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A Mortgage in Spain for US Citizens: Here’s How to Get One

In this article, we’re covering the fundamental aspects of getting a mortgage in Spain for US citizens. We’ll start with a brief answer and then dive into more details.

The answer is yes; US citizens can get mortgages in Spain. For most US citizens, you will need proof of identity and income, which is usually the last 3 paychecks, or if you’re self-employed, then you’ll need your tax declaration (business and personal) from the previous 3 years plus the business accounts.

 It’s a simple answer, but it only provides a brief overview, so you might be curious to learn more.

Getting a mortgage in Spain for US citizens

According to research, US citizens will form a large part of the 32% of foreigners acquiring property and mortgages in Spain in 2022, and the trend is growing. This is also backed up by the president of The American Society of Barcelona.

As experienced mortgage brokers who have helped many US citizens obtain mortgages, we can also tell you that you are joining an increasing number of US citizens who are looking to relocate to Spain for a variety of reasons.

So where do you start, and how does it all work?

With that quick overview in mind, let’s go over some of the other details, such as the process, the timeline, and what’s required. 

Let us begin with the benefits of obtaining a mortgage in Spain.

Why should you get a mortgage in Spain?

Because of the stable mortgage market in Spain, obtaining a mortgage there may be more advantageous than in other countries.

With these advantages, how can US citizens get a mortgage in Spain?

To apply for a mortgage in Spain, US citizens do not need Spanish citizenship or even a residency visa. There are, however, a number of visa options available. Those with €500,000 or more, for example, can apply for a golden visa and obtain permanent Spanish residency.

Pro Tip: While this may seem like a lot to some, if you sell existing assets in the US in order to move to Spain, along with additional savings and investments, this may be feasible for many US citizens.

What do you need to provide?

When applying for a mortgage in Spain, US citizens must demonstrate a steady income or employment as well as proof of savings or assets.

Mortgage lenders also require applicants to show proof of identification (of course!) as well as other documents such as tax returns, proof of employment or income, and so on. More on the documents and requirements will follow shortly.

However, there are some additional requirements, such as having enough income to make the repayments and having a good credit history. If you live in the United States, mortgage lenders will usually require a deposit of at least 30%. (and therefore not a Spanish taxpayer).

Who arranges mortgages in Spain?

Mortgage Direct is Spain’s leading broker, advising property buyers worldwide on Spanish (and Portuguese) mortgages. We can walk you through the entire process, from beginning to end.

It’s worth noting that foreigners looking to buy a home in Spain may be viewed as a higher risk by mortgage lenders than Spanish residents applying for the same loan terms. Given that risk is assessed differently than you are accustomed to back home, and that other rules apply, speaking with an experienced mortgage broker early on, even before locking in a property, can greatly assist your purchase process.

This isn’t to say it’s impossible; it just means that more detailed paperwork may be required, and speaking with a seasoned professional makes the process go much more smoothly.

So what does that paperwork look like?

In order to obtain a Mortgage in Spain for US citizens, the following documents will be required:

  • Identification documents (a passport and, at a later stage, a NIE)
  • Evidence of income
  • Tax returns
  • Credit report
  • Evidence of sufficient funds to cover both the deposit and other buying expenses and the loan payment
  • Proof of residence in Spain (if applicable)

After submitting all the necessary documents and information, it usually takes between 7 and 30 days for the application to be approved in principle. However, it may take longer in some cases, which is why we always recommend applying well in advance. 

The documents needed do depend on your individual circumstances, so click here to get a more in-depth look at the documents you would need.

How does the process typically start?

The process usually begins by clicking here to take you to the page where you can fill out our pre-application form.

One of our qualified, licenced advisers will then assess your financial situation to determine whether you’re eligible for a mortgage in Spain.

After this assessment is complete, provided that you meet the eligibility criteria, a quote will be prepared and sent to you with further information. 

How long does a mortgage in Spain for US citizens take?

Typically, a Mortgage in Spain for US citizens takes around two to three months to complete. 

A lot of this timeline depends on a variety of external factors, such as how quickly we can gather the required documents and arrange for an appraisal of the property you are looking to purchase.

It is also essential to keep in mind that some banks may require additional information before approving your loan application. 

Contact us here, and we can let you know precisely what documents you will need to move forward.

Could you get a mortgage on your own?

Of course! We do see that of the people who tried, they got frustrated or, worse, failed at arranging the required finance because they did not understand the Spanish reality well enough. So, we recommend working with a qualified mortgage broker. 

Here are the basic steps you need to take to get a mortgage in Spain for US citizens:

  1. Obtain assistance from a licensed and regulated Spanish Mortgage broker. 

For US citizens, the easiest way to start is by completing our pre-application form by clicking this link.

  1. Prepare and submit the required documentation. 

One of our fully qualified advisers will then provide you with the list of needed documents. This will enable the banks to both identify you and determine your eligibility to obtain a mortgage and be able to make payments.

  1. Receive an official mortgage pre-approval. 

The bank’s risk department will then present you with an offer after receiving, reviewing, and approving the pertinent documentation. This offer will be the best offer based on your individual circumstances, as we have the expertise and knowledge of the market out of all of the banks we work with to find you the best deal.

  1. Agree and accept the offer. After weighing up all the options, you will need to make a decision. 

Keep in mind that you will, of course, have to make mortgage payments for the duration of the mortgage arrangement.

  1. Mortgage completion. 

The final stage is to sign the mortgage contract in the presence of the notary. There is the chance to give power of attorney to a lawyer to avoid being there in person on the day.

  1. Obtain any required property insurance.

Before final completion, all banks, by law, require you to obtain relevant insurance contracts for the property against fire and disasters.

Mortgage in Spain for US Citizens: Next Steps

After providing you with this overview, your next step is simple. Experienced brokers who are regulated, licenced, and handle a high volume of US mortgage applications in Spain (or Portugal) can be difficult to come by. You’ve arrived at the right place.

We have been using our expertise to help simplify what can be a complicated Spanish mortgage and real estate market since 2006.

Our bilingual team of Mortgage Direct advisers offers fantastic personalised advice on international property investments with exclusive mortgage terms.

They have extensive knowledge and experience to guide you through the process and ensure a smooth transaction. tabIf you have any questions about buying property in Spain as a US citizen or would like to discuss a custom solution for yourself, please contact me today.

Mortgage Direct

Since 2006, we have been using our expertise to help simplify what can be a complex mortgage application and real estate buying process.

Mortgage Direct’s multi-lingual team of qualified advisers provide unrivalled personalised advice on Spanish mortgages with exclusive mortgage conditions – ensuring your money is safe as well as profitable!If you have any questions surrounding the documentation required for a Spanish mortgage or would like to discuss a tailor-made solution for yourself, please get in touch with me today.

Will Roberts Mortgage Adviser

Originally from the UK, Will has been based in Barcelona since 2019. He holds a diverse range of financial qualifications and has experience in numerous international roles in the financial sector, along with a managerial position in a FTSE 100 organisation. Fluent in English & Spanish.

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Mortgages taken out in currencies other than the currency in which you earn are considered Foreign Currency Mortgages. Changes in the exchange rate may therefore increase the equivalent value of your debt. Under the Mortgage Law 5/2019 banks in Spain have introduced mechanisms to protect consumers from exchange-rate risk. For more information, please speak to your broker.

Mortgage Direct, S.L. is a company registered in the Registro de Intermediarios de Crédito Inmobiliario del BdE with the nº D108.

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