Buying property in the US as a non-citizen

Pondering if you can purchase property in the US as a foreigner? Sure you can. There are no restrictions or hidden charges imposed on a foreign person who wants to invest in the American real-estate. The US housing market is quite friendly and welcoming, at least on the surface. That being said, there are certain things that you must consider to avoid the property buying process to get overwhelming.

Buying a property

rnBuying property in the United States is easy and convenient for non-US citizens. You can do so even if you don’t have a green card, US citizenship or a specific kind of visa. However, you must obtain an Individual Taxpayer Identification number before buying property in America. This number is granted to non-US citizens who are not qualified to secure a Social Security number. Get in touch with the Internal Revenue Service to get this number issued. Since you’re not a local, it’s best to work with a reputed realtor who knows your new home town in and out. An experienced real estate agent would know which locations are idyllic for families and which ones would be suitable for young, carefree and single people. Your agent will exactly know the areas that you should avoid when purchasing a property in the States as well as help you negotiate the best price for your new property and even refer you to an attorney. At the end of the day, your agent will help you with everything related to buying property in the US including paperwork, closing costs, etc. Even though a good realtor will save you plenty of time and stress, it's you who will decide where you want to buy property taking your budget and other requirements into account. Therefore, do proper homework and consider average housing costs, closing charges and other fees before making up your mind.

Obtaining a Mortgage

rnBuying a property in the United States is straightforward if you have a big fortune in your back pocket to pay in cash or one lump sum. In case you’re not able to do so, you’ll need a mortgage to finance your property purchase. This is where the property buying process becomes difficult. Even though financing is readily available to non-US citizens, almost all banks look at the US credit report of the borrower to check their qualification for a mortgage loan. Obviously, as a foreigner, you don’t have a U.S credit history due to which the banks will have to use another means to determine the risk of lending you money to buy a property. The complexity of risk evaluation might make the lenders opt not to loan you money. These complications may make it difficult for you to find a bank that is willing to work with you. It could take longer to get the mortgage loan approved, and you might even have to agree to pay a higher interest rate. To avoid the hassle, it’s best to plan ahead of time. First, earn a good credit score to become eligible for a mortgage easily. Open an account in the US bank and give an account of all your earnings on your tax returns. This will help lenders determine the amount you can afford to pay. Once you’re ready for a loan, choose a bank that has considerable experience in dealing with non-US buyers. No need to worry about paying the monthly mortgages if you’re not staying in the US. You can conveniently send money using Ria money transfer at low transaction fees and great exchange rates. Making real-estate buying easier for non-US citizens, Ria is certainly the best money transfer service there is.

Paying taxes

You need to pay property taxes regardless of your nationality once you've bought a property in the US. Banks usually include these taxes in the monthly mortgage payments, but in case you've purchased the property in cash, you'll have to pay monthly or annual taxes. The taxes differ from states to states, and even within states. You might be subjected to other real estate taxes including the Mansion tax if your property is in New York and transfer tax if you've purchased a condominium. The sellers generally pay transfer tax, but developers are often seen passing the liability on to the buyer. However, your real estate agent should be able to eliminate the cost of transfer tax for you.