Can a Foreign National Buy a House in the US? Loan Options

Can a foreign national buy a house in the US? Yes, and here is the catch

There is no law stopping a non-citizen or non-resident from owning US real estate. You do not need a green card, a visa, or even to set foot in the country to hold title to a home. People do this every year in large numbers, and it is routine for agents in Florida, California, and Texas.

According to the National Association of Realtors, foreign buyers purchased 67,100 US homes worth $45.3 billion from April 2025 to March 2026, with purchases down 14% and dollar volume down 19.1% from the prior year. That 67,100 figure is the second-lowest level since NAR began tracking foreign buyer activity in 2009, and the median purchase price for foreign buyers was $465,000. So the ownership question is settled. The real question, the one that actually costs you money, is financing.

Here is the assumption that costs international buyers the most: many believe they cannot borrow without a Social Security number or US credit history, so they drain savings and pay all cash. Sometimes that is the right call. Often it leaves leverage and tax planning on the table. This guide walks through exactly which loans you can get, what lenders will ask for, and when borrowing is a mistake.

First, figure out which bucket you are in

Your financing options depend almost entirely on your immigration status, not your nationality. Lenders sort buyers into three groups, and the gap between them is large.

The dividing line is lawful presence in the US. Fannie Mae purchases and securitizes 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. The lender makes a determination of the non-US citizen's status based on the circumstances of the individual case, and by delivering the mortgage to Fannie Mae the lender warrants that the borrower is legally present in the country. If you live abroad with no US status, that door is closed, and you move to private lenders instead.

If you live in the US legally: conventional and FHA loans

This is the best-kept secret for expats and visa holders already in the country. You are likely treated almost exactly like a citizen. Fannie Mae requires that each borrower have a valid Social Security number or Individual Taxpayer Identification Number (ITIN), in addition to meeting existing legal residency and documentation requirements. If you have an SSN and a valid green card or work visa, a conventional loan with as little as 3% to 5% down is on the table.

Income gets verified the normal way. Borrowers who are not US citizens must meet the same employment and income verification requirements that are required for borrowers who are US citizens, regardless of the type or source of income. The extra step is documenting that your status is current and will continue, usually with an Employment Authorization Document, visa stamps, a passport, or I-94 records.

If you are in this group, read our complete comparison of mortgage loan types before you shop. You may qualify for better terms than any foreign national product, and it is worth confirming you are not overpaying for a specialty loan you do not need.

If you live abroad: foreign national, DSCR, and bank-statement loans

No US residency means no Fannie Mae, Freddie Mac, FHA, or VA loan. But it does not mean cash-only. A whole category of private, non-QM (non-qualified mortgage) lenders specializes in exactly your situation. These loans are held in portfolio or sold to private investors, so the lender sets its own rules rather than following GSE guidelines.

Foreign national loans

These are the core product for a non-resident buying a US home. The lender verifies your identity, foreign income, and assets using international documents. You will typically provide a foreign credit report or reference letters from your home-country banks instead of a US FICO score. Expect a larger down payment and a rate premium over conventional, but the loan exists and closes regularly.

DSCR loans for rental purchases

If you are buying an investment property, a DSCR (debt service coverage ratio) loan qualifies the property, not you. The lender checks whether the rent covers the mortgage payment rather than scrutinizing your personal income. That makes it a natural fit for international investors with income that is hard to document in the US format. Our guide to how DSCR loans let investors buy rentals without income proof walks through the math lenders use.

Bank-statement loans

Self-employed buyers and business owners often use bank-statement loans, which build qualifying income from 12 to 24 months of deposits rather than tax returns. The logic is similar to a US-based self-employed mortgage, and some lenders accept foreign bank statements for non-residents.

• A lender who promises conventional rates to a non-resident. Foreign national loans price higher. A quote that matches citizen rates usually means a bait-and-switch at closing.
• No mention of reserves. These loans almost always require months of mortgage payments in a US account. If nobody has raised it, the approval is not real yet.
• Upfront fees before a written term sheet. Legitimate non-QM lenders charge at application and appraisal, not large wire transfers to secure a rate.

ITIN loans and buying without a Social Security number

You do not need an SSN to pay US taxes or to borrow from some lenders. The IRS issues an ITIN for this purpose. An ITIN is a 9-digit number the IRS issues if you need a US taxpayer identification number for federal tax purposes, but you are not eligible for a Social Security number. If you are a resident alien, nonresident alien, or their spouse or dependent, you can apply for an ITIN regardless of immigration status.

An ITIN is narrow in scope. It does not qualify you for Social Security benefits, provide or change immigration status, authorize you to work legally in the US, or serve as identification outside the federal tax system. You apply by filing IRS Form W-7, usually attached to a federal tax return, with documents proving your identity and foreign status.

ITIN mortgage loans are offered by portfolio lenders to borrowers who file US taxes under an ITIN rather than an SSN. They are common among long-term residents without an SSN. Terms sit between conventional and foreign national loans: larger down payments and higher rates than a standard conventional loan, but real financing. If your credit file is thin or nonexistent, it helps to understand how manual underwriting works for buyers with little or no US credit, because many of these loans are underwritten by hand.

Down payment, reserves, credit, and income verification

This is where foreign national loans diverge most from conventional financing. The private lender is taking on more risk and less ability to foreclose cleanly across borders, so it protects itself with a bigger cushion.

Down payment

For non-residents, lenders commonly ask for 25% to 40% down depending on the property type and your documentation. The stronger your verifiable assets and foreign credit, the closer to 25% you land. This is a general market norm rather than a published rule, so treat any single number as a starting point and get quotes.

Cash reserves

Expect to show several months, sometimes up to a year, of mortgage payments in reserve, often in a US bank account funded before closing. Reserves reassure a lender that cannot easily check your foreign income month to month.

How foreign credit and income get verified

No US credit score is not a dealbreaker. Lenders substitute:

Build in extra time. Translating and certifying foreign documents, and wiring funds internationally, routinely adds weeks that a domestic buyer never thinks about.

Personal name or LLC, and the taxes unique to foreign buyers

How you take title matters more for an international buyer than for a typical American, because US estate tax and withholding rules can hit non-residents hard.

Personal name versus LLC

Buying in your own name is simpler and cheaper, and it is required for most owner-occupied loans. Holding through a US LLC can add liability separation, privacy, and in some cases estate-planning benefits, but it brings annual filing costs and can change your loan options and tax treatment. The tradeoffs mirror what any investor weighs in our guide to whether to put your house in an LLC, with the extra wrinkle that non-residents often face US estate tax exposure on US-situated assets held personally. This is a question for a cross-border tax advisor, not a default.

FIRPTA: the tax that surprises foreign sellers

Plan for this before you buy, because it bites when you sell. Under the federal Foreign Investment in Real Property Tax Act (FIRPTA), when a foreign person sells US real estate the buyer is generally required to withhold 15% of the gross sale price and remit it to the IRS, with reduced rates or exemptions for lower-priced homes a buyer intends to use as a residence. The withholding is a deposit against your eventual tax, not a separate tax, and you reconcile it when you file a US return. It is calculated on the full price, not your profit, so a low-gain sale can still tie up a large sum until you file.

The honest counterpoint: when cash or waiting beats a loan

EffectiveAgents makes money when you work with an agent, not a lender, so here is the straight version. Foreign national loans are real and useful, but they are not cheap, and borrowing is not automatically the smart move.

Run the actual numbers for your situation before you assume either way. The right answer depends on the rate you are quoted, how long you will hold, and whether the home is for you or for rent.

How to actually get started

Frequently asked questions

The bottom line

You can buy a US home as a foreign national, and you probably have more financing options than you assumed. If you live here legally, you may qualify for a conventional or FHA loan on the same terms as a citizen. If you live abroad, foreign national, DSCR, bank-statement, and ITIN loans exist, just with bigger down payments and higher rates. The honest move is to price the loan against paying cash or waiting a year to build US credit, then choose with real numbers. Get a cross-border tax advisor and an experienced agent in your corner early, and the rest is logistics.