HSBC recently reduced the down payment requirement for Foreign Buyers of second homes in New York City to 30% from 40%. This is quite a testament to the strength of the New York City market. The loan program is dependent upon a number of factors, including certain building criteria. For Miami, the down payment requirement remains at 40% under the same building criteria. If the building criteria are not met, HSBC has another program that would require a 50% down payment. This program is available in both New York City and Miami. HSBC also added a brand-new program that allows foreigners to buy commercial properties with a down payment of 50%.
Foreign nationals make up a significant number of buyers, so it is important for banks like HSBC (and Wells Fargo, to name a few) to provide lending to foreign buyers at reasonable terms.
The combination of record low interest rates, the real estate market recovery and the beginning of a sustained economic recovery make it a great time to finance a purchase of real estate.
To learn more about these programs, see the Mortgage Financing page.