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FDIC-Insured - Backed by the full faith and credit of the U.S. Government.
FDIC-Insured - Backed by the full faith and credit of the U.S. Government.
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Alert: New Omni Bank will be closed on Friday, July 4, 2025, in observance of Independence Day.
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 with no citizenship or residency ownership restrictions. This means that regardless of where you live or your citizenship status, you can purchase property 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 of a foreign national homebuyer. Whether you’re temporarily in the U.S. for work, study, or travel—or managing financial interests from abroad—our mortgage solutions are designed to align with your global lifestyle.
For foreign nationals looking to buy a home in California, preparation is key. Start by organizing your financial documents, including proof of income and bank statements, and consider obtaining an international credit report to strengthen your application.
Be aware of key requirements like the need for a larger down payment—typically over 30%—and having reserve funds for at least 12 months."
Howard Lee
Senior Vice President, Director of Consumer & Retail Lending
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
A real estate attorney specializing in international transactions can help ensure that your interests are protected and that all legalities are correctly addressed.
A tax specialist familiar with international tax laws can offer advice on optimizing your tax situation, including potential deductions, estate tax planning, and fulfilling all reporting requirements.
Other Related Fees
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
International buyers must consider the costs associated with currency conversion and wire transfer fees when moving funds from abroad for property purchases.
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.
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.
Related Services
Portfolio Residential Mortgage
Ideal for foreign nationals and new U.S. residents, with flexible underwriting and custom rate structures.
Auto Loans
Unlock your ride with our Auto Loan designed for newcomers in the U.S. and borrowers with limited credit history.
Home Equity Line of Credit
Access up to $5 million with our HELOC program. Available to U.S. citizens, green card holders, and non-permanent resident aliens.
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