Canadian resident- How to buy a home in USA?

[Steven]

Really. Looks like property prices in the US are going to drop a lot further if it's that hard to get credit in Canada as well.

[manu dasa]

hi im manu.

This thread has been very informative thank you. i am thinking about studying in the states next year to do a masters degree in metal arts. it is not available to me in canada so i am thinking about moving to oregon. they have a good program there.

now my question is for steve, who seems to be a fountain of info anyone else is welcome to answer and help me out as well.

i have found out that my wife and small child can move with me no problem. i dont even need a visa as i understand it. canadians studying in the us dont need one.

so i will be studying in the states and i dont want to waste money on an appt. i own my house here outright and want to buy there and live in it for the duration of my studies. I would be allowed to work for 20 hours related to my studies but my partner can't. so, we were thinking what about buying an appt. building and living there and living off of the revenue while im in school.

is this feasable? the other option is to buy a house, have it paid completely and live off of our savings. i would rather not do that.

help!

thanks,
manu dasa

[Steven]

This is a bit of a tricky one, further back in the thread it explains that you can rent out property, it's just you have to pay US income tax on the income.

If you physically live in it and act as a landlord though then you're working in the US. You can't do that as an F-2 dependent and as an F-1 you can't do it either during the course of study. I suppose you could hire an agent to do it. I suppose it boils down to how arm's length it is.

You do need to get an I-20 from the college to get F-1.

[manu dasa]

thanx for the info.

i still have to get a visa (I20?) so i can be f1 (which if memory serves is a student.

i hadnt thought about the fact that if i am living in it i am "working" as a landlord. i was hoping to just live off the income. i wouldnt mind paying the income tax. i just need to have revenue while i am studying.

ughhhh. i guess id have to hire an agent as you said. or just buy a house outright and use my savings and what money i make workign part-time.

if you think of anything else. please let me know.

i appreciate it.

[Steven]

I seem to dimly recall there is caselaw on people acting as landlords as visitors to the US, the upshot of which is that you can't do it if you live there, but really you need an immigration lawyer to look up the case law on this one as it's kind of a grey area.

But yes you do need an I-20. There are no visas for Canadians in non-immigrant categories usually, but you need the I-20 in order to apply for F-1 status at the border, any registered college or university can issue you one, you also have to pay the fee.

[canadian_mudphud]

Great stuff here! Glad I found this resource.

I am a Canadian currently finishing up undergrad at a U.S. institution, and I have been accepted into med school down here as well (NY state). My dual-degree program is fairly long (7 years), so I figure it may be best to try to buy a condo rather than rent for 7 years. I think I'd aim for something in the neighborhood of 70K-90K.

Are there any students out there that have tried to secure a mortgage? I am a Canadian citizen (was a "resident alien" for 2008, and "non-resident alien for the 3 years prior") and have been on an F-1 for four years. I have great Canadian credit, but no established credit state-side.

Any thoughts or advice? Thanks in advance and happy holidays.

[Reba]

Trying to get a mortgage these days is like trying to get blood from a stone apparently. And if you're a student with no significant income, it'll be even harder I imagine. Gone are the days of no money down and banks trying to help anyone own their own home. And those days are not likely to return I'm afraid.

[Steven]

The problem with medical degree programs in the US is that the IRS will only allow you to file on 1040NR and 8843 for five years, which means after that date you can no longer claim to be a non-resident student for US income tax purposes. This means if you have an EAD you have to pay the FICA taxes, plus if you have a US scholarship it's subject to standard taxation. If you still claim residency abroad then people abroad can still give you money, but it's subject to the tax laws of that country. But it's not US-source so it's not subject to US tax.

I would have thought by now that you have some sort of credit history, the problem is going to be your employment history and whether they consider it significant enough that you're a good credit risk.