FRANCE HOME LOAN FOR NON-FRENCH WITHOUT RESIDENCY
In France, the mortgage (crédit immobilier) for a foreigner non-resident is a loan specifically for purchasing property as a way to invest in the French real estate market, however, non-residents might face different restrictions towards residents.
In France, non-resident foreigners do invest in real estate, particularly in regions like Île-de-France, Provence, and with preferred buyers from Belgium, the UK, Germany, and the Netherlands, while they represent only around 1–1.5% of transactions, their purchases tend to be higher in value and often concentrated in desirable locations.
Buying real estate in France as a non-resident or foreigner is very possible, but it comes with several practical and financial challenges to be aware of stricter conditions as banks require more documentation (income proof, tax returns, foreign credit history) and may limit mortgage terms to shorter durations.
What are the conditions in France for a non-resident foreigner to obtain a mortgage ?
Here are the key conditions for non-resident foreigners to obtain a mortgage in France, based on the latest information:
1. Equity Down Payment & Loan-to-Value (LTV)
Non-resident borrowers are typically required to contribute at least 25–30% of the property’s value as a down payment, as French banks usually offer a loan-to-value ratio of 50–70% for this segment.
2. Affordability & Debt-to-Income Ratio
Lenders enforce strict affordability rules: your total debt obligations (including any loans and rents) should not exceed 30–35% of your monthly income.
3. Documentation & Financial Proof
You must submit comprehensive documentation such as: a valid passport, proof of consistent income (payslips, audited accounts, tax returns), recent bank statements, and often a preliminary sales agreement for the property.
4. Insurance & Age / Term Considerations
French banks generally require a life insurance policy covering at least 120% of the loan, and mortgage terms are typically capped so repayment is completed by around age 80.