Compass Bank offers several different types of foreign national financing, 5/1 ARM (Adjustable Rate Mortgage), 30 year Fixed and 15 year Fixed. The most "popular" product is our 5/1 ARM and offers the best rate. The current rate on the 5/1 ARM is 5.75% w/ 0 origination. We require a minimum down payment of 25% on single family homes and town homes and up to 35% on condominiums (determined if they are warrantable or non-warrantable). BBVA will only lend to Foreign Nationals who are purchasing a second home (no investment properties). However, this does not mean that the buyer cannot rent out their property "short-term" when they are not here using the property themselves.
Compass Bank does have some guidelines that are required of our Foreign Nationals customers to which there are no exceptions. Compass requires you to have a banking relationship with us and would require you to open an account. We also require you to authorize auto debit of your monthly mortgage payment. However, once you have authorized the auto debit of your payment, we will reduce your interest rate by an additional .25%. Hence, the 5/1 ARM rate would be a final rate of 5.5% with the auto debit rate reduction. Please NOTE: we require you to be here in person to open the account at one of our retail bank branches. Additionally, we also require that you be present in person for closing of the loan and if you are married we will require your spouse to be present and sign documents also. There are NO EXCEPTIONS to these requirements.
Maximum qualifying ratios are 43% and we require 3 months reserves.