Getting a loan in France?

Question

I am planning to buy a property in Paris and currently investigating the financing part. One way is to get a loan...either in the US or in France. I guess US banks don't really want to lend money to buy something overseas? How about a French bank? Any experience?

Thierry Van Roy · Answer

Yeah, we get you're still looking at France despite it not being a wise investment by any standard. Have you decided between a Paris apartment of 30,000 USD/sqft and an isolated chateau yet?

Any European certified bank will lend for French real estate, though in reality the French banks are of course more inclined to do so. The process is pretty straightforward, just walk in. Some French banks target international clients, though they don't give loans to anybody, especially today.

Also, Europe has stringent financing standards. Expect at least 30% down for Paris, and that's if your credit is good enough for you to afford the negative cash flow. If you want to hit break even, then put down about 60%. Rents might just cover the mortgage.

Kerry Baird · Answer

I live in England and many banks do not want to lend to Americans because of recent changes in IRS reporting.  Why not *rent* in Paris to start with and then speak to lenders in person?

Otherwise, try your favorite search engine...I found a bunch of hits, and you can too.  Use "Guide to French Mortgages" for search terms, or "French mortgages for Americans."