Foreign National Mortgages in the United States
Lending for International Borrowers, Visa and Green Card Holders
Foreign Nationals-Condotels and Co-ops
Condo-tel is a combination condominium and hotel, usually located in a resort area or big city business district. A condo-tel combines elements of condominium ownership with the amenities often found in hotels. Prestigious hotel chains such as the Hilton and Ritz Carlton operate condo-tels and may lease the unit back from the owner to rent out nightly to other guests. In this manner, the condo-tel owner can defray costs of ownership while enjoying occasional vacations and the use of resort amenities. Many buyers purchase a condotel intending to use the property as a vacation or second home.
Other buyers purchase the condo-tel unit as "investment property", a third class of occupancy viewed as riskier than primary residences and second (vacation) homes. The owner(s) will never use the condo-tel unit for their own enjoyment, instead placing it into a permanent rental pool
For foreign buyers, mortgages for the purchase of condo-tels are not readily available under our current programs (July 2009). We may be able to make a recommendation or a referral to another source.
Co-operative units, also known as co-ops, are similar to condo projects. Instead of a deed, co-op buyers receive a stock certificate and proprietary lease which entitles the buyer to occupy the apartment unit.
Owning shares in a cooperative corporation is viewed as riskier than owning "typical or normal" real estate. Many lenders are hestitant to accept shares as collateral. Traditionally, a lender making a mortgage loan accepts the underlying real estate (land and structure) as collateral, and as security for the loan. With a co-op, the shares are the collateral and the security for the loan. Therefore, lenders who lend on co-ops may price these loans with higher interest rates or require larger down payments to compensate for the risk.
Currently, we have programs for both the foreign national and the US borrower who may wish to purchase or refinance co-ops.
Other buyers purchase the condo-tel unit as "investment property", a third class of occupancy viewed as riskier than primary residences and second (vacation) homes. The owner(s) will never use the condo-tel unit for their own enjoyment, instead placing it into a permanent rental pool
For foreign buyers, mortgages for the purchase of condo-tels are not readily available under our current programs (July 2009). We may be able to make a recommendation or a referral to another source.
Co-operative units, also known as co-ops, are similar to condo projects. Instead of a deed, co-op buyers receive a stock certificate and proprietary lease which entitles the buyer to occupy the apartment unit.
Owning shares in a cooperative corporation is viewed as riskier than owning "typical or normal" real estate. Many lenders are hestitant to accept shares as collateral. Traditionally, a lender making a mortgage loan accepts the underlying real estate (land and structure) as collateral, and as security for the loan. With a co-op, the shares are the collateral and the security for the loan. Therefore, lenders who lend on co-ops may price these loans with higher interest rates or require larger down payments to compensate for the risk.
Currently, we have programs for both the foreign national and the US borrower who may wish to purchase or refinance co-ops.
