Financing

EVERYTHING YOU NEED TO KNOW ABOUT FINANCING

If you're thinking about buying a home in South Florida—whether as an investment, residence, vacation, or permanent property—it’s important to understand your mortgage options. There are many lenders available, from local banks and online financial institutions to private lenders and major U.S. banks.

SOME FACTORS THAT AFFECT DOWN PAYMENT, TERMS, AND INTEREST RATES:

• Your nationality

• Legal status in the United States

• Whether you have a U.S. credit history

• Your income and bank accounts

Getting a Mortgage
In South Florida, around 52% of buyers pay in cash, which makes the process easier and faster. However, given that U.S. mortgage rates are low (between 4.5% – 6%) compared to many countries, many buyers choose to finance their purchase.

Requirements to Get a Mortgage
Depending on the buyer’s nationality, a visa is required. All foreign buyers must present a copy of their passport with a valid tourist visa (B-1 or B-2).

• Down payment:

  • 20% – 30% for single-family homes

  • 30% – 50% for condos and townhouses

• Proof of income:

  • Bank statements

  • Reference letters from your bank or financial institution

• Two forms of ID

Other Common Requirements:

• Social Security Number

• Tax returns

• W-2 form

• Last 6 months of bank statements

• Proof of employment

• Last 2 years of residency

• Personal balance sheet

Loan Costs
Loan costs vary between lenders and depending on whether you use a mortgage broker.

• Directly with a local bank tends to be cheaper, but options are limited to that bank’s products.

• Using a mortgage broker is very common. While usually more expensive, it provides a broader range of options.

Interest rates vary based on credit history, income, debt, and bank account history. Buyers without established credit usually face higher rates.

Down Payments Vary Based On:

• Property type:

  • Single-family homes: Lowest down payment (10% – 20%)

  • Townhouses: Higher (20% – 30%)

  • Condos: Highest (40% – 50%)

• Nationality:

  • Foreign buyers without U.S. credit usually need at least 30% down, increasing based on property type.

What to Do Before Applying for a Loan

• Get your credit report before applying to fix any issues

• Know how much you can put down (including closing costs)

• Look for the best interest rate but also review other loan terms

• Compare loan offers

• Request a Good Faith Estimate

What NOT to Do Before Applying

• Make large credit purchases

• Move large amounts of money between accounts

• Apply for other loans (car, boat, credit cards, etc.)

• Change your primary residence

• Open or close bank accounts

How to Estimate Monthly Mortgage Payment
Main monthly costs to calculate total payment include:

• Mortgage payment

• Insurance (flood, hazard, hurricane)

• Liability insurance (optional)

• Condo/HOA fees (maintenance fees)

• Property taxes

Summary:
To finance in Florida, your status, nationality, and credit matter. Down payments range from 20% to 50%. Compare loans, avoid major financial changes before applying, and estimate payments including taxes, fees, and insurance.