Hi,

I'm going to relocate to US legally, I realize that the mortgage interest rates are low these days, however consider I do not have credit history in US and the mortgage interest rates are low as well in my origin county, I'm considering taking the mortgage in my foreign "homeland bank"

My question is: Will my mortgage payments will be tax deducted although they are done outside US?

Thanks in advance

David

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Originally Posted by david1234

Hi,

I'm going to relocate to US legally, I realize that the mortgage interest rates are low these days, however consider I do not have credit history in US and the the mortgage interest rates are low as well in my origin county, I'm considering taking the mortgage in my foreign "homeland bank"

My question is: Will my mortgage payments will be tax deducted although they are done outside US?

Thanks in advance

David

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A foreign company will give a mortgage on US property?

I'm going to say no... because they would have to report such things to the IRS... and lacking such documentation... the IRS will not allow the deduction.

I'm also surprised they would give a mortgage to a property outside their own country,. because they would not be able to put a lien on the property in the USA, which is their sole guarantee you would even pay the loan off.

It seems there is a slight misunderstanding, Allow me to elaborate:

1. I own a home in my homeland (not US), it's market value is over $750K, I have long "relationship" with my "non-US" bank, I have stocks, etc.. . in other words: They will give me a mortgage for house in US, it might be named a "loan" for that matter because I'm "good for the money" - and the interest is great.

2. I'm relocating on H1B, to US, naturally I got NO credit history, I guess I can apply for mortgage, but it will be probably more expensive

The question:
Will the IRS except my mortgage payments to my "Non-US" bank as tax deductible?
If it does, which forms I shall ask from my "Non-US bank" to fill to make it happen?

Thanks in advance

David