United States – Property Financing

Can foreign nationals get a mortgage from a local bank or lender in the United States?

Non-citizens are legally entitled to obtain mortgage financing to purchase residential property in the United States through a range of loan products, including conventional, FHA, USDA, and foreign national loans. No federal statute prohibits lenders from extending mortgages to non-citizens, though the specific loan types available — and how straightforward qualification will be — depend heavily on an applicant’s immigration and residency status.

Four principal mortgage categories serve non-US citizens: foreign national loans, ITIN loans, permanent resident alien loans, and non-permanent resident alien loans. Each is designed around distinct residency profiles and financial circumstances, and some are built specifically to accommodate buyers who lack a Social Security number, green card, or US-issued visa.

Fannie Mae purchases and securitises mortgages made to non-US citizens who are lawful permanent or non-permanent residents of the United States under the same terms that are available to US citizens. This means holders of a green card, along with many non-permanent residents on valid employment visas, can access the same mainstream lending products as citizens — including FHA and conventional loans at competitive rates.

While many traditional US banks may not offer dedicated programmes for non-residents, a range of specialist mortgage lenders focus exclusively on international real estate investors and are well versed in the documentation and circumstances unique to foreign national applications. International banks with a US presence — particularly those that serve clients from Asia, Latin America, and Europe — can also be a practical option, offering portfolio loans that are evaluated and retained internally rather than sold on to government-sponsored enterprises.

Lenders that do serve non-residents generally offer portfolio loans held on their own books rather than sold to government-sponsored entities such as Fannie Mae or Freddie Mac. This internal management gives lenders greater flexibility when assessing borrower eligibility and structuring loan terms.

Buyers without a US Social Security number cannot access mortgages backed by Fannie Mae or Freddie Mac, nor government-guaranteed products such as FHA, VA, or USDA loans. In such cases, a foreign national non-QM (non-qualified mortgage) loan from a specialist lender is the primary available path. Unlike markets where conventional lending simply does not extend to foreign buyers at all, the US has cultivated a robust non-QM sector specifically to serve this segment of buyers.

What deposit or down payment is typically required for a foreign buyer in the United States?

Required deposit levels differ considerably depending on residency status, loan product, and the policies of individual lenders. Permanent residents holding a green card can qualify for Fannie Mae or FHA loans on the same basis as US citizens, and may even be eligible for certain down payment assistance programmes. For this group, minimum deposits on FHA loans can be as low as 3.5% (as of 2025).

Foreign national loans, by contrast, generally carry substantially higher deposit requirements — typically in the range of 25% to 40% of the purchase price. This elevated requirement is a means for lenders to offset the additional risk associated with borrowers who may have limited financial ties to the United States. Some specialist lenders advertise programmes accepting deposits from 20%, though such offers tend to be less prevalent and may be subject to stricter conditions.

The deposit threshold for foreign national loans is meaningfully higher than for standard domestic products. Lenders frequently require 25–30% or more, translating to a maximum loan-to-value (LTV) ratio of 70–75%. By way of comparison, many Western European markets routinely offer resident borrowers LTVs of 80–90%; the US foreign national segment provides considerably less leverage.

Because lenders view foreign national loans as higher-risk, borrowers face not only elevated interest rates but also the need for substantially larger deposits — sometimes reaching 30 to 50 percent — which provides lenders a buffer against potential default. The precise requirement depends on factors including property type, loan size, intended use (owner-occupied versus investment), and the particular lender’s approach to risk.

Confirm current deposit requirements directly with your prospective lender, or consult the Consumer Financial Protection Bureau (CFPB), which publishes authoritative guidance on mortgage lending standards throughout the United States.

What interest rates and loan terms are available to foreign borrowers in the United States?

Because most foreign nationals have no US credit history, their applications are treated as higher risk by lenders, and interest rates are generally set above those available to domestic borrowers. The exact rate offered will reflect factors including the loan size, the property’s location, and the overall strength of the borrower’s financial position.

Loan durations for foreign national products typically range from 15 to 30 years, with both fixed-rate and adjustable-rate mortgage (ARM) structures available. Certain lenders additionally offer interest-only arrangements, which keep initial monthly outgoings lower by requiring only interest payments during a defined introductory period. The 30-year fixed-rate mortgage is a defining feature of the US lending market — more widely available here than in countries such as Canada or Australia, where long amortisation periods exist but 30-year fixed rates are far less common.

Some foreign national loan agreements incorporate a prepayment penalty, charged if the borrower settles the loan ahead of schedule. It is essential to review all loan terms closely and ask lenders explicitly whether early repayment charges apply before signing.

Non-QM loans carry higher rates than conventional mortgages to compensate for the elevated risk, but they offer considerably more flexibility in both eligibility criteria and loan structure. Because rates shift regularly and vary across lenders and borrower profiles, always obtain a personalised quote tailored to your situation. The Federal Reserve publishes benchmark interest rate data that can help you evaluate the competitiveness of any offer you receive.

What documents and eligibility criteria do foreign nationals need to apply for a mortgage in the United States?

Foreign national loans offer a viable pathway to property ownership for non-citizens, but they typically involve stricter requirements and a more extensive documentation process than conventional loans. Lenders continue to evaluate core factors such as income stability and creditworthiness to confirm that borrowers can sustainably meet mortgage payments, property taxes, and associated ongoing costs.

While requirements vary by lender and loan product, the following documents are routinely requested:

• A valid foreign passport and evidence of lawful US entry (visa or visa waiver documentation)
• Proof of income — such as employment contracts, foreign bank statements, business account records, or retirement income documentation
• Down payment verification, clearly showing the source of funds
• Tax returns — lenders may request copies of tax returns from the borrower’s home country to assess their broader financial picture
• A US bank account (required by many lenders for the deposit and closing funds)
• Credit references or a credit report from the borrower’s country of origin

Given that foreign credit reporting systems are not standardised, most US lenders do not directly accept overseas credit scores. However, workable alternatives exist. Some lenders will accept evidence of consistent bill payments — such as a reliable record of rent and utility payments — as a proxy for creditworthiness. A credit report from the borrower’s home country may also be submitted where no FICO score or US credit history exists.

Lenders can construct an alternative credit assessment from payment histories with utility providers, landlords, and other regular-payment accounts. This approach costs more to compile, but it can open the door to mortgage financing and home ownership for buyers who would otherwise be excluded.

A widely chosen option among foreign national buyers is the DSCR (Debt Service Coverage Ratio) loan, which bases eligibility on the projected rental income of the property rather than the borrower’s personal income. This is particularly suited to investment property buyers who may struggle to document personal foreign income to the satisfaction of a US lender. Most DSCR loans for foreign nationals require a DSCR of at least 1.25, meaning the property’s anticipated cash flow must be at least 1.25 times the monthly mortgage obligation.

For non-permanent residents, lenders will typically need to confirm that you are authorised to live and work in the country for at least three years. Where a permit is due to expire within the year, the lender must assess the likelihood of the borrower maintaining their residency status before reaching a decision.

The following steps outline a typical application process for a foreign national mortgage:

1. Determine your residency status and identify the loan type most suited to your situation (conventional, FHA, ITIN, foreign national non-QM, or DSCR).
2. Gather documentation: passport, visa, proof of income, bank statements, tax returns (domestic or foreign), and any credit references.
3. Open a US bank account and transfer sufficient funds for the down payment, closing costs, and reserves.
4. Submit your application online or over the phone through the lender’s portal.
5. Lock in your interest rate and submit supporting documents as outlined in a lender-provided checklist.
6. Allow the lender to underwrite your loan and arrange for an appraisal and, where required, a pest inspection.
7. Once approved, sign final documents with a notary, and the loan will be funded and recorded.

Are there any restrictions on the types of property foreign nationals can finance in the United States?

No federal legislation prevents foreign nationals from owning most categories of real property in the United States, and mortgage financing is similarly broad in its reach. However, individual lenders and specific loan programmes do apply their own property-type limitations.

Foreign national mortgage loans can be applied to a variety of property types, including second homes and investment properties. The majority of foreign national mortgage programmes cover luxury residential properties, investment properties — including short-term rentals, long-term rentals, and vacation homes — as well as new construction and, in some cases, pre-construction purchases.

Certain lenders impose restrictions on particular asset classes, such as vacant land, non-warrantable condominiums, or properties in rural locations. Many foreign national non-QM programmes, for example, exclude financing for bare land or agricultural holdings, which typically require specialist or private lending instead.

Condominiums and townhomes are accessible in certain markets, provided the condo association or homeowners’ association (HOA) meets the lender’s approval criteria. Some condominium developments are classified as “non-warrantable” — commonly due to a high proportion of investor-owned units or financial difficulties within the association — which can restrict financing to non-QM lenders only.

At the state level, a number of US states have enacted or are actively considering legislation that restricts foreign nationals from particular countries from acquiring agricultural land or property near military installations. These rules are evolving and differ from state to state. Always verify the current position with a qualified real estate attorney and consult the relevant state’s land registry or property records authority. At the county level, property records are maintained through local Register of Deeds or County Recorder offices, which you can locate via the USA.gov property records directory.

Are there government schemes, developer financing, or alternative routes to financing property in the United States?

The United States offers several government-backed loan programmes, though eligibility for foreign nationals is largely confined to those with lawful permanent or non-permanent residency. Individuals working legally in the US on temporary work visas are generally eligible for the same products as permanent residents. FHA loans, guaranteed by the Federal Housing Administration, allow qualifying non-citizens to contribute as little as 3.5% as a deposit (as of 2025). USDA loans — issued by private lenders with backing from the US Department of Agriculture — are aimed at low- to moderate-income borrowers purchasing homes in designated rural areas and are available only to permanent US residents who can demonstrate a minimum two-year work history.

Non-resident foreign nationals without a US Social Security number are not eligible for government-backed products such as FHA, VA, or USDA loans. For this group, non-bank routes take on greater relevance. Seller financing — in which the property owner assumes the role of lender — is a legal and occasionally practised option, particularly for higher-value or atypical properties. It remains a niche arrangement, however, and typically depends on direct negotiation with the seller.

Sellers or developers may offer buyers a concession of up to 3% of the purchase price toward closing costs or prepaid items, which can meaningfully reduce the funds required at completion. This is worth negotiating, especially in slower market conditions or when purchasing a new-build property from a developer with an incentive to close promptly.

Developer payment plans are periodically available on new-build or pre-construction properties, particularly in states like Florida with strong foreign investor markets. These arrangements typically require an upfront deposit on exchange of contracts, staged payments during the construction period, and a final payment on completion — with or without subsequent mortgage financing in place. A qualified attorney should review any developer payment plan in detail before funds are committed.

Can foreign nationals use overseas financing to fund a purchase in the United States?

There is no restriction on buyers using funds originating outside the United States to acquire US property. Releasing equity from a property held abroad — whether through a remortgage, home equity facility, or refinancing arrangement — and remitting the proceeds to the US is a well-established route, especially for buyers who own overseas property outright or with a substantial equity position.

International mortgage brokers who specialise in cross-border transactions can assist in identifying suitable lenders in both jurisdictions and coordinating the financing. Some buyers work with private banks that manage multi-country portfolios and are experienced in structuring lending arrangements across different legal and financial systems.

Key considerations when drawing on overseas financing include:

• Currency risk: Borrowing in a currency other than US dollars exposes you to exchange rate fluctuations between the point of borrowing and the point of repayment, which can have a meaningful impact on overall costs. A currency specialist or financial adviser can help you assess and hedge this exposure.
• Source of funds declaration: US anti-money-laundering legislation requires that funds used in real estate transactions be traceable and verifiable. Your settlement agent — whether a title company or escrow officer — will routinely request documentation evidencing the origin of funds.
• Tax treaty implications: If your home country has a bilateral tax treaty with the United States, this may influence how mortgage interest and property income are taxed. Engaging a tax professional with expertise across both jurisdictions is advisable.
• US bank account requirement: Most US lenders require that down payment and closing funds pass through a US bank account before completion, so opening one early in the purchasing process is strongly recommended.

Are new property owners liable for any outstanding debts or charges on a property in the United States?

In the United States, certain encumbrances — including unpaid property taxes, mechanic’s liens, and some utility arrears — attach to the property itself rather than to the individual who incurred them. This means a buyer could potentially inherit liabilities from a previous owner if thorough due diligence is not carried out before the transaction completes.

The principal safeguard against this risk in the US is title insurance, an established industry standard that is effectively universal in financed property transactions. Unlike conveyancing systems in some other jurisdictions — such as Australia’s Torrens title system, which provides government-backed guaranteed title — US property rights have historically been recorded in a more decentralised manner, making title insurance a practical necessity. A lender’s title insurance policy is almost always required by the mortgage provider, while a separate owner’s title insurance policy is strongly recommended for the purchaser.

Prior to completion, a title search is conducted by a title company or real estate attorney to identify any existing liens, court judgments, unpaid taxes, or other encumbrances registered against the property. Where any are uncovered, they must generally be resolved before the sale can proceed. Beyond the mortgage itself, all homeowners in the United States — irrespective of nationality — are obligated to pay property taxes to the relevant city or county authority, with rates varying by location and typically falling due annually or semi-annually.

Property records in the United States are maintained at the county level through local Register of Deeds or County Recorder offices. These can be accessed via your county’s official website or through the USA.gov property records directory. Always engage a licensed real estate attorney or a reputable title company to undertake a comprehensive title search before any purchase is finalised.

What taxes and additional costs should foreign buyers budget for when financing property in the United States?

Unlike jurisdictions with a single national transfer tax, the cost structure of buying property in the US varies considerably across states and municipalities. There is no federal equivalent of stamp duty, but a range of costs will arise:

Foreign nationals holding a US mortgage who receive rental income from their property are subject to a 30% withholding tax on that income. The lender is obligated to retain a portion of monthly payments and remit it to the IRS. Where the buyer’s home country has concluded a tax treaty with the United States, this rate may be reduced or eliminated entirely.

When a foreign national comes to sell their US property, the Foreign Investment in Real Property Tax Act (FIRPTA) is a critical consideration. Persons purchasing US real property interests from foreign persons are required to withhold 15% of the amount realised on the disposition. This withholding functions as a prepayment toward the seller’s capital gains tax liability rather than an additional charge on top of it. A primary residence exemption applies where the property sells for under $300,000 and the buyer intends to use it as their main home. Where the sale price falls between $300,000 and $1 million and the buyer will occupy the property as a primary residence, the withholding rate falls from 15% to 10%.

For the 2018–2025 period, long-term capital gains are taxed at 0%, 15%, or 20% depending on the taxpayer’s bracket; many non-resident alien gains from real estate ultimately attract rates of 15% or 20%. Consult the IRS FIRPTA guidance alongside a qualified US tax professional for advice tailored to your personal circumstances and country of tax residence.

In general, there are no additional purchase-point taxes or levies imposed specifically on foreign buyers compared with US citizens, though certain states are introducing or considering targeted legislation in this area. Always confirm the current position with a local real estate attorney or the relevant state revenue authority.

What should foreign buyers know about currency exchange and transferring funds into the United States?

The United States places no restrictions on inbound foreign capital used for property acquisitions — foreign nationals may freely transfer funds into the country to purchase real estate. Several practical and regulatory considerations nonetheless apply.

Reporting requirements: Under the Bank Secrecy Act, US financial institutions must report cash transactions exceeding $10,000 to the Financial Crimes Enforcement Network (FinCEN). Larger wire transfers are not automatically blocked, but may require supporting documentation to satisfy anti-money-laundering (AML) obligations. Both your bank and title company will typically request evidence of the source of any funds used at a real estate closing.

Currency exchange risk: If your income or savings are denominated in a currency other than US dollars, fluctuations in exchange rates between the start of your property search and the date you complete can substantially affect your purchasing power and total outlay. Engaging a specialist currency broker to secure a forward rate for the purchase amount once a price has been agreed can help manage this exposure.

Taking money out of the US: No restriction exists on repatriating sale proceeds following the disposal of US property, but FIRPTA withholding at the point of sale — as described above — means a portion of the gross proceeds will be held by the IRS pending resolution of any capital gains tax liability. Advance planning before any sale is essential to avoid cash flow difficulties.

ITIN for tax purposes: Foreign nationals without a US Social Security number who earn income from a US property — such as rental income — are required to obtain an Individual Taxpayer Identification Number (ITIN) from the IRS. An ITIN is also necessary for filing a US tax return to reclaim any excess FIRPTA withholding. Applications are made via IRS Form W-7.

For the most current regulations governing international fund transfers and property transactions, consult the Financial Crimes Enforcement Network (FinCEN) and the Internal Revenue Service (IRS).

Frequently asked questions

What happens to my US mortgage if my visa is not renewed or expires?

The expiry of a visa does not extinguish your mortgage obligation. The loan remains fully enforceable, and failing to maintain repayments will carry the same consequences as for any borrower — late payment charges, damage to credit standing, and ultimately foreclosure proceedings. If your immigration status changes, contact your lender as soon as possible. Some lenders can accommodate the addition of a co-borrower or guarantor, which may provide stability in uncertain circumstances. Engaging both an immigration attorney and your lender simultaneously is wise if there is any doubt about visa renewal.

Will a foreign credit score or credit history be recognised by US lenders?

Because overseas credit reporting systems are not standardised, the majority of US lenders will not directly recognise a foreign credit score. However, certain specialist lenders and non-QM programmes are willing to accept credit references from foreign financial institutions, bank reference letters, or alternative evidence of creditworthiness — such as a well-established record of on-time rental payments. Establishing even a modest US credit history before applying, for example through a secured credit card, can meaningfully broaden your available options.

Can I get a US mortgage if I am not physically present in the United States?

Many foreign national mortgage programmes do not require a US-based job or permanent residency status. Borrowers may qualify on the basis of foreign income or assets, provided the relevant documentation can be supplied and independently verified. Some lenders also permit the inclusion of co-borrowers or guarantors. However, applicants are typically expected to have made a lawful US entry at the time of purchase. Fully remote applications are possible through some specialist lenders, though completing the closing signature process may require a notary appointment or a power of attorney arrangement.

How do I handle a US mortgage if I need to relocate abroad again?

Leaving the United States while a mortgage remains active does not alter your repayment obligations in any way. You will need to ensure payments continue to be made — ordinarily via a US bank account configured for automatic payment. If the property transitions to a rental, all rental income must be declared to the IRS, and a 30% withholding rate may apply unless a tax treaty between the United States and your new country of residence provides for a reduced rate. A US tax professional can help you structure your affairs efficiently in this situation.

Is it possible to refinance a foreign national mortgage once I have built up equity?

Refinancing is available to foreign national borrowers in the United States, though the range of options may be confined to specialist and non-QM lenders unless you have since established residency and a US credit profile. Cash-out refinancing — drawing on accumulated equity in a property you own — is also available under certain foreign national programmes. Some lenders offer rate-and-term refinancing with limited cash-out provisions. Comparing offers from multiple lenders is advisable to ensure you obtain competitive terms.

Do I need a Social Security number to get a mortgage in the United States?

Foreign national loans are specifically structured to enable non-residents to secure mortgage financing without a Social Security number, green card, or visa. Borrowers are not required to hold a FICO score and may demonstrate creditworthiness through alternative means, including submitting a credit report from their home country. For ITIN loans, you will need an Individual Taxpayer Identification Number, which is obtainable from the IRS via Form W-7 and does not require a Social Security number.

Can I use a US property as an investment and rent it out from the outset?

Foreign national mortgage loans can generally be used to finance investment properties and second homes, including single-family residences, condominiums, and multi-unit properties. DSCR loans are expressly designed for this purpose, assessing eligibility on the basis of the property’s projected rental income rather than the borrower’s personal earnings. Foreign nationals generating rental income from US property are, however, subject to 30% withholding taxes on that income, with the lender required to retain a portion and remit it to the IRS. A tax treaty between the United States and your home country may reduce this rate.

What official sources should I consult when researching US property financing?

The most authoritative sources for up-to-date information are: the Consumer Financial Protection Bureau (CFPB) for mortgage regulations and borrower protections; the Internal Revenue Service (IRS) for FIRPTA withholding rules, ITIN applications, and tax treaty details; the Federal Reserve for benchmark interest rate data; and county-level Register of Deeds or Recorder offices for property records and title information. For state-specific transfer taxes and property-related regulations, consult the relevant state’s department of revenue or taxation.