA Mortgage Information

One of the most popular places to buy a holiday home is Florida. The rental yields available make this an excellent choice for investors. When anyone thinks of Florida's main attractions, they think of Disneyland.

Although the Magical Kingdom is a wonderful place, Florida has so much more to offer! Sea World, Discovery Cove, Splendid China, Daytona Beach and Cape Kennedy Space Centre, to name just a few.

With USA being such a large Country there are so many options to look at when purchasing property here. More and more people are looking into othe r States, which all have something different to offer.

 

Mortgages are fairly straightforward in USA and if you can provide full documentation to support your application you will normally be offered a better interest rate. With “no docs” being the preferred option for many investors, there are great rates available providing you can put down a 30% deposit.

Anyone purchasing will be required to obtain a sales agreement for their chosen property and should then be provided with a “Good Faith Estimate”. This will give details of all costs they will incur for obtaining a homeloan along with the closing costs, local taxes and escrows etc. Some lenders may require you have at least 6 months mortgage payments (reserves) in a US Bank Account.

As a rough guide you may borrow a maximum of 80% of the property value in Florida and only 70%-75% elsewhere in the States, if you are a non-resident. The property will normally be considered a 2nd home, even if you are planning to rent it out.