If I am not a US citizen can I still buy real estate in the US?

If I am not a US citizen can I still buy real estate in the US?

Yes, non-citizens of the United States are allowed to buy real estate, and there are mortgages for them called foreign national home loans. These loans work very much like standard U.S. loans except that the required down payment is likely to be larger, about 30%, and you may need to go to either a large bank or a niche lender to get your mortgage. However, foreign nationals can also get FHA mortgages, with only 3.5% down. To qualify, you must meet the following requirements:

1. Citizenship and Immigration Status. Citizenship of the United States is not required for eligibility. When a mortgage loan applicant indicates on the loan application that he or she holds something other than U.S. citizenship, the lender must determine residency status from the documentation provided by the borrower.

2. Lawful Permanent Resident Aliens. For those borrowers with lawful permanent resident alien status, FHA will insure the mortgage under the same terms and conditions as U.S. citizens. That means that you can finance a property in the U.S. with as little 3.5% down and do not need to have a credit rating in the U.S. to be eligible. Evidence of lawful permanent residency is issued by the Bureau of Citizenship and Immigration Services (BCIS, formerly the Immigration and Naturalization Service) within the Department of Homeland Security. You have to produce documentation of your lawful status.

3. Non-Permanent Resident Aliens.

FHA will also insure a mortgage made to you, a non-permanent resident alien, if the property will be the your principal residence, you have a valid Social Security number, you have a satisfactory 2-year credit history, and you are eligible to work in the U.S. (evidenced by an Employment Authorization Document issued by BCIS). If your authorization will expire within one year and a prior history of residency status renewal exists, the lender may assume that continuation will be granted. If there are no prior renewals, the lender will have to determine the likelihood of renewal based on information from the USCIS.

Foreign Nationals will face different treatment when they sell the Real Property under FRIPTA. For more detailed info please refer IRS Article.

http://www.irs.gov/businesses/small/international/article/0,,id=105000,00.html

Please consult your tax advisor, Loan officer on the matter. All Information provided here can not be taken as an ultimate source of legal data. Please verify with proper government agencies prior making decision.