Can a non-US citizen buy a house in the USA?
Foreigners are allowed to purchase homes in the United States but depending on your residency status how you plan to pay can make the process more complex.
The United States likes to pride itself as a nation of immigrants and the number of new arrivals, after plummeting in 2020, returned to pre-pandemic levels in 2022 according to USAFacts. The largest group that year came to work, followed by those looking to study or join family already living in the nation.
Part of the American dream is owning your own home which is possible for non-US citizens. However, depending on your residency status how you pay for your home can make the process more complex.
Can a non-US citizen buy a house in the USA?
There are many non-US citizens who own homes and property in the United States including vacation homes, or residential and commercial properties as investments. According to last year’s International Transactions in US Residential Real Estate report by the National Association of Realtors (NAR), between April 2022 and March 2023, 2.3% existing-home sales by dollar volume, or $53.3 billion, were carried out by foreign buyers.
For those non-US citizens who have the cash on hand to purchase a house, 42% in the NAR survey, the process is pretty simple. However, it becomes more complicated for those who need financing to acquire the home they desire.
Mortgages for foreigners to buy a home in the US
Foreigners looking to buy a home in the US will need to keep a few things in mind like what kind of documents that they will need. If they are purchasing with cash, they will be required to show proof of identity as well as report the purchase to the federal government.
If they plan to ask for a mortgage, they should be prepared to turn over any documentation that is requested. Some documents that they may be required to provide include:
- A foreign passport, US visa or driver’s license
- Social Security number or Individual Taxpayer Identification Number (ITIN)
- Financial statements to show creditworthiness
- Evidence of financial assets and income
- Tax returns
Whether a foreign national can get a mortgage will depend on their residency status. Non-US citizens that are not permanent residents and do not intend to be, may only qualify for a foreign national loan, which tend to require a higher down payment and come with higher interest rates. According to Chase Bank “typically, lenders wish to see that a non-permanent resident has the right to remain in the country for at least another three years, though requirements vary among lenders.”
Permanent residents with a green card, non-permanent residents with a valid work visa, or refugees granted asylum can qualify for a mortgage. Those who can provide proof of permanent residency and are planning to purchase a primary permanent home may qualify for a Federal Housing Administration (FHA) backed loan.
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