Can foreigners buy property in the USA?  The simple answer is yes, foreigners can indeed purchase real estate in the United States.

However, navigating the process involves understanding several important intricacies.
For instance, with the recent banking turmoil, banks are tightening up their credit guidelines, some refusing to lend to foreigners altogether.

Besides difficulties in finding financing, several states have laws restricting foreigners’ property ownership rights. 

However, those hurdles are not insurmountable. 

From financing challenges to legal restrictions, this guide will walk you through the nuances of buying property in the USA as a foreigner.

Who can own property in the United States today?

When it comes to non-U.S. citizens, the following groups may own U.S. properties: (1) permanent residents with green cards; (2) temporary residents with visas; and (3) foreign nationals. Foreign nationals face the most restrictions. For example, foreign nationals can only use the property as their second home or investment property.

Foreigners from all over the globe purchase property in the United States. The top foreign buyers, according to the National Association of Realtors’ 2025 Profile of International Transactions (April 2024-March 2025), were:

• China (15% of foreign buyers, $8.4 billion)
• Canada (14% of foreign buyers, $7.8 billion)
• Mexico (8% of foreign buyers, $4.5 billion)
• India (6% of foreign buyers, $3.4 billion)
• United Kingdom (4% of foreign buyers, $2.2 billion)

For the 15th consecutive year, Florida maintained its position as the top destination for foreign buyers, accounting for 21% of all international purchases:

• Florida (21%)
• California (15%)
• Texas (12%)
• North Carolina (4%)
• Arizona (4%)

California rose to 15%, overtaking Texas as the second most popular state for international buyers.

Miami: The global capital gateway

Miami has become the “path of least resistance for capital, entrepreneurship, and talent,” according to Q2 2025 market data. The city’s international appeal is reflected in luxury market dynamics that differ from national trends.

Miami international buyer profile (2024-2025):

• $3.1 billion in international real estate transactions
• 4,000 international sales with $498,300 median price
• Top buyer origins: Argentina, Colombia, Canada (different from national patterns)
• Miami metro captures 49% of all Florida international purchases

Luxury cash purchase rates:

• Condos $1M+: 71% cash buyers
• Single-family homes $1M+: 46% cash buyers
• Super prime ($10M+): 83% cash purchases

We’re in the early stages of tremendous wealth and talent migration to South Florida. Properties above $20M have seen 700% growth in condo sales and 425% growth in single-family homes compared to 2019 levels.

Considering Miami real estate? Our team specializes in foreign national mortgages and understands the unique dynamics of the Miami luxury market.

Why can foreigners buy property in the USA?

According to the National Association of Realtors, the dollar volume of foreign buyer residential purchases reached $56 billion with 78,100 properties purchased (44% increase from the prior year). The median purchase price hit a record $494,400.

This financial contribution provides a vital boost to the U.S. economy. International clients represent an important market niche served by U.S. realtors, lenders, and mortgage brokers.

Therefore, in response to the question “Why are foreigners allowed to buy property in the USA?”, there are several valid reasons.

Moreover, the benefit is mutual. Foreigners have a lot to gain by investing in U.S. real estate. For example, Florida remains the most popular destination, as the Sunshine State offers low taxes, warm weather, and quality services.

How can foreigners buy property in the USA?

There are two main methods to buy a house in the USA for a foreigner. The first is an all-cash transaction. The other method is a mortgage from a lender that specializes in foreign national loans. While cash may be king, foreigners have more financing options than they may think.

Due to the competitive real estate market with limited housing availability, differing currency exchange rates, and other factors, foreign buyers often opt for all-cash purchases. Indeed, the percentage of foreign buyers who pay in cash is significantly higher, with 47% making all-cash purchases compared to 28% of all buyers of existing homes in 2024-2025.

However, cash isn’t the only option. We discuss the mortgage options available to foreign investors looking to purchase U.S. real estate.

Buying land vs. homes in the USA as a foreigner

Many international buyers ask: can you buy land in the USA as a foreigner? Yes, but land purchases involve different considerations than buying existing homes. Understanding these differences is crucial for making informed investment decisions.

Key differences for foreign land buyers

Zoning and development rights

Foreign buyers must research local zoning laws and building restrictions before purchase. Some areas limit foreign ownership of agricultural land, and development timelines may be longer than anticipated. Verify utility access and development feasibility early in the process.

Financing challenges for land purchases

Raw land typically requires higher down payments (40-50%) compared to existing homes. Traditional mortgages may not apply to undeveloped land, making specialized land financing or development loans necessary. Bridge financing may be needed for development projects.

Miami metro land scarcity

Limited developable land in Miami-Dade drives premium pricing for available parcels. Suburban markets like Broward and Palm Beach counties offer more opportunities than the urban core. Due diligence is critical for utilities, access rights, and building permits.

State-specific land restrictions

Some states restrict foreign ownership of agricultural land beyond residential property laws. Check local ordinances for commercial development rights and consult legal counsel familiar with international property laws. Environmental and building regulations vary significantly by location.

Planning a land purchase? Our foreign national mortgage specialists understand the unique requirements for international land buyers and can help structure appropriate financing solutions for your development goals.

Ready to explore your options? Contact our team for guidance on land financing programs available to foreign nationals.

Mortgage options to buy a house in the USA as a foreigner

When getting a mortgage for buying a house as a non-resident, there are three paths the foreign borrower can take: full documentation of their income, alternative, less stringent documentation of their income, or no documentation of income at all.

Full documentation (traditional mortgage from a bank)

This path is perfect for foreigners with “squeaky clean” requests, i.e., good credit history, a low debt-to-income ratio (DTI), and the ability to fully document their income, and who are looking to purchase a property that does not have any valuation or other issues.

Under this route, borrowers report their documented income and allow the lenders to compute their DTI. To qualify for full documentation, the borrowers must provide:

Foreign equivalent of U.S. tax returns, W2s, and paystubs

• Bank statements
• Foreign and/or U.S. credit report
• Full documentation carries the least risk for the lenders; thus, foreign nationals who take this path typically enjoy the best rates and terms.

Alternative documentation (non-traditional mortgage from an alternative lender)

There are also alternative mortgage programs for non-U.S. citizens who, for one reason or another, cannot comply with the traditional requirements needed for the full documentation programs. 

These include self-employed individuals who write off a lot of expenses and show low income on their tax returns.  Instead of tax returns, the borrower has the option of providing an accountant or CPA letter (if self-employed) or a letter from their employer (if employed).  Learn more about these innovative self-employed mortgage options.  

For high-net-worth foreign nationals, they can qualify for a loan under the asset depletion program, where the lender computes the borrower’s income stream based on the amount of assets declared.  This program and other types of high-net-worth mortgage solutions understand the complex financial situations of foreign nationals who have unstable, fluctuating income streams and who are asset-rich but cash-poor.

If the property in question is to be used as a rental investment property, foreign nationals can take advantage of the debt service coverage ratio DSCR loan program.  Under this program, the focus is on the property’s cash flow and income rather than the borrower’s personal income.

Sometimes, the issue is not the borrower, but the property itself.  For example, for foreigners looking to purchase a non-warrantable condo, while a bank may deny the loan, alternative lenders have special programs for these special types of condos, whether the issue is construction defect litigation or low reserves in the condominium association budget.  

No matter the situation, alternative programs are available to enable foreigners to purchase real estate in this country.

No documentation (bridge loan from a hard money lender)

Bridge loans are short-term financial solutions designed for borrowers who do not qualify for a traditional mortgage or who need funds faster than other lenders can provide.  They serve as “bridges” that provide immediate cash flow until the borrower executes upon the exit strategy, e.g., securing long-term financing or selling the property.

The primary factor in a bridge loan is the value and condition of the property being purchased.  No documentation of income is required at all, making bridge loans a very attractive option for foreigners.

Costs for a foreigner buying property in the US

Generally speaking, the closing costs associated with buying a house in the USA for non-residents are the same as for U.S. citizens.  However, foreigners should research the tax obligations and consult with a tax professional to discuss property taxes and potential capital gains taxes upon selling the property.  For example, the Foreign Investment in Real Property Tax Act (FIRPTA) requirements may apply.

When taking out a mortgage to purchase the property, there are special considerations to keep in mind:

Remote closings

To save on time and travel expenses, foreign nationals can enjoy the benefit of digital, remote closings. All the loan processes are completed remotely, eliminating the need to travel to the U.S. in most circumstances.  

Corporate services

Depending on the lender, the foreign national borrower may be required to set up a limited liability company (LLC) or another U.S.-based entity. The entity holds title to the property on behalf of the foreign national.  While there are costs associated with setting up and maintaining the entity, this option is perfect for buyers who want to keep their privacy, have limited liability, and enjoy tax advantages. 

US bank accounts

Lenders also typically require foreign national borrowers to have a U.S. bank account where their monthly mortgage payments will be made.  In most cases, opening the account can be done online without the need to travel.
Therefore, the entrepreneur mortgage program is designed to attract high-income or high-net-worth individuals with spheres of influence who are looking for high loan amounts and fast approval and closing times.

Examining the rules for foreigners buying property in the USA

Several U.S. states impose property ownership restrictions on foreigners from certain countries to address national security and economic concerns.  Here, we summarize the restrictions and rules for foreigners buying property in the USA.

Which states have enacted laws regulating foreign ownership of U.S. real estate?

Alabama, Arkansas, Florida, Idaho, Illinois, Iowa, Kansas, Kentucky, Louisiana, Maine, Minnesota, Mississippi, Missouri, Montana, Nebraska, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia and Wisconsin have enacted legislation regulating foreign ownership of real property within their borders.

However, the list of states is subject to change.  State lawmakers in many other states have introduced similar bills.  Also, there have been lawsuits challenging the constitutionality of these laws.

What do these laws require or prohibit?

The state laws have different approaches.  While some states only have information-gathering laws requiring disclosure of foreign ownership of U.S. real estate, other states are more restrictive:

• Some laws prohibit certain transactions and may require divestiture of the property.
• Other restrictions only apply to agricultural properties.
• Other laws focus on properties located near military installations or critical infrastructure.
• Other laws prohibit ownership of any type of real property within the state.
  
  

Which foreigners are subject to these laws?

Again, the laws vary from state to state, but most of the regulations prohibit purchases by individuals or entities from countries identified on lists maintained under federal law such as:

• Sanctions lists maintained by the Office of Foreign Assets Control (OFAC) in the Department of the Treasury
• The International Traffic in Arms Regulations
• The foreign adversaries list generated under Executive Order 13873 and its implementing regulations
• Countries of particular concern designated by the U.S. Secretary of State
  
  

Other states define their own custom lists, such as Florida, whose law applies to individuals or entities from the People’s Republic of China, the Russian Federation, the Islamic Republic of Iran, the Democratic People’s Republic of Korea, the Republic of Cuba, the Venezuelan regime of Nicolás Maduro, or the Syrian Arab Republic.

Recent legal developments affecting foreign buyers

Several state laws restricting foreign ownership are currently under legal challenge or enforcement moratorium:

Florida SB 264 enforcement enjoined

Florida’s Senate Bill 264, which restricts foreign entities from acquiring agricultural and rural real estate, was enjoined by the U.S. 11th Circuit Court in July 2025 pending constitutional review. No new enforcement actions may be taken until the case concludes.

Texas SB 17 litigation

Texas’s law limiting foreign ownership near military installations took effect September 1, 2025, but is already facing federal lawsuits asserting preemption by CFIUS authority.

Federal preemption questions

Multiple federal courts have found that state restrictions on foreign property ownership are likely preempted by the Committee on Foreign Investment in the United States (CFIUS) statutes [50 U.S.C. § 4565], creating uncertainty across all affected jurisdictions.

Consult qualified legal counsel for the latest enforcement status in your target market, as these laws remain in flux and vary by state. Foreign nationals should also review any OFAC sanctions implications on property ownership; see our OFAC Compliance Guide for details.

This information is provided for general awareness and does not constitute legal advice.

In sum, if you are considering buying a house in the US as a foreigner, it is important to consult with an attorney or otherwise research the state laws or restrictions for the latest updates.

How DAK Mortgage can help a foreigner buy a house in the USA

One of the main reasons why foreigners end up deciding not to purchase a U.S. property is that they are unable to obtain financing and qualify for a mortgage. 

It is indeed more difficult for foreign real estate investors to secure mortgage financing.

With all the recent bank turmoil in the United States, the majority of banks have stopped lending altogether to foreign nationals. 

However, DAK Mortgage has connections with the banks that continue to lend to foreign nationals who satisfy traditional lending criteria.  Besides traditional bank programs, DAK Mortgage also has access to several alternative mortgage programs that forego traditional requirements such as income documentation.

In other words, if you are a non-citizen buying a property in the USA and you are looking to explore your options, whether you are interested in a super jumbo mortgage or a bridge loan, we can help you find the needle in the haystack.  

Our recent successes

We have secured financing for foreign nationals in diverse scenarios:

• DSCR Loan for a U.K. buyer: 10-acre upstate New York estate
• $2M Conventional Loan for an Argentine green-card holder: new-build Miami condo
• DSCR Rental Property Loan for a Jamaican investor: luxury South Beach condominium
• Hard-Money Bridge Loan for European clients (Germany, Spain): closed within 7 days

Each case demonstrates our expertise in navigating foreign-national credit, specialized programs, and expedited closings. Learn more about our offerings on the Non-U.S. Citizen Financing page.

Key takeaways: Can a foreigner buy a house in the USA?

Navigating U.S. real estate as a foreign buyer involves multiple steps—from choosing the right purchase method to understanding legal and financing requirements, so keep these key insights in mind:

Entity Structuring:

Many buyers use U.S. entities (LLC or trust) for privacy, liability protection, and tax planning. Consult with counsel to determine the optimal structure for your investment goals.

Purchasing Methods:

Foreign buyers often choose all-cash transactions due to market competition and financing complexity. However, specialized mortgage programs, including traditional, alternative, and DSCR loans, remain available.

Legal Considerations:

Understanding state laws and restrictions is essential. Some states limit foreign ownership of certain property types and are currently challenging these limits in federal court. Review our “Legal Updates” for the latest status.

Land vs. Home Purchases:

Buying raw land requires higher down payments (40–50%) and may involve zoning and development restrictions, whereas existing homes often qualify for more conventional mortgage products. See “Buying Land vs. Homes” for details.

Miami Market Dynamics:

Miami leads Florida in international transactions, with $3.1 billion in 2024–2025 and 71% luxury condo cash purchases. The city’s unique “path of least resistance” status attracts high-net-worth investors.

Financing Requirements:

Foreign nationals should prepare a passport/ID, proof of funds, bank statements, and income documentation (or alternative proofs for DSCR and asset-depletion loans). An ITIN or U.S. bank account may also be required.

Due Diligence:

Engage real estate, legal, and lending experts early. Thorough research on market trends, financing options, tax implications (including FIRPTA), and closing costs ensures a smoother purchase process.

Common Questions for Foreign Buyers

Can a non-US citizen get a mortgage loan?

Yes. Permanent residents, visa holders, and foreign nationals can all obtain U.S. mortgages. Lenders offer programs tailored to international buyers, including traditional, alternative, and no-income-doc options. Learn more at “Residential Non-U.S. Citizen Financing.”

What documents do foreigners need to buy property?

• Foreign buyers typically need:
• Passport or government-issued ID
• Proof of funds or bank statements
• Foreign tax returns or CPA/accountant letters
• International credit report
• U.S. bank account or ITIN (sometimes)

Are there restrictions on foreign property ownership?

Federal law permits foreign ownership, but many states have enacted or proposed restrictions. Several of these laws (e.g., Florida SB 264, Texas SB 17) are currently enjoined or awaiting court decisions. See the “Legal Updates” section for details.

Can foreigners buy land in the USA?

Yes. Agricultural land may have additional state restrictions, and financing typically requires higher down payments (40–50%) or specialized loans.

Can a UK citizen buy a house in the USA?

Yes. U.K. citizens are among the largest groups of foreign buyers. They can purchase all-cash or obtain a mortgage, but must consider visa, tax, and financing requirements.

Can a Canadian citizen buy a house in the USA?

Yes. Canadians frequently buy properties, especially in Florida, Arizona, and California. They can secure U.S. mortgages, often at fixed rates, through programs designed for foreign nationals.