By Donna Morton, Lic. RE Broker
Florida Summer Homes Realty, LLC
Who is considered a Foreign National?
A citizen or legal resident of a nation other than US applying for the loan in the US is considered a Foreign National Borrower.
What type of property can a
Foreign National buy? Second
homes, vacation or holiday home, investment, buy to let and commercial
properties can be purchased by foreign nationals.
What types of loans are
available? Fixed and adjustable
rate residential and commercial loans are available. Terms are 10, 15 or 30
years fully amortized or interest only loans.
How long does it usually take to close on a
loan? Approx 30 – 45 days
How much down payment is required? Usually 35% of the purchase price
Does the Foreign National need
to be in the US for closing? Transactions
can be closed thru POA (power of attorney) where the borrower designates
someone else to close for him or in certain cases it can be a mail away.
What type of documents are typically needed?
1. Copy of Valid Passport & Identification
2. Verification of income: Paystubs / Self employed: CPA or accountant's letter
3. Two months bank statements to show funds to close plus 6 months reserves
4. International credit report
2. Verification of income: Paystubs / Self employed: CPA or accountant's letter
3. Two months bank statements to show funds to close plus 6 months reserves
4. International credit report
SELLING AS A FOREIGN NATIONAL!
What is FIRPTA? When non-citizen property owners decide to sell their
US property, certain tax restrictions may apply. FIRPTA, the Foreign Investment
in Real Property Tax Act, was enacted in 1980 and provides that if the Seller
of real property is a foreign person, the Buyer must withhold a tax equal to 15% as of Feb 17, 2017
of the gross purchase price, unless an exemption applies. A foreign person is a
nonresident alien individual; a foreign corporation not treated as a domestic
corporation; or a foreign partnership, trust or estate. A resident alien is not
considered a foreign person under FIRPTA. There are many exemptions to
this rule for example a transaction involving the transfer of a property
acquired for use as the buyer's residence and the amount realized
(purchase price) does not exceed $300,000. Find more information
about FIRPTA on the IRS website. https://www.irs.gov/individuals/international-taxpayers/firpta-withholding
We can connect you to local experts such as Real Estate Attorneys, CPA's, Property Management, Money Transfer companies, etc that are experienced with foreign national loans / transactions to make this experience as smooth as possible!
Living the Florida Lifestyle!!
Please contact me at donnamorton22@gmail.com / 407-810-6520 FREE on What's APP
www.FloridaSummerHomesRealty.com / Facebook.com/FloridaSummerHomes
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