Introduction
Buying property in the United States is a dream for many non-citizens — whether it’s a vacation home in Florida, an investment condo in New York City, or a family house in the suburbs. But if you’re not a U.S. citizen, how do you get approved for a mortgage?
The good news is: foreign nationals can qualify for U.S. mortgages, but the process is more complex than for American citizens. In this guide, we’ll walk you through how it works in 2025, what lenders require, and how to improve your chances of approval.
Who Is Considered a “Foreign National”?
In U.S. real estate and lending terms, a foreign national typically refers to someone who:
- Is not a U.S. citizen
- Does not hold a green card (permanent residency)
- May or may not live in the U.S.
- Has a foreign income or credit profile
There are also distinctions between resident aliens, non-resident aliens, and foreign investors, which can affect mortgage eligibility.
Can Foreigners Buy Property in the U.S.?
Yes. There are no legal restrictions preventing foreigners from buying residential or commercial property in the United States. You don’t need to be a citizen or resident to own real estate.
However, financing that property through a mortgage is where it gets more challenging.
2 Main Types of Mortgages for Foreigners
1. Foreign National Mortgage Programs
These are designed specifically for non-residents with no U.S. credit history.
Features:
- 30%–40% minimum down payment
- Higher interest rates (typically 1%–2% above domestic rates)
- Proof of income and assets from abroad
- No need for a U.S. credit score
Pros:
- Easier qualification
- No need for U.S. tax documents
Cons:
- Expensive
- Fewer lenders offer them
2. Conventional Mortgages for Non-Citizens (with ITIN or Visa)
If you have a U.S. Individual Taxpayer Identification Number (ITIN), a work visa (H-1B, L-1), or are a green card holder, you may qualify for traditional mortgages.
Requirements:
- Valid U.S. visa or legal status
- 2 years of income documentation (U.S. or foreign)
- U.S. credit history (or international credit via lenders like Nova Credit)
Basic Mortgage Requirements for Foreign Nationals (2025)
| Requirement | Typical Standard |
|---|---|
| Down Payment | 30%–50% (lower for visa holders or residents) |
| Income Proof | 2 years of tax returns, pay stubs, or foreign bank statements |
| Credit Score | Not always needed; may use international credit report |
| ID Verification | Passport, visa, proof of address |
| U.S. Bank Account | Often required for payments and reserves |
| Appraisal | Must be done by U.S.-certified appraiser |
Best States for Foreign Real Estate Investment (2025)
- Florida – Especially popular with European and Latin American buyers
- California – High-value markets like LA and San Francisco attract global investors
- Texas – No state income tax and strong property growth
- New York – International business hub with rental potential
- Arizona – Hot market for retirees and vacation homes
Tips to Increase Mortgage Approval Odds
- Work with a lender that specializes in foreign nationals (not all do)
- Get pre-approved before house hunting
- Transfer funds early — lenders want to see money «seasoned» in a U.S. bank for at least 60 days
- Use international credit reports from agencies like Nova Credit
- Hire a real estate agent and mortgage broker who understand foreign buyers
- Be transparent with income and assets — prepare translations if needed
Required Documents (Checklist)
- Valid passport
- Visa (if applicable)
- Bank statements (3–6 months)
- Proof of income (employment letter, tax returns)
- International credit report (if available)
- U.S. bank account info
- Purchase agreement (once found a property)
- Proof of funds for down payment and reserves
What About ITIN Mortgages?
If you’re living in the U.S. without a Social Security number, you can apply for an ITIN mortgage. These are specialized loans for people who:
- Don’t have legal residency
- Work and pay taxes in the U.S.
- Have an ITIN instead of SSN
Pros:
- No legal residency required
- Homeownership access for undocumented immigrants
Cons:
- Higher interest rates
- Large down payment (often 20%–30%)
- Fewer lenders available
Common Mistakes to Avoid
❌ Looking for a mortgage before preparing documents
❌ Underestimating closing costs and property taxes
❌ Failing to open a U.S. bank account in advance
❌ Choosing a lender unfamiliar with foreign buyers
❌ Not hiring a bilingual agent if English isn’t your first language
Taxes and Legal Considerations
- You don’t need to pay U.S. income tax just for owning property
- However, rental income from U.S. property is taxable in the U.S.
- Consider forming an LLC or trust to hold the property for estate and liability protection
- Non-residents are subject to FIRPTA — a tax law that withholds 15% of the sale price when a foreign owner sells U.S. real estate
💼 Tip: Always consult with a U.S.-based real estate attorney and tax advisor.
Conclusion
Yes, foreigners can qualify for mortgages in the U.S. in 2025 — but it requires planning, documentation, and working with the right professionals. Whether you’re buying as an investment or a personal residence, start by researching lenders who offer foreign national mortgage programs and gather your financial documents early.
With the right team and preparation, buying your dream home in the U.S. is absolutely within reach — even without U.S. citizenship.
