What are the total costs of closing a deal, assuming also 60-70% mortgage? Taxes for foreigners in the Usa?

Asked by Amos, Upper East Side, New York, NY Sun Feb 13, 2011

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Sam Sharp, Mortgage Broker Or Lender, Chicago, IL
Sun Feb 13, 2011
Amos - The costs will vary depending on your purchase price, loan amount, as well as property location.
Assuming you are purchasing a property in New York then you will want to be prepared for additional cost that you may not find in other markets.
Mortgage Tax: 2.05% of amount of mortgage on loans under $500,000; or, 2.175% of amount of mortgage on loans of $500,000 and over
New York City Transfer Taxes can range from 1%- 1.425% of the purchase price
New york State Transfer Tax is $2.00 for every $500 that you spend.
There is also a "mansion tax" if you are purchasing a home for more than $1,000,000
Outside of this you will have some of the more common charges that you will find in most markets -

Tax Escrows: 2 to 6 months

Recording Fees: $300

Fee Title Insurance: Approx. $450 per $100,000

Mortgage Title Insurance: Approx. $200 per $100,000

Title Search: $275+

Closing Fee:$200 +

in addition you may have to pay Fees to your Mortgage lender - however I recommend looking for a lender who does not charge any additional fees
I would be happy to help and I am avaialble to speak at anytime

Sam Sharp
Senior VIce President - Guaranteed Rate
1 vote
Mark Zatz, Agent, Arlington Heights, IL
Fri Jan 9, 2015
Can you please be more specific with the area (city & State) and the other terms of the loan you may be looking into?
The question is just to open ended to give a guesstimate.

thank you.
0 votes
Caroline Ger…, Agent, Newport Beach, CA
Wed Feb 12, 2014
Foreign Nationals can purchase property in the U. S. Foreign Nationals will get an ITIN number if they intend to rent the property. Income on the rental net is due in the United States ( You will file in April the year after you purchase)
The costs for title, escrow and lender fees are the same as for a US citizen (these costs vary greatly State by State)
Rates will be higher as is non owner occupied and there are pricing adds for foreign nationals.
You must sign final documents with an American notary.
We have residential loans up to five million dollars US and others case by case

Paperwork is required - you need to know how to email everything as pdf files
0 votes
harleydavids…, Home Buyer, 60607
Thu Feb 6, 2014
I thought it be difficult for a foreigner to obtain a loan. I know a couple people that would love to purchase property in the US, but cannot get a loan. Either they have to be citizens, in which case not a "foreigner" and also need an SSN not a work visa. I don't know of any bank that will make loan to these people. They work, they pay income taxes, but must rent or pay cash to purchase a property.
0 votes
Matt Laricy, Agent, Chicago, IL
Sun Feb 13, 2011
You got to ask your lender. They are the only one to let you know. I would say between 2-3% of the purchase price is a safe bet.

Matt Laricy
Americorp Real Estate
Brokers Associate, e-PRO
0 votes
Melissa Bark…, Agent, Washington, DC
Sun Feb 13, 2011
I would ask your lender for good faith estimate (GFE), which breaks down the costs of the loan into monthly payments, as well as an idea of how much you will need to bring to settlement. Another place to get an idea is on many settlement websites they let you put in general info, so you can get an idea of how much closing will cost. Settlement attorneys would also have a good idea about taxes for foreigners purchasing or talk to you tax accountant who would also be able to give you some idea on the amount the taxes will be for a purchase.

Good luck!
Web Reference:  http://www.wdcmetroagent.com
0 votes
John Walin, Agent, Libertyville, IL
Sun Feb 13, 2011
A lender is required to generate a good faith estimate, (GFE) and is the best source for specifics. generally you must prepay one year homeowners insurance, buyer title policy, prepay three months of escrow taxes & insurance, and pay for attorney and any inspections. I never heard of foreigners paying additional taxes. 2% might be a good rule of thumb on the buyer side, 3% closing cost on the seller side,(plus commission expense)

I suggest you have a lender generate a GFE for you.

Best of luck!
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