Are you a Canadian looking to Make the Move To Arizona?

     Canadians moving to Arizona should know that the buying of real estate in Arizona is a little different from what you know in Canada from putting together the a Loan to Title. Example, origination and documentation fees are the norm while these can seem foreign to Canadians. Unless you pay cash, you must pre-qualify for a loan with a mortgage company before you purchase real estate. Many times your purchase offer on a property may be rejected by the seller unless you can prove that you have been pre-qualified for a loan and/or cash
(you'll have to show proof of funds).

     Many lenders have restrictions imposed on non US citizens and/or non-resident aliens when applying for a mortgage loan while other lenders do not. This process is not standard nor universal.
     Most lenders only use the US credit system and rarely consider using or cannot use the Canadian credit system for Canadians moving to Arizona. It is not unusual for Canadians that have great credit history will have to start from scratch again. It can present a problem in obtaining a mortgage loan, as well, unfortunately, in Arizona, it means paying a higher cost of credit. Some lenders may even consider the type of US Visa that will be issued for you while your staying in Arizona.

Mortgage loan interest is calculated differently. In Canada, compound interest is calculated at the beginning of the period, in the USA, it is calculated at the end of the period.

The Foreign Investment in Real Property Tax Act (FIRPTA) generally requires the withholding of 10% of the sales proceeds on the sale of any real property by a non-resident alien. At the closing, the 10% of the sales proceed are forwarded to the Internal Revenue Service. Upon the filing of a tax return by the non-resident alien, the non-resident may be entitled to a tax refund of part of all of the 10% sales proceeds.

There is one EXCEPTION to the 10% withholding requirement of the FIRPTA is the sale of the home of a non-resident meeting two requirements: A.) sales price of less than $300,000, and B.) the buyer using the home as a principal residence. For example, this would apply in particular to a seller being a non-resident alien who owns an investment property in Arizona.

Please make sure that you speak to an experienced and competent Real Estate Broker (Me of course), and a reliable lender to see what you can qualify for here.

We would love the opportunity to be the Real Estate Broker that represents you in one of the biggest investments in your life. 

If you have any questions regarding real estate in Arizona, and would like a smooth professional transaction, please call us direct.

Monaco Realty
480-940-7800
www.monacorealty.com