Money and Finances

How To Buy A House In The U.S. If You Are Not A Legal Resident

There are lots of people in other Countries, and here in America, that would love to own a home here in America but do not believe they can because they do not have a green card or are not legal residents.

There are 2 programs that can help especially if

1.) you live in another country and do not have any credit here in America.
2.) you live here but do not have any legal status

First Lets talk about the buyers that are currently living in other countries. If this is you then you are considered a Foreign National and as such there are certain items you need to have in order to purchase a vacation home or rental property here.

This loan requires 10 to 25% down depending on what country you are from as well as the following:

a. you need a passport and a visa that allows you to come here at varying times(if your country does not need a visa to come here then you require a "cedula de identidad" or other government issued ID).

If your country does require a visa to enter the U.S. but you do not have one then you can still purchase but only as an investor(slightly higher down payments and interest rates)but the other requirements are the same.

b.You will require 1-2 letters of banking reference with English translation, showing a 2 year relationship. You only require 1 letter if your bank is an international one or has a presence in the United States.

Can be a U.S. bank or Foreign bank

c. credit report if you have U.S. credit but must try to pull a international credit report for their country. If no credit reporting in the country that is fine but you will need a credit letter from someone you have had credit with for at least 2 years.

d. verification of funds to complete the transaction plus 3-6 months of mortgage payments in a bank here or in their country.

e. an accountants letter from their country, on accountants letterhead reflecting the income of the person for the previous 2 years, % ownership of any business they own-or- a letter from the borrowers employer if they are not self employed al income must be converted to U.S. dollars.

f.contract, appraisal and all other required documents for a purchase transaction .

2. If they are already living in America the best thing to do is to apply for a Tax ID number (TIN) from the IRS, pay taxes for 2 years and then you qualify for a non resident type of mortgage from several banks that do TIN mortgages.

They require 5-10 % down payment and:

a. proof of income in the U.S. If cannot prove income then need larger down payment and must be in a job that typically pays cash.

b. proof of income tax paid for 2 years

c. proof of credit in U.S. including utility bills, car insurance, cell phone etc. that have been paid monthly for approximately 2 years.

As you can see it is not as difficult as previously thought and if you want to buy a home here there are ways to make that dream a reality.

If you want to be an investor, the same rules apply but down payment requirements are higher.

Buy American especially if you are from a country where the dollar is weaker such as the Europe and now Canada as you may actually be able to buy for less than in your own country.

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