Almost anyone can buy a house in the USA. There is no federal law limiting home purchases to U.S. citizens, and foreign nationals from virtually any country can legally hold title to American real estate. The real gates are age and legal capacity, lender standards if you need a mortgage, identity and tax documentation, anti-money laundering screening, and a growing set of state laws that restrict foreign buyers in more than 30 states.
You Must Be Old Enough to Sign
Every buyer needs the legal capacity to enter a binding contract. That means being at least 18 and mentally competent to understand the deal. Nothing in federal law bars a minor from owning property, but a contract signed by someone under 18 is voidable, so the minor can walk away without penalty. Sellers and lenders will not close on those terms, which is why nearly every successful purchase runs through an adult.
If you can’t attend closing in person, another adult can sign for you under a power of attorney. Your agent brings the document to the title company and signs in a form that makes the arrangement clear, such as “Jane Smith, attorney-in-fact for John Smith.” Power of attorney rules vary by state, and if the property sits in a state other than where you live, have a lawyer confirm your document works there.
Citizens, Green Card Holders, Visa Holders, and Foreign Nationals
U.S. citizens have the fewest hurdles. You can buy any type of residential property, use any available loan program, and hold title in your own name or through an entity like an LLC.
Permanent residents with a Green Card are treated almost identically. Most lenders underwrite them the same as citizens for conventional and government-backed mortgages. Non-permanent residents on valid work visas can also qualify for many mortgage products, though lenders look more closely at immigration status and work authorization.
Foreign nationals who don’t live in the United States can still buy. Many do, for investment or vacation homes. Financing is harder because most standard loan programs require U.S. residency, but specialized foreign national loans exist, and a cash purchase faces no citizenship-related barrier at the federal level. The federal concern is where the money came from, not what passport you hold.
Where Foreign Buyers Hit Limits
The open federal door is not the whole picture. More than 30 states have passed their own laws restricting foreign ownership of real property, and the trend has accelerated since 2023. Some ban foreign ownership of agricultural land outright. Others target buyers tied to specific countries designated as foreign adversaries, such as China, Russia, Iran, and North Korea. Others focus narrowly on land near military installations or critical infrastructure. Penalties range from forced divestiture to criminal charges, so any foreign buyer should check the law in the specific state before committing.
CFIUS Review Near Military Sites
At the federal level, the Committee on Foreign Investment in the United States can review real estate purchases by foreign persons near sensitive military sites. The restricted zones run one mile from the boundary of certain installations and up to 100 miles from others, depending on the site’s classification.1eCFR. 31 CFR Part 802 – Regulations Pertaining to Certain Transactions by Foreign Persons Involving Real Estate in the United States A covered transaction is one where the foreign buyer gains enough rights in the property (at least three of the rights listed in the rule, such as physical access, the power to exclude others, or the right to improve the land) that the deal could raise national security concerns. CFIUS does not automatically block these purchases, but it can investigate and ultimately unwind them.
Reporting for Farmland
Foreign persons who acquire U.S. agricultural land must file a disclosure report (Form FSA-153) with the USDA within 90 days of the purchase. At the end of 2024, foreign holders controlled about 46.3 million acres of U.S. farmland, roughly 3.6 percent of all privately held agricultural land.2USDA Farm Service Agency. Foreign Holdings of US Agricultural Land The report calls for a legal description of the land, the nature of the interest, how it was acquired, and information on any foreign person holding 10 percent or more of the purchasing entity.3Federal Register. Agricultural Foreign Investment Disclosure Act Revisions to Reporting Requirements Missing the filing can trigger civil penalties, and USDA is weighing tighter rules.
The ID and Tax Number You’ll Need at Closing
Every buyer has to prove who they are before closing. U.S. citizens and permanent residents give a Social Security Number and a government-issued photo ID like a driver’s license or passport. Title companies and lenders use the SSN for tax reporting and for the background checks federal law requires.
Foreign nationals who don’t qualify for an SSN need an Individual Taxpayer Identification Number from the IRS. You apply using Form W-7, with original documents or certified copies showing both identity and foreign status. A valid passport covers both on its own.4Internal Revenue Service. Individual Taxpayer Identification Number (ITIN) Without a passport you need a combination, such as a birth certificate paired with a foreign voter card or national ID.
Processing usually takes about seven weeks. During tax season (January 15 through April 30) or if you apply from outside the country, expect nine to eleven weeks.4Internal Revenue Service. Individual Taxpayer Identification Number (ITIN) That timeline matters when a closing date is set. You can also apply in person at an IRS Taxpayer Assistance Center to move faster. The ITIN is not just for closing; you’ll need it for your ongoing federal tax obligations as an owner, including the withholding rules that kick in when you sell.
If You Need a Mortgage
Financing adds a second layer of qualification. Lenders look at income stability, debts, and credit history, and the specific thresholds depend on the loan program.
Conventional Loans
Conventional mortgages backed by Fannie Mae or Freddie Mac generally require a minimum credit score of 620 under automated underwriting.5Fannie Mae. Eligibility Matrix Manual underwriting raises the bar, often to 680 or more depending on loan-to-value. Most lenders want a two-year income history and a debt-to-income ratio at or below 43 to 45 percent. Put down less than 20 percent and you’ll pay private mortgage insurance until your equity reaches that line.
FHA Loans
FHA loans are built for buyers with less cash or weaker credit. You can put down as little as 3.5 percent with a credit score of 580 or higher. Scores between 500 and 579 require a 10 percent down payment.6U.S. Department of Housing and Urban Development. Loans FHA loans come with their own mortgage insurance premiums, upfront and annual, which add to the long-term cost.
VA Loans
Veterans, active-duty service members, and certain surviving spouses can use VA loans, which require no down payment and no monthly mortgage insurance. There is a one-time funding fee instead. For a first-time VA borrower with no down payment, the fee is 2.15 percent of the loan amount. It drops to 1.5 percent with 5 to 10 percent down, and to 1.25 percent with 10 percent or more. Subsequent-use borrowers with no down payment pay 3.3 percent.7Veterans Affairs. Funding Fee and Closing Costs Veterans with service-connected disabilities are exempt from the fee.
USDA Loans
USDA rural development loans require no down payment, but eligibility is narrow. The property must be in a qualifying rural area, and the borrower must be a U.S. citizen, U.S. non-citizen national, or a “qualified alien” as defined under immigration law.8USDA Rural Development. Applicant Eligibility Foreign nationals without permanent residency don’t qualify. This is one of the few loan programs with an explicit citizenship-related requirement.
Paying Cash
Cash buyers skip the lender, but they face a different screen. Title companies and closing attorneys must check every buyer against the Specially Designated Nationals list maintained by the Treasury’s Office of Foreign Assets Control.9Office of Foreign Assets Control. Specially Designated Nationals (SDNs) and the SDN List A hit stops the deal. Buyers also have to show where the money came from, through bank statements or reference letters.
Buying Through an LLC or Trust
The Financial Crimes Enforcement Network has long used Geographic Targeting Orders to force title insurance companies to identify the real people behind shell companies making non-financed residential purchases in dozens of metro areas.10Financial Crimes Enforcement Network. FinCEN Renews Real Estate Geographic Targeting Orders Starting March 1, 2026, FinCEN’s Residential Real Estate Rule takes that concept nationwide. Certain professionals handling real estate closings must report non-financed transfers of residential property to legal entities or trusts directly to FinCEN.11Financial Crimes Enforcement Network. Residential Real Estate Rule The rule does not block any purchase. It does mean cash buyers using LLCs, corporations, or trusts should expect their identities to be reported no matter where the property sits.
What Foreign Buyers Should Know Before They Buy: FIRPTA
FIRPTA is a tax rule that bites when you sell, but you need to plan for it going in. Under the Foreign Investment in Real Property Tax Act, the buyer in a sale involving a foreign seller must withhold 15 percent of the sale price and send it to the IRS.12Office of the Law Revision Counsel. 26 USC 1445 – Withholding of Tax on Dispositions of United States Real Property Interests The rate drops to 10 percent if the buyer plans to use the home as a residence and the price is $1,000,000 or less. If the price is $300,000 or less and the buyer will live there, no withholding applies at all.13Internal Revenue Service. Exceptions From FIRPTA Withholding
The withheld money is not the final tax. It’s a prepayment against the capital gains tax you’ll owe. If your actual liability is lower, you file a return to claim the refund. Either way, a foreign seller needs an SSN or ITIN to work through the process. Applying for an ITIN tied to a property sale means attaching Form 8288-B to the W-7 application.14Internal Revenue Service. ITIN Guidance for Foreign Property Buyers/Sellers Foreign sellers who skipped getting an ITIN when they bought often learn this the hard way at closing, with the full 15 percent withheld and no quick way to reduce it.