Financing your home in Israel
Money, money, money, always seems to be the number one first priority in buying a home. Most of us have a budget that often does not really allow for all of our desires and dreams in a home. And we different than the American government are not allowed to print money to our hearts desire to buy anything we want. So it usually becomes necessary to get a loan to purchase our home. It is very important to get some pre-qualifying set up in advance of home shopping. Because different than America, a purchase contract here in Israel is typically not contingent on suitable financing. As a matter of fact it is quite common for property here in Tzfat to not appraise for the sale price. Appraisers are quite conservative and very fearful of being sued by any financial institution that ends up upside down on a property that they may have appraised. Last decade in America it became very chic and simple for appraisers and lenders to push the high end of values for appraisal and loan purposes. Well we all know where that led to. You will find Israeli banks and lending practices very conservative and quite straight forward. Do not expect to get loans for more than 90% of appraised value, and unless you have a very strong income here in Israel . Plan on loans of 70-80% loan to value. The banks will consider and accept some US income streams. It might even make sense to call this your second home in Israel while you are still working in America to qualify for a larger loan. Regardless of your loan needs , plan on a significant cash down payment.
Typically the lenders can take 3 months Israeli bank statements and qualify you from that alone. Unless you are like many Americans who still have many of your assets in America. DO NOT SIGN A PURCHASE CONTRACT IN ISRAEL IF YOU DO NOT HAVE YOUR FINANCING SET UP. You will lose lots of money if things fall apart and you can not get the loans you need.
There are many different loan programs available here. Most loans are adjustable and float with some govt type index. You can typically borrow money in sheckels or dollars. So if your income is still coming to you in dollars it might be safer for you to get a dollar loan, that way as the dollar erodes you still get to pay it back in dollars. I can refer you to American english speaking loan agents to help you find home loans.
Typically the lenders can take 3 months Israeli bank statements and qualify you from that alone. Unless you are like many Americans who still have many of your assets in America. DO NOT SIGN A PURCHASE CONTRACT IN ISRAEL IF YOU DO NOT HAVE YOUR FINANCING SET UP. You will lose lots of money if things fall apart and you can not get the loans you need.
There are many different loan programs available here. Most loans are adjustable and float with some govt type index. You can typically borrow money in sheckels or dollars. So if your income is still coming to you in dollars it might be safer for you to get a dollar loan, that way as the dollar erodes you still get to pay it back in dollars. I can refer you to American english speaking loan agents to help you find home loans.