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Non-citizens of the United States can purchase real estate

They can also get a morgage for the home.  This type of loan is called foreign national home loan. The required down payment is likely to be about 30-35%, and not every bank writes these types of mortgages.  Foreign nationals can also get FHA mortgages, with only 3.5% down. To qualify, you must meet some requirements.

For those borrowers with lawful permanent resident alien status, FHA can insure the mortgage under the same terms and conditions as U.S. citizens. That means that you can finance a property in the U.S. with as little 3.5% down and do not need to have a credit rating in the U.S. to be eligible.

FHA will also insure a mortgage made to a non-permanent resident alien, if the property will be the their principal residence, have a valid Social Security number,  have a satisfactory 2-year credit history, and  are eligible to work in the U.S. 

One issue that may have to be overcome with some foreign nationals is even if they Social Security number, they may have no trade lines on their credit reports. That's okay, no credit is better than bad credit. Your mortgage lender can build a credit report from your payment history with utility companies, landlords, and any other accounts that you have. It costs more to get a credit report of this type, but it's possible to get a mortgage with one. So it's even more important for you than for U.S. citizens to be prompt with your telephone, rent, and electricity payments--your mortgage may depend on it!

Tax ImplicationsThere may be some tax implications if you live in the home for more than 121 days.  It may be possible to have to pay taxes here and in your country of origin Planning correctly can avoid this so check with a good US Accountant to avoid this.  You also may be responsible for holding back 30% of income if you rent the property to be paid to IRS so again you need to check that out with your accountant.We are linking up some banks that may be able to do the mortgage financing. 

Of course location should be an important factor when determining which home to purchase.  Do you want to be able to have services close by?  Do you want to be out in the more rural areas? 

For more information, contact us here