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TAX, INSURANCE AND CONDITIONS FOR HOUSING IN THE U.S
There is no restriction of a foreigner (Vietnamese) to buy a house in the U.S. The only exception is that when you sell a house and if you do not show that you are a legal resident of the USA, then the escrow company must withhold 10% of the selling price and you have to send your request of refund to the U.S IRS (tax) office to reclaim that money (you may or may not get back this money). To buy a house in the U.S, over all it is better for Vietnamese to pay 100% of the house price. You can pay 50% and borrow the rest but the process for bank to approve the loan is very complicate and you may not be able to get seller to agree to wait until the loan is approved. The “closing cost “ of different states are very close and may vary about 15% - 20%.
Closing cost:
Recording and county tax is about 0.3 % or $750 per $250,000 value
Title search, survey, Termite inspection, other fees is about $800 - $1000 (independent of the house value)
Title insurance: This is important and it depends on the value of the house: A $250,000 house will have to pay about $1,200 (0.41 %), and it will cap around $2500
Other closing fee (legal, recording, services) and escrow is about $600
Overall the cost for $250,000 house is about $3,500 - $4,000
If you borrow a loan from a bank than there will be escrow of interest and payment (these are extra cost)
One thing that we need to keep in mind that the house prices in Texas and Florida is about half of California (for the same living space)
California :
Property tax 1.2% on the value of the house. A $500,000 house will have to pay about $6,000 per year.
House insurance: about $800 - $1200, depend on location, price and deductible
HOA (Home owner association) will varies from $50/month to $150/month depends on location
Texas
Property tax 2.7% on the value of the house. A $500,000 house will have to pay about $13,500 per year.
House insurance: about $600 - $1000, depend on location, price and deductible.
HOA (Home owner association) will varies from $50/month to $100/month depends on location
Florida
Property tax 2.1% on the value of the house. A $500,000 house will have to pay about $10,500 per year.
House insurance: about $600 - $1000, depend on location, price and deductible
HOA (Home owner association) will varies from $50/month to $100/month depends on location.
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