Buying property in France as an ex-pat or non-resident is a dream for many, but financing that purchase can present challenges

French Bank Accounts

To even try to get a French mortgage, foreign buyers need a French bank account, but without a permanent residence, this may not be possible.

For US citizens in specific, French banks often refuse to work with them because of required federal financial disclosures for accounts over $10,000, which would certainly be needed for any home purchase.

Currency Fluctuations

Foreign exchange adds extra risk, with the value of any non-Euro currency subject to change in the three months between the accepted offer and closing.

Unfavorable Mortgage Terms

If a foreign buyer can get a French mortgage (which they often can’t), they typically require:

• higher monthly mortgage payments due to 15-year terms vs typical 30-year US terms

• significant additional collateral kept in low interest-bearing accounts (whereas that money could be used in better investments)

• life insurance requirements

• guarantee charges

• prepayment penalties