Good news for US buyers of French property as 70% loan now available at 1.4% fixed for 20 years creating significant savings.

chris-karidis-311006-unsplash

Thanks to two new partnerships French Private Finance can now offer up to 70% for US tax residents buying in France.

Since the closure of Credit Foncier de France in January, loans for US taxpayers in France had been limited to 60%, with competing for offers few and far between. The reason for this is that many French banks struggle with the FATCA reporting – Foreign Account Tax Compliance Act –  where banks have to declare everything about each individual US account to the US Tax service.

Thankfully, French Private Finance’s new partners can offer up to 70% LTV on a repayment basis (capital + interest paid every month) with a 20 year fixed rate of 1.40%. These loans will also require a savings account to be opened with circa 15% of the loan amount, though these savings are accessible and not blocked. In addition, this offer is also available to Russian or Brazilian residents as well and limited to employees of listed companies for the time being.

The other good news is that versus the old Credit Foncier deal at 2% fixed for 20 years, people borrowing 1M€ will save close to 70k over the life of the loan.