Condo Loan For Farangs?

[billyboy]

I know that farangs cannot borrow money for a house /condo from banks in Thailand ,but does anyone know of any developments in pattaya that i can put a deposit down and pay it off monthly?

im after a condo in pattaya.

[Digger]

I know that farangs cannot borrow money for a house /condo from banks in Thailand ,but does anyone know of any developments in pattaya that i can put a deposit down and pay it off monthly?

im after a condo in pattaya.

<{POST_SNAPBACK}>

Farang can and do have mortages for condo's in their own name. Also farang companies owning land and houses can and do have mortages for those properties (the mortage is in the name of the company owning the land, but the credit rating is based on farangs financial situation). Its not easy but I know many people that have done it. For a condo, you need to bring in the purchase price of the condo and have the correct paperwork for the land office registration. Once you have done this, you then re-mortgage the condo with a bank or finance company who pay direct to you the value of the mortgage amount. You then repay the mortgage monthly. In either scenario you need a rock solid credit rating in Thailand, work permit and a hefty deposit (often about 50%) but if you meet the criteria its certainly possible.

Not many projects I know of in Pattaya that provide developer financing - its mostly done by banks and their criteria needs to be met by the borrower. Do not believe the salesperson in this scenario - go and establish the criteria directly with the finance company before putting down a non refundable deposit.

[CDB]

If someone else overseas can help you juggle the cash, a further option is this:

(1) Purchase the condo with a 100% cash transfer from abroad, making sure you get a thor. tor. 3 from the bank to show intended use of funds (use the sale/purchase agreement)

(2) Once you have the deed, use it as security with a Thai bank to take out an SME loan (overdraft) for 60-70% of the appraised condo value. It takes around 4+ weeks to loop the cash back to the person helping you juggle. Note that the purpose of the loan should be improvments to the condo or any reasonable story EXCEPT financing the condo purchase itself banks are not supposed to help foreigners finance real estate purchases. Bangkok Bank gave me interest at MLR for two years, rising a little after that. Interest at MLR is quite respectable (~7%) since property prices have been rising faster than that, but of course it's higher than Thai people pay for their mortgages -- so the banks WILL be eager to help you

(3) You now have effectively purchased a condo with a 30+% deposit. But the loan structure as an overdraft may not be the way you want it. It's likely the loan can be restructured by a third party into installments, or you may prefer just paying interest on the loan every month for as long as you like...

The hard part is find someone to help you loop the cash the first place.

[mbkudu]

CDB is right on the money. A friend of a friend did this. He is a teacher at an international school with a work permit. He had housing allowances paid by the school, so his plan was to use that money as a mortgage payment instead of a rental payment. He had a relative wire the full amount to his bank. He then applied for a loan from a Thai bank and later sent the money back to his relative.

Now he uses his housing allowance to pay off his loan and his salary is his own to use.