American buyers
American buyers in Spain can expect favourable terms and conditions from Spanish Banks in comparison to other non EU citizens.
This is because the processes for documenting taxed incomes, recording of debt performance in the US is very clear and transparent and robust.
Other countries where this is not the case struggle to obtain the same terms and conditions offered to those residing in Europe.
Product availability
Maximum loan to value in Spain will be 70%. This is restricted because the property is a second home rather than primary residence.
If the applicant intends to live and pay income taxes in Spain after a sustained and prolonged period of time in the Spanish system a further 10% may be able to be borrowed.
Product types are not sophisticated as they are in America and no interest only is granted.
Loans are repayment either variable trackers of fixed rates foxed for the full term.
Application process
It is possible before coming to Spain to view property to get in place a fiscal approval. This requires a fully documented application is made to the lender and is underwritten by the risk teams subject to valuation of a property.
The securitization process in Spain is very different to the US as are the legal obligations and there is a lack of flexibility after completion in terms of changing product or lender so it is always best to take independent and expert advice from a mortgage broker before committing yourself.
Read the full article :- Mortgages in Spain for Americans
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