If you’re from Hong Kong, Singapore, China, or even India, Real Estate prices have increased beyond the point to where you can maintain a positive yield. That isn’t the case in the U.S. Not all all.

However, no one ever said that trying to buy a home in the U.S. as a non-U.S. citizen or foreigner isn’t going to be tricky, at least on the surface.

If you’re wondering whether a non-citizen can buy real estate in the U.S., the short answer is yes, though it’s easiest if you’re paying cash. If you’re seeking financing to purchase real estate in the U.S. as a non-citizen, getting a mortgage is the challenging part, which is why America Mortgages ONLY specializes in these types of mortgages.

BUYING A HOUSE AS A NON-U.S. CITIZEN

Anyone may buy and own property in the United States, regardless of citizenship. Hong Kong, Singapore, China, Indonesia, and other countries in the region focus primarily on the U.S. when investing in real estate. As there are no laws or restrictions that prevent any individual of any foreign citizenship from purchasing or owning property in the U.S., it is the perfect place to invest for the future.

Besides investment in Real Estate, many foreign nationals /non-U.S. citizens purchase vacation homes in the United States. Many wealthy foreign investors purchase investment property such as multi-unit apartments or condos, single-family homes, and even business properties such as shopping malls.

GETTING A MORTGAGE AS A NON-U.S. CITIZEN

Purchasing a house in the U.S. as a foreign citizen is simple if you plan to pay in cash (or having all the money saved to buy the home in one lump sum). If you’re not in the financial position to purchase a home with cash or find leverage is a better option for you, you’ll need to obtain a mortgage loan to purchase a property. This is where the process becomes tricky. Fortunately, America Mortgages’ primary focus is on the U.S. market, and its only focus is these types of mortgages.

Most U.S.-based mortgage lenders look at a borrower’s U.S. credit history to determine their eligibility for a mortgage loan. As a non-U.S. citizen, you don’t have a U.S. credit report, making it difficult for lenders to analyze the risk of loaning you money to purchase a home. That means your lender will elevate your risk factor as a borrower. This doesn’t have to be the case. Nor do you have to stay up late at night in Asia, calling lenders, brokers, and banks trying to find someone that will understand your situation. It may take you longer to find a lender who is willing to work with you, and it may take longer to get approval for your mortgage loan. You might also pay a higher interest rate.

We understand the complexity of analyzing risk, calculating foreign income, and alternative sources of acceptable credit verification. We do it all day, every day. It’s not difficult if you know the terrain, and in most cases, we can find a U.S. mortgage loan for every client.

IMPLICATIONS FOR SELLING A U.S.-BASED PROPERTY AS A FOREIGNER

Eventually, you might decide to sell your U.S.-based property. Before you purchase property in the U.S., it’s good to be aware of the rules and requirements should you choose to sell your property in the future. The IRS requires that buyers of property from foreign citizens withhold 15% of the amount realized on the disposition. If the buyer does not withhold this amount, they may be responsible for additional taxes. The rules surrounding this are somewhat complex but are outlined in the IRS FIRPTA publication, and more information can be found in the International Tax Gap Series.

It would be best if you worked with an agent you trust who won’t push you beyond what you’re comfortable offering or rush you into making a bad decision. Although we do not sell Real Estate ourselves, our network within the Real Estate world, especially within the U.S., is not only strong but also vetted. We are happy to point you in the direction of agents we have worked with in the past.

One of our associates or partners will be happy to answer any questions you may have regarding mortgage financing for your investment.

For more information, please contact hello@americamortgages.com.

Schedule a call with our U.S. Mortgage Specialist.