How Foreigners Buy Real Estate in the United States

Any foreign national can generally buy US residential property outright, and ownership does not require a visa. Limits to know:

• Agricultural land is regulated. Foreign owners of US agricultural land must report holdings to the Department of Agriculture, and several states restrict or ban purchases by buyers from particular countries or by foreign government-linked entities.
• Property near military bases or critical infrastructure may face review, especially for investors from countries designated as adversaries, and federal committees screen some transactions.
• State laws on landholding and entity ownership change, and several states have passed bills in recent years, so check the specific state.
• Condo and HOA rules can limit rentals or require approval of buyers.

Owning a home does not give residency. Visas are separate, and the EB-5 investor programme requires a business investment rather than a house purchase. Our United States property pages cover houses, apartments and land.

1. Get pre-approved or prove funds. Cash buyers supply a bank letter; borrowers need pre-approval from a lender.
2. Hire a buyer's agent. In the US, buyer representation is usually agreed in writing, and commission arrangements have changed since the 2024 industry settlement, so clarify how your agent is paid.
3. Make an offer. The offer includes price, contingencies (financing, inspection, appraisal) and an earnest money deposit, commonly 1-3%.
4. Contract and inspection. A home inspection period follows; you can negotiate repairs or withdraw.
5. Title search and insurance. A title or escrow company researches the chain of ownership; lender's title insurance is mandatory with a mortgage, and an owner's policy is strongly advised.
6. Closing. Funds are wired to the escrow or title company, documents are signed (in person, by mobile notary, or via power of attorney in some states), and the deed is recorded in the county.

In some states an attorney handles closing, in others a title company does. Wire fraud is a real risk, so verify wiring instructions by phone.

Real estate agent. Licensed by state. A buyer's agent negotiates and organises inspections. Commissions are negotiable.

Real estate attorney. Mandatory or customary in several Northeastern and Southern states, and advisable elsewhere for foreign buyers.

Title or escrow officer. Neutral party that holds funds, clears title and records the deed.

Home inspector and appraiser. Inspectors check the building, appraisers value it for the lender.

CPA or tax adviser. Important before you buy, since owning US property triggers tax filings and possibly estate tax exposure for non-residents.

Financing is covered in our US financing guide. Foreign-national loans exist, with larger deposits and higher rates than for residents.

FinCEN's residential real estate reporting rule, which requires title professionals to report certain non-financed transfers to legal entities and trusts, took effect on 1 March 2026. A federal court vacated it on 19 March 2026, and the government has appealed. While the order stands, reporting is not required, but the situation is fluid, so ask your title company about the current status before closing.

Separately, all closings are subject to anti-money-laundering diligence, and large international wires attract questions about source of funds. Gather bank statements and documents explaining where the money came from before you wire it.

• Title commitment listing liens, easements and exceptions.
• Survey confirming boundaries in states where it is customary.
• HOA or condo documents: budget, reserves, special assessments, rental caps.
• Property tax bills and likelihood of reassessment on sale; in some states the bill jumps after a purchase.
• Insurance quotes before committing, especially in Florida, California and Gulf coast states where premiums and availability are volatile.
• Flood zone status and natural hazard disclosures.
• Permits for renovations the seller carried out.
• Local rules on short-term rental which many cities restrict.

All ranges are approximate and state-specific; verify locally.

When a foreign person sells US property, the buyer must generally withhold part of the price under FIRPTA: nothing on sales up to $300,000 to a buyer who will live there, 10% on sales between $300,000 and $1 million, and 15% above $1 million. It is an advance payment, and a withholding certificate can reduce it. Most sellers who are US persons sign a non-foreign affidavit instead.

Non-resident owners also face US estate tax on US-situs assets above a low exemption, often $60,000 unless a treaty applies, so get advice on holding structures such as a trust or company. You will need an Individual Taxpayer Identification Number (ITIN) to file returns if you earn rent or sell.

For budgeting, run the mortgage calculator, and read our US market analysis for price trends.

• Buying in a state without checking property tax and insurance cost.
• Waiving the inspection to win a bid, then finding major defects.
• Assuming an LLC avoids estate tax or reporting.
• Ignoring HOA rental limits when planning an investment.
• Skipping owner's title insurance.

If you would like to compare lower price points, view cheap US properties, and contact us with questions about a specific state.