 Dear
Steve,
Is a Canadian citizen allowed to buy a house in the U.S.? My husband still works in Canada, but he wants to buy a house in the continental U.S. as a place to stay when we come there for a visit. We will probably pay cash for the home. But would there be a problem obtaining a mortgage there?
-- Zenaida S.
 Dear
Zenaida,
There are no laws restricting you from buying a house in the U.S. We here in the "lower 48" wish that you would. In fact, why not buy two? There's plenty of inventory to be had right now -- and for a song! (But not "O Canada," unless you can really nail those high notes.)
Kidding aside, the value of the Canadian dollar has been rising steadily against the value of the American dollar, so your U.S. homebuying power is at its highest level since the mid-1970s.
Certainly, cash on the barrel might buy you additional clout when you get to the negotiating table. But paying cash for the home may not be necessary or even wise, because it may tie up all your cash reserves in the event of an emergency.
As for a mortgage, a few U.S. lenders
might balk about giving you one without a green
card or other official residency document, but
there are many others who won't hesitate to deal
with people of your status, even in a tightening
lending environment. A U.S. Social Security number
is not required for a loan. But if you will be
renting out the place for part of the year, and
will have to file a U.S. tax return, you'll need
an Individual Taxpayer Identification Number should
you ever hope to claim a refund. If you wind up
paying U.S. income tax, you can claim a foreign
tax credit on your Canadian return to skirt double
taxation, as you already might know.
As it stands, you are poised to get plenty of seasonal use from a U.S. residence. Presently, if you're a Canadian and are entering the U.S. without applying for an official visa, you can legally remain for 180 days of each calendar year.
There are other perks to owning
U.S. property other than the current discount
pricing: ample housing stock and favorable exchange
rates. Unlike Canada, homeowners in the U.S. can
deduct mortgage interest payments from their taxable
income.
For a closer look at U.S. tax and financial planning nuances and seasonal-residency and red-tape issues, you
might want to pick up the book "The Canadian Snowbird in America," published by ECW Press.
The Web site www.snowbirds.org also has helpful hints and links.
See ya soon!
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