Foreign nationals — people who are not U.S. citizens — populate much of Miami, and local real estate simply wouldn’t be the same without them. However, following the housing crash in 2007, many lenders decided that granting mortgages to foreign nationals was too risky (nevermind the fact foreign nationals pay taxes and have social security numbers). Even when banks did allow foreign national buyers, they often imposed harsh conditions such as 40-50 percent down payments more than double the 20 percent ideal  — and far more than the usual 3 percent minimum. 

Nevertheless, foreign nationals and non-residents/citizens are still active searchers and buyers of Miami property. And fortunately, the process has gotten a little bit easier. Keep reading for insights on how foreign national and international buyers browse and purchase Miami real estate.

Web searches

The internet has given U.S. home buyers lots of power to look for homes and condos and learn about neighborhoods before they even contact a real estate agent. Same holds true for the rest of the globe — it is, after all, the world wide web. Buyers all over the world are browsing Miami real estate. Though typically the most searches come from South American countries  like Colombia or Brazil, there are outliers. In November 2017, Ukraine joined the list of potential buyers browsing Miami real estate.

According to Mortgage Insider, half of all international sales in 2015 occurred in four states: California, Texas, Arizona, and Florida. The countries who purchased the most properties were Canada, China, Mexico, India, and the United Kingdom. While Miami data shows a stronger showing from South American countries, Canada and India regularly make the list. 

Direct flights for foreign buyers

Miami International Airport photo by Shutterstock

It’s probably wise to see a place in person before you buy it. That’s why potential foreign buyers are taking advantage of direct flights to Miami. Both Miami International Airport and Fort Lauderdale International Airport are enhancing their international flight programs to include new, international nonstops. 

At Miami International, foreign buyers can arrive via nonstops from Istanbul, Qatar, Montreal, Toronto, Buenos Aires, Cartagena, Mexico City, Stockholm, Tel Aviv, Vienna, London, and many more. At Fort Lauderdale International, direct flights include Barcelona, Bogota, Dubai, Copenhagen, Montreal, and Mexico City, among others. Despite India’s penchant for purchasing Miami property, there are currently no direct flights to and from Mumbai. 

One-stop shopping

As foreign nationals and international buyers continue to show interest in Miami, real estate developers, brokers, and agents have stepped up their game. Parents of international students often purchase luxury condos, offering both a home for their children and a place for them a place to stay when they’re visiting from abroad. Events like Art Basel attract international attendance — and thus potential international buyers. Real estate agents vie for foreign attention during Art Basel with special events and sponsored parties. 

Loan assistance for foreign nationals

The luxury jet-setters and the foreign nationals who call Miami home aren’t always one and the same. Many foreign nationals could not afford the high, 40-50 percent down payment rates imposed following the crash (and really, who could?). But Miami real estate players couldn’t afford to ignore foreign nationals. Now, local group PYT Lending is catering specifically to foreign nationals to help them overcome the hurdles of buying without U.S. citizenship. According to The Real Deal, PYT raised a $300 million fund to finance condo purchases made by foreign nationals. PYT’s assistance includes one-year, three-year, and five-year terms with an interest rate of 6.95 percent.