FINANCING IS READILY AVAILABLE FOR FOREIGN BUYERS
Interest rates are at record lows, so whether you are a foreign buyer or US resident, it is a great time to finance a real estate purchase in Manhattan or Miami.
FOREIGN BUYERS – DOWN PAYMENT REQUIREMENT REDUCED TO 30%
HSBC recently lowered the down payment requirement for a second home purchase in New York City from 40% to 30% for its Foreign Buyer Mortgage Program, a strong sign that the New York City real estate market has come full circle.
30% Down Payment Program
Under the 30% down payment program (70% Loan-to-Value), there are specific criteria that the building must meet: over 90% of the units must be sold; no more than 10% of the units can be owned by one individual/entity; no more than 20% of the building can be commercial; final certificates of occupancy must have been issued for all apartments; and the homeowners’ association must have control of the building. This program requires 12 months of reserves and the maximum loan amount is $3,000,000.
For the Miami market, HSBC requires a 40% down payment (60% Loan-to-Value). The same terms and building criteria must be met.
50% Down Payment Program
If the building doesn’t meet the specific criteria above, for example, if the building is only 60% sold, the bank still may grant a mortgage; however, HSBC would require a 50% down payment (or 50% Loan-to-Value). This program requires 36 months of reserves and the maximum loan amount is $3,000,000.
Other requirements of both programs:
· Must be an HSBC Premiere client ($100,000 on deposit – this could be in the form of cash or investments)
Interest rates are the same for each of these programs.
For US citizens living and working in the US for the last two years who have an established 720+ credit history, down payment amounts vary depending upon the loan amount.
- 20% down payment (80% Loan-to-Value) up to $2,000,000 maximum loan amount
- 25% down payment (75% Loan-to-Value) up to $3,000,000 maximum loan amount
- 35% down payment (65% Loan-to-Value) up to $4,000,000 maximum loan amount
- 40% down payment (60% Loan-to-Value) up to $5,000,000 maximum loan amount
In addition, for a US citizen buying a second home, a 25% down payment (75% Loan-to-Value) is required. Interest rates for US citizens are .25% less than the rates shown above for foreign buyers.
Please contact our Senior Premier Mortgage Consultant at HSBC, Michael Rochette, to inquire about these different programs. You can also use the link below to apply for a mortgage and Michael will be in contact with you directly.