Red Flag for Foreign Nationals buying Real Estate in the US

We have a lot of Canadian buyers in our real estate market right now. As a matter of fact, there are buyers from myriad of different locations. Obviously these people know a great deal when they see one. However, it is not uncommon for foreign nationals to find their great deal turned into a big disappointment when they misinterpret U.S. government regulations. Heck, most Americans don't understand U.S. government regulations. Often real estate agents are unaware, and as a result they put themselves and their buyers in an awkward position.

Let me clear up once such misconception that's been popping up a lot lately. A foreign national may certainly own multiple properties in the U.S., however, only one of those properties can be financed. The fine print in this regulation is where it gets sticky. The regulation states that a foreign national may not obtain a mortgage if they already own another property here. Which means that if they are at any time, considering financing a home in the US, it must be the FIRST one they buy.

Let me say that again, just so we're clear:  If a foreign national intends to finance a property in the U.S, it MUST BE THE FIRST ONE THEY BUY!

I am anticipating your question.. and my answer is "I don't know". I have no idea why this regulation is in place, just please understand that it is. And REALTORS® advise your clients well in advance so that you don't find yourself on the loosing end of a great deal.