Foreign Buyer Financing Basics for Miami Luxury Homes

Buying a Miami trophy property as a foreign national and planning to finance it? You are not alone, and you are right to ask the hard questions early. The process works, but it follows different rules than a typical U.S. mortgage and it rewards preparation. In this guide, you will learn realistic loan options, down payment ranges, documentation and seasoning standards, timelines, and how to structure your purchase for a smooth closing. Let’s dive in.

Miami factors that shape financing

Miami draws international buyers from Latin America, Europe, the Caribbean, the Middle East, and Asia. Many banks here offer foreign‑national programs and private banking teams, but underwriting still runs through strict compliance. You should expect detailed source‑of‑funds review, Know‑Your‑Customer checks, and sanctions screening under U.S. Treasury guidance. If a seller is a nonresident, FIRPTA withholding rules can affect the transaction, so coordinate early with your attorney and tax adviser.

Miami’s property types also matter. High‑rise luxury condos can face extra lender scrutiny around condo warrantability and the association’s financials or special assessments. Single‑family waterfront homes are often simpler to underwrite, especially as primary or second homes in stable associations.

Loan products you can expect

Financing for UHNW foreign buyers typically falls into several categories:

• Foreign‑national mortgage programs designed for non‑U.S. residents.
• Private bank or wealth‑management loans that are relationship and asset based.
• Portfolio jumbo loans from regional or local lenders held on the bank’s balance sheet.
• Bridge loans or short‑term financing used before refinancing.
• Securities‑backed lines as an alternative to a mortgage.

Typical LTV ranges

• Conservative or higher‑risk cases, including some non‑warrantable condos: about 40 to 60 percent LTV.
• Standard foreign‑national jumbo on single‑family or warrantable condos: about 60 to 70 percent LTV.
• Private banking with strong relationships and collateral: up to about 70 to 75 percent LTV, sometimes higher with cross‑collateralization of liquid assets.
• Investment properties: lower LTV and stricter reserves than primary or second homes.

Pricing, reserves, and qualifying

Rates for foreign nationals are often higher than for comparable U.S. borrowers to reflect risk and compliance costs. Premiums vary by lender and profile, and private banks may adjust fees in exchange for asset relationships. Expect minimum origination fees and, in some cases, higher costs for smaller loan sizes.

Reserve expectations are material. Many lenders want 6 to 24 months of PITI in liquid reserves after closing. Some will underwrite with alternative metrics that fit UHNW profiles, including assets under management or documented liquid net worth, and they may apply conservative stress tests to debt service.

Documentation and seasoning checklist

Be ready for deeper documentation than a typical U.S. borrower. Organize early and keep translations and certifications current.

• Identity and residency

  • Valid passport and a secondary government ID.
  • Visa or proof of lawful U.S. entry when required by the lender.
  • Proof of foreign residence, such as a utility bill or government letter.
  • International tax ID or U.S. ITIN if available.

• Credit assessment

  • U.S. credit history is not always required.
  • Lenders may accept foreign credit bureau reports, translated and certified.
  • Alternative evidence, such as bank reference letters or proof of timely payments on large obligations, can help.

• Source of funds and bank statements

  • Provide 3 to 12 months of statements from the source accounts, with translations and notarization if needed.
  • Document the origin of deposits, such as asset sales, business income, dividends, loans, or gifts.
  • Maintain a clean chain of funds if you move capital into a U.S. account. Keep bank letters and statements that show transfers.
  • Plan for seasoning. Many lenders and title companies look for 60 to 90 days of funds in place. More complex paths or higher‑risk profiles may require 120 days or extra provenance.

• Gift funds

  • Some lenders allow gifts with formal gift letters and documentation of the donor’s source of funds. Usage may be limited.

• AML, KYC, and sanctions

  • Be prepared to disclose beneficial ownership for entities and trusts.
  • Buyers connected to higher‑risk jurisdictions or politically exposed persons often face extended reviews.

• Escrow and closing funds

  • Title companies often require wires from U.S. banks. International wires need lead time and clear documentation.
  • Confirm whether a certified check is acceptable and plan wire timing well in advance.

Condo and HOA due diligence in Miami

Condo warrantability can determine if a program is available. Ask for association financials early and review reserves, insurance, litigation, and any special assessments. Buildings with a high investor share or significant commercial components can limit loan options. If a building is non‑warrantable, you may need a portfolio lender, private bank, or alternative structure.

Choose the right lending partner

Selecting a lender with cross‑border experience is critical. Global private banks bring multilingual teams and flexible structures. Large U.S. banks with private bank divisions offer deep U.S. underwriting resources. Regional Florida banks can be nimble with local condos and closing practices. Specialty mortgage lenders and private lenders can solve timing issues at a higher cost.

Look for these capabilities:

• Proven experience with non‑U.S. borrowers buying Miami luxury property.
• Dedicated cross‑border teams that manage KYC, translations, and international wires.
• Condo and HOA underwriting knowledge specific to Florida.
• Language support aligned to your needs.
• Willingness to accept alternative credit and wealth documentation.
• Strong pre‑approval or comfort letters that address foreign funds and seasoning.

Private banking vs. portfolio loans

• Private banking works well when you want bespoke structuring, higher LTVs through relationships, or securities‑backed options. It typically requires a meaningful asset relationship.
• Portfolio loans can be more flexible on certain property types, including non‑warrantable condos, because the bank holds the loan in house and sets its own risk policy.

Transaction roadmap and timing

Follow a structured path and build in time for compliance.

1. Select your lender early

   • Ask for a foreign‑national checklist and secure a written pre‑qualification tailored to your property type and location.

2. Open U.S. banking and consider an ITIN

   • A U.S. account supports wires and documentation. An ITIN can simplify reporting, though it may not be required at application.

3. Prepare and season funds

   • Start the documentation trail early. Keep original statements, transfer letters, and certifications.

4. Complete title, HOA, and condo diligence

   • Obtain condo documents and financials early. Verify assessments, litigation, and any major commercial components.

5. Complete AML and sanctions screening

   • Provide beneficial ownership documents for entities and trusts. Anticipate questions if you have higher‑risk jurisdiction ties.

6. Verify reserves and qualifying

   • Confirm how many months of PITI reserves are required and keep those funds separate from your down payment.

7. Manage closing logistics

   • Plan wire timing and currency conversions. Use a title company that regularly handles international escrows.

Allow 4 to 8 weeks for underwriting when documents are complete. Complex KYC or non‑warrantable condos can take longer. Bridge or private loans can close in 2 to 3 weeks at a higher cost.

Common pitfalls to avoid

• Starting fund seasoning and proof‑of‑funds too late.
• Assuming a condo is warrantable without reviewing the association package.
• Choosing a lender without Miami luxury or condo experience.
• Missing wire timelines or underestimating currency conversion logistics.
• Disclosing entity or trust structures late and slowing down beneficial ownership reviews.

Structuring notes for UHNW buyers

If you plan to purchase through an entity or trust, disclose the structure early. Lenders will require beneficial ownership documentation and may need to underwrite guarantors. For investment use, expect tighter LTVs and reserve requirements than for a primary or second home. If you hold significant liquid assets, discuss securities‑backed credit or cross‑collateralization with your private bank to compare cost and flexibility with a mortgage.

How we help you in Miami

You want a confidential, efficient path from selection to closing. Cassis Burke Collection coordinates the pieces that matter to foreign‑national financing in Miami. We guide property selection with an eye on warrantability and HOA health, anticipate lender diligence, and organize a clean transaction timeline with your banker, attorney, CPA, and title team. Our senior advisors bring international perspective, developer access, and a calm, precise approach to complex deals.

Ready to explore Miami’s finest properties with a plan that fits your financing needs? Request a private consultation with the Cassis Burke Collection.

FAQs

What LTV can a foreign buyer expect in Miami?

• Many foreign‑national programs offer about 60 to 70 percent LTV for warrantable condos and single‑family homes, with 40 to 60 percent LTV common for higher‑risk or non‑warrantable condos.

How long does foreign‑national underwriting take in Miami?

• Straightforward files can close in 4 to 8 weeks, while complex AML or non‑warrantable condo cases may take longer; private or bridge lenders can sometimes close in 2 to 3 weeks.

What documents do foreign buyers need for a mortgage?

• Expect a passport and secondary ID, proof of residence, bank statements for 3 to 12 months, source‑of‑funds evidence, and translations or notarizations where required.

What is condo warrantability and why does it matter?

• Warrantability reflects whether a condo meets lender criteria related to association finances, reserves, litigation, and usage; non‑warrantable status can limit loan options and reduce LTVs.

Do I need a U.S. credit score or ITIN to qualify?

• Many lenders accept foreign credit reports or alternative credit evidence, and some will proceed without an ITIN at application, though obtaining one can simplify processing.

How much in reserves do lenders typically require?

• Lenders often require 6 to 24 months of PITI in liquid reserves after closing, with tighter requirements for investment properties and higher‑risk profiles.

Can I use gift funds for my Miami luxury home purchase?

• Some lenders allow gifts with a formal gift letter and full documentation of the donor’s source of funds, but usage may be limited in foreign‑national programs.

What should I know about FIRPTA as a buyer?

• FIRPTA is a withholding rule that applies when the seller is a nonresident; it affects the transaction mechanics, so raise it with your attorney and tax adviser early.