If you need to know the requirements to buy a house in the United States, below you can read a guide to help you fulfill your dream. But first of all you should know that even if you buy a property in the United States, the fact of being an owner does not reflect on your right to have permanent residence immediately.
Well, many foreign investors, who are unaware of the American real estate market, think that by buying a property they can obtain the privilege of staying in the United States for a longer time than indicated in the standard visa, then understanding the essential …
Guide with the requirements to buy a house in the United States
So knowing that by complying with the following requirements to buy a house in the United States You do not get rights or privileges to extend your standard visa, nor do you get a legal stay.
- First of all, any foreign person can buy a house in the United States.
- There are no laws in the United States that prevent a foreign citizen from buying property on the United States.
- If you intend to buy a property with cash, you will have no problems.
- If you need to finance the purchase, when applying for financing at a financial institution based in the United States, you must show a good credit score.
- As a non-citizen you will not have your credit report, therefore the bank will need to do a different risk analysis to approve the loan.
- Foreign dome you will pay an interest rate higher than that paid by legal residents.
How to buy a house
- You need to have a good FICO score, if you don’t you should strengthen your credit, the best score should be close to and 850, the higher your score, the better the interest rate you can qualify for.
Well, although the difference between a 4.5% rate and a 5% rate may not seem like much to you. You will be surprised by the amount of thousands of dollars that will influence that small percentage of difference for the life of your loan.
Request a free copy of your credit report, because with the copies you can go to the lenders and you will find out what their opinion is regarding your credit history.
Make the payment of your credit cards and if you have any delinquencies or a credit dispute, try to resolve that situation.
If your credit score is between 650 and 700 you can get an average rate.
If your credit score is high, you may qualify for a rate reduction of about 1.4%, but in the event that your score does not reach 650, the interest rate will be high.
- You will need to have your credit pre-approved, after which the real value that you can pay without causing problems in your finances will be determined.
To avoid damaging your credit report, apply to multiple lenders within two weeks before contacting a real estate agent.
In this way you will know up to what value you can pay. If you are a pre-approved buyer, the lenders will grant you the loan, therefore in a certain way you ensure the successful closing of the operation.
Please note that pre-qualification is not the same as pre-approval. Pre-approval means that the lender prepares to grant you the loan once it detects that you have no financial problems, while pre-qualification means that the lender calculates the amount of money you can borrow, but it does not mean that you will get the loan.
- Buy the mortgage before choosing your property, because you will know in advance the amount of money you need to borrow before you buy your property, it is a smart measure because it can make you fall in love with a house that no matter how much you like it, you will not be able to buy it because You cannot access such a loan to buy it, on the contrary if you buy your mortgage before you will limit yourself to choosing a house whose value is among your financial possibilities.
- Ask about the incidents used by lenders so you can see if you qualify for a loan. They generally use a ratio of 28 to 36, or 28% of your gross income before taxes, covering projected housing expenses with principal and interest, taxes, and real estate insurance.
The payments that you must make every month for outstanding debts combined with the expenses caused by the house should not exceed 36% of your gross income.
- There are first-time home buyer programs that you need to find out to see if you qualify, as they have lower down payment requirements and are offered in many states and local governments.
- Some states require you to have a closing attorney, so contact your state real estate commission to find out how your state handles these real estate issues, and you should also consult with an attorney before signing a contract.
Government help to buy a home for the first time
As help from the government to buy a house for the first time, you can access the following loans:
FHA loan
- The FHA loan is granted by the Federal Housing Administration which belongs to the United States Department of Housing and Urban Development.
- The FHA is backed because lenders don’t lose in the event that you can’t pay the mortgage.
- They also have competitive interest rates, low down payments, and lower closing costs than other conventional loans.
- You would need to show a credit score of 360 or higher to be eligible for the FHA loan and you would get a mortgage with a 3.5% down payment on the purchase price.
- If you have a credit score lower than 580 you can qualify with a 10% interest on the purchase price.
USDA loan
- It is a program of the United States Department of Agriculture for the purchase of a house in the rural area but without the need for you to buy a farm or manage it. It guarantees the loan if you need the initial payment and also the installments for the loan are fixed.
- If you have a credit score of 640 or lower you can access a USDA loan by providing additional documentation on payment history and you will get a simplified loan.
VA loan
Also with competitive interest rates, the VA loan does not involve a down payment or the payment of private mortgage insurance, nor does it require a minimum credit score to be eligible.
Good Neighbor Next Door
It is a program sponsored by HUD to offer home purchase assistance to emergency medical technicians, firefighters, law enforcement officers, and also to teachers in pre-kindergarten through twelfth grade.
- With this program you can receive up to 50% discount on the price of a home in the regions of the revitalization area.
- You can use the website to find out the properties that are available in your state and you must commit to stay living in that property for at least 3 years.
Requirements to buy a house in the United States as a foreigner
- All your documentation must be current.
- In particular, you must have your valid visa.
- Your looking for a real estate advisor must be a person licensed to operate in the United States.
The requirements are very few and lower than those required of a person born in the United States because it is assumed that they intend to invest the excess money
Requirements to buy a home in Florida
- You must be at least 18 years old.
- Find yourself mentally healthy.
- The purpose of the purchase of the property must be lawful.
- A mutual agreement must be established between the buyer and seller.
- The contract must be made in writing and signed by all competent parties.
- Down payment of 20-25% for a single family home and 25-30% for condos.