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saservp's avatar

How to get financing for foreign property?

Asked by saservp (291points) July 16th, 2010

I am interested in purchasing a property abroad; I live in the US. I can’t get a mortgage with a US bank because it is not a US property, but the mortgage rates at the foreign country banks are ABSURRDLY high (higher than my credit card!). Where/how can I get financing at a reasonable rate for this?

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7 Answers

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Response moderated (Unhelpful)
bob_'s avatar

Do you have assets in the US you can use to borrow money?

saservp's avatar

you mean like a house I could take a ‘home improvement’ loan out on, or something like that? no i dont unfortunately

bob_'s avatar

@saservp Then I’m afraid your only option is to apply for a mortgage in the country where the property is located. There’s a reason sticker prices are lower: a (larger) part of the cost comes in the form of higher interest rates.

cazzie's avatar

It will all depend on collateral. if you have none… then… the rates will be higher than your credit card. You are a non-resident and are thus a higher risk to lend to…. unless you can back your buck with something real. Your other option is to become a resident of the country you are wanting to purchase property in. Good luck!

YARNLADY's avatar

Investigate a branch of your local bank that has branches in the country you want to purchase the property. Perhaps you could work out some kind of concessions.

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