For many Brazilians who dream of owning a home in Florida or investing in real estate in the United States, the main question is: how mortgages work in the USA for foreigners? Understanding this process is fundamental to planning the purchase safely and avoiding surprises during the negotiation.
The mortgage, called mortgage is the main form of real estate financing in the United States. It works in a similar way to a loan, where the bank or financial institution grants credit to the buyer, who then pays monthly installments with interest. The big difference is that the property itself serves as security for the payment.
However, for foreigners, the rules have particularities that make the process different from what we are used to in Brazil. While in Brazilian financing it is common to find shorter terms and high interest rates, mortgages in the US for foreigners can offer more advantageous conditions in terms of rates and terms, but require a larger down payment and detailed proof of income and source of funds.
Understanding these differences is essential for anyone wishing to invest in the American real estate market, whether for housing or to generate rental income.
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HideMortgages are the most common form of real estate financing in the United States. In English, the term used is mortgageThis refers to the contract in which a financial institution grants credit to the buyer for the purchase of a property, with the property itself as collateral.
In practice, it works in a simple way: the buyer makes an initial down payment, called a down paymentThe rest is financed by the bank in monthly installments that include interest, insurance and taxes. If the buyer defaults on payment, the property can be repossessed by the financial institution, in a process called foreclosure.
For foreigners, the mortgage process is very similar to that of residents, but with some important adjustments. Banks usually require a higher down payment and detailed proof of income and where the money comes from, since the applicant has no American credit history.
It's important to note that, unlike in Brazil, where mortgages tend to have shorter terms and higher interest rates, mortgages in the US for foreigners can offer long terms (up to 30 years) and lower interest rates. This makes real estate investment in the country attractive for those who want to diversify their assets or earn income in dollars.
A common question for those wishing to invest in real estate is whether foreigners can actually access financing. The answer is yes: mortgages in the USA for foreigners are available and increasingly used by international investors.
There are basically two profiles of foreigners who can apply for a mortgage:
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Non-resident foreignersThe most common case for Brazilians buying real estate in Florida are those who don't live in the US and don't have a permanent residence visa. This is the most common case for Brazilians buying property in Florida for vacation or vacation rental investment.
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Foreign residentsThese include holders of green cards or work visas who live in the country legally. For this group, the criteria are usually closer to those applied to American citizens.
Documents normally required for non-resident foreigners
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Valid passport
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Proof of income in the country of origin (bank statements, income tax returns, payslips)
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Proof of the origin of the funds used for the entry (down payment)
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Home country bank references
What if I don't have credit in the USA?
One of the points that differentiates the analysis for foreigners is the issue of American credit history. While residents need to present a credit scoreforeigners can be evaluated in other ways, such as through international bank statements, financial investments and proof of income in Brazil.
In other words, even if you don't have credit in the US, you can still get a mortgage, as long as the other requirements are met.
When looking for financing, it's important to understand that there are different types of mortgage on the American market. For foreigners, the most common options are similar to those offered to residents, but with stricter entry requirements and proof of income.
1. Fixed-Rate Mortgage
In this model, the interest rate remains the same throughout the term of the contract, which can be 15, 20 or even 30 years. It is the preferred option for those looking for predictability, as the monthly installment does not change over time. For those who want stability, this is often the safest form of mortgage in the USA for foreigners.
2. Adjustable-Rate Mortgage
Here, the initial interest rate is lower, but is adjusted periodically according to the market. It's an interesting alternative for those who want to resell or pay off the property in a shorter period of time, taking advantage of the reduced interest at the beginning.
3. Specific programs for foreigners
Some banks and financial institutions offer credit lines exclusively for international buyers. These programs take into account the absence of an American credit history and can accept financial documentation from the country of origin. On the other hand, they generally require down payment between 25% and 35%.
Understanding which of these modalities best suits your profile is essential to ensure not only approval, but also the viability of maintaining the investment in the long term.
Although foreigners can finance real estate, American banks apply specific criteria to reduce risks. Knowing the main requirements is key to increasing your chances of being approved for a mortgage in the US for foreigners.
1. Minimum down payment
While American citizens can finance properties with down payments from 3% to 5%, foreigners usually have to offer between 25% and 35% of the property value. This higher percentage acts as a form of security for the financial institution.
2. Proof of income and source of funds
The bank will require documents proving not only your ability to pay, but also the legal origin of the money used for the down payment. Bank statements, income tax from the country of origin and payslips are commonly requested.
3. Financial reserves
In addition to the entrance fee, many banks ask foreigners to prove that they have 6 to 12 months of installments on accountas a reserve. This guarantees that there will be resources available even in the event of unforeseen circumstances.
4. Interest rates and terms
Interest rates for foreigners tend to be a little higher than for American citizens, but are still lower than those in Brazil. The term can be up to 30 yearsoffering attractive payment terms.
5. Credit history
Foreigners don't usually have credit score in the USA. In this case, the banks evaluate financial information from the country of origin, such as investments, real estate, income and professional stability.
In short, the process is affordable, but requires financial planning. Having organized documentation and proving financial strength are key points for getting a mortgage approved in the USA for foreigners.
When taking out a mortgage in the USA for foreigners, it is important to consider that, in addition to the down payment and monthly installments, there are additional costs that are part of the process. These vary depending on the state, the bank and the type of financing, but generally follow a pattern.
1. Banking and origination fees
These include administrative expenses charged by the financial institution to process the loan, such as origination feecredit analysis and underwriting. They usually range from 0.5% and 1.5% of the amount financed.
2. Home Insurance
All mortgages require the property to be insured against risks such as fire, natural disasters and theft. The amount depends on the location and type of property, but can cost between US$ 800 and US$ 1,500 per year.
3. Property Tax
This is one of the most important costs. In the USA, each county charges an annual fee that varies between 1% and 3% of the property value. Normally, the amount is diluted in the monthly mortgage installments.
4. Private Mortgage Insurance (PMI)
In some cases, when the down payment is considered low, the bank may require mortgage insurance to reduce the risk of default. For foreigners, this cost is not always applicable, since the down payment is usually high, but it's important to know that it can exist.
5. Closing Costs
At the closing of the purchase, there are also expenses with the notary's office, registration, lawyer and valuation of the property (appraisal). These costs are around 2% to 5% of the property value.
These charges are part of the reality for those looking for a mortgage in the USA for foreigners and should be included in financial planning to avoid surprises at the time of purchase.
The process of taking out a mortgage in the USA for foreigners may seem complex at first glance, but it follows a well-defined flow. Understanding each step helps you prepare better and increases your chances of approval.
1. Pre-approval
Before even choosing a property, the buyer should request a preliminary analysis from the bank or mortgage broker (mortgage broker). At this stage, income documents, bank statements and the amount that can be financed are evaluated. Pre-approval shows the seller that the buyer is qualified.
2. Choosing a property
With the pre-approval letter in hand, it's time to look for the property you want. This is a strategic step, as the down payment and financing will be based on the final price of the property.
3. Appraisal of the property
The bank requests an independent appraisal to confirm that the purchase price is in line with the market price. This ensures that the institution does not finance a value that is higher than the real one.
4. Final analysis and approval
After the evaluation, the bank reviews all the documentation, including proof of income, source of funds and financial history. If everything checks out, the mortgage is officially approved.
5. Closing the purchase
At the final stage, buyer and seller sign the contracts, the funds are released and the property officially passes into the name of the new owner. This is also where the closing costs are paid (closing costs), taxes and insurance.
This step-by-step process ensures that the US mortgage process for foreigners is transparent and secure, allowing investors to buy with peace of mind.
Opting for a mortgage in the USA for foreigners can be a great facilitator when it comes to investing in real estate, but it also brings some particularities that must be considered.
Advantages
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Access to international creditEven without permanent residence, foreigners can finance real estate in the United States.
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Long deadlinesIt is possible to obtain mortgages of up to 30 years, which reduces the value of the installments and makes financial planning easier.
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Lower interest rates than in BrazilEven if a little higher for foreigners, mortgage rates in the US are still competitive compared to those in Brazil.
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Investment leverageWith a mortgage, you can invest in more valuable properties without having to tie up all your capital at once.
⚠️ Challenges
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Elevated entrancebanks demand down payment between 25% and 35%, which is a significant figure.
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Documentary bureaucracyProof of income, source of funds and account reserves are required, which may require prior preparation.
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Additional coststaxes and insurance increase the monthly value of the mortgage, impacting cash flow.
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Slightly higher fees for foreignersCompared to residents, interest rates for foreigners may be slightly higher.
Despite these challenges, access to mortgage in the USA for foreigners remains a strategic opportunity for those wishing to diversify their investments and generate income in dollars.
To better understand how it works in practice, let's simulate the purchase of a property of US$ 400,000 using a mortgage in the USA for foreigners.
📌 Simulation conditions:
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Property value: US$ 400,000
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Down Payment: 30% → US$ 120,000
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Amount financed: US$ 280,000
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Deadline: 30 years (360 months)
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Average interest rate for foreigners: 7% per year
💵 Approximate result:
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Monthly installment (principal + interest): about US$ 1,860
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Property taxes: ~ US$ 400/month (varies by county)
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Property insurance: ~ US$ 100/month
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Total estimated monthly cost: US$ 2.360
👉 In this scenario, the investor needs to have US$ 120,000 available for the down payment, plus about US$ 10,000 in closing costs. The financing covers the rest, making it possible to buy without tying up all the capital at once.
🧮 Make your own simulation
So that you can adapt this example to your reality, we've provided an example below US mortgage calculator for foreigners.
In it, you can change the value of the property, the down payment percentage (down payment), the interest rate and the financing period. This way, you can visualize different monthly installment scenarios and better plan your investment.
Understanding all the steps involved in taking out a mortgage in the USA for foreigners is only the first step. In practice, having expert advice makes all the difference in making the process faster, safer and without surprises.
At The Florida Lounge, we offer complete support for Brazilians wishing to invest in real estate in Florida:
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Personalized consultancy: we help identify the buyer's profile and the type of property best suited to their objectives, whether it's a home, a vacation or an investment for income.
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Connection with financial institutions: we have relationships with banks and mortgage brokers who work with foreigners, facilitating access to specific funding programs.
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Guidance on documentation: we help you organize all the required documents, from proof of income to bank references, increasing your chances of approval.
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Support throughout the purchasing process: from pre-approval to closing (closing), we monitor every step so that investors have peace of mind.
With our team's experience and knowledge of the American market, you will have the support you need to get your mortgage in the USA for foreigners safely and transparently.
The US mortgage for foreigners is an excellent entry point for those wishing to invest in real estate in the American market. Even with specific requirements, such as a higher down payment and detailed proof of income, it offers significant advantages compared to Brazilian financing, such as longer terms and more attractive interest rates.
With planning, document organization and specialized support, foreigners are able to turn their dream of owning a property in Florida into a reality, either for personal use or as a form of investment with a return in dollars.
If you want to understand how to apply this process to your case, contact the team at The Florida Lounge. Our consultancy will accompany you every step of the way, from the choice of property to the approval of the mortgage, connecting you with the best opportunities on the market.
Sources used:
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No requirement for American credit history and international prequalificationHSBC allows foreigners to qualify even without credit in the US, using international reports and requiring 20% down payments on mortgages up to US$ 2 million. fctd.comus.hsbc.com
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Acceptance of international income, financing limits and flexible termsAmerica Mortgages creates programs that approve up to 97% of applications, accepting credit reports from other countries and up to 75% of LTV (Loan-to-Value). America Mortgages
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Typical entry range for foreignersFrom 15% to 50%, depending on the type of loan - 20-30% for residential properties and 30-50% for investments. Quicken Loans+6fctd.com+6America Mortgages+6
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Higher entry requirement and no track record in the USMany banks require a 30-40% down payment and do not require an American credit history, accepting international reference letters. New Omni Bank
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Input percentages between 20% and 40% depending on the programAmount varies according to the specific requirements of loans for foreigners. coast2coastmortgage.com
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Typical input of 20-25% for foreignersConfirmed as a minimum standard in several mortgage programs. HomeAbroad Inc.
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High entry of 30-40% for foreign investorsAnother important reference on the percentage required for this profile. qkapital.com
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Definition of foreign national mortgageNormally requires a minimum entry of 20%, which may include documents from the country of origin. HomeAbroad Inc.+8Wikipedia+8getwaltz.com+8
