Florida Opens Doors to Foreign National by Offering No Doc Loans
thesiddman | 11/03/2009
Many banks are now enticing foreign nationals into investing into the Florida real estate market by offering no doc loans.
What is a No Doc Loan?
A No Documentation (No Doc) loan is a special type of loan whereby the lender does not require the borrower to provide any documentation, hence the “No Doc” element.
The borrower’s incomes, tax returns and assets are not disclosed on the mortgage application and their employment is not verified. However, the lender will perform a credit check on the borrower and also the borrower will also have to sign an affordability statement stating that they are able to make the repayments. In addition, they may have to state that the loan is for investment purposes.
No Doc loans usually come with a higher rate of interest and also a larger down payment as a deposit; the No Doc loan is ideal for people interested in property investments or for a business that wishes to move their business to another area but cannot verify their income or assets.
Who Deals in No Doc Loans
Normally the major banks do not engage in No Doc loans, and typically smaller banks, private lenders or international banks will offer No Doc loans. The normal LTV is around 60% and lenders usually charge an extra 1-2% to cover processing fees.
Private No Doc Loans
The typical private lender offering No Doc loans will be wealthy individuals, mortgage funds, institutional investors or companies. Rather than deal direct, these private lenders deal via brokers who can match borrowers with lenders; brokers normally charge a fee for arranging a No Doc loan.
For some great deals on No Doc loans for Florida properties please visit our website.
http://usapropertyinvestor.4cees.com/overseas-property-mortgage-brokers/
