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International Homebuyers
International Homebuyers
Buying and owning a home in California with confidence.
If you’re wondering whether foreign nationals can buy and own homes in California, the short answer is yes. Whether you’re in the market for a sprawling estate, a cozy townhome, or a vacant plot to make entirely your own, the possibilities are boundless.
Although the purchasing process might seem complicated, New Omni Bank is here to ensure a smooth and straightforward experience.
Who Qualifies as a Foreign National?
The U.S. welcomes buyers from across the globe, offering a real estate market without citizenship or residency ownership restrictions. This means that you, regardless of where you are or your citizenship status, can purchase a variety of properties in California.
If you live and work outside the U.S., and do not hold U.S. citizenship or permanent residency, you fit the profile. Whether you’re stateside temporarily for work, study, travel, or hold financial interests from abroad, our mortgage solutions are designed with your global lifestyle in mind.
General Requirements
Residency and Work
Applicants must live and work outside the U.S. and not maintain residence in the country.
Income and Cash Flow
Eligibility under the ICF/DSCR program, based on property cash flows, is a must.
Loan Terms and Amounts
Expect a maximum Loan-to-Value (LTV) ratio of 70%. Loan amounts typically range from $75,000 to $1,500,000.
Down Payment
A larger down payment, typically over 30%, is required, varying by financial circumstances.
Payment Method
Automatic monthly payments via ACH from an FDIC-insured bank are necessary.
Additional Financial Requirements
12 months of reserve funds are required. A 30-year fixed mortgage option is available.
Your Path to Homeownership in California with New Omni Bank.
Discuss your plans with experienced lenders like New Omni Bank to understand the loan process.
No U.S. credit history? No problem. We may use an international credit report from your home country.
Prepare necessary documentation, including proof of income, bank statements, identification, and possibly proof of legal status in your home country.
- Our team will guide you through the application, ensuring you meet all requirements for a smooth approval process.
Tax Obligations: Key Considerations
- Property Taxes: Local governments impose annual property taxes, calculated based on the assessed value of the property. Though separate from mortgage costs, property taxes represent a significant, ongoing expense for homeowners.
- Local Rates and Assessments: Property tax rates are set at the local level and can vary widely. Prospective buyers should research the tax rates specific to their property’s location to accurately estimate future financial commitments.
- Rental Income Taxation: Income generated from renting out your U.S. property is taxable. International property owners must report this income to the U.S. Internal Revenue Service (IRS), which may result in federal income tax obligations.
- Estate Tax Implications: Non-resident, non-U.S. citizens should be aware that U.S. estate taxes can apply to American-situated assets, including real estate, upon the owner’s death. Planning for these potential taxes is an essential aspect of international property investment.
- Potential Deductions: Certain tax deductions may be available to property owners, potentially reducing overall U.S. tax liability. Eligible deductions often include property tax payments and mortgage interest, offering some financial relief.
- Reporting Requirements: Owners renting out their property must report the income earned and can also deduct related expenses on their U.S. tax return, necessitating thorough financial documentation and planning.
Engaging with Specialized Professionals
Other Related Fees
These are various fees associated with finalizing a mortgage. Closing costs typically range from 2% to 5% of the home’s purchase price.
- Origination Fee: Charged by the lender to process the new loan application, this fee covers the lender’s administrative costs.
- Appraisal Fee: This fee covers the cost of a professional appraiser evaluating the home to determine its value for the lender. This is a crucial step in the mortgage process.
- Title Search: A title search checks for any liens or claims on the property that could affect ownership.
- Title Insurance: Title insurance protects the lender (and optionally, the buyer) against any ownership claims that might arise after the purchase.
- Deed-Recording Fees: Charged for officially documenting the change of ownership with local authorities, ensuring public records accurately reflect the new ownership status.
- Credit Report Charges: This fee covers accessing the buyer’s credit history, crucial for lenders assessing loan eligibility. For those without a substantial U.S. credit history, alternative assessment methods or documentation may be required.
- Escrow Fees: These fees are for escrow services, which handle the financial transaction and transfer of property ownership.
- Home Inspection Fee: Though not always required, a home inspection is crucial for identifying any potential issues with the property. This fee is for the service of conducting a detailed inspection of the home’s condition.
Don't Forget about Exchange Rate and Wire Transfer Fees
Why Choose New Omni Bank?
Our decades of experience in assisting foreign nationals have established us as the go-to partner in the California real estate market.
Contact us today to learn more about how we can assist you in achieving your goals.
Tailored for New Immigrants, International Borrowers and Non-Residents
Offered exclusively in New Omni Bank, the Portfolio Residential Mortgage program has helped countless foreign nationals and newcomers with varied financial situations to achieve their homeownership dream in California.
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