Getting financing to buy a home can be more difficult in some circumstances. In the following lines, we want you to know the conditions of mortgages for foreigners. You will see that, despite the difficulties, it is possible to buy a house.
What are usually the conditions of mortgages for foreigners?
It is necessary to bear in mind that each entity has its own rules, but we have prepared a list with the most common mortgage conditions for foreigners, they are these:
Financing percentage. Currently, the usual thing is that mortgages are granted on 80% of the appraisal. However, this percentage usually drops in the case of foreigners to 70 or even 60%. However, if you have great financial stability and a residence for several years, it is possible to increase this period.
Savings. Financing a lower percentage of the sale or appraisal will require greater savings. They will have to cover the unfunded percentage and also the costs of the operation.
Type of interest. In this case, the conditions are usually similar to those of other loans, although higher percentages may also be used if the entity considers it a risky operation. Check this information well when requesting credits for foreigners.
Term. The normal thing is that a mortgage is financed for 30 years, although in some situations this term is higher or lower. In the case of foreigners residing in Spain, it is usual for these deadlines to be respected, although each case is different and the bank may decide to vary the number of years.
Guarantors. For a bank granting a mortgage for foreigners has a higher risk on the table. If the financial situation of the applicants is not very stable, you can turn to a guarantor who does. It is an option that will have to be considered and analyzed if it is the most appropriate.
Study. In principle, the study of a mortgage in Spain for foreigners is similar to any other. Of course, it is considered a transaction with more risks than others and all the circumstances of its applicants may be looked at with a magnifying glass. In this way, the term to get the response from the entity can be longer.
It is evident that the conditions of mortgages for foreigners are usually stricter, even so, it is possible to get financing to buy the home of your dreams.