Florida mortgages for Foreign National Borrowers

Turbulent Times - Margaritas & Meyhem as published in The Niche Report

noreply@blogger.com (Justine Assal) — Fri, 03 Jun 2011 16:48:00 +0000

Turbulent Times 2007 to 2011 by Justine Assal

Margaritas and Mayhem

Sitting on a beach on the West coast of Mexico in July 2007 on a family vacation, came a fateful phone call from the office. It was different from the other four calls I had received from them describing what amounts to normal issues in the daily life of a mortgage company. This one had an ominous feel and had certainly sent a chill through our organization. It was driven home further as I sat in the hotel lobby talking to our office manager and saw the trailers on the CNN screen describing the same news as my phone call. One of our wholesale banks processing the majority of our pipeline had closed their doors and was not even honoring approved commitments. It was unprecedented and in hindsight, the beginning of a long and arduous journey that we are all still taking. Although we realized the gravity of the situation, there was no way to fully comprehend what we were about to embark on and the near collapse of our industry, our finances, our businesses, our livelihood!

Life is always about perspective and although our journey is never finished, this period of three years will be etched in many minds forever as a turning point! In many ways, it has had the intended effect of industry reform and economic responsibility but no changes in life are ever easy and this one has been so far reaching that it has resulted in many of us buying stock in hair color to keep gray hair at bay.

Mine Fields

As I returned to work from my vacation, ever the optimist, I kept assuring everybody that it was going to be fine and that we simply needed to find a new lender to take the files. National news was reporting the fall of the banking and mortgage industry with a lust that is reserved only for events of National and International catastrophic proportions. In the bubble of our office, we had the ability and need to deal with the sheer enormity of the situation by filtration and avoidance. We had files to close and that is where our attention stayed focused; banks and lenders were falling almost daily. We had to navigate the mine fields and try to keep them safe. Thus started the beginning of our new obsessive compulsion – Implodometer! We logged on daily to see who was on the ailing list so that we could avoid sending our loans into a black hole. We rushed to close loans before the program slipped through our hands into a piece of history. It was much like trying to fill a bucket with dry sand with only your bare hands as tools. We still stayed positive, probably more out of denial than fact or reality.

The Age of Denial

Thankfully, we as humans, have the innate ability to focus only on the facts that support what we choose to believe. We continued to work on the remnants of a once beautiful and abundant pipeline of loans. By now, they were beaten and battered with many casualties along the way. Our pipeline had come under attack and we were now really relying on an old Cooks method to keep our loans moving, which amounted to throwing spaghetti against the wall. As loan programs changed, the niche markets that many of us had spent years courting, disappeared and appraised values decreased. We ceased to operate with the finesse of yesterday; instead with the frenzied, frenetic energy of someone watching the clock and waiting for the buzzer to time out. We were spiraling out of control as if in a trance. We kept pushing through each day as though it were no different than before and just a passing phase to be endured. Banks, lenders, appraisers, mortgage brokers, and real estate brokerages had begun to shut their doors and it had become painfully clear that things would never be the same in our industry. Negativity was rampant and fueled by gossip of what would be. Real estate had become the red headed stepchild and been branded as a bad investment, rendering even the best mortgage programs useless!

Has the bubble burst?

As values continued to plummet, just the mention that I was a mortgage broker elicited groans of pity. Mortgage brokers and realtors were taking second jobs and leaving the world of commission for stability. Not surprising, given that the only real estate transactions seemed to be those going into foreclosure. Even then, only hardened investors batted an eye at them. The news reported daily that the bubble had not yet burst and that real estate would continue to decrease in value, so better to wait to buy. Fortunately, interest rates had been dropping too. Although in many areas of the country, refinancing seemed out of the question as values had left owners upside-down and dreaming of a short sale not a better mortgage.

Fortunately, we were given a tagline to describe the time; we were living “The Great Recession” and along with the collapse of mortgages and real estate, subsequently came every other industry. Nobody was in the mood to buy depreciating real estate, most were happy to have a job and everybody began to hunker down to weather through to the other side. From here, society and our businesses learned to budget. We all learned how much money is wasted on office supplies, unmonitored and unused monthly subscriptions that were auto-debited, phone bills and the like, and our belts began to tighten. This was never more apparent than at a mortgage brokers convention in 2008 that was comprised of four FHA lenders, a bankruptcy attorney, a reverse mortgage company, a cigar and jewelry dealer that took three booths, a cash bar, and a mortgage modification processor; not one gave out promotional items other than cheap imprinted pens, the kind that in better days attendees would have scoffed at, but not these days!

It seemed that brokers, bankers, account executives, realtors, appraisers had left the industry en masse and those that remained could hear the echoes. Business was hard won and deals were few and far between unless you were able to attract viable refinances or government business. So much time was spent trying to sort through and find a closable deal that if we had calculated our hourly rate, the rest of us would have undoubtedly left and gone to flip burgers. Survival had become the new success story, even though checking the phones hourly to make sure that they worked had become part of the daily routine.

Here come the rules

Quite predictably, the vacuum, which had ensued after the initial mortgage and real estate meltdown, gave way to government intervention. After the appointed committees had reached agreement, the new laws were announced. The new laws have had a layering effect on the process of mortgage origination. No longer does anyone have control over too much of the process. Mortgage Loan Originators were separated from appraisers, thus diminishing the ability to influence the process. National licensing has given a standardized set of rules where before some States did not even require a license. New mortgage forms and a strict process to adhere to has raised the level of quality control and required that all mortgage professionals continue to educate and conduct themselves at a standard never before required. New Changes practices were implemented approximately every 6 months. While these transitions did not happen without glitches because the new laws require some tweaking, the overall effect has certainly raised the bar in the mortgage industry. Again, we saw more brokers leave the industry and move on to new ventures. Those that chose to remain were forced to commit these rules to memory and to keep abreast of the upcoming changes as they affected our operations. Even mortgage software companies struggled to keep up as forms were added, amended and completely revamped.

What Constitutes “An Act of God”?

The new good faith estimate and HUD Settlement Statements that descended upon the primary mortgage market on January 1^st, 2010 left many scratching their heads. Much of the implementation of the new rules was left to individual interpretation for the first couple of months. Each broker, lender, underwriter, processor, title agent, realtor, and indeed, borrower tried to figure out exactly how the forms worked. It was a change that cost most mortgage brokers some money as they learned how to navigate the waters of an unforgiving new process. During the first quarter of 2010, in an unprecedented marketplace, it took a committee to decide what constituted “An act of God” and whether a new good faith estimate could legally be issued. If a good faith estimate was prepared for the product of one wholesale lender and then it came to light that the loan would not be approved, or for some other reason it needed to switch to another lender, a new good faith estimate would be required; if and only if, a change of circumstance was warranted. Herein lay the confusion! The rules regarding this are convoluted and difficult to navigate. Each wholesale lender has their own proprietary forms that must be completed and a different process which must be adhered. The 3/7/3 rule is sometimes 5/8/4 or 7/6/5 depending on whether the wholesale lender used the brokers’ disclosures or their own dateline. By the 3^rd quarter of 2010, this had all become old hat for most and a testament to how adaptable we had become.

Meanwhile, most of our industry and society in the US had settled into their new budgets and were, for the first time in many years, actually living within their means, and life had again become normal. No more denial about finances and our industry, but an evolution in which we were all taking part. Change can be uncomfortable and certainly dealt with by avoidance in most cases, but when it is thrust upon us without choice, we inevitably deal with it and grow from it.

Bankruptcy Becomes the Country’s New “Club”

A discussion of a sign of these times would be incomplete if bankruptcy and foreclosure were not addressed. General attitude regarding both have taken a very soft line lately and office water cooler talk has come to include references to attorneys and conversations about who filed bankruptcy. What was once a very private catastrophe that was kept very hushed, has now became the norm. Country Club memberships had been traded for a spot in this club as many in the mortgage and real estate industry found themselves in a precarious position where their income had been decimated so rapidly that they were left without many options. Foreclosures, short sales and all of the other fallout of “The Great Recession” hit those in the mortgage and real estate industries particularly hard as many had also invested their would be savings back into property. Developers sold Bentleys to try and pay the bank interest on their real estate projects. Credit cards were used for mortgage payments. The repercussions of this were still to come, however, once the new National Mortgage Licensing System and State regulatory bodies decided that credit reports would be required on all brokers. This sent a chill of fear through-out an already battered industry and gossip was rampant.

The Three Giants

We love them and we love to hate them – Fannie, Freddie, FHA. Their relationship with most of the mortgage industry is almost parental, the final word of their wisdom becomes the law that dictates our livelihood, although often resulting in us rolling our eyes and making faces as though we were teenagers. As this process has unfolded, we have come to see just how fragile our mortgage system is and how it has been operating in recent years with very few true checks and balances in place. We have watched as the great giants shook and the government intervened as the stabilizer. We have tried to evolve as the system has veered to the left, and again back to the right, and we have adjusted to very tightened underwriting and frequent changes that come our way. In the spirit of the armchair quarterback, we have all vocalized our support and indeed brandished our criticism at the decisions made for this industry. We have become far more political and speak our positions loudly with soapbox ever ready. It appears from our field position in 2011, that government intervention has succeeded in keeping our giants from falling and although we are left to ponder the price that was paid and will continue, we can all agree that the price of no intervention would have been exponentially greater.

More Rules Please

When one first enters a school or large corporation, one comes in as a rookie and the rules (spoken and unspoken), the schedule; the whole climate is brand new and leaves one feeling overwhelmed and miniscule in proportion. Never again, in that setting, will one’s senses be so sharp as they are as familiarity sets in, knowledge increases and one becomes a moving part of the system so that one can no longer see it in its entirety or splendor. The same is true of any evolution and the change that we have experienced as a nation, an industry, and as individuals, has resulted in a rapidly changing environment in which we are all moving pieces. Survival of the industry has been the crux, but financial survival individually has been the driving force. We now accept rapid and extreme change without so much as batting an eye and new changes are simply absorbed and adapted. 2011 brings many more changes from FHA sponsorship to adjustments in how yield spread premiums are paid. Although each new rule brings its own set of challenges, it seems apparent that all the conspiracy theories regarding the targeted displacement of mortgage brokers and the wholesale mortgage market shutting down were just theories born of panic and fear. None of the rules have the intended effect of stopping the flow of production within the marketplace, they just require change on our part. Change is something we have learned well!

Real Estate – Is it the Golden child again?

Foreclosures, still the bane of the industry, have now been coupled with asset managers, investors, first time home buyers and a litany of mortgage programs designed to help move home owners in foreclosure through the system quickly, although not always efficiently. It has become a bustling marketplace and as more bank REOs continue to filter their way through the system, we are beginning to ride what feels like the onset of a slow but progressive recovery. Mortgage professionals are adaptable and although many did not focus on this niche market before the crisis, they are smart enough to follow the business and are busily closing loans once again. The artificial climate that has kept interest rates so low has allowed many to work on refinances, although most have now learned that it is not wise to put your eggs in one basket whenever possible. The media has certainly softened its rhetoric and is again suggesting that the Nation invest in real estate as bargains are plentiful. Such is the way of life as we grow to meet the challenges with which we are faced, and grind along trying to endure. One day, as if a thought bubble appears, one realizes that one is no longer struggling. I have passed through the challenge and completed it without even realizing it was over. The same appears to be true for our industry as people are buying real estate again, mortgage programs appear to have stabilized and hedge funds are investing in mortgage pools. We are all like busy ants running to keep up with new business and so focused on our daily activities that many of us have not noticed that the danger has passed and we appear to be moving in the right direction again. It does make me wonder how many of the lessons I have learned will again be forgotten and how long before we all forget how much we struggled to make it through to this point.

The Final Rule or the Final Countdown?

The Federal Reserve rule on broker compensation otherwise known as the Final Rule of Regulation X is just now descending upon us as the latest augmentation to the way that the mortgage industry originates loans. The ruling definitely makes functioning under the license of a “Mortgage Broker” much more restrictive than ever before and essentially cuts the life line of yield spread premium that allows brokers to compete with lenders. Already brokers must disclose the YSP while lenders have no requirement to disclose their SRP or Service Release Premium. Brokers typically earn fees from both borrower and on the spread on the interest rate which has effectively been banned under this new ruling. Although, it does not have the same limitations for a lender who funds the loan. I have been both broker and lender in my career and am somewhat conflicted in my opinion of the Final Rule. Admittedly, I still broker loans that cannot be funded in-house. While brokers are a necessary part of the primary mortgage market, and allow lender costs to stay lower by reducing the amount of staff required to offer availability to the public, we have been allowed to run amuck until recently. It cannot be denied that there are a few unscrupulous brokers who lead borrowers into loan programs simply for their own gain and a system of checks and balances can only help clean up this element. It is also obvious that lenders have far more required reporting, regulatory oversight, and usually a more binding corporate operating procedure than a mortgage broker. It stands to reason, that they not only have the same exact regulations, but the jury is out on whether this tilts the advantage too much. While the ruling certainly promises to cause many of us some heartburn, as stated earlier, I do not believe that Mortgage brokers are being targeted for elimination. So for now, as with all of the other changes that we have endured, we shall roll our eyes, complain bitterly, and learn how to live with it in order to still make a living.

On the Horizon

It was a beautiful beach, the one that I sat on so blissfully unaware in Mexico, back in 2007. I have acquired many more wrinkles since then that are obvious signs of stress. In hindsight, however, so much growth has occurred as a nation, an industry, a business owner, a mortgage professional, and just as an individual. Change is undoubtedly uncomfortable and given the choice, we would have all avoided the hills that we have climbed in order to remain in the mortgage industry in 2011. We did not have the choice to avoid the turbulence and we might have moaned and complained our way through each step of it. I can say now, without hesitation, that I am glad to have experienced it. I am proud to have made it through all the changes and growth that have occurred. We are certainly older, wiser, and a bit beaten up as an industry, but we can now be proud of the standards by which we work. Our peers have grown with us as we are truly a new generation of mortgage professionals. This year promises to begin healing some of the bruises and a new springtime is in the air. There is the buzz of new energy and businesses have come out of hibernation to renew their marketing and business plans and reclaim their position in the marketplace. We might even see company pens and coozies again before too long, and that is when we know that change has come full circle. I might never visit that beach in Mexico again just out of superstition. However, next time there is a crisis in our industry, if there ever is one, I’m not sure that I would have the fortitude to fight again. You might just see me sipping mojitos from my tiki bar in Costa Rica.

Justine Assal originally hails from London, England and has lived in Central Florida. In 1999 Justine is the Owner of ACM Financial Corp and a top originator in volume. She has built a reputation of integrity and tenacity and seems to have a strange attraction to the intense, ever changing world of mortgages and real estate. She is also a GRI 1 Finance instructor for the Florida Association of Realtors and serving as Vice Chair of the Orlando Realtors International Council 2009-2010. Justine has been President of the British American Chamber of Commerce of Central Florida since May 2008 and is currently serving her second term.

Finding Foreign Financing

noreply@blogger.com (Justine Assal) — Fri, 01 Apr 2011 14:32:00 +0000

April 2011

Please follow the link to Florida Realtor magazine's April issue and read "Finding Foreign Financing" by Justine Assal

Take My Lead! by Justine Assal | The Niche Report

noreply@blogger.com (Justine Assal) — Thu, 24 Mar 2011 01:14:00 +0000

Take My Lead! by Justine Assal | The Niche Report

Feb 2011 Final Print

noreply@blogger.com (Justine Assal) — Tue, 08 Mar 2011 13:49:00 +0000

Feb 2011 Final Print

Please find my latest article published in The Niche Report on pg 16-19 February edition

"Take My Lead!" by Justine Assal

Foreign Nationals are buying up Florida!

noreply@blogger.com (Justine Assal) — Mon, 07 Feb 2011 18:28:00 +0000

No matter what, Florida will always be the Sunshine State and a top destination for travelers from around the world. When you add that there are more deals to be found than you could shake a stick at, it's not hard to imagine why investors are buying in record numbers.

It is estimated that approximately 33% of all real estate purchases through-out Florida involve a foreign national buyer and only 17% of them require mortgages. The rest are cash but the numbers are quite staggering given that Florida real estate is hotter than ever.

ACM Financial is once again offering mortgages to foreign nationals, albeit on a limited basis for now.
Currently we can finance to borrowers from European Union Countries, Canada, and Australia at 65% loan to value.
Please visit www.acmhomeloans.com for more information or www.FloridaVillaMortgage.com

A Place in the Sun Florida Pavilion promises to WOW attendees

noreply@blogger.com (Justine Assal) — Mon, 31 Jan 2011 13:22:00 +0000

The Florida Pavilion in this coming March 11-13 A Place in the Sun Overseas Property show at Earls Court, London is being hosted by FloridaLink (www.FloridaLinkCorp.com) a consultancy that connects Florida industry to overseas buyers, consumers, etc. The Pavilion is sponsored by Moneycorp and consists of 10 booths surrounding a stage where 6 presentations on topics ranging from a Florida real estate update to immigration, international taxation, currency exchange, financing and short term rental.

The pavilion has just had a booth open up so if you sell real estate in Florida to Brits.... you should probably contact info@floridalinkcorp.com or 407-401-9690 for more information.

Orlando Realtors International Council today

noreply@blogger.com (Justine Assal) — Thu, 27 Jan 2011 19:22:00 +0000

Realtors please join us from 3:30-5:30pm today at the Crown Plaza in downtown Orlando for a complimentary seminar on creating an International business plan. 2011 is the year to really get refocused on assisting our foreign national clients obtain the best real estate deals with the best financing available.

www.acmhomeloans.com

Foreign National financing with a 6% seller concession

noreply@blogger.com (Justine Assal) — Wed, 26 Jan 2011 15:11:00 +0000

Our 65% Loan to Value mortgage for Citizens from
European Union Countries
Canada
Australia

Fixed for either 3/5/7 years with NO prepayment penalty!
It also allows up to a 6% seller consession towards closing costs.
We have already begun taking applications and ordering international credit reports.

2011 is a whole new year, no longer is Florida just the playground for our foreign national investors with cash only, now there is funding available to assist many with jumping into to the best real estate deals in recent history.
http://www.floridavillamortgage.com/
http://www.mortgageforeignnational.com/
info@FloridaVillaMortgage.com

A Place in the Sun Florida Pavilion

noreply@blogger.com (Justine Assal) — Tue, 25 Jan 2011 10:34:00 +0000

The buzz is growing around this March 11-13's A Place In The Sun overseas property show in Earl's Court, London.

The Florida pavilion has sold out and has just been expanded to include the many new Florida Real estate and related companies looking to join and the speakers are all ready to inform prospective buyers why NOW is the time to buy.

This obviously is propelled in part due to the new announcement by ACM Financial that a 65% mortgage for Non US residents is once again available to many buyers looking to purchase holiday homes. Information can be found at http://www.floridavillamortgage.com/

The Florida pavilion within A Place In The Sun is hosted by FloridaLink, an International consultancy http://www.floridalinkcorp.com/ or visit the pavilion site at http://www.aplaceinthesun.com/exhibition/visitorfloridapavilion.aspx

Foreign National Mortgages available

noreply@blogger.com (Justine Assal) — Tue, 25 Jan 2011 03:13:00 +0000

http://www.acmhomeloans.com/foreignnational

http://www.floridaVillaMortgage.com

We finally have a reliable foreign national program again! It seems like a lifetime since we could properly service our borrowers from abroad but now as buyers are swarming to the Sunshine State to purchase very attractively priced real estate, we are finally able to offer 65% financing on single family homes and attached townhouses.

Please visit us on the above links to view more information

The Niche Report - An Epic Struggle HEOPA, HERA, and Hercules; all epic stories by Justine Assal

noreply@blogger.com (Justine Assal) — Fri, 02 Apr 2010 13:14:00 +0000

The Niche Report - An Epic Struggle HEOPA, HERA, and Hercules; all epic stories by Justine Assal

Finding a Niche in Foreign Investors

noreply@blogger.com (Justine Assal) — Mon, 18 Jan 2010 20:51:00 +0000

Finding a Niche in Foreign Investors

Overseas buyers could help many hard-hit resort areas rebound

Justine Assal, owner, ACM Financial

As published in Scotsman Guide's Residential Edition, January 2010.

Foreign investors will play an integral part in the real estate recovery in many regions of the U.S., particularly in hard-hit resort areas. Mortgage brokers looking to pad their business during the ongoing market slump can work with these investors, many of whom also can turn into important referral sources when the market turns.

For numerous overseas investors, U.S. housing prices in today's market are too good to pass up. The problem, however, is that lenders often require investor financing to carry loan-to-value ratios (LTVs) as low as 50 percent. Required LTVs can depend on the region in which a property is located. Moreover, many lenders quit lending to foreign nationals altogether. This leaves an opening for brokers to build these relationships.

Middle-class buyers

Today's U.S. housing market includes huge inventories in many popular resort areas nationwide. Popular states for foreign national investment include Florida, California, Arizona, Texas, New York, Washington and Nevada. Each of these states hosts strong vacation-home markets, and many are among the most-damaged locales of the recent real estate collapse.

Many foreigner investors see a prime opportunity to buy at what could be rock-bottom prices. In some cases, the deals are so good that buyers can afford 50-percent downpayments, especially in places where properties are selling for nearly half the asking price of three to five years ago.

Although a large number of foreign investors who make U.S. property purchases pay with cash, many others require funding solutions. This is especially true of middle-class buyers who seek vacation homes in markets once far outside their price range.

Lenders who work with foreign nationals, meanwhile, often give more importance to a property's value than borrowers' financial strength. Brokers looking to work in this niche should consider establishing relationships with foreign banks and community banks willing to work with brokers and foreign buyers. While foreign banks might be interested in lending to consumers from the same country in which the bank is located, U.S. community banks often only will make loans in their region of operation.

Brokers can research lenders that offer wholesale channels for foreign investors. It's important to do your homework and to understand the programs, which you'll need to explain to your clients. Often, the information you fail to uncover before it's too late comes back to kill a deal after you've invested time and energy.

Network and referrals

A good way to find foreign investors and lenders willing to work with them is to join your local International Council of Realtors. These groups include many international real estate practitioners and offer education and support. They also can be a great way to meet industry service-providers who can offer important insights into working with foreign investors.

Your ability to build relationships with important players in your regional market can go a long way toward determining your success. For many lenders, it can be worth the risk to offer foreign-investment loans at LTVs of as much as 75 percent. Even if buyers default, property prices in many resort locations aren't likely to drop further.

Brokers who find these lenders can market themselves to foreign buyers and may quickly find clients referring them to overseas friends and family who also hope to cash in on U.S.-property deals before it's too late.

Working with foreign investors isn't for everyone. But brokers who do it well can fill their business and referral pipelines while also helping lead regional recoveries in some of the most-depressed markets in the U.S.

Justine Assal has been the owner of ACM Financial since 1999 and a top originator in volume. She has obtained the National Association of Mortgage Brokers' highest designation, Certified Mortgage Consultant, and served on its certification committee. She also is a finance instructor for the Florida Association of Realtors and vice chairwoman of the Orlando Regional International Council. Assal speaks frequently about mortgage-industry matters, international financing and international relations. Contact: (407) 397-7300 or justine@acmhomeloans.com.

http://www.scotsmanguide.com/default.asp?ID=3910

http://www.acmhomeloans.com/

mortgages on Florida homes - Where are the mortgages?

noreply@blogger.com (Justine Assal) — Fri, 12 Jun 2009 12:19:00 +0000

Mortgages on Florida Homes- where are the mortgages?

Prices are too good to be true but mortgages are few and far between at the moment. As I write this, we are offering 50% financing on the purchase price right now for a detached villa in Central Florida and 70% in South Florida. By the time you are reading this, we may be back to 70% financing but lenders are still not handing out money for Non US resident mortgages.
I can hear you asking why and if it’s because lenders believe that property values are still dropping. Actually there is quite a bit of evidence that the prices have stabilized and in many areas, are back on a slow rise. If we consider that there were only 3-5 banks buying “foreign national” mortgages in Central Florida (many brokers but few actual lenders holding the mortgages), you will realize that they are still sitting on tremendous numbers of loans that they cannot liquidate. Some of these loans are not performing well and will ultimately go to foreclosure, but many are paying on time and should not be a liability. As we all know however, liquidity is key in times like this and nobody wants assets on their books that they cannot sell.
Foreign national mortgages have always been equity based with more weight being given to the property’s value as opposed to the borrowers’ strength. That is no longer true as both are heavily scrutinized now.
If you are interested in obtaining a mortgage, please be prepared to show very good reserves in the bank, the documentation required for a 50% mortgage is currently as follows:
· 2 years P-60 or 2 year Certified trading accounts if self employed
· A letter from your employer (acct if self employed) stating 2 years income and probability of continuation
· 2 months bank statement
· A copy of your passport
· Detached Villas are the only property type that is currently compatible for a mortgage
If you can pay cash, there are fabulous deals to be found (I can’t believe that came out of my mouth as a true supporter of leverage!) Alternatively, raise the money at home and come with cash.
The situation with lending will improve and I believe soon, but for now… please do your homework before finding the deal of a lifetime and realizing that you can’t have it!
Example 2005 2009
Purchase price $400,000 $280,000
Mortgage $320,000 (at 80%) $140,000Deposit $80,000 $140,000

noreply@blogger.com (Justine Assal) — Tue, 31 Mar 2009 00:06:00 +0000

We are still arranging mortgages for foreign national clients. It is a long a tedious process but I can't imagine that a long and annoying mortgage process should hinder anyone from wanting to purchase a property at such admittedly bargain basement prices.

We are financing up to 70% and happy to answer any questions from anyone who may be looking for a mortgage.

Foreign National Mortgage Option in Florida 2008

noreply@blogger.com (Justine Assal) — Wed, 05 Nov 2008 12:50:00 +0000

Mortgages, the bad and the ugly, oh, and maybe a bit of good!

What a tumultuous time and not to mention inconvenient! Just when property is half off in Florida, is there a mortgage to be found?

The good news is that it’s not impossible to arrange a mortgage in the US for a non US resident but be prepared to verify everything, gone are the days when we enjoyed non status. Gone are the days when we promised specific closing dates, and gone are the days that flaming hoops were not a standard part of the qualification process.

All joking aside though, mortgages are harder to find and certainly harder to qualify for. The US mortgage process, aside from the lingo, is really quite similar that of the UK. Instead of using income multipliers, US lenders work with a “debt to income” ratio. Quite simply it is your monthly debt (current mortgage, credit cards, car payments and the proposed new mortgage payment) divided by your monthly income. No rental income on the new property can be used and the ratio must be less than 45%.

More good news is that the few lenders still offering mortgages to Non US residents, generally are looking for a letter that states 2 years of income and year to date earnings. This can be more forgiving to the self employed as audited trading accounts are not usually required.

Mortgages are generally a maximum of 70%of the purchase price at the moment and rates are all over the board. It is not unusual to expect that a non US resident would be in the mid 7’s to 8’s.

It also makes a big difference what you are buying. For instance, condominiums are more difficult to arrange financing on than a detached villa.

Even with the higher rates and more stringent lending guidelines, the hardened investors are swarming in. It’s hard to pass up the best buyer’s market that I have ever seen. It makes sense to purchase at this time and sit on the property and just realize that you might not get the mortgage of your dreams. No vacuum exists forever and it will be a matter of time before some sense of normalcy returns to the mortgage market. We will probably never see it quite as it was but I’m sure that it will relax some more and the potential to re-mortgage later is more probable than the opportunity to buy at this price later.

For those of you that already own property in Florida and have “Option ARM” (negative amortizing) mortgages, now is a perfect time to modify the interest rate at the bank’s expense. They may be offering heavily discounted terms to entice you to switch out of this type of scheme, the problem being that the lenders are inundated with this type of request and cannot keep up.

Should you have any questions on modifying an existing mortgage, we have a section on our website that explains the process in detail
Standard documentation for a mortgage is comprised of the following:

4 page application and a stack of legal disclosures
International credit report (ordered by the lender)
Letter from employer (or accountant if self employed) stating 2 years income and YTD earnings
2 months bank statements
Proof of wire transfer of funds
A US bank account (this is the easiest part) with at least 6 months reserve mortgage payments deposited
A copy of passportValuation (ordered by the lender)

foreign national mortgages in Florida

noreply@blogger.com (Justine Assal) — Wed, 20 Dec 2006 16:55:00 +0000

We are a Correspondent Mortgage Lender that specializes in lending to foreign national clients. We offer non status, self certified mortgages to British clients in either dollars or sterling. We are a preferred intermediary for British Mortages Abroad.
Our UK free phone number is 0800-634-8413

www.acmhomeloans.com
www.floridamortgages.co.uk

Languages spoken English, French, Spanish, Portugese, German, Arabic

British Investors can mortgage up to 100%

noreply@blogger.com (Justine Assal) — Tue, 19 Dec 2006 21:51:00 +0000

For International clients that own Florida property already and have built in equity, we can use this equity to offer up to 100% financing on a new purchase of a detached villa or condominium (no condo hotels on this programme). There is no penalty for early redemption and with the strength of the British pound and the Euro, it is a great time to purchase additional property.
www.acmhomeloans.com