It’s legal, and it may be easier than you might expect.
Perhaps you’ve fallen in love with warm, sunny Florida and want to buy a vacation home there. Or maybe you’re thinking about buying a condo in California as an investment property. But if you’re not an American citizen and you live in another country, is it legal to buy a home in the U.S.? What if you live and work in the U.S. with a green card?
Yes, it’s legal in both scenarios—and you may even qualify for a mortgage to purchase your new home. However, before you start scrolling through real estate listings, it’s essential to understand what goes into making a U.S. property purchase as a foreigner.
- Non-citizens buy U.S. property for many reasons, including investment, a place to live or vacation, or asset diversification.
- Many non-citizens buy property in America with cash, although mortgages may be available to qualifying non-citizens.
- A successful transaction depends on getting advice from legal experts in real estate, taxation, and possibly immigration.
Can Non-Citizens Buy Property in the U.S.?
People are often surprised by the answer. It’s legally very easy for foreigners to buy in the U.S., and the U.S. is very generous in many ways.
Residential purchases by foreign buyers added up to $59 billion between April 2021 and March 2022, according to a 2022 report released by the National Association of Realtors. Buyers are often from Canada, Mexico, China, India, Brazil, and Colombia. Florida is a leading destination, along with California, Texas, Arizona, and New York.
Why Do Non-Citizens Buy Property in the U.S.?
Top reasons to buy property in the U.S. often include:
- While living and working in the U.S., a family is looking for a primary or secondary home in a comfortable area with good schools and a welcoming community.
- A wealthy foreign investor is able to take advantage of timing and pricing to buy in areas of the U.S. they feel would be a good investment.
- A global company wants to invest in real estate for employees’ living needs.
- A foreign buyer wants to keep some of their assets in the U.S. to diversify their portfolio.
To learn more about FIRPTA, please feel free to reach out to us. It is the utmost importance that the right team of professionals assist in the process.
We continue to get questions on temporary buy-downs and we came across a tool that gives a picture of what is potentially best for a borrower. Is it better for you to get a Price Reduction, funds for a Temporary Buydown or use funds for a Permanent Buydown?
Here is a scenario of a $400,000 price with 20% down:
The graph below shows the Cost Benefits of each scenario over 10 years.
The Graph below shows the lowest cumulative PITI payments over the course of 10 years.
SUMMARY: The summary of these is that in the short term, the temporary buydown makes the most sense and the permanent buydown wins over the course of time even over the price reduction. Thoughts to consider: If rates come down in the next 6-12 months as we expect, most folks will have an opportunity to refinance the current mortgage. If a borrower is on a temporary buydown and they have the opportunity to refinance, those funds are used to reduce the payoff so the funds are NOT lost. Those funds can essentially be used to pay for the refinance. That said, IF rates do NOT come down then the permanent buydown is the way to go.
CALL US anytime with questions, we would love to chat!
Credit for charts and information goes to True North Mortgage, Jim Roberts
True North Mortgage
505 E Plaza Circle Dr Ste D
Litchfield Park, AZ 85340
V O L A T I L I T Y. That’s how it is spelled. So the Fed chopped rates by .5% and the markets reacted wildly. Mortgage bonds shot higher yesterday and lenders sat on their hands and did not issue price improvements as they should have. Then bonds open flat to slightly higher and do we get to see a vastly improved rate sheet after yesterday’s bond market rally that saw the 10 year Treasury yield hit the lowest point in HISTORY!!!!!!! Nope, pricing in mortgage land is not better. Why is this? Lenders can provide good rates and fatten margins by not improving pricing when pricing has in fact improved significantly. This is what we are seeing as market indicators would say float because pricing has to be getting better, but that’s the issue, pricing was WAY better Monday morning than it is today. When we are living in the land of the volatile, it is wise to lock what works and call it good because there are too many unseen factors at work. ADP numbers were very solid for February but it will be interesting to watch economic numbers moving forward based on the corona virus hysteria.
Have a great day!
30 Year Fixed 3.375%
15 Year Fixed 3.250%
VA 30 Year Fixed 3.250%
**Rates are subject to change without notice based on market conditions. Rate/APR and terms may vary based on the creditworthiness of the individual.
Information obtained by “True North Mortgage” Jim Roberts and Dan Pareja
Cleaning 101 Before Listing
Before you put your home up for sale, you’ll want to ensure it’s clean for all of the buyers that will come through. A dirty house isn’t appealing, and you won’t get a good offer, if you get one at all, if your home isn’t in tip-top shape. Cleaning your home doesn’t have to be overwhelming, below we’ve listed the top things to remember to clean for each room.
+ Clean the door and hardware.
+ Wipe off all fingerprints on windows/furniture.
+ Clean off scuff marks on floors and door.
+ Replace all light bulbs and ensure light fixtures are working.
+ Tidy/clean up the coat closet. People WILL look in there to see the size.
+ Wipe down all cabinets.
+ Clean all appliances, inside and out.
+ Clean stove hood, on top and bottom.
+ Clean behind the refrigerator, on top and bottom too.
+ Ensure the microwave is clean of food splatter.
+ Clean the space behind the sink.
+ Wipe down blinds/shades.
+ Wash any kitchen rugs, clean the floors and baseboards.
+ Store all of your pet food/food out of sight.
+ Clean behind toilet and under sink.
+ Only display absolute necessities, declutter.
+ Organize and clean under the vanity.
+ Scrub floors and clean grout lines.
+ Keep dirty clothes and towels off the floor.
+ Be sure to lock away any medication.
+ Clean the fan and make sure it’s functioning.
+ Replace any dead lightbulbs.
+ Wash sheets, comforters, and blankets.
+ Clean the curtains and rugs.
+ Dust furniture.
+ Remove any obvious stains from fabrics.
+ Keep closets clean and organized.
+ Store away dirty clothes and personal photos.
+ Clean marks on walls.
These are just the basics you don’t want to forget about. If it’s within your budget, we highly recommend hiring a professional cleaner to ensure your home is in its best condition. Contact us or your local agent to get a great recommendation.