Buying a house in the USA
 

so, I am not rich.
I live in the UK and rent. I dont even know how mortgages work! But what I do know is that there are some cheaper things in the US compared to here in the UK.

I am wondering if it is possible to buy a property, house, in the USA if you do not live there?
If so - how does it all work?

thanks!

Re: Buying a house in the USA
 

Why?

Re: Buying a house in the USA
 

Of course it's possible...but why would you want to?

Re: Buying a house in the USA
 

There are also very expensive houses, the real cheapies reflect the environment. People fleeing because of lack of jobs,

Re: Buying a house in the USA
 

because I do... I want to live in the US eventually. tought having a property would help and since I travel there often, can live there...instead of forking out for hotels

Re: Buying a house in the USA
 

How?

Re: Buying a house in the USA
 

Buying property as an investment is a risky business that requires a lot of planning and research - for most people it is a really bad idea.

Buying investment property in a foreign country that you know nothing about is a good way of losing all of your money.

If you find someone offering you an investment opportunity that seems too good to be true and involves investing money in property in the US it is almost guaranteed to be a scam.

Owning property in the US will not make it easier for you to get an immigrant visa and, in fact, it may hinder your ability to visit the US.

Re: Buying a house in the USA
 

Owning property will not help you.

Take a read through this...if you can fit into one of the categories...you may be in with a chance of moving to the US.

Re: Buying a house in the USA
 

Owning property here doesn't help you live here.

Buying a place is easy though, but getting a mortgage to buy a place here might be a problem.

A hotel is much cheaper than property taxes in decent places and not to mention, managing a place from afar can be a right hassle.

Re: Buying a house in the USA
 

But you can't "live there"... not without a proper visa. The best you can do is visit... and even then, there's no guarantee of entry - visa or not.

Ian

Re: Buying a house in the USA
 

Buying a house here might actually make it more difficult to visit. A border agent may see that you have a property here, trying to make a permanent connection to the USA, and not recognize you as a 'visitor' but as a potential immigrant or someone who would overstay, thus denying you entry.

Between the insurance, property taxes, utilities and other expenses, a hotel is probably cheaper for now.

Re: Buying a house in the USA
 

Very very true. Some budget motels are a bargain compared to the costs associated with owning a house here. The price of the house can be nice & low, but once you factor in items like (flood, tornado, earthquake, crime) insurance, property taxes of +$500 a month depending on area, possible sky-high fuel costs (especially if oil), you're looking at a much larger outlay than you'd ever imagine. The cost of the house is only the beginning . . . .

Re: Buying a house in the USA
 

Yes you can buy property in the US but it helps not at all with living in the US in fact, 8 USC 1101(a)(15)(B) requires you to have an abode abroad if you are visiting, so if you rent in the UK and own in the US, odds are that CBP will think you do not have non-immigrant intent.

Re: Buying a house in the USA
 

The cost may not always be as expensive as you’ve represented. Homeowners insurance (as well as property tax) is included in the mortgage payment (in Tennessee anyway) and is small portion of your monthly payment. From the TN Comptroller of the Treasury:
Assume you have a house with an APPRAISED VALUE of $100,000. The ASSESSED VALUE is $25,000 (25% of $100,000), and the TAX RATE has been set by your county commission at $3.20 per hundred of assessed value. To figure the tax simply multiply the ASSESSED VALUE ($25,000)by the TAX RATE (3.20 per hundred dollars assessed).

$25,000 / 100 = 250 x $3.20 = $800.00 or ($25,000 x .03200 = $800.00)
for a tax bill of $800.00
http://www.comptroller.tn.gov/pa/pahtfytb.asp

Homeowners insurance is also inexpensive and covers everything except flood insurance (that is available depending on where you live). Covers medical payments if someone is injured on your property, covers fire, theft, acts of God…The main expense I’d worry about is the cost of upkeep which if you live in the UK you could be taken advantage of if you’re not careful.

Re: Buying a house in the USA
 

This post just goes to show that "one size does not fit all." For a start, though $100,000 may get a very nice house in TN, it would get you a garage in CT. My homeowner's insurance has never been a part of a mortgage payment and is very definitely not inexpensive. And my property tax is astronomical. It is all down to what part of the country one lives in.

Also, in TN the insurance and property tax may be paid at the same time as the mortgage payment, but it should be stressed they are not "included," they are additional sums of money.

Re: Buying a house in the USA
 

In IL, we have the option to pay property tax and insurance separately or 'escrow' them into the mortgage for a convenient single monthly payment.

Re: Buying a house in the USA
 

In NJ if you have a mortgage the mortgage company is responsible for paying property taxes. The mortgage company then adds the amount onto your mortgage payments.

Re: Buying a house in the USA
 

That's what I was trying to get across! It gets added on!

Re: Buying a house in the USA
 

In Colorado the Property Tax seems similar to that in the UK. However that is just the start.

Re: Buying a house in the USA
 

That's awesome.

Couldn't buy a rotting shed at the end of a drive way for that kind of money over here though and that's well in the burbs.

Re: Buying a house in the USA
 

The appraised value here is generally what you paid for the house + 2% pa. This can be adjusted down if property values fall but will go back up to the previous point if they rise again.

Property tax is certainly not 'included in the mortgage' but may be paid from an escrow account by the mortgage company.

Re: Buying a house in the USA
 

That's exactly how it is paid Sally. I was told it's to ensure property taxes are paid.

Re: Buying a house in the USA
 

I don't think you absolutely have to do it like that here, as we were looking at remortgaging with ING and you pay property tax and insurance separately with them.

The escrow account actually takes quite a generous amount over what is actually needed and holds it.

Re: Buying a house in the USA
 

I agree that it depends on the mortgage holder -- I've had to do it once, and haven't had to twice.

Re: Buying a house in the USA
 

I thought as far as NJ was concerned it was a state thing. Maybe some states stipulate this...maybe some mortgage companies do. As I said before I thought it was to ensure your property taxes are paid.

Re: Buying a house in the USA
 

Chances are it's the mortgage companies as they probably don't like it if the county forcloses on you because you forgot to pay the property taxes. IIRC the property taxes are higher up in the food chain in that particular case.

Re: Buying a house in the USA
 

Not in my experience. Just got an escrow statement it details when and how much gets paid in and out, total at the bottom is $0 for the year.

Re: Buying a house in the USA
 

My experience was the same as Sally. As I understand it the mortgage company is required to do this in NJ. Live everything else it probably differs from state to state.

Re: Buying a house in the USA
 

We had to pay a years home insurance up front, and still pay the house insurance monthly. All the taxes, insurance etc, come off with the mortgage monthly, we weren't allowed the option to pay the taxes etc ourself, but I think that was the mortgage company's stipulation. Suits me, I know it's getting paid and it's one less bill to worry about :) I'm also hoping that our taxes will go down next year, if the appraisal that just got done is anything to go by, so fingers crossed for that one :fingerscrossed:

Re: Buying a house in the USA
 

I got a healthy check back for last years escrow payments, and reduced payments for this year :)as the tax & insurance decreased, as the property value decreased.:frown: It evens out in the end. Also at the start I had to put 3/6 months in up front.

The escrow requirement is written in the mortgage, not sure if it is a lender or state requirement.

Re: Buying a house in the USA
 

We were allowed to stay out of escrow because we put down a large downpayment. If we had been in escrow I seem to remember the mortgage company wanted a year of property taxes up front...emm $12,000 to sit in their account, I don't think so. The bank explained this was a 'slush fund' to cover any future increases in property taxes that weren't accounted for in our monthly payment.

So we pay our mortgage to the bank, our insurance to the insurance co, the property tax to the county, our mud tax to the mud district and our HOA fees to the management co, all in December.

There have been a few 'stories' on city-data of mortgage companies underestimating the cost of property taxes and insurance and folk getting bills for thousands at the end of the year. Really people??? you trust the bank to get it right?