The number of Americans moving to France has been rising for the past few years, and now over 150,000 call France home according to analysis by federal US government body Fvap.
Their numbers have tripled since before the pandemic according to 2023 immigration data. One of Americans’ preferred locations is Paris, where they make up the largest group of non-resident foreign buyers, spending an average of €715,000 on property purchases according to a 2024 study by Parisian notaries.
Amid the rising interest, many Americans are wondering how they might buy property in France, and whether they would be able to get a French mortgage.
We take a look at what potential buyers from the US should consider when thinking about applying for a French mortgage.
Can I apply for a French mortgage as an American?
Yes, both residents and non-residents can apply for a French mortgage, although non-residents will likely have to pay a bigger deposit - usually around 20-30%.
What kind of mortgages are available?
By far the most common French mortgage is a fixed-rate, long-term mortgage of up to 25 years.
Other options include variable rate mortgages, where the interest rate fluctuates, and capped-rate mortgages, which are similar to the variable rate but include a capped upper limit- but these are much rarer in France. An interest-only mortgage allows borrowers to pay only the interest, paying off the full loan at the end of the term.
How much can I borrow?
This will, of course, depend on your financial situation. You must meet certain requirements (which differ depending on the lender) in terms of income, savings, age, and debt.
It will also depend on the condition and location of the property you want to purchase.
French lenders are risk-averse and will want to know the fine details of your financial situation to determine how much you can borrow.
They work on a debt-to-income ratio. This means they will not allow financial liabilities, which include your mortgage but also things such as any other outstanding loans, to exceed 35% of your gross monthly household income.
Be aware of what is counted in the debt-to-income ratio
Some US buyers do not realise what is included in the debt-to-income ratio, experts say. It can include loans, car leases, credit cards and school fees.
“Younger buyers might still have a student loan getting taken out of their paycheck automatically so they don't see it, they don’t care about it, but the bank here is going to take it into account,” says Martin Heathcote, head of France Home Finance, a broker that has been helping mainly non-residents buy in France for over 20 years.
“The key is getting some advice. The way that the banks look at it might not be the way you think they will look at it,” he said.
Mr Healthcote said buyers should be aware that some French banks have started looking at Americans’ credit reports to check whether the applicant has any outstanding credit cards and loans.
Banks consider salary after tax
US tax laws allow people to write off many of their expenses, but potential buyers should note that this could come back to bite them when applying for a French mortgage.
“If you are self-employed in the US, we often see you have a good income, but you are writing off all the expenses you can because you are allowed to,” said Mr Healthcote.
“The end result is that your taxable income is very low. And French banks look at your taxable income.”
He stresses self-employed people “cannot have their cake and eat it” advising that if they are looking at optimising their chances of getting a loan in France, they “might want to be less aggressive in their accounting for a year or two” in the US.
Consider buying while still in the US
Many people dreaming of moving to France one day do not realise the best way of buying property could be to do so long before they have even left the US.
Buying while you are still a salaried employee, bringing in a regular wage, could mean you are more likely to get a mortgage deal than waiting until you quit your job and move to France (where you may be retiring, going freelance or planning to look for a new job).
“We always say if you have not yet retired, let’s see what we can do before you move to France,” said Mr Heathcote, whose main client base is Americans.
If you are planning on moving to France in two-plus years, consider looking into your options beforehand.
Age is a consideration
Another reason it could be worth buying earlier, before retirement, is that your age could determine whether or not you are able to get a French mortgage, and what kind of deals are offered. Many Americans making the move are early retirees, in their late 50s and early 60s, Mr Healthcote said.
“Banks will look at your file a bit differently when you’re over 60. They will start to ask what your prediction is for social security.”
He advises clients to have documents from their financial advisor detailing their pensions and investments. “You need to be able to show a 20-year forecast on a conservative basis showing what income you can draw from this pension,” said Mr Heathcote.
“It starts to get very difficult once you get over 60. It starts to get almost impossible once you get over 65,” he said.
Consider the location and condition of the property
Aside from your personal financial situation, French banks will also consider the property you want to buy when deciding how much to lend you, or if they will agree to a mortgage at all.
“The primary consideration is what and where you are buying – the location and purchase price and whether it requires any renovation,” says Amaury de Monclin, managing director and founder of Bluesky Finance, a mortgage broker aimed at international clients.
He says rural properties that require renovation can be more difficult to secure a mortgage for than homes in “prime areas” such as Paris and other big cities, and the popular Cote d’Azur on France’s south coast.
Get a mortgage in principle
Applying for a mortgage in principle (accord de prêt or accord en principe) can be a considerable help with your property search, according to Mr de Monclin.
“It pays to do your homework before you start searching for properties,” he said.
It will help you know exactly what your budget is – especially bearing in mind French banks’ debt-to-income ratio – and signal to sellers that you are a serious buyer.
“You would be more credible than someone who is shopping around and hasn’t even looked at the financing aspect,” said de Monclin.
