Wednesday, January 29, 2014

How You As A Foreign Nationals Can Purchase Real Estate in The United States

Foreign Nationals may find purchasing and financing a home in the U.S., difficult and complex.  Most often cash is paid because it is much easier, or is it?  With low mortgage interest rates, many international buyers are opting to finance their purchase.

According to the National Association of Realtors® 2013 Profile of International Home Buying Activity, interest in U.S. properties continues to grow.  This is a signal that America continues to be regarded by international buyers as a great place to own property.
 
Five states made up 61 percent of reported purchases: Florida (23 percent), California (17 percent), Arizona (9 percent), Texas (9 percent) and New York (3 percent).  About half of foreign buyers preferred to purchase in a suburban area, while a quarter preferred a more central city/urban area.  A majority purchased a detached single-family home and 63 percent used all-cash.  Based on the reported international transactions, the median prices of purchases were higher when compared to purchase prices of domestic buyers.

Graph Courtesy of NAR
Obtaining a Mortgage Loan and Guidelines For Financing A Home in San Diego, California
Borrowers are not required to have a Green Card, Social Security Number or VISA.
Max 60% LTV, meaning you would need to have 40% as a down payment.
Minimum loan amount is $300,000. 
Credit:
No Fico score is required, however four credit references are required – alternate credit from Country of origin is acceptable.  International credit reports are also acceptable.
Income: 
Lender will require 2-years or more, year to date income verification.  It is not necessary to have U.S. tax returns.  Tax documents from Country of origin will be acceptable.  If the Country of origin does not require the borrower to file the equivalent of tax returns, pay-stubs will need to be provided as well as bank statements.   A letter of employment on company letter head explaining compensation, or a translated CPA letter instead of tax documents is acceptable.   
Assets: 
Two months bank statements of sourced and seasoned assets must be on deposit in a known verifiable financial institution.  Your assets do not need to be in the United States.
 
If the income, credit and asset documentation is in a foreign language, you will need to have it translated by a certified translator.  Include a business card or letterhead from the translator, tax preparer or CPA.  All U.S. Embassies provide translation services.
The lender will require an Individual Tax Identification Number (ITIN) which can easily be acquired through an Accountant/CPA.   Visit the IRS website that explains what and how to get a TIN.  As long as the borrower has applied for the TIN, your lender can proceed. (Please note when submitting, most systems require a social security number in order to proceed.  In this case, enter 999-99-9999 in order to get the system to move forward).  If borrower states they will not be using this purchase for tax purchases then we can waive the TIN proof.
Will need a copy of borrowers valid Passport.
Reserves of 12-months full debt service (including all credit card payments, cars, etc.) are required.
The United States home-buying customs will be different than in other Countries.  Knowing how homes are sold here and what to expect regarding cost, inspections and the negotiation process will reduces your stress.  If you prefer speaking in your native language, I will be able to assist you with that.
I'm sure that you'll have questions or would like more information on qualifying for a home here in the United States.  Contact me at 1-619-368-6382 or e-mail me at carolmorrow@century21award.com
To view all active properties for sell in San Diego, California go to www.allhomesinsandiego.com 
Locate the nearest US Embassy by going to:  http://www.usembassy.gov
Get help with a VISA by going to:
I hope this information was helpful to you.  Make sure to contact me with any of your most needed questions or concerns.
 
 

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