What foreign buyers need to know when buying real estate in Florida

What does foreign investor mean?

If you’re a nonresident or foreign investor, you’re likely looking for one of two types of loans when it comes time to buy your property: Foreign National Mortgage Association (FNMA) loans or Federal Housing Administration (FHA) loans. ).

Are foreign investors eligible for the same financing options as US citizens?

It is quite common for foreign investors to purchase property in Florida and finance their real estate with a non-US citizen loan, also known as a Foreign National Loan. What is not well understood is that there are different financing options available based on citizenship status, and these differences can have a dramatic impact on your ability to qualify for an investment loan.

When it comes to taxes and regulations, non-US citizens buying Florida real estate need to be careful. In the event that you intend to purchase a property for rental purposes, the real estate will be subject to rental income tax.

In this regard, foreign buyers should be aware of the guidelines provided by the IRS (Internal Revenue Service) to determine what constitutes a US resident for tax purposes.

How do I get a mortgage from my lender?

First, you’ll want to make sure you qualify for a mortgage before you buy real estate. The lender will review your finances and credit history and decide if they can safely lend you money. Lenders will also verify your citizenship status, as most require borrowers to be permanent US citizens.

When you apply for credit, lenders determine your credit risk by looking at your credit scores. Thus, before applying for a US mortgage as a foreigner, the buyer must first establish credit and obtain a good credit score.

Any buyer interested in mortgage options to finance a property in Florida should consider banks with global operations. These well-established financial entities will have the necessary experience to verify the credit established abroad and provide the guidelines of the process.

Do I need any special certifications or background checks to buy real estate in Florida?

Yes, depending on where you are from and whether you are a US citizen. The first thing foreign buyers should know is that different countries have different laws regarding real estate. If you are buying a home in Florida as an individual who is not a US citizen, there are several forms you will need to complete and special certification requirements.

Non-US citizens interested in purchasing Florida real estate can do so in their own name or through a legal entity. In this case, the term legal entity includes limited partnerships, corporations, joint ventures, trusts, or limited liability companies.

Where can I get more information about these programs?

If you are interested in learning more about foreign investment programs, QKapital Mortgage Lenders can help. Contact our experts in loans for foreign citizens through our contact form here or through WhatsApp messages at +1.305.504.1878.