Single-Currency Mortgages

Qualification criteria effective 20 September 2011

Florida Mortgages International LLC offers a competitive alternative to variable rate "multi-currency" mortgage loans with more conservative fixed rate "single-currency" home loans affording greater interest rate predictability!

Unlike our multi-currency mortgage loans, our single-currency home loans actually offer US Dollar denominated mortgage repayments in your choice of several variable and fixed rate plans! Our single-currency mortgage loans are available on properties located only in the USA.

The terms and conditions of the financing available are primarily determined by the subject property’s location, value, type, and intended use. Each and every one of these factors influence how we will advise you regarding the financing options available on your specific scenario.

One mortgage - several variable and fixed rate plans - the choice is yours!

Single-Currency Mortgage Loan Description:

Lender: uniquely provided by Florida Mortgages International LLC as intermediary. 

Distinguishing Features / Benefits:

• low variable and fixed interest rates = predictably affordable mortgage repayments
• low minimum loan amount requirements = ideal for properties valued under USD$1,333,400
• no early repayment/redemption penalty = capital reduction at your convenience
• flexible collateral requirements = several property types allowed
• escrows required for property taxes and building insurance = cash flow management

Currency: available for repayment only in US Dollars.

Currency Switch Option: an option to switch the currency of repayment is not available. 

Intended Purpose: principally designed for Foreign Nationals (Non-Resident Aliens and Non-Permanent Resident Aliens) to finance the purchase or refinance an existing mortgage (lower rate/term) of residential property outside their country of residence; held as a true second or holiday home (not as investment or buy-to-let property). Refinance for purpose of release of equity is not allowed.

Mortgage Plans Offered: single-currency mortgages are offered in a variety of variable and fixed rate plans. Variable rate plans are offered with a fixed rate period for the initial 3 or 5 years; followed by a variable rate period adjusting annually thereafter. Fixed rate plans are offered with a fixed rate for the entire term of 15 or 30 years.

Current Rates: for properties located in the USA; initial interest rates range from circa 4.000% to circa 7.000% for US Dollar mortgages. Contact us directly for a quote on properties located outside the USA or for repayment options in currencies other than USD.

Variable Rate Index: 1-Year LIBOR [applicable only to variable rate plans].

Variable Rate Margin: 3.000% [applicable only to variable rate plans].

Interest Rate Adjustment Caps: 5/2/5 structure - the initial interest rate adjustment cap is 5.000%; subsequent adjustment caps are 2.000%; the lifetime interest rate adjustment cap is 5.000%.

Floor Rate: 3.000% (the Margin).

Minimum Down Payment: required down payment depends on property type:

• 25% for single-family homes and townhouses in all locations
• 30% for condos in all locations.

Seasoning/Sourcing Of Funds: all funds required for down payment, settlement costs and liquidity reserves must be "seasoned" and/or "sourced" in either a US or foreign bank account for a minimum of 90 days prior to settlement. An explanation is required if cumulative deposits are greater than one months gross qualifying income. An explanation is required if any large deposit is inconsistent with other deposits and/or inconsistent with gross qualifying income. Large deposits must be sourced. [Assistance with foreign currency exchange services is provided upon request]. 

Minimum Liquidity Reserve Requirement: generally liquidity reserves are not required. However, all lenders reserve the right to require verification of liquidity reserves to enhance the strength of the mortgage request. 

Escrow Reserve Requirement: escrow reserves for property taxes and building insurance are mandatory; collected with each monthly mortgage repayment and placed in an escrow account held by the lender for payment annually. Escrow reserves are required to be maintained for the entire term.

Maximum Seller Contribution: seller contributions are limited to 6% of the purchase price.

Minimum Loan: for properties in all locations - USD$50,000.

Minimum Property Value: for properties in all locations - USD$66,700.

Maximum Loan: for properties in all locations - USD$1,000,000.

Maximum LTV: maximum loan-to-value depends on property type:

Repayment Options: capital & interest repayments only for the entire term (no interest-only repayments).

Negative Amortization: all repayments cover interest due; no negative amortization can occur.

Repayment Frequency: interest paid monthly in arrears. Repayments accepted as wire transfer, check, bank draft, direct debit and standing instruction.  

Maximum Term: 30 years regardless of borrower's age.

Maximum Borrower Age: the maximum term of the mortgage approved is not affected by the borrower's age at completion.

Resident Eligibility: the lenders' primary concern is the borrower's country of "residency" (not the borrower's "nationality") relative to the country in which the subject property is located. Non-US Residents from most countries are eligible unless prohibited by local laws or regulations.

Occupancy/Property Usage: Non-Resident Aliens financing property held as a true second or holiday home are eligible. Non-Permanent Resident Aliens financing property held as primary residence are eligible. Non owner occupied property held as investment or as buy-to-let is not allowed. [Owner must sign a letter of occupancy certifying that owner will maintain exclusive control of property. Release of control to a property management company is allowed only for property maintenance. Release of control for rental purposes is not allowed]. Corporate borrowers are not eligible.

Maximum Affordability Calculation: generally monthly Debt-To-Income Ratio can not exceed 33%; Housing Expense Ratio can not exceed 38%. Calculated as follows: [(existing mortgage repayments + subject property mortgage PITI & HOA + unsecured repayments) / (monthly earned gross income + 75% of monthly gross rental income)]. Affordability calculation will utilize the Fixed Rate when calculating the proposed loan repayments.

Rental Income: 75% of documented rental income for other properties owned is allowed for income qualification.

Credit Considerations: no missed credit or mortgage repayments within the last 12 months. Established credit history in the US is not required. International credit report is required and will be pulled.

Collateral Considerations: subject property must be either a residential single-family home, townhouse or condo*. Duplexes, 3-4 family dwellings and condo-hotels are not allowed. Commercial property is not allowed. *[If subject property is a condo, a Condo/HOA Questionnaire must be completed to determine property eligibility]. 

Geographic Considerations: available only in the USA in selected locations within the states of Alabama, Arizona, California, Colorado, Florida, New Mexico and Texas. [Subject properties located in other countries are not allowed].

Early Repayment/Redemption Penalty Fees: no early repayment or redemption penalty.

Payment Forbearance: the lender does not allow temporary deferment of scheduled repayments.

Life Assurance: the lender does not require the borrower to affect a life assurance policy to cover the loan amount.

Documentation Requirements: in addition to the mortgage application form, borrowers are required to provide supporting documentation to prove employment, income, assets, liabilities and credit history. Documentation requirements differ between "multi-currency" mortgage plans and "single-currency mortgage plans". Please be sure to refer to our Document Checklist 2 specific to "single-currency" mortgage plans.

Pre-Approval Of Mortgage Request: specific identification of the subject property is required for submission of mortgage request to lender and subsequent underwriting determination on purchases. Mortgage requests are gladly accepted and processed for pre-qualification whilst you shop for a property.

Average Mortgage Request Processing Time: 30 to 45 calender days.

Associated Costs: Florida Mortgages International LLC will gladly provide you a personalized quotation of costs commonly referred to in the US a a "Good Faith Estimate of Settlement Services" detailing associated costs and proposed monthly mortgage repayment at no cost or obligation to you upon request.

Personalized Quotation! Free Initial Consultation! No Obligation!