DOWN PAYMENT - 30% FOREIGN BUYERS & 20% DOMESTIC BUYERS
30% Down Payment for Foreign Buyer Program
Under the 30% down payment program (70% Loan-to-Value), there are specific criteria that the building must meet: over 90% of the units must be sold; no more than 10% of the units can be owned by one individual/entity; no more than 20% of the building can be commercial; final certificates of occupancy must have been issued for all apartments; and the homeowners’ association must have control of the building. This program requires 12 months of reserves and the maximum loan amount is $3,000,000.
50% Down Payment Program
If the building doesn’t meet the specific criteria above, for example, if the building is only 60% sold, the bank still may grant a mortgage; however, HSBC would require a higher down payment (or 50% Loan-to-Value). This program requires 36 months of reserves and the maximum loan amount is $3,000,000.
Other requirements of both programs:
- Must be an HSBC Premiere client ($100,000 on deposit – this could be in the form of cash or investments)
- Interest rates are the same for each of these programs.
For US citizens living and working in the US for the last two years who have an established 720+ credit history, down payment amounts vary depending upon the loan amount.
- 20% down payment (80% Loan-to-Value) up to $2,000,000 maximum loan amount
- 25% down payment (75% Loan-to-Value) up to $3,000,000 maximum loan amount
- 35% down payment (65% Loan-to-Value) up to $4,000,000 maximum loan amount
- 40% down payment (60% Loan-to-Value) up to $5,000,000 maximum loan amount
In addition, for a US citizen buying a second home, a 25% down payment (75% Loan-to-Value) is required. Interest rates for US citizens are .25% less than the rates shown above for foreign buyers.