Homes for sale in Naples attract more than just Midwesterners and Northeasterners. Canadians and Europeans are equally interested in buying Naples real estate.

Yesterday’s article in the Naples Daily News talked specifically about Canadians, the largest group to invest in Florida real estate (Canadians accounted for 31% of the $10.7 billion in real estate sales by foreigners from June 2011 to June 2012). “Canadians have always been an important part of the Naples market, but it has become even more so,” said Phil Wood, president of John R. Wood Realtors.

While most transactions are cash, there are opportunities for foreign nationals who wish to finance their Florida vacation home.

Here is the breakdown of the program:

  • It requires a 35% down payment (maximum loan-to-value is 65%)
  • The minimum loan amount is $200,000 (with a 65% loan-to-value the minimum purchase price is $308,000)
  • A 30-year and a 15-year loan term are available
  • A 5/1 ARM is available for zero points (fixed for 5 years then adjusts annually)
  • Condos are allowed upon approval
  • Escrow of taxes and insurance is required
  • Auto debit of monthly payment from a U.S. bank is required
  • The lending area is limited to Naples, Marco Island, Bonita Springs and Bonita Beach

There are pre-payment penalties, however, you can pre-pay up to 20% of the balance in any of these calendar years without penalty:

  • 3% of balance in year one
  • 2% of balance in year two
  • 1% of balance in year three

Your mortgage broker will require the following documents for application:

  • For self-employed borrowers, an accountant/CPA letter verifying income figures for at least the last 2 years and also providing a year-to-date figure
  • For salaried borrowers, the employer must provide a letter on company letterhead stating the borrower’s current monthly salary and/or valid pay stubs
  • International credit report (ordered by the lender)
  • Verification of assets; must verify initial down payment, cash to close and reserves equivalent to no less than 24 months PITI (principal, interest, taxes, insurance) and HOA (when applicable)
  • All cash to close must be on deposit in a U.S. banking institution (client will want to wire these funds as soon as they go to contract if funds are not already in a U.S. account)
  • Copy of passport(s) for all borrowers
  • All documentation received must be translated into English (if applicable) prior to submission by an official interpreter or bank official

If you have any questions, please feel free to contact me. I am not a mortgage broker, but I can certainly put you in touch with someone locally who can walk you through the details.

Alysia Shivers Realtor | Naples Florida Real Estate | 239.877.9732 | Facebook | Twitter | LinkedIn | Pinterest