There is no citizenship or permanent resident status requirement to buy and own property in the United States. In this article, you will find out the essential steps for foreign nationals who want to buy a house in the USA.
Buying House in the US as a Foreigner – An Introduction
There are no legal barriers to foreign nationals to buy and own property in the United States. As long as the transaction meets the legal and tax requirements, a foreign national may purchase and hold the title of a property in his or her own name or through a US business entity.
Despite the relative ease to buy a house in the USA as a foreigner, prospective buyers must attention to the legal and fiscal complexities involved in the process. Depending on the buyer’s situation, the process of buying a US home may involve different factors such as:
- Banking issues
- Complex logistics
- Unfavorable currency exchange
- Difficult to perform due diligence
- Language barriers
- Specific tax and legal considerations
A well-versed attorney with experience in handling this type of transaction is fundamental to anticipating issues, ensuring a smooth closing, and providing follow-up legal assistance.
Buying House in USA as a Foreigner – All-Cash Payments vs. Financing
If you are a non-US citizen without resident permanent status, it is simpler to buy a house by paying with cash only. In case a prospective buyer has not the full amount required to purchase a home with cash, he or she may pursue financing.
The ability of a prospective buyer to obtain a US mortgage depends on whether he or she has lawful permanent status. When determining the approval of a mortgage, banks and other financial entities consider foreign nationals a riskier option than US citizens or permanent residents.
As most foreign nationals do not have a credit history in the country, it is hard to determine the borrower’s ability to repay the loan and whether he or she has alternative methods to pay the owed amount if things do not go as expected.
Buying House in USA as a Foreigner – Can Non-US Residents Apply for Mortgages?
The only viable option for non-US residents to obtain a mortgage in the United States is to apply for a foreign national loan program. These solutions offered by specialized lenders give US newcomers or non-residents with no US credit the opportunity to obtain financing.
As there is no US credit history available, these lenders use alternatives methods to determine credit risk, including the applicant’s:
- International Credit Report (ICR)
- Property ownership history inside and outside the US
- Liens, judgments, and foreclosures
- Two-year employment history
- Two-year residence history
Buying House in USA as a Foreigner – Why Should You Work with a Well-Versed Attorney?
The benefits of working with an experienced real estate attorney to buy US property include:
- Minimizing the buyer’s vulnerability
- Personal guidance on legal and tax implications involved in distinct business options
- Expert assistance during the negotiation
- A strategic approach to obtaining the best purchase price
- Preventing missed deadlines and legal mismatches
- Identifying feasible methods to obtain mortgage financing as a foreign national
- Drafting, handling, or reviewing any necessary documents
Do You Want to Purchase US Property as a Foreigner? – Immediately Contact Attorney Romy B. Jurado
Waste no time – call Attorney Romy B. Jurado today at (305) 921-0976 or email [email protected] to schedule a consultation.
