(1) FIRPTA- Stands for the Foreign Investment in Real Property Tax Act- While this act imposes a 10% withholding requirement on foreign sellers of U.S. real property, every buyer eventually becomes a seller. Therefore, a buyer should consult an attorney to find out what the best form of ownership is of a potential property (e.g., personal, llc, corporation, etc.). With a proper form of ownership and understanding of this act you may be able to avoid the withholding requirement of FIRPTA when you go to sell the property.
(2) Tax Considerations- As a potential foreign buyer of property in the US you must consult with a CPA that is versed in international tax consequences. You will want to find out what tax you will be subject to other then real property tax (e.g., rental income tax) and get advice on how to hold the property in order to avoid a hefty tax in the event you were to die while owning the property.
(3) Professional Realtor- If you are looking to purchase property as a second home or investment it is critically important to choose a professional realtor that is experienced in international buyer representation. An experienced realtor like myself can help guide you from the beginning in locating a property all the way to a smooth and successful closing.
One buyer could be a self-employed individual, another working as an employee for Fortune 500 company, one would not have a website for his business, another would not be able to provide a Certified Public Accountant letter (or your county's equivalent) prepared in a specific way a particular lender wants - and these requirements banks often ask for. As you may guess Fortune 500 company employee is the favorite of the banks. Large banks are tougher to deal with when it comes to foreign national loans because they are not flexible.
However, self-employed people can buy successfully too, if they prepare ahead of time.
You are doing the right thing by starting asking questions re. this process.
I usually recommend to get your specific scenario assessment by two-three different lenders/mortgage brokers. The loan programs these brokers/lenders have constantly change.
I can suggest good mortgage pros for you.
Some banks require to open an account with them to give you a mortgage.
You really should open an account in the US - it is required for the closing and it has to be "seasoned" meaning your funds should be here in the US for 2-3 months.
I also have an international service that helps open an account without your presence here -
which is very convenient, and their exchange rate is very very good.
It is important to be specific when talking to your loan officer. Tell as much as possible about your specific situation - the country you are from, the way you transfer funds from there, if you have a license for the work you do, a website, can document your income etc.
Some mortgage pros joke that a foreign national loan is much easier than that of an American citizen...
Hope this helps,
Beachfront Realty, Inc.
Please contact me to chat over the program guidelines.
US Commercial Funding Corp
1395 Brickell Ave, suite 800
Miami, FL 33131
There is a Banking Relationship Requirement - Call or email me for details
Top 10 Highlights of our Premier Deluxe Mortgage:
1. No US Credit is required - We can leverage your International Credit and Payment history
2. No US Social Security Number is required
3. Lend to borrowers with various US Work Visa's - Lend to Foreign Nationals - Borrowers with a B1 Visa or part of US's Visa Waiver Program Call or Email me for details
4. No Prepayment or Early Termination Fees on our Mortgages
5. Verification of your overseas employment, residence, and assets are simplified
6. Portfolio Mortgage with competitive programs, guidelines, and rates. Fixed, Adjustable Rate Mortgages and Interest Only options are available- Call or Email me for details
7. Down payment options as low as 25% for a Primary Residence, 30% for a Second Home, and 40% for Investment Property.
8. Finance up to $3,000,000
9. $1,500 Closing Cost Credit
10. Underwritten Pre-Approval available for To Be Determined properties
Please feel free to call or email me with any questions. I am here to help.
Premier Mortgage Consultant
Its not difficult. I have dealt with lots of foreign investors here from all corners of the world. I deal with specialized attorneys that can also give you tax advise. If you give me a call i can tell you personally
David Siddons - 305 508 0899 or email@example.com
Have your Read the 2014 Investors Guide to Miami Real Estate?
Regardless, if you are interested you an email me at firstname.lastname@example.org and I will forward your contact to my lender so he can forward you the different programs available right now.