What are the requirements for a US Mortgage?

Thank you for your inquiry.

First of all, it is easier to qualify a foreign national for a U S mortgage than a domestic borrower but we would require the following documentation in support of a mortgage application

1. copy passport & driving license;

2. verification of income : T.4 's for 2007 & 2008 and tax returns for the same periods, plus current 30 day wage stub;

3. credit report (we obtain);

4. 3 months bank statements showing you have the funds to close and 6 months mortgage reserves;

Turning to your specific questions :

1. the minimum deposit is 30% of the purchase price;

2. all overseas buyers of vacation homes are regarded as buying a "2nd home" provided they do not already own property in the area. Lenders ignore the fact that the majority of foreign national buyers will rent their property after closing and do not consider the purchase as an 'investment'. There are no stipulations or extra considerations to take account of in the purchase of a vacation home;

3. there are no stipulations or extra considerations for non U S citizens in owning a vacation home. After closing you would need to apply to the IRS for a TIN number in order to file tax returns on the property income (if any);

4. the current rates for overseas borrowers are from 6.50% to 7.00%. There is a 2 tier system at the present time - rates for domestic borrowers and rates for non U S citizens. In fact rates have increased in America over the past week to around 6% in any event. 30 year fixed is around 6.50%. There are no variations of mortgage programs for non U S citizens (no interest only etc) only PITI monthly payments.

5. it is impossible to say what the average property taxes are in the Orlando area. There are changes being made by the Property Tax assessors due to the reduction in the property values and therefore I can only suggest that when looking at properties check the taxes for each property. Bryant will be able to advise you on the property taxes for each property from MLS system;

6. Home insurance for vacation homes will vary according to the type of property but annual premiums are usually between $900 -$1200.

The only piece of information I would require in order to pre qualify you is the monthly amount of your primary mortgage and details of any other regular monthly expenses, such as car loans, personal loans, but not details of utilities.

Any other questions arising out of the above or about the American mortgage process, please feel free to ask.

Kind regards,
Graham Aistrop Esq., LLB (London)
International Mortgage Advisor
MortgageOne Financial Services
1637 East Vine Street, Suite D,
Kissimmee, FL 34744
Tel: 407 870 9090
Cell: 407 486 1636
Fax: 407 870 2809
www.M1FS.com
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