Buying in Delray Beach from abroad can feel exciting and complex at the same time. You want a smooth purchase, clear financing, and a smart plan for taxes and closing. In this guide, you’ll learn the financing paths available to foreign buyers, what lenders expect, typical costs and timelines, and how to stay competitive in Palm Beach County. Let’s dive in.
Why Delray Beach draws global buyers
Florida is the top U.S. destination for international homebuyers, and South Florida captures a large share of that activity. That demand brings strong competition, often from all-cash buyers. Many international buyers also purchase for vacation use or investment, which shapes loan choices and terms. See the state-level trends in Florida’s international home sales reports.
If you plan to finance in Delray Beach, you’ll want a fast, well-documented preapproval and a realistic down payment. Data show many international buyers pay cash, which is one reason offers with strong terms often win. Review the broader patterns in NAR’s international transactions update for Florida.
Loan options for foreign buyers
Conventional loans for legal residents
If you are a lawful permanent resident or a documented visa holder legally present in the U.S., you may qualify for conventional financing under Fannie Mae or Freddie Mac rules. These loans are often the most cost-effective but require clear documentation of legal presence, identity, income, assets, and any foreign asset transfers. Review the Fannie Mae non-U.S. citizen eligibility guidance.
FHA options after the 2025 change
FHA updated its residency eligibility in 2025. For case numbers assigned on or after May 25, 2025, FHA-insured loans are available only to U.S. citizens, lawful permanent residents, and certain specified classes. Many non-permanent resident visa holders who previously relied on FHA’s lower down payments are no longer eligible. Confirm current policy with your lender and review the FHA residency update summary.
Foreign national and ITIN loans
If you are a non-resident foreign national or you plan to use an ITIN rather than an SSN, lenders typically offer portfolio or non-QM programs. Expect:
- Down payment: Non-resident foreign-national programs commonly require 30% to 50% down. ITIN programs can allow lower down payments in some cases, but terms vary by lender. See typical ranges in this foreign-national guideline overview and this ITIN mortgage explainer.
- Documentation: Passport and ID, visa or residency proof if applicable, bank statements, proof of source and seasoning of funds, and sometimes translated foreign tax returns. Large cash reserves are common.
- Pricing: These programs usually carry a rate and fee premium compared with conforming loans. Market commentary notes spreads can range from several tenths to 1+ percentage point depending on risk factors. Learn more about typical pricing differences in this rate premium overview.
- Property types: Many programs allow primary, second home, or investment purchases, but loan-to-value limits can be stricter for rentals. Check the lender’s condo or specialty property rules.
Cash and investor-focused options
Many international buyers opt to pay cash, which simplifies closing and avoids underwriting bottlenecks. Others use investor-focused products that underwrite the home’s rental cash flow rather than personal income. These are portfolio loans with variable terms, so compare offers carefully and ask lenders for full APRs and fee details.
What lenders expect in Delray Beach
Documents and funds to prepare
Lenders will ask for identity documents, proof of legal presence if applicable, bank statements showing down payment and reserves, and clear sourcing of funds. If your income or assets are outside the U.S., plan for certified translations and verification. Foreign-national lenders often require reserves equal to 6 to 12 months of mortgage payments.
Credit history without a U.S. score
If you have a U.S. credit history, standard FICO applies. If not, many lenders accept alternative documentation such as international credit reports, verified payment histories, or reference letters. Collect 12 to 24 months of verifiable payment records to strengthen your file. See common approaches in this guide to mortgages without a Social Security number.
Timelines and competitiveness
Underwriting cross-border documentation takes time. Build in extra lead time for preapproval, translation, and fund transfers. To compete in Palm Beach County, many buyers line up preapproval and season funds in a U.S. account before making an offer.
Taxes and closing details to know
Florida taxes and homestead
Florida has no personal state income tax, which is attractive to many buyers and investors. That does not change federal tax obligations. If you plan to make your Delray Beach home your permanent Florida residence, review Palm Beach County’s homestead rules and deadlines with the Property Appraiser. See the Palm Beach County homestead exemption page for documentation and filing dates.
Closing costs and who pays what
In Florida, sellers typically pay the documentary stamp tax on the deed in many counties, while buyers should budget roughly 2 to 5 percent of the purchase price for lender fees, title, and prepaids. Specific splits can vary by county and your contract. For typical ranges and line items, review this Florida closing cost overview.
FIRPTA checkpoints
If your seller is a foreign person, the buyer may be required to withhold a portion of the sale proceeds under FIRPTA, often 15 percent, and remit it to the IRS unless an exception applies. Settlement agents will request documentation early in the process to confirm status and withholding. Learn the basics on the IRS FIRPTA page.
Buying through an entity
Some foreign buyers consider purchasing through a U.S. LLC or trust for liability or estate planning reasons. Lenders may restrict terms or require personal guarantees, and entity ownership can affect tax and FIRPTA outcomes. Coordinate with your lender and a cross-border attorney before you write an offer if an entity is part of your plan.
Step-by-step checklist
Before you shop
- Confirm your immigration and tax status, which drives loan eligibility. If you are a visa holder, verify current FHA rules and case number timing. See the FHA residency update.
- Decide whether you will use an SSN or ITIN. If ITIN, start the process early and prepare two years of filings if required by the lender. Reference this ITIN mortgage guide.
- Gather documents: passport, visa or residency proof, bank statements for 12 to 24 months, source-of-funds evidence, and translated foreign tax returns if needed. See typical expectations in this foreign-national documentation overview.
- Compare multiple South Florida lenders or brokers experienced with foreign-national loans and ask for APR quotes, reserve requirements, and property-type restrictions.
When you write an offer
- Present a strong preapproval that matches your program type and consider a realistic financing contingency. Cash offers often set the pace, so align timelines with your lender.
- Plan for international wires and currency conversion. Many buyers season funds in a U.S. account to simplify sourcing.
- If you plan to buy through an LLC or trust, clear the structure with your attorney and lender before contract.
At closing
- Be ready to show original identification and, if you cannot attend, arrange a power of attorney in advance with the title company.
- Budget buyer closing costs near 2 to 5 percent of the purchase price and verify wire instructions directly with your bank to reduce fraud risk.
After closing
- If you will rent the property or later sell, understand your U.S. tax obligations and potential FIRPTA implications when you become a seller.
- If you intend to make the home your permanent Florida residence, apply for homestead exemption with Palm Beach County by the annual deadline listed on the Property Appraiser’s site.
Work with a Delray Beach specialist
Your situation is unique, and the right financing strategy can help you win the home you want while protecting your long-term goals. The Luxury Palms Group pairs local expertise with concierge support, investor guidance, and property management resources to help you move with confidence in Delray Beach and across Palm Beach County. For a tailored plan and vetted lender introductions, connect with Stephanie Muzzillo.
FAQs
How much down do foreign buyers usually need in Delray Beach?
- Many non-resident foreign-national loans require 30% to 50% down. Some ITIN or documented-resident programs allow lower down payments, but terms vary by lender. See typical ranges in this foreign-national guideline overview.
Can I get a mortgage in Delray Beach with an ITIN instead of an SSN?
- Yes. Specialized ITIN programs exist. Lenders often ask for two years of tax filings, proof of income, reserves, and sourced funds. Learn more in this ITIN mortgage explainer.
Are FHA loans still available to visa holders in 2025?
- FHA updated eligibility for case numbers on or after May 25, 2025, removing most non-permanent residents from eligibility. Review the change and confirm with your lender. See the FHA residency update summary.
What is FIRPTA and will it affect my purchase in Delray Beach?
- If your seller is a foreign person, the buyer may need to withhold a portion of the sale under FIRPTA unless an exception applies. Your title and tax teams will confirm status and any required withholding. Learn the basics on the IRS FIRPTA page.
What documents should I prepare for a foreign-national loan?
- Expect a passport and ID, visa or residency proof if applicable, 12 to 24 months of bank statements, proof and seasoning of funds, and translated foreign income documents. See common requirements in this documentation overview.
