Buying a home is exciting, no matter where you are. Although buying a house in the United States is an exciting thing, buying a house in an unfamiliar market is somewhat confusing and worrying. Today, I will talk about what conditions Chinese people need to buy a house in the United States, and introduce some common problems in the process of buying a house in the United States.
1.What are the requirements for buying Real estate in U.S.?
You do not need to be a US citizen or hold a green card, but you do need to have your own personal tax ID number (ITIN). This is a tax processing number for foreign nationals in the United States who do not have a taxpayer identification number and who are not entitled to a social security number.
So, what materials do you need to prepare before buying a house?
(1) A valid passport and visa;
(2) Prepare the proof of funds for the purchase of the house (the Chinese and English version of the deposit certificate of the domestic bank);
(3) Accounts opened with local banks in the United States.
(4) If the loan also requires a work certificate and work income (certificate issued by the unit or the street, it will be translated by a notary company).
It is worth reiterating that just buying a home in the United States does not give a foreigner any legal residency rights or privileges of identity.
2.Can I buy a house with cash?
Yes, all cash purchases are allowed. However, US law requires that cash transactions over $10,000 must be reported to the federal government. The report needs to include relevant information on all the people involved in the transaction (home buyers, real estate agents, lawyers and title companies). The U.S. government wants to know if your source of funds is legitimate income.
Cash home buyers may be able to save some on mortgage application fees, loan origination fees, property appraisals and title insurance premiums.
3.Can I get a loan to buy a house?
The answer is yes. Qualified foreign homebuyers can easily apply for a home loan after putting down a 30%-40% down payment. Lending rates are slightly higher than in the continental United States.
Many banks require foreign home buyers to have a certain amount (at least $100,000) in deposits with the bank, while others set the loan limit at one to two million dollars. Of course, you may also need to provide a minimum three-month deposit certificate.
Before applying for a home mortgage in the United States, you must start building your credit and get a good credit score. First, you can build up your credit score by applying for a U.S. bank account and credit card account. Second, you should make sure that all of your income is reported on your tax return. Lenders use income information to determine the specific amount they are willing to lend to you to buy a home.
4.In the United States, what types of houses can I not buy?
Any foreign buyer can buy single family house, condo condo, townhouse townhouse, and Multi-Family House.
Only housing cooperatives and co-ops tend to have regulations prohibiting ownership by non-U.S. citizens. This is because co-ops generally require the purchaser’s income to be sourced from the United States, and most of the purchaser’s property is required to reside in the United States.
5.Should I buy a house in the US in my own name?
Yes, all cash purchases are allowed. However, US law requires that cash transactions over $10,000 must be reported to the federal government. The report needs to include relevant information on all the people involved in the transaction (home buyers, real estate agents, lawyers and title companies). The government wants to know if your source of funds is legitimate income.
Cash home buyers may be able to save some on mortgage application fees, loan origination fees, property appraisals and title insurance premiums.
6.Can I complete a home purchase transaction without going to the US?
The answer is yes.
After all, buying a house is a major event, and many people will be very worried if they don’t see the real estate, so they are willing to go to the United States to inspect the house in person.
But in fact, you can complete the real estate transaction online without going to the United States. At that time, a “power of attorney” can be signed. That is, authorizing another person in writing to represent you and sign on your behalf to complete the transaction. This person can be a friend or a local real estate agent in the United States.