Getting a home loan

Hi there,

My wife (Thai) and I are looking at buying some property in Thailand in the not too distant future to and were hoping to secure a loan rather than pulley money out of our current investments.

The catch is that we are not living in Thailand and my wife believes that we will be unable to secure a loan.

Does anyone know if this is the case?

Regards

This isn't exactly an answer to your specific question but could give you some insight.

I am looking at buying a car. I am living in Chiang Mai. I don't if that makes any difference, but I just thought I'd throw out that specific just in case. As a matter of research I looked at an expat car dealer and repair shop. I noticed they had listed car loans available. If I was a Thai (?) then there did not seem to be a problem. Being a Farang the only way to get a loan is with a Thai cosigner. Of course the interest rate would also be more then a few points above that of a Thai, as I have been repeatedly told. Both myself and my so called Thai co signer have a economic history, independent of each other, here. I just refuse to pay the Farang points.

As I said, this is not an answer to your question, but it is an indication of what you are facing. Presumably dealing with a home suggests more questions, details, and complications. Then again an out right purchase could be in the neighborhood of $40 k - 50 k US (a guess).

At least this is some food for thought for your plans.

Your wife is probably correct.

First of all it will be her, not you, who is buying the property.  You will probably be required to sign a form which says you have no claim to the land and that you did not pay for it.  As for the loan, that again depends on your wife and what the land appraisal value is.  The bank will have the last say and their requirements may vary depending on the bank.

When I stated $40 k - $50 k I was referring to a house with land, not simply the land. As VF insinuated no foreigner is allowed to own land in Thailand, at least 100%. Moo Bans (let's say a community of properties) where the entire parcel is owned by multiple owners, then 49% can be sold to foreigners, but controlling interests has to be Thai. If you are looking at condo's you go to a different ballgame. From what I've been told, the land is owned by a Thai and he/they can sell to foreigners.

Depends upon what you are looking for. I believe that VF has a parcel of land in the Chiang Rai area, with the land in his wife's name, without him being Thai.

That is correct.  I put everything in my wife’s name but she did insist on getting a usufruct in my name as a partial protection from her family if anything happened to her.  We have been together for 20 years and I want her to be well taken care of when I am gone so have chosen to put things in her name.  I am assuming I will go first considering our 20 year age difference.

For her (married to a foreigner) to be able to purchase our land I had to sign away all and any claim to the land.  I did have a condo, prior to getting married, which was in my name but condos are indeed different.  I had no problem selling it when the time came.

As a disclaimer, I have never borrowed money so have no first hand experience with applying for a loan.

Thanks for the information BK and VF. I am well versed with the land ownership component as we already have a house in the Chum Phae District with the land in my wife's name. Just wasn't sure in the banking component.

Thanks again :)

Derge :

Hi there,

My wife (Thai) and I are looking at buying some property in Thailand in the not too distant future to and were hoping to secure a loan rather than pulley money out of our current investments.

The catch is that we are not living in Thailand and my wife believes that we will be unable to secure a loan.

Does anyone know if this is the case?

Regards

Hi Derge,

I'm at the same situation as you. My wife (Thai) and myself are not living in Thailand and i just got a house loan last month, took us about a month of waiting and submitting paper works to get it. Anyway for the details of how i did it, have a look at this thread below, i started since May at the time I'm still searching for a house till i had the loan and got the home (MuBaan). And I'm still living elsewhere now.

http://www.expat.com/forum/viewtopic.php?id=677847

Regards

We bought a shophouse in the name of my Thai spouse. We financed it by 50% with GSB. This was quite complicated. We asked many banks. The bank requires many documents and securities. The total loan expenses (house, car) should't   exceed 30% of the income.

So your wife needs an income (bank book statement) and some other values to secure the loan. Your wife needs an employment, too.

Some years, it was quite easy for Thais to get a bank loan and some land was enough to secure the loan. But the banks have changed the requirements.

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