Umbrian Garden
International Real Estate Consultants

Buying in Umbria Italy
Umbria's finest residential real estate available for sale

Italian Mortgages and how they work

Italian mortgages can be arranged for acquisition or renovation & construction. Over the last couple of years Italian banks have made it much easier for foreigners to obtain loads. Typically a deposit of 20% of the purchase price is required for acquisition loans. Most banks will now offer renovation & construction loans up to 80% .

Generally mortgages are repayment loans, however, interest only may be available on a case by case basis. They can be taken over a 5-25 year term. The mortgage is secured on the property in Italy and assets outside of Italy.

Italian lenders assess eligibility for a loan on the applicant's ability to service the loan and not potential rental income from the property. The general guideline is as follows: of an applicant's net income 35% should cover existing outgoings and the monthly repayment on the Italian loan. If you are self-employed income is assessed as the average of the last three years' net income.

Rental & investment income will also be considered. If employed a lender will base your income on your past tax returns and/or current work contract.

For more information about buying in Umbria or Buying in Italy please contact us at: info@umbriangarden.com

Our international real estate consultants can offer advise on all aspects of buying in Umbria ranging from Italian tax information, restoring Umbrian farm homes and historical properties to acquiring mortgages in Italy. Please feel free to contact us with questions about buying in Umbria