This is one of the top questions we get from investors who want to apply for a golden visa through a real-estate investment in Portugal.
The straight answer is: it depends. Most investors, especially the ones that come to us inquiring about the 350k investment, want to minimize the amount of cash tied up in the property. Given how low interest rates are at the moment, and the fact that our properties can offer up to double-digit yields, why wouldn't you, right? This would naturally hedge your currency exposure and on top have the lender carrying out additional legal checks and valuation.
Let's start with the good news first. Even as a foreigner you can obtain a mortgage to finance the purchase of a property in Portugal. Unfortunately our experience is that banks still discriminate depending on the investors' passport, - an American citizen will have it way easier than an Iranian, for instance. Now the important caveat is that for the purposes of the golden visa application the Portuguese government requires that the qualifying amount is paid in cash. This means that if you're making an 600k property investment, which qualifies for a 500k golden visa, then you can only get a bank loan for 100k.
In the case of a 400k investment, assuming it includes re-habilitation and thus qualifies for a 350k GV, the latter amount would still need to come in cash. Note that in this case, both the property investment and the cost of construction can go against the the 350k. Also you don't have to wait until the re-habilitation is completed to submit your application. The same principle applies, as long as the entire amount is already in Portugal, even if part is sitting in a Portuguese bank earmarked for a contractor, you are good to go.
Don't hesitate to get in touch for more info, but don't take too long, the golden visa program for real-estate investments in Porto and Lisbon is ending this year.