I have done some (limited) research, but could not find satisfactory answers to whether spanish banks would finance the property once a sizable downpayment is provided, and not ask for any proof of income, etc. I am thinking 30-50% of the property value.
My income is irregular, from various sources and overall I think it would be a major challenge to explain the bank my financial situation (it is very good, fortunately). As a work around, I would prefer to pay down 150-200k on 400k property and just finance the rest. Any opinions? I suppose it may also depend whether the bank owns the property in the first place?
This opinion from Lee Lyons at The Spanish Mortgage Company:
Banks in Spain do offer mortgages to non resident applicants. The standard LTV is 50% and in exceptional circumstances up to 70% LTV. However for all spanish mortgage applications, whether resident or non resident, applicants will be assessed based on the demonstration of the income. Only official verifiable information is considered when assessing a mortgage application.
The percentage LTV require will have NO impact. Even if you are making an application of 10% LTV you will be required to demonstrate real official income in order to secure the mortgage.