The Argentinian Buyer's Guide to Buying Florida Real Estate
Purchasing real estate in Florida from Argentina might seem daunting, especially if you're unfamiliar with the American property procedures. Whether you're a newcomer in the US with visas like H1-B, L-1, or a foreign investor, discovering the complete process of buying a house in the USA is essential.
To make this journey smoother, explore this comprehensive manual on acquiring property in the US state of Florida, tailored for individuals hailing from Argentina. MakeFloridaYourHome provides all the insights you need.
Here, you'll find a detailed handbook on purchasing real estate in the United States specifically designed for those in Argentina.
The guide covers the entire process, offering crucial insights for newcomers to the US, like recent immigrants on visas, and non-resident foreign investors who are interested in buying property in the USA.
Table of Contents
- Can Argentinian Residents Purchase Real Estate in Florida?
- Guidelines for Argentinian Buyers of Real Estate in Florida
- Necessary Documentation for Argentinian Buyers Purchasing Property in the USA
- How to Purchase a Home in the USA as an Argentinian Buyer – Step-by-Step Process
- 5 Mortgage Options for Argentinian Buyers Acquiring Property in the USA
- Visa Requirements for Argentinian Buyers Purchasing Property in the US
- Tax Considerations for Argentinian Buyers Purchasing Property in Florida, USA
- Types of Property Available for Purchase by Argentinian Buyers in the USA
- Bottom Line
Can Argentinian Residents Purchase Real Estate in Florida?
Absolutely, residents of Argentina can indeed purchase real estate in Florida without any limitations due to citizenship.
People from Argentina have the opportunity to acquire various types of properties, including homes, commercial buildings, vacation properties, and land.
The uncomplicated procedure enables individuals to become proud property owners and enjoy the advantages of owning real estate.
Take a look at this informative manual to understand the prerequisites, step-by-step procedure, and potential tax considerations when buying a property in Florida as an Argentinian resident.
Guidelines for Argentinian Buyers of Real Estate in Florida
Argentinian individuals looking to invest in real estate in Florida can do so without facing limitations and enjoy equivalent property ownership rights as US citizens.
Nevertheless, there are important considerations to keep in mind:
Tax Identification Number (TIN) - Argentinian buyers must acquire a Taxpayer Identification Number (TIN) from the Internal Revenue Service (IRS) to complete a property purchase in the USA.
Financing Requirements - Buyers from Argentina need to secure financing from a US-based bank or another financial institution to proceed with a property purchase.
Additional documentation may be necessary, including evidence of income, employment history, and credit background.
A unique mortgage program is accessible for foreigners, permitting them to obtain a mortgage without a US credit history.
Down Payment - Argentinian buyers may be required to provide a higher down payment, typically ranging from 20% to 25% of the property's value.
Tax Implications - Tax obligations for Argentinian buyers are comparable to those of US citizens when investing in real estate.
- Property Types - Argentinian buyers have the flexibility to acquire a primary residence or an investment property in the USA without encountering restrictions or additional complications.
By following these guidelines, Argentinian residents can navigate the process of purchasing real estate in Florida confidently and successfully.
Necessary Documentation for Argentinian Buyers Purchasing Property in the USA
When you opt for a mortgage provider, you may need to furnish some or all of the subsequent documents for your property acquisition:
An authentic passport issued by your home country;
A US visa or a driver's license;
Certain lenders may request a b1/b2 (visitor visa) for global investors;
Residents of visa waiver countries are exempt, and some lenders might not necessitate a visa at all;
Your Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN);
Bank statements and, if applicable, financial records from your foreign bank;
Verification of reserves;
Tax return documents;
- Credit Score (if applicable).
Importantly, even if you lack a US credit history, you remain eligible to secure a mortgage for your US property purchase.
How to Purchase a Home in the USA as an Argentinian Buyer – Step-by-Step Process
Here is a comprehensive, step-by-step guide for individuals from Argentina who are interested in acquiring real estate in the United States:
Step 1 – Choose Your Desired Location
There are no constraints on non-US citizens purchasing property in the USA. Both resident foreign nationals and non-US citizens can freely invest in real estate.
If you plan to live in the US, factors like commute, community, schools, and amenities should guide your choice. For non-resident investors, research the best cities and states for real estate investment.
Find a real estate agent with expertise in international transactions, particularly those involving foreign buyers.
Seek out agents with a Certified International Property Specialist (CIPS) designation, which guarantees specialized training in international property dealings and reduced risks.
CIPS agents can offer insights on various aspects, including local regulations, languages, and cultural sensitivities.
Step 3 – Collaborate with Your Chosen Agent
Be prepared to sign a buyer representation agreement with your selected real estate agent.
Unlike in some countries, there are typically no fees for working with a real estate agent in the USA, as the seller usually covers the commission.
Your agent can provide guidance without any extra cost.
Step 4 – Understand Tax Implications
Non-resident investors usually do not face additional taxes on US real estate, making it a favorable investment option.
The specifics differ based on whether the property is used as a primary residence or for generating income.
You might need an Individual Taxpayer Identification Number (ITIN) for transactions, which your agent can assist you with.
Step 5 – Commence the Property Search
Work closely with your real estate agent to outline your property preferences.
Your agent will assist in finding suitable options, either through in-person visits or virtual tours, depending on your availability.
They will also clarify property ownership details, which typically include land and house.
Step 6 – Make an Offer and Finalize
Once you've found a property you like, your agent will guide you on crafting a competitive offer.
Negotiations with the seller can take place, leading to an accepted offer and a step closer to ownership.
Step 7 – Conduct a Thorough Inspection
Prior to purchase, a home inspection is vital. Engage a professional home inspector to ensure the property is in sound condition and all systems are operational.
This safeguards your investment.
Step 8 – Formalize the Purchase Contract
A contract of sale binds you to the transaction.
Your realtor will assist in preparing this contract, including the negotiated terms. Earnest money, typically 5-10% of the sales price, is deposited into an escrow account until closing.
Step 9 – Complete a Title Report
A Title Report reveals the property's ownership history and any outstanding liens. This step ensures a smooth transfer of ownership.
Step 10 – Secure Financing (if needed)
Foreign nationals can access US mortgage financing even without a US credit history.
Specialized lenders offer competitive rates for individuals without a US credit background, including non-immigrant visa holders.
This eliminates the need to wait years to build US credit before buying a house.
Cash Purchase - Approximately 30 days from signing the contract of sale.
- Mortgage Financing - Around 60 days from signing the contract of sale.
Adapted for Argentinian buyers, this guide provides a comprehensive roadmap to seamlessly purchase property in the USA.
5 Mortgage Options for Argentinian Buyers Acquiring Property in the USA
For Argentinian residents looking to purchase property in the United States, there are several mortgage options available, tailored to various financial situations and needs.
These options can facilitate the process of owning real estate in the US:
Mortgages for Foreigners with No US Credit
Foreign National Mortgage
Designed to assist newcomers, this mortgage option helps foreign nationals buy homes in the US.
While it may require a higher down payment (around 20-25%) and slightly elevated interest rates, it provides a pathway for foreign nationals to invest in US real estate.
DSCR Loan (For Investment Properties)
This specialized financing choice is suitable for non-residents or foreign nationals seeking to invest in US investment properties.
It assesses the property's potential income in relation to its debt obligations, ensuring borrowers can cover monthly payments.
DSCR loans accommodate foreigners with no US credit, although they might come with higher down payments and interest rates.
Specifically for individuals with an Individual Taxpayer Identification Number (ITIN) rather than a Social Security number, ITIN loans cater to undocumented immigrants aspiring to own a home in the US.
These loans provide an avenue for individuals without a Social Security number to realize homeownership.
Mortgages for Non-US Residents with Established Credit
Insured by the Federal Housing Administration (FHA), this mortgage offers accessible homeownership.
With lower down payment options and more lenient credit requirements, it suits foreigners with an established US credit history, often requiring a minimum credit score of around 580.
Following guidelines set by entities like Fannie Mae and Freddie Mac, this option necessitates a strong credit history and meeting credit score requirements, usually starting at 620 or higher.
Non-US residents with established US credit history can benefit from competitive interest rates and down payment terms through conventional mortgages.
For Argentinian buyers with established US credit or those without a US credit history, these mortgage options provide avenues to fulfill their dream of owning property in the United States.
MakeFloridaYourHome can help you connect with suitable lenders and navigate the mortgage process, ensuring a smooth and successful property acquisition journey.
Visa Requirements for Argentinian Buyers Purchasing Property in the US
Argentinian individuals seeking to buy a house in the United States will encounter varying visa requirements based on their status.
Here's an overview of the visa requirements for different groups:
Green Card Holders
Green card holders enjoy similar privileges to US citizens when applying for mortgages. They may qualify for FHA loans, Fannie Mae loans, or Freddie Mac loans.
A down payment as low as 3% could be feasible, along with a minimum of two years of tax and work history.
Temporary Non-Resident Visa Holders
Temporary non-resident citizens holding valid work visas may explore FHA loans. They might be asked to provide an Employment Authorization Document and Social Security Number.
Demonstrating the ability to reside and work in the US for at least three years could also be required.
Refugees and Asylees
Refugees and individuals granted asylum in the US can apply for home loans under the same terms as US citizens, as foreign nationals are permitted to purchase property in the USA.
They must present a valid Form I-94 with an "Employment Authorized" stamp or an Employment Authorization Document.
Global investors might need a B1/B2 visa, depending on the chosen lender. Visa waiver countries do not require a visa for obtaining a US mortgage.
These guidelines clarify the visa requirements for Argentinian buyers looking to invest in US real estate, ensuring a smoother understanding of the process.
MakeFloridaYourHome can further assist you in navigating the intricacies of visa-related considerations while pursuing your property ownership goals in the United States.
Tax Considerations for Argentinian Buyers Purchasing Property in Florida, USA
Understanding IRS Publication 515
Delve into IRS Publication 515, a guide tailored for Argentinian individuals contemplating real estate purchases in Florida, USA.
This resource thoroughly explains the tax implications associated with such transactions, encompassing details about withholding taxes, capital gains taxes, and estate taxes.
Tax Rates for Non-US Citizens
Non-US citizens hailing from Argentina are subject to a 30% withholding tax on the income derived from real property in Florida, USA.
Flexibility in Income Treatment
As an Argentinian buyer, you have the freedom to decide how your income from US real property is handled.
You can opt for your income to be treated as effectively connected with a US trade or business, akin to US citizens. Alternatively, not making this choice leads to your income being subject to the 30% withholding tax.
Options Through Elections
Argentinian buyers have the opportunity to make two distinct elections that shape the taxation of their US real property income:
Net Election - By selecting this, your rental income undergoes reduction by allowable expenses like mortgage interest, property taxes, and repairs. The resulting net income is then taxed at your regular income tax rate.
- Gross Election - This option entails no reduction of rental income by allowable expenses. The total gross income is subject to the 30% withholding tax.
Tax Treaties' Influence
If a tax treaty exists between Argentina and the United States, you may qualify for a reduced withholding tax rate. For comprehensive information, refer to IRS Publication 515.
Capital Gains Tax for Property Sale
Should you, as an Argentinian non-US citizen, sell your real property in Florida, USA, you will be subject to a capital gains tax upon the sale.
Typically, this tax rate stands at 15% for most taxpayers.
Withholding Tax During Sale
During the sale of your Florida property, the buyer is required to withhold 10% of the sales price and remit it to the IRS as withholding tax.
This withholding tax can potentially be lessened or eliminated by making an election under IRC 897(I).
State Property Tax Consideration
Be mindful that you might be liable for state property tax on your property in Florida, USA. The specific amount of tax varies based on the state in which the property is situated.
Filing Tax Returns - Form 1040NR
Argentinian buyers with income from US real estate property need to file a US tax return, specifically Form 1040NR.
Gaining a clear grasp of these tax implications ensures a smoother journey for Argentinian buyers venturing into real estate acquisition in Florida, USA.
By consulting IRS Publication 515 and seeking assistance from professionals like MakeFloridaYourHome, you can navigate these considerations adeptly and make informed decisions.
Types of Property Available for Purchase by Argentinian Buyers in the USA
Argentinian buyers interested in investing in real estate in the USA have a range of property options to consider:
- Single-family homes
- Rental homes
- Multi-unit properties
- Commercial real estate
Vacation or Second Homes
- Properties for personal use and getaways
Land and Vacant Lots
- Suitable for future development or investment strategies
- High-end homes and estates for a luxurious lifestyle
Agricultural or Rural Properties
- Farms or ranches for agricultural pursuits
- Warehouses and industrial spaces
- Combinations of residential and commercial units
Special Purpose Properties
- Hotels and resorts
- Healthcare facilities
These various property types offer Argentinian buyers diverse opportunities to invest in and enjoy the benefits of real estate ownership in the USA.
Each type presents its unique potential for financial growth and personal fulfillment.
MakeFloridaYourHome can guide you in exploring these options and help you make informed decisions aligned with your goals and preferences.
In summary, it's important to understand that Argentinians have the opportunity to purchase a home in Florida without encountering significant hurdles.
By adhering to the required procedures and meeting regulatory criteria, acquiring a property and obtaining a loan despite lacking US credit history is entirely feasible.
For seamless assistance in this endeavor, MakeFloridaYourHome stands ready to connect you with proficient real estate agents and mortgage lenders who possess the necessary international know-how.
Their expertise will facilitate your journey in discovering and financing your dream home in the United States, even if you lack a US credit history.
With over 50 years of mortgage industry experience, we are here to help you achieve the American dream of owning a home. We strive to provide the best education before, during, and after you buy a home. Our advice is based on experience with Phil Ganz and Team closing over One billion dollars and helping countless families.
About Author - Phil Ganz
Phil Ganz has over 20+ years of experience in the residential financing space. With over a billion dollars of funded loans, Phil helps homebuyers configure the perfect mortgage plan. Whether it's your first home, a complex multiple-property purchase, or anything in between, Phil has the experience to help you achieve your goals.