More foreign buyers turning to loans for US home purchases

TotalBank among lenders are offering nonconforming loans to wealthy international buyers

TRD MIAMI /
Sep.September 01, 2016 09:45 AM

While the strong dollar and rising home prices have deterred many foreign buyers in South Florida and across the country, more are turning to nontraditional mortgages to finance their home purchases.

Foreign buyers often pay cash for residential real estate in the U.S. – a whopping 50 percent did so in 2015, according to the National Association of Realtors. Large cash deposits have also fueled Miami’s latest condo boom.

But some lenders are offering nonconforming loans to wealthy international buyers, including Miami-based TotalBank, Milford, Connecticut-based Total Mortgage Services, and Mount Laurel, N.J.-based TD Bank to Canadian borrowers, reports the Wall Street Journal.

And while these loans require bigger down payments and offer higher interest rates than most jumbo mortgages or conventional loans, they allow buyers to buy more expensive homes. Experts told the newspaper that foreign borrowers may need to provide more documentation than they would in their home country, and to apply earlier than usual to allow for enough time.

While high prices and the strong dollar have impacted the residential market in South Florida, Latin Americans are still buying – and still interested in – Miami homes. Colombia, Venezuela, Brazil and Argentina are the top countries searching for South Florida real estate online, according to the Miami Association of Realtors. [WSJ] – Katherine Kallergis

Correction: An earlier version of this article stated incorrectly that TD Bank is providing loans to international buyers when it is only offering the program to Canadian buyers. 


Related Articles

arrow_forward_ios
Daily Digest Miami

Saks makes bid for Barneys, Eighty Seven Park will offer a certified botanist: Daily digest

Daily Digest Miami

Edgewater Opportunity Zone site hits the market, FHA will back more condo loans: Daily digest

Daily Digest Miami

WeWork files IPO, Florida needs nearly 670K new apartments to fuel population growth: Daily digest

Mexico Beach, Florida, in the aftermath of Hurricane Michael in 2018 (Credit: Getty Images)

Fitch to include natural disasters risks to RMBS ratings

A Florida bill may allow for remote notarizations

Florida Legislature passes bill that could boost foreign investment in real estate

A map of Florida (Credit: iStock)

Colombia and India top list of countries searching for Miami homes in 2018

Home buyers in front of a house (Credit: iStock)

Lenders opening doors to a wider swath of home buyers

Fort Lauderdale resident sentenced to over 12 years in prison for leading international property fraud scheme

arrow_forward_ios