Can You Buy a House in the US Without Citizenship?

Yes, you can buy a house in the U.S. without being a citizen. Federal law places no citizenship or immigration requirement on residential property ownership, so a green card holder, a work visa holder, or someone who has never lived in the country can purchase a home, a condo, or an investment property. The transaction itself looks much like any other. What differs, and what catches most foreign buyers off guard, is financing, tax withholding when you sell, how rental income is taxed, and estate tax exposure that hits at rates most buyers never see coming.

Where You Can Buy

No federal law restricts foreign ownership of residential real estate. State laws are another matter, and they’ve been expanding. As of late 2025, roughly nine states restrict foreign ownership across all property categories, while others limit purchases near military installations or critical infrastructure. Some states target nationals from specific countries; others apply broadly to any foreign person. Check the rules for the state where you plan to buy before you make an offer.

Agricultural land carries a separate federal reporting duty. Under the Agricultural Foreign Investment Disclosure Act, a foreign person acquiring or transferring U.S. agricultural land must file Form FSA-153 with the USDA within 90 days of the transaction.1eCFR. 7 CFR Part 781 – Disclosure of Foreign Investment in Agricultural Land The rule applies even if there’s a home on the land.

What Paperwork You’ll Need

The core documents overlap with what any U.S. buyer provides, plus a few additions. A valid foreign passport is your primary ID. If you’re in the U.S., lenders and title companies will also want to see your visa.

Most foreign buyers need an Individual Taxpayer Identification Number. An ITIN is a nine-digit number the IRS issues to people who have a federal tax obligation but aren’t eligible for a Social Security number.2Internal Revenue Service. Individual Taxpayer Identification Number (ITIN) Green card holders and work visa holders eligible for an SSN don’t need one. Everyone else typically does, both to get a mortgage and to file the U.S. tax returns tied to the property. A cash buyer can technically close without one, but the ITIN will still be needed by tax time.

You’ll also need proof of funds. Bank statements showing enough liquidity for the down payment and closing costs are standard. Statements from a foreign bank usually need English translation and conversion to U.S. dollar equivalents. Some lenders require the money to sit in a U.S. bank account before closing, so open one early.

Getting a Mortgage as a Non-Citizen

Financing is where the experience diverges most from a citizen’s. What’s available depends almost entirely on your immigration status.

Green Card Holders

Lawful permanent residents qualify for the same mortgage products as U.S. citizens, including FHA-insured loans on identical terms.3Department of Housing and Urban Development (HUD). Mortgagee Letter 2025-09 – Revisions to Residency Requirements Conventional loans backed by Fannie Mae or Freddie Mac are also available. Down payments, interest rates, and credit standards mirror those for citizens. The one extra step is documenting your permanent residency through USCIS.

Work Visa Holders

Borrowers on employment-based visas like H-1B or L-1 generally qualify for conventional mortgages, though lenders review the file more closely. Expect requests for proof of legal work status, employment verification, and evidence that the visa has enough remaining validity for the lender’s comfort. Recent HUD policy changes have tightened FHA eligibility for non-permanent residents, so confirm current FHA availability with your lender rather than assume access. Conventional and portfolio loans are the more reliable path.

Buyers With No U.S. Residency

Buyers without permanent residency or work authorization face the hardest terms. Specialized foreign national loans exist, but the numbers look different from a standard mortgage. Down payments typically run 30% to 50% of the purchase price. Interest rates are higher. Lenders expect substantial cash reserves beyond the down payment. These loans aren’t backed by Fannie Mae or Freddie Mac, so they come from portfolio lenders who set their own underwriting.

For an investment property, some lenders offer loans underwritten on the property’s income rather than the borrower’s personal finances. These debt-service-coverage-ratio loans look at whether the expected rent covers the mortgage and operating costs. They’re available to foreign nationals in many cases but still require a large down payment and proof of reserves.

Paying Cash

A large share of foreign buyers skip financing and pay cash. That eliminates mortgage underwriting but doesn’t eliminate paperwork, especially if you’re closing in the name of an entity rather than as an individual.

FIRPTA Withholding When You Sell

Understand FIRPTA before you buy, because it hits when you sell. The Foreign Investment in Real Property Tax Act requires the buyer of your property to withhold a percentage of the sale price and send it directly to the IRS as a prepayment on your capital gains tax.4Internal Revenue Service. FIRPTA Withholding It’s not an extra tax. It’s a collection mechanism designed to keep foreign sellers from leaving the country before paying tax on the gain.

The withholding rate depends on the sale price and how the buyer plans to use the home:

The withholding comes off the full sale price, not the profit. That means the amount withheld can easily exceed your actual tax bill. After the sale you file a U.S. return for the year reporting the actual gain, and the IRS refunds any excess. You can also apply in advance for a withholding certificate that reduces the amount held at closing to match your expected liability. File Form 8288-B; the IRS typically acts within 90 days of a complete submission, so start early.6Internal Revenue Service. Instructions for Form 8288

How Rental Income Is Taxed

If you rent the property out, the tax treatment you choose matters a lot.

The default rule taxes rental income at a flat 30% of the gross rent, with no deductions allowed for mortgage interest, property taxes, repairs, insurance, or anything else.7Internal Revenue Service. Taxation of Nonresident Aliens On a property collecting $3,000 a month, that’s $10,800 a year in federal tax even if the property barely breaks even after expenses.

The alternative is much better in most cases. Under Section 871(d) of the Internal Revenue Code, a nonresident alien can elect to treat rental income as income connected with a U.S. trade or business.8Office of the Law Revision Counsel. 26 USC 871 – Tax on Nonresident Alien Individuals With that election, you deduct ordinary rental expenses and pay tax only on the net profit at graduated rates. One catch: the election is sticky. Once made, it stays in effect for future years unless the IRS lets you revoke it, and if you do revoke, you can’t re-elect for at least five years. For most foreign owners planning to hold rental property, making the election is the right call.

Estate and Gift Tax Exposure

This is where foreign buyers get blindsided. The federal estate tax exemption for nonresident aliens who aren’t U.S. citizens is dramatically lower than the exemption citizens and green card holders receive, and the gap is staggering.

For 2026, U.S. citizens and green card holders get a basic exclusion of $15,000,000. No federal estate tax applies unless the total estate exceeds that.9Internal Revenue Service. What’s New – Estate and Gift Tax Nonresident aliens receive a unified credit of just $13,000 under 26 U.S.C. ยง 2102, which effectively shields only about $60,000 in U.S.-situated assets.10Office of the Law Revision Counsel. 26 USC 2102 – Credits Against Tax U.S. real property counts as U.S.-situs property for estate tax purposes.11Office of the Law Revision Counsel. 26 U.S. Code 2101 – Tax Imposed

In concrete terms: a nonresident alien who dies owning a $500,000 U.S. home faces federal estate tax on roughly $440,000 of that value, at rates reaching 40%. That can produce a six-figure tax bill heirs must pay before they can inherit. Citizens of certain countries may qualify for a larger exemption under U.S. estate tax treaties, which cover roughly 15 nations including Canada, the United Kingdom, Germany, France, and Japan.12Internal Revenue Service. Estate and Gift Tax Treaties (International)

Gift tax rules create a separate trap for married couples. When a U.S. citizen gives a gift to a spouse, the transfer is completely tax-free regardless of amount. When the receiving spouse is not a U.S. citizen, tax-free gifts are capped at $194,000 for 2026.13Internal Revenue Service. Frequently Asked Questions on Gift Taxes for Nonresidents Not Citizens of the United States Anything above that triggers a gift tax filing.

Some buyers hold higher-value U.S. real estate through a foreign corporation because the ownership interest becomes corporate stock rather than direct U.S. real property, which can fall outside the estate tax net for nonresident aliens. The structure has real ongoing costs at the corporate level and doesn’t work for every situation. Anyone considering it should get advice from a tax professional who handles cross-border real estate.

Property Taxes and Insurance

p>Foreign ownership doesn’t change local property tax obligations. Every owner pays property tax to the county or municipality where the home sits, at rates that typically range from about 0.5% to over 2% of assessed value per year. Miss the payments and you get liens and eventually foreclosure, same as any other owner.

Homeowners insurance works normally, though some insurers rely on a Social Security number or ITIN for underwriting. Buyers without either should shop for insurers willing to work with alternative identification. A lender will require proof of coverage before closing.

Closing From Outside the US

You don’t need to be physically present in the U.S. to close. A power of attorney can authorize someone here to sign closing documents for you. A growing number of states permit remote online notarization, letting a buyer overseas sign and notarize documents through a live video session with a U.S.-based notary.

Build in extra time. International wire transfers can take several business days to clear, time zones complicate scheduling, and some title companies have less experience with foreign closings. Line up your U.S. bank account, wire instructions, ITIN application if needed, and document translations well before the closing date, and the transaction itself will look a lot like anyone else’s.