Can foreigners buy property in the USA? This is one common question asked regularly by new investors and the answer is yes, foreigners can definitely purchase property in the United States.
In this blog post, I’m going to break down everything that you need to know about foreigners buying property in the USA so that you can know how to move forward if you plan on buying property in this country.
How Foreigners Can Buy Property In The USA
It doesn’t matter what country you’re from, or are currently living in, one of the great things about the United States is that anyone regardless of their background, has the opportunity to purchase property here.
As with any real estate investment that you may have been involved with in the past, the first thing that you have to decide first is if you plan on purchasing a property for cash, or if you plan on financing it.
The easiest way to buy a property in the United States (and anywhere else in the world) is by paying cash for that property. Cash is still King in 2020 because of the simple fact that once you pay the seller, the deal is finished, compared to financing, which requires a more effort.
As a foreigner, you can get a mortgage loan to finance a property in the United States but, you need to know that mortgage lenders may want you to meet more requirements for the approval of your loan.
What requirements are you going to have to meet?
Credit Score – Your credit score should ideally be in the 720 range (or higher).
Down Payment – A mortgage lender is going to require you to make a down payment of at least 20%.
Income – You should have a source of income in the United States that you expect to continue for at least the next three years.
Documentation – Besides everything that I mentioned above so far, you should also expect to asked to provide a mortgage lender with a valid social security number or ITIN number.
Time in the United States – Another thing that most mortgage lenders are going to look for before they approve your application is your time in the United States. They’re going to expect you to have been in this country for at least the last two years, and have 2 years’ worth of work experience.
Sounds complicated? Even though people who want to know Can Foreigners Buy Property In the USA, I assure you that it can be done if you’re willing to put in a little time and effort towards accomplishing your goal.
Keep in mind that mortgage lenders can be stringent when it comes to their credit requirements so don’t take it personally if it’s going to take you a little bit longer to purchase a home in the United States and people who have been living here for years.
Mortgage lenders are going to want to have confidence in your ability to repay the mortgage so they’re going to scrutinize your application to confirm that you indeed have been living in this country for a while, have connections here, and also a reliable source of income to pay back the mortgage loan.
Do You Have A Green Card Or Visa In The United States?
Let’s say that you have a green card or visa in the United States, if this is the case, the chances of you qualifying for a mortgage are much higher compared to a foreigner who attempts to finance their home purchase without having any connections here.
Foreigners who already have visas or green cards have shown that they’ve taken the steps to create connections to this country and they may be able to qualify for a Government backed mortgage loan.
One of the most popular Government-backed mortgage loans is an FHA loan. This type of mortgage loan is available to temporary residents, as well as permanent residents. The great thing about an FHA loan is that in some cases you may be able to use this type of mortgage to purchase a multi-family property if you plan on house hacking, or living in one of the rental units in that property for a Time.
Another benefit of buying a home with an FHA loan is that this mortgage loan will only ask you to put 3% down, so you’re going to save a lot of money.
You should still be ready to comply with all of the typical requests from a mortgage lender though including providing all of your financial documentation, work history, two years’ worth of tax returns, credit history, and bank statements.
Tips For Temporary Non-Resident Aliens
Did you know that temporary non-resident aliens can also qualify for mortgages in the United States as well?
Let’s say that you have an H-2A, E-1, G-4, L-1 (or comparable visa), in this case, you may be able to qualify for a mortgage loan from the Federal Housing Administration.
To qualify, it’s possible that you could be asked to supply an employment authorization document or a social security number.
Your employer may also be asked to provide the Federal Housing Administration with a document that shows that they plan on renewing your contract and rehiring you once it expires.
As I mentioned above, at the beginning of this article: Can Foreigners Buy Property In the USA, the main thing that every mortgage lender wants to have confidence that the borrower will have the ability to repay their mortgage.
Refugees who have come to the United States and have been granted asylum also can qualify for mortgage loans as well. To do this, a refugee must be able to provide a mortgage lender with up-to-date documentation including their arrival-departure record, and Form 1-94.
Contact Trier Capital
My company specializes in sourcing, acquiring, and managing multi-family investment properties in the United States.
We have a complete infrastructure in place that makes it possible for investors to own multifamily properties without having to do any of the work themselves.
Now is the perfect time for investors to buy multifamily properties in the USA because the demand for multifamily properties has never been higher.
If you’ve been thinking about adding another multifamily property to your investment portfolio, or you’re looking at investing in multifamily for the first time, contact me today, you will be glad that you did!
To learn more about buying a property in the United States if you’re a foreigner, or to speak with me about the services that we can do for you, contact me today by calling (630) 229-2383 or clicking here.