Canadians and other "Foreign Nationals" are sweeping up American property like crazy. This is happening mainly because the value of the American dollar has been in a constant freefall lately.
According to x-rate.com, a property selling for $300,000 American dollars would equal less than $200,000 Euros.
Why in today's tightened credit market would banks be willing to lend to Foreigners? Well, for starters, they don't always have to. In the Palm Springs mortgage market where I am at, they are paying cold hard cash for homes! But for the people they do lend to it seems that foreigners are showing to have
- Strong, consistent income
- Are willing to make the large down payment necessary for financing, up to 30%
- Have plenty of assets and reserves
Lenders are willing to take the risk based upon a stronger equity standpoint. Who wouldn't lend to someone if they put 30% down and showed good assets, reserves and a solid income?
Palm Springs is one of the meccas for Canadian vacation homes. The continued lower property value opportunities and higher value of the Canadian dollar compared to the American dollar has them coming to this area in droves trying to seek out and sweep up what they can.
Thats My 2 cents
Palm Springs Mortgage Guy, Charles Dismuke
 |
|
|
The Mortgage Industrys Fastest Growing Mortgage Broker. A wealth of mortage information, programs and advice. Call on Charles the Palm Springs Mortgage Guy to help homeowners, realtor and investors.
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2012 ActiveRain Corp. All Rights Reserved
