| Financing Foreign Property |
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Angela
Jackson, Foreign Property Specialist Verico Canada First Mortgage  What options are available for financing Foreign Property?
Why choose Cross Border Loan? The evolution of the mortgage industry in many foreign countries has broadened both the buyer pool and property types allowing investors to reposition their losses in the stock market to now include Foreign Real Estate. With the current financial climate, Investors are choosing to finance their foreign property investment for the added security and liquidity it provides, while also considering the possible tax benefits. Investing in Foreign Property is country specific and it is highly recommended to seek the advice of specialized Tax, Legal, and Financial professionals to ensure financing is structured to meet the investment goals. Cross Border Loans are funded in US$ to Canadian, American, and UK Residents.What is the Loan Process? Foreign Lenders follow responsible lending, and their rigid qualification guidelines require borrowers to prove credit worthiness, income, and net worth. A prequalification application will determine if the applicant can formally apply for the Loan. Once prequalification is confirmed a Loan Application Package will be forwarded- Uniform Residential Application (1003) and several other forms country and lender specific. When the documentation checklist is satisfied, it is sent to Lender to be underwritten, and the process of due diligence on property and title begins. It is important to note, the mortgage industry in most Foreign Countries, is not regulated, and Canadians should be aware of the inherent risks associated with sending up front fees, personal, and financial information to mortgage companies abroad. Together with trusted notary, closing, and escrow agents, specializing in foreign property, we pack a MORTGAGE SUITCASE for all borrowers before booking their “fly and buy” trip, ensuring transparency throughout the real estate transaction. Expected time to close Cross Border Loans can be 60 to 120 days. What types of Foreign Mortgages are available? Foreign Lenders are not immune to the global economy and the same volatility found in the Canadian mortgage landscape is also being felt abroad. Loan Programs and participating lenders are country specific and change daily. Anticipation of new Lenders entering the foreign mortgage market in 2009 will undoubtedly support new products being offered. Typical Loan program highlights are: (*country specific) *Up to 30 year Amortization *Fixed or Adjustable Rates *Purchase, Refinance, Construction, and Land *Up to 80%LTV *60%Land *Minimum 660 Fico Score *Full, Alternative, and Stated Documentation What can I expect to pay for upfront fees and closing costs? Both Upfront fees and Closing costs are Lender and Country specific , relative to additional documentation required for due diligence on property and title. Upfront fees for applications, appraisal, and underwriting services are determined during the application and will be disclosed within the escrow agreement. Closing costs range between 4- 8% and upon Loan approval a “Good Faith Estimate” is forwarded outlining these costs in detail. Typical closing costs include but not limited to: Loan Origination, Legal Fees, Trust Management (Fideicomiso), Transfer of Property Tax, Deed Registration, Title Insurance, Home owners Insurance and in some cases Life Insurance. For
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