Almost anyone can buy a house in the USA. Federal law sets no citizenship or residency requirement for owning residential real estate, so U.S. citizens, Green Card holders, temporary visa holders, and foreign nationals who have never set foot in the country all have the same legal right to take title. The Fourteenth Amendment protects property rights for all persons within U.S. jurisdiction, and no federal statute limits who may own a home.1National Archives. 14th Amendment to the U.S. Constitution: Civil Rights (1868) What differs from buyer to buyer is not the right to purchase but the financing available, the tax treatment, and a handful of reporting rules.
Who Qualifies to Buy
Every category of buyer is eligible:
- U.S. citizens, whether living in the country or abroad.
- Lawful permanent residents (Green Card holders).
- Temporary visa holders, including workers on H-1B or L-1 status.
- Foreign nationals living outside the United States, with no U.S. presence at all.
- Legal entities, including corporations, LLCs, and partnerships, whether U.S.-formed or foreign.
Your classification does affect how you are taxed on the property. The IRS splits non-citizens into “resident aliens,” who are generally taxed like U.S. citizens, and “nonresident aliens,” who face different withholding and reporting rules. Whether you qualify as a resident alien depends on holding a Green Card or meeting the substantial presence test, both covered in IRS Publication 519.2Internal Revenue Service. Publication 515 (2025), Withholding of Tax on Nonresident Aliens and Foreign Entities
Buying a Home Does Not Give You a Visa
Owning U.S. property carries no immigration benefit. It does not extend a tourist visa, create work authorization, or lead to a Green Card. A buyer on a B-1 or B-2 visitor visa remains limited to the stay stamped at entry, generally up to six months, with a possible extension to one year total.3U.S. Citizenship and Immigration Services. B-1 Temporary Business Visitor You can own the home; you cannot live in it beyond your authorized stay without separate immigration status.
The EB-5 Immigrant Investor Program is the one investment route to permanent residency, but it requires putting capital into a job-creating commercial enterprise, not a personal residence. The current minimum is $1,050,000, or $800,000 in a targeted employment area, and the investment must create at least 10 full-time jobs for U.S. workers.4U.S. Citizenship and Immigration Services. EB-5 Immigrant Investor Program Buying a house of any price does not qualify.
Federal Rules That Can Affect Foreign Buyers
A few federal laws touch foreign real estate purchases. None of them block a typical residential sale, but they are worth knowing before you sign.
Agricultural Land Must Be Reported
Under the Agricultural Foreign Investment Disclosure Act (AFIDA), any foreign person who acquires an interest in U.S. agricultural land must file a report with the Department of Agriculture within 90 days of the purchase.5Office of the Law Revision Counsel. 7 USC 3501 – Reporting Requirements The report, Form FSA-153, must include a legal description, the purchase price, and the intended agricultural use.6Federal Register. Agricultural Foreign Investment Disclosure Act: Revisions to Reporting Requirements Missing the deadline can mean a civil penalty of up to 25 percent of the land’s fair market value. The rule applies only to agricultural land, not to suburban homes or urban condos.
Single Homes Are Excluded From National Security Review
The Committee on Foreign Investment in the United States (CFIUS) can review certain real estate deals by foreign persons near military installations and other sensitive sites. Federal regulations specifically exclude the purchase of a single housing unit, including a house, townhome, apartment, or mobile home and its surrounding land, from CFIUS review, even within one mile of a covered installation.7eCFR. Regulations Pertaining to Certain Transactions by Foreign Persons Involving Real Estate in the United States Foreign buyers purchasing a single home for personal use are outside the process.
Sanctions Screening at Closing
Every U.S. real estate transaction must comply with sanctions enforced by the Office of Foreign Assets Control (OFAC). Real estate agents, title companies, and sellers are prohibited from closing with anyone on OFAC’s Specially Designated Nationals (SDN) list.8Office of Foreign Assets Control. Specially Designated Nationals (SDNs) and the SDN List Title companies routinely screen all parties before the deal proceeds.
Documents You Will Need
The exact paperwork depends on whether you are financing or paying cash, and whether you live in the United States.
- Government-issued identification. U.S. residents usually present a state driver’s license; foreign nationals use a passport.
- A taxpayer identification number. U.S. buyers use a Social Security Number. Foreign buyers who do not qualify for an SSN can apply for an Individual Taxpayer Identification Number (ITIN) using IRS Form W-7. Processing takes about seven weeks, or nine to eleven weeks during tax season (January 15 through April 30) or when filed from overseas, so start early.9Internal Revenue Service. Individual Taxpayer Identification Number (ITIN)
- Proof of funds. A bank letter confirming you can cover the purchase price and closing costs. Cash buyers use this in place of a loan approval.
- Translations and notarization. Foreign-language documents generally must be translated into English and notarized before a title company or lender will accept them.
Buying Through an LLC or Corporation
All 50 states let a business entity hold title to real estate. Many investors, and most foreign buyers of higher-value property, buy through an LLC, corporation, or partnership to manage liability, simplify estate planning, and keep their personal name off public records.
Foreign entities registered to do business in a U.S. state or tribal jurisdiction must file a Beneficial Ownership Information (BOI) report with the Financial Crimes Enforcement Network (FinCEN) under the Corporate Transparency Act. A March 2025 rule change exempted all U.S.-formed companies and their U.S. beneficial owners, so only foreign-formed entities registered in the United States now need to file.10Financial Crimes Enforcement Network. FinCEN Removes Beneficial Ownership Reporting Requirements for U.S. Companies and U.S. Persons, Sets New Deadlines for Foreign Companies Willful failure to file by a covered foreign entity can bring civil penalties of up to $591 per day and criminal fines of up to $10,000.11Financial Crimes Enforcement Network. Frequently Asked Questions
How You Pay: Cash vs. Mortgage
Paying Cash
A cash purchase skips the mortgage process but not the compliance checks. You still need a proof-of-funds letter, identity verification, and OFAC screening. In certain metro areas, title insurance companies are required to report all-cash purchases by legal entities above specific dollar thresholds under FinCEN Geographic Targeting Orders designed to detect money laundering.12Financial Crimes Enforcement Network. Geographic Targeting Order Covering Title Insurance Company The reporting duty sits with the title company, not with you.
Mortgages for Citizens and Permanent Residents
U.S. citizens and Green Card holders have access to the full range of mortgage products. Conventional loans can start at 3 to 5 percent down, though less than 20 percent usually triggers private mortgage insurance. Federal Housing Administration (FHA) loans allow 3.5 percent down for borrowers with a credit score of 580 or higher, and require at least 10 percent down for scores between 500 and 579.13HUD. Does FHA Require a Minimum Credit Score and How Is It Determined Conventional loans typically require a minimum score of around 620.
Government-backed loan eligibility has been tightening for non-citizens. A policy change effective May 2025 made non-permanent resident aliens ineligible for FHA Title I loans, which cover property improvement and manufactured home loans.14HUD. Revisions to Residency Requirements Non-citizens without permanent residency should confirm eligibility with any lender before applying.
Foreign National Loans
Foreign nationals who are not permanent residents can still borrow, but through private lender programs with stiffer terms. Expect down payments of 30 to 50 percent, a requirement to hold roughly 12 months of mortgage payments in a U.S. bank account as reserves, and interest rates about 1 to 2 percentage points above domestic rates. Availability varies by lender.
Taxes That Hit Foreign Owners Differently
If you are not a U.S. citizen or resident, three federal tax rules reshape what owning U.S. real estate costs you.
FIRPTA Withholding at Sale
Under the Foreign Investment in Real Property Tax Act, the buyer in any sale from a foreign seller must withhold a share of the gross sale price. The standard rate is 15 percent.15Office of the Law Revision Counsel. 26 USC 1445 – Withholding of Tax on Dispositions of United States Real Property Interests Two exceptions apply when the buyer plans to use the home as a residence:
- No withholding if the sale price is $300,000 or less.
- Reduced 10 percent withholding if the price is above $300,000 but no more than $1,000,000.
The withheld amount is a deposit against the capital gains tax actually owed, not a separate tax. Filing a U.S. return for the year of the sale can produce a refund if the withholding exceeded the tax due.
Rental Income
A nonresident alien who rents out U.S. property faces a flat 30 percent withholding on gross rents by default, with no deductions for mortgage interest, property taxes, or maintenance.2Internal Revenue Service. Publication 515 (2025), Withholding of Tax on Nonresident Aliens and Foreign Entities Most owners instead elect to treat the rental activity as “effectively connected” with a U.S. trade or business, which lets them pay graduated-rate tax on net income after expenses.16Internal Revenue Service. Instructions for Form 1040-NR Once made, the election stays in effect until revoked with IRS approval.
Estate Tax Exposure
This is the one most foreign buyers miss. U.S. citizens and residents have a federal estate tax exemption of $15,000,000 in 2026.17Internal Revenue Service. What’s New – Estate and Gift Tax A nonresident alien gets an exemption equivalent of only $60,000, with no inflation adjustment.18Internal Revenue Service. Estate Tax for Nonresidents Not Citizens of the United States If a nonresident owner dies holding U.S. real estate worth more than $60,000, the estate may owe federal tax on the excess at rates up to 40 percent. Some bilateral tax treaties provide larger exemptions, so check whether your home country has one in force.19Office of the Law Revision Counsel. 26 USC 2102 – Credits Against Tax
Gift Tax
A nonresident alien who gifts U.S. real property pays federal gift tax. The 2026 annual exclusion is $19,000 per recipient, or $194,000 for gifts to a non-citizen spouse. Nonresident aliens have no lifetime gift tax credit to offset larger transfers.20Internal Revenue Service. Frequently Asked Questions on Gift Taxes for Nonresidents Not Citizens of the United States
Costs That Continue After You Own
Ownership comes with recurring expenses that apply regardless of your citizenship:
- Property taxes. Nearly every state levies annual property tax, with effective rates running roughly 0.3 percent to over 2 percent of assessed value. Unpaid property tax can lead to a lien.
- Homeowner’s insurance. Lenders require it for the life of a mortgage, and cash buyers should carry it against fire, storm, theft, and liability.
- Transfer taxes. Many states and localities charge a one-time tax when property changes hands; your closing agent calculates it with your settlement costs.
- Maintenance and HOA dues. Any home needs upkeep, and properties inside a homeowners association carry monthly or annual dues on top.
The core answer stays simple: eligibility to buy is wide open. The work is in picking the ownership structure, financing, and tax approach that fits your situation before you sign.