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If you are planning to buy a villa in Florida, questions about how to finance your Florida Holiday Home may be uppermost.
Funding your Florida home can be done in several ways, a cash purchase with the necessary funds already in place, or raised (perhaps against your existing property) in the UK. Alternatively, we can arrange to finance your purchase with an American Mortgage. |
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A US Bank Account is opened to deposit Dollars in to (Clearsky are more than happy to assist with fund transfers). The builder takes what is called a Draw through various stages of the build (stage payments). 10% is required after title transfer. Once the initial payment has been made, work commences on your property, starting with lot clearance and preparation. The next draw (20%) is due around 24 weeks into the build. You will be informed when a draw is due, you then need to make sure the required funds are in place. |
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One of the benefits of buying in the US is the relatively straightforward process of setting up finance for overseas investors. Clearsky have been arranging US mortgages for UK residents since conception. Our preferred lender is SunTrust Bank who have proved to be a very reliable and helpful lender.
5 year ARM (Adjustable Rate Mortgage), fixed for 5 years. The mortgage then goes on to a 2/6 Cap. This means that the mortgage is on the variable rate but cannot increase by more than 2% per annum and by a maximum of 6% throughout the lifetime of the mortgage. |
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5 year ARM (Adjustable Rate Mortgage), fixed for 5 years. The mortgage then goes on to a 2/6 Cap. This means that the mortgage is on the variable rate but cannot increase by more than 2% per annum and by a maximum of 6% throughout the lifetime of the mortgage.
The mortgages in the US are usually arranged over 30 years, irrespective of age, and there is no redemption charge for early settlement. This means that anyone wishing to take a shorter term can simply arrange the mortgage over 30 years but pay it off earlier. |
| To process a mortgage application SunTrust requires the following documents.
- Last 2 years P60 (last 2 years accounts if self employed)
- Last 3 payslips
- Last 3 months bank statements
- Proof of funds to close (Building Society/Bank statement)
- Letter from existing bank providing reference. |
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| SunTrust Bank will then approve the loan and send it to a Closing Agent/Attorney (the equivalent of a Solicitor or Conveyancer in the UK). The mortgage company releases funds to the builder in stages throughout the build. Interest is applicable on the total amount released during the process. This means that you are not paying full mortgage payments until the final payment to the builder. |
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