Buying a home is a step that requires deep analysis. It is not only about the place where you are going to live, but the amount and the years that are going to be invested.
Some nonresident aliens have chosen to buy a home in the United States. The most requested payment is in cash.
Buying a house is a step that requires a deep analysis. It is not only about the place where you are going to live, but the amount and the years that are going to be invested. CNN published a video in which the details that the potential foreign buyer should know are listed.
According to data from the National Association of Realtors, between April 2019 and March 2020, foreigners acquired a volume of houses in the United States worth $74 billion , it is quoted in the audiovisual. 61% were people who had recent residence in that country. With Texas, New York, California, Florida and New Yersey being the top five most preferred states.
CNN reports that purchasing conditions differ between those who are not Americans and permanently live outside the country and recent residents (or visa holders).
Of these two groups, the second has more facilities to buy a residence because it is easier for banks to acquire information about their finances. However, CNN highlights, there are foreigners outside the US buying houses, mainly from China, Colombia, Mexico and India .
So can I buy a house in the United States if I live abroad?
According to the publication, although there is no law that prohibits foreigners from buying houses in the US, there are prohibitions related to national security that can vary by state.
Knowing these rules in advance, you can buy a condo, but with certain limitations, says the American media.
Nonresident aliens tend to buy with cash, compared to those who do live in the United States. The latter opt for financing because they have greater access to banks in the country.
This is an alien reality for those who are outside. CNN highlights that there are no loans subsidized by the Federal Housing Federation for non-resident foreigners. This makes banks more demanding.
The requirements are made innumerable because financial institutions cannot access the credit history of the future buyer and have to apply another procedure. Added to the list is that the initial value is high. There are banks that ask for up to 20% down payment , says CNN.
Interest also goes up. In these cases it is 8% , according to Fidelity Group. Another limitation is that the property cannot be a reason for moving but for investment . The foreigner needs to demonstrate that he has economic stability in the country he resides and that his intention is to rent the house or use it for another activity.
CNN also highlights the taxes each state collects annually from homeowners. The foreigner will have to pay them even if they do not live in the United States.
In conclusion?
Buying a house in the United States is not an easy procedure, but it is not impossible either. At first, non-resident foreigners can buy their home, although with cash the process is easier.