I am considering buying a home in the US so we can stay in when we go on repat and my son would use when he goes to college next year. However, I was informed by a lender that the mortgage would be considered a "SECOND HOME" and would have a higher interest rate than a traditional primary home since I work in Saudi. My wife plans and going back and forth throughout the year and this would be our only residence. However, he insists that since the loan would be in my name ( since I have the better credit and the one who is working) and I don't live in the US full time and work in Saudi. Have any of you experienced this same issue? Thanks.
If you were employed in KSA, you would not own your home here, but would rent and you would have a tax document at the end of the year confirming that you pay rent. Second home loans typically only apply if you actually OWN a primary home somewhere else, or at least that was my understanding...??
Sounds like they would love to charge you the higher interest rate typically associated with loans for second homes or they just don't clearly understand the situation? Perhaps various banks have different rules regarding second homes. I'd check around and shop at other banks to see if this is an industry standard, or an anomaly.
Post by bogiefrommuskogee on Aug 24, 2015 5:41:29 GMT
Be careful you check the laws of the state you plan to buy in. If it is a "domicile" state, it could cost you a lot of money in state income tax after you leave Saudi. I guy left a couple of years ago who owned a home in California (a domicile state). He bought a house in another state that he could live in for 3 years before he could go back to his home in CA. With many states in budget deficits, these laws get enforced.