Mortgages

Guide to buying abroad in USA including Florida

Mortgages for the USA Emigrating to the US and Florida in particular has increased over the years as more people decide to live in a more clement climate and prefer to enjoy a more outdoor life. In fact over a thousand people move to Florida on a daily basis.

Around 20,000 British people decide to buy second homes in the US every year with the vast majority choosing Florida as their dream destiantion abroad.

Currently British citizens can only remain in the US for a period of 90 days and the most important document a prospective resident in the USA needs is the world famous Green Card. This is purely an immigrant visa and can be obtained in various ways.

Many would be residents choose the sponsorship route. You will be required to offer up the details of someone willing to sponsor you and this needs to be a close relative who is already a US citizen. There will normally be a quota attached to this form of entry and depend on your relationship with the proposed sponsor.

Employment based migrants, including priority workers and professionals are another group who qualify for a green card. Those possessing skills currently in short supply will also be looked at more favourably.

 

A US dollar mortgage is usually at a fixed rate for a 5, 15, or 30 year term. Beware of the implications of an up-front payment this is referred to as points. This can have a significant effect on the cost of your mortgage. There are a number mortgage specialists who can also pre-qualify you for a loan before you buy. This will greatly increase your buying power.

If you are planning on becoming an overseas investor your minimum deposit requirement is 20% rising to 35%. The bigger the deposit the lower the mortgage interest rate. The deposit on pre-construction of a new build property can be between 10-30 percent, with the balance paid on completion of the property. You can, if checks on the property prove unsatisfactory, pull out of the contract without penalty. But again get the small print checked.

A number of different mortgages are available. As with all overseas mortgages, there is the fluctuation of the interest rates that vary and can mean your original investment is greater and sometimes lesser than you had planned.

Your costs will include many of the same elements as a UK mortgage such as stamp duty and legal costs along with tax and insurance. It is worth noting that when you come to sell your prioperty in the US it is a different system and can cost up to 3% of the sale price on agents fees, (3% to buy).

It is really important that you take the time to appoint your own legal representative. You should take advice on tax implications as inheritance tax can be high. Make sure that there are no debts attached to a property before you buy (when not buying new). You need to check the title of the property and that there are no debts attached to it.

USA mortgages The two most popular visas are;

The L-1 visa is suitable if you own a U.K. based business, which is going to continue to trade whilst you are in the U.S.A. Although the American business that you are buying must be affiliated to the British company through ownership it does not have to be the same type of business that you are operating in the UK.

The E-2 This requires the investor to have a larger cash amount, enough to support yourself and family as well. You will also be required to employ workers in the US.

For more information about buying in Florida USA please click USA house purchase information

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