In November, the American borders will open to visitors from 33 countries around the world. CNBC reports that it’s the first time in 20 months that residents from China, Brazil, India, and Europe will be allowed to enter the US for the purpose of viewing and buying properties. For the real estate market, there’s an anticipation that an influx of foreign nationals will be ready to act fast on buying or selling a home.
Having a permanent resident card – also known as a green card – gives you access to purchasing real estate and obtaining a mortgage. And since owning properties in the US is both highly desirable and profitable, there’s bound to be high demand in the coming months. Here are four reasons why now is a great time for residents of a foreign country to snag properties.
As of mid-November, interest rates for mortgages are still well below highs from previous years. For well-qualified borrowers for traditional mortgages, rates between 3 and 4% are common. However, rates for lawful permanent residents are higher for several reasons, but they’re always relative to the typical mortgage averages.
Lower interest rates, especially on highly competitive 15-year fixed rate mortgages, makes it more affordable to invest in American real estate right now before rates start to climb higher.
Fast access to financing
As the economy continues to recover from the pandemic, lenders of all types have been relatively lax with lending. Pursestrings are open and financing for specific purpose purchases that are secured is readily available. As recovery gets further along, lenders will become more stringent in their qualifying criteria and may be more restrictive to those with a resident alien status.
With the US now allowing travel in and out of the country to many locations, it’s the perfect time to make plans with a real estate agent to buy property in the United States. Once a foreign national owns a home in the US, they can travel more easily back and forth, like a citizen of the United States.
Should there be a spike in pandemic-related infections or foreign governments have tense relationships with the US, borders could tighten or close once again. Buying now should make it simpler to gain access stateside.
Early on in inflation
Inflation rates are higher than they have been in a non-war era. Those costs trickle down into every aspect of the economy, real estate notwithstanding. It’s quite possible that the housing market will see prices climb to never-before-seen prices in a very short time if inflation continues at this pace, making single-family homes and luxury properties even more expensive. Making a real estate purchase now not only gets in while the prices are cheaper, but takes advantage of inflation through equity positions when the prices rise.
MBANC has foreign national mortgages
Whatever your reason for buying real estate as a foreign national, MBANC is the trusted source for mortgage lending for lawful permanent residents. Fast, easy approvals and high limits are where we specialize, and most deals close within 30 days. Contact a mortgage analyst today to find out more!