How difficult is it to buy a property in France?
Many of you have written or called in to ask us about buying a property in France as a U.S. citizen. It’s a question with two parts. On the one hand, it is important to understand any special challenges or requirements for foreigners and in some cases, non-residents. On the other hand, every real estate market is full of its own complexities. So some of the questions you have been asking are the same ones that French citizens wonder about, too.
To get some reliable answers, we reached out to Amaury de Monclin of Bluesky Finance. Bluesky is a french mortgage broker that assists expats, non-residents and international clients with obtaining mortgages for a French property purchase. We came across him while buying our first apartment in France and were thrilled to find their team to be knowledgeable, friendly and even better -- incredibly efficient.
Amaury is a fluent English speaker, and when I reached out him, he kindly agreed to provide some answers to the top 5 questions we get from U.S. clients about buying property in France. Here is what he said:
1. Can foreigners buy property in France?
France maintains an open market policy when it comes to non-resident investment in its property sector. Non-resident investors can freely purchase residential properties without facing ownership restrictions.
It is also possible for international buyers to arrange home loans in France. Loans are denominated in euros and are secured against a real estate asset located in France. Several French banks compete in this segment of the market and are actively willing to develop relationships with international buyers including US persons.
It is typically possible to borrow up to 75% of the purchase price. Interest rates are normally fixed for the entire duration and are lower than in the US.
Home loans are serviced from a euro checking account and payments come automatically monthly by direct debit.
2. What kinds of income to French banks require in order to approve a mortgage?
To qualify for a French mortgage, applicants must be able to show a sustainable source of income. Acceptable sources of income include salaried income, K-1 income, passive income, bonus payments or pension income. Total credit outgoings must remain below 33% of the borrower’s disposable income. It is advisable to seek a pre-qualification before making an offer on a French property.
3. Are certain kinds of property easier to buy than others in France?
French lenders are more comfortable with properties located in areas where there is strong demand. Properties located in remote locations, châteaux or historically listed mansions are more challenging to finance.
4. What downpayment is required by French banks for a mortgage?
For non-EU or non-UK residents, the minimum downpayment required will be 25% plus closing fees. For French passport holders or individuals already residing in France, the minimum downpayment can be reduced to 10%.
5. How long does the purchase process take in France once you have found a property?
It takes less than 72 hours to obtain a pre-qualification. Once a preliminary sale agreement has been executed, it will take about two weeks to secure an approval. A further 5 to 6 weeks is required to complete the on-boarding process and abide by the regulatory cooling-off period.
Last but not least, I asked Amaury how readers can get in contact with him:
For a free pre-qualification or to apply for a mortgage:
+33 982 566 157
www.bluesky-france-finance.com
Amaury de Monclin
As always, feel free to post questions or comments to us below!