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Can a foreigner buy a house in the USA: Complete guide
Would you like to own your own apartment in downtown Manhattan? We'll explain how to buy a home in the USA as a foreigner.
Buying a house in the United States is easier than many people expect, even if you’re not a U.S. citizen. With few restrictions for foreign buyers, the process is generally straightforward. However, it’s important to understand the legal, financial, and tax implications before making a purchase. Whether you’re buying an investment property or a home to live in, this guide covers everything you need to know to navigate the process with confidence.
In this guide, you’ll learn about the requirements for buying a house in the U.S., the different types of properties you can purchase, and average home prices across the country. We’ll also explain the main taxes you’ll need to pay, the most common payment methods, and important factors to consider before you buy a house in the United States in 2026.
Requirements for foreigners to buy a house in the United States
One of the biggest advantages of buying property in the U.S. is that foreign buyers face very few restrictions. While the process is relatively simple, there are still a few legal and financial requirements to keep in mind. Here’s what you need to know before you buy.
1. Types of property you can buy in the U.S.
In the U.S., you can buy different types of property, including houses, condos, and commercial buildings, and own them outright. Unlike in some countries, foreign buyers have full ownership rights, and there’s no limit on the number of properties you can buy.
2. Required documentation
You don’t need a visa or U.S. residency to buy a house in the United States. However, having one can make it easier to get a mortgage or handle other banking matters. Keep in mind that buying a house does not give you the right to live in the U.S. If you plan to move there, you’ll need to apply for the appropriate visa separately.
To complete the purchase, you’ll need a valid passport, the property’s title and registration documents, proof of your financial history and available funds, and an Individual Taxpayer Identification Number (ITIN) to pay any required taxes.
3. Financial requirements
If you’re paying in cash, you’ll need to prove that you have enough money to buy the property and show where the funds come from. Getting a mortgage in the U.S. as a non-resident can be difficult, so many foreign buyers finance their purchase through a lender in their home country instead.
4. Purchasing through a company or with a local partner
Buying a house with a U.S. citizen or resident can make the process easier, especially if you need financing. You can also buy property through a company, which may provide some tax benefits. Both options are possible, but it’s best to get legal and tax advice first.
5. Hiring a real estate agent or notary
Most homes in the U.S. are sold through real estate agents, although you can also buy directly from private sellers. If you’re unfamiliar with the U.S. property market, it’s a good idea to work with a local real estate agent or attorney who can guide you through the process and help you avoid potential scams.
In the U.S., a notary only verifies the identities of the buyer and seller. Instead, the legal review is usually handled by a title company, which makes sure the property has a clear title and no outstanding debts or legal issues.
How much does a house cost in the U.S.?
Home prices in the U.S. vary depending on the state, city, and type of property. Property in major cities tends to be much more expensive than in smaller towns or rural areas. Factors like location, nearby services, public transportation, and local demand also affect prices. The following figures show the average price per square meter in some of the country’s most popular housing markets:
- New York (downtown): $10,000–18,000 per square meter
- San Francisco: $8,000–15,000 per square meter
- Miami: $4,000–8,000 per square meter
- Los Angeles: $5,000–9,000 per square meter
- Cities such as Austin or Nashville: $2,000–4,000 per square meter
- Rural areas in Arkansas or Mississippi: $800–2,000 per square meter
The cost of living in the U.S. is high, and buying a home in major cities can be expensive. A 70 m² apartment in New York typically costs $700,000–1.2 million, while in Los Angeles prices usually range from $400,000 to $800,000. In Texas, houses can start at around $250,000. Besides the purchase price, you’ll also need to pay ongoing annual costs, such as:
- General maintenance: $1,000–3,000 per year
- Condominium fees: $1,200–6,000 per year
- Utilities (water, electricity): $2,000–4,000 per year
Taxes when buying a house in the United States
Compared to many other countries, the upfront taxes and fees for buying a house in the U.S. are relatively low. Transfer taxes usually range from 0.1% to 2% of the purchase price, depending on the state, while registration fees are typically 0.1% to 0.5%. For example, if you buy a $300,000 home, you can expect to pay around $1,500 to $6,000 in initial taxes and fees.
As a homeowner, you’ll also need to pay annual property taxes, which typically range from 1% to 2% of the home’s value, depending on where it’s located. For a $300,000 home, that works out to about $3,000–6,000 per year. If you later sell the property at a profit, you may also have to pay capital gains tax.
Keep in mind that tax rules are different for U.S. residents and non-residents. Foreign buyers may be subject to FIRPTA (Foreign Investment in Real Property Tax Act), which affects taxes when you sell a property. Tax rates also vary by state. If your country has a tax treaty with the U.S., you may be able to avoid paying tax twice on the same income.
Steps to buying a house in the United States
Buying a house in the U.S. is relatively straightforward if you follow the right steps. Working with a local real estate agent or attorney can help you avoid problems and make the process easier. Here’s how the process typically works, from finding a property to closing the sale.
1. Search for a home online or through a local real estate agent
This first step usually takes one to four weeks. You can start by browsing online real estate websites, where you can filter listings by location, price, and property features. You can also work with a local real estate agency to help you find the right property. If you’re interested in a newly built home, buying directly from a home builder is another option.
2. Verify the property’s legal status
Once you’ve found a home you like, make sure a title search is completed before closing. A title company will review the property’s ownership history, confirm there are no outstanding debts or legal issues, and verify that the seller has the legal right to sell the property. This process usually takes one to two weeks.
3. Make an offer and negotiate
If everything is in order, you can make an offer to the seller. In most cases, you’ll receive a response within a few days. You can negotiate the price, the closing date, and any other terms of the sale.
4. Sign the preliminary contract
Once the seller accepts your offer, you’ll sign the initial purchase agreement. At this stage, it’s common to pay a deposit of 1% to 3% of the purchase price. The deposit is held in an escrow account by a neutral third party, such as a title company, until the sale is completed.
5. Final title review and closing
The title company then carries out a final check of the property, including the title, ownership records, and any debts or legal issues. If everything is in order, the closing usually takes place within one to two weeks. You’ll pay the remaining balance, sign the final documents, and the property is usually registered in your name that same day.
How do you pay for a house in the U.S.?
The most common way to pay for a home in the U.S. is by bank transfer. The money is usually sent from your bank account to an escrow account, and then transferred to the seller once the sale is completed. Some buyers also use a cashier’s check issued by a U.S. bank at closing.
Regardless of the payment method, you’ll need to show where the money comes from, especially when transferring large amounts. If you’re sending funds from abroad, keep in mind that exchange rates and bank fees can increase the total cost of the purchase.
If you need a mortgage, getting one as a non-resident can be difficult. If approved, you’ll usually need a 20% to 40% down payment, and interest rates are often higher than average. That’s why many foreign buyers pay in cash or get a loan in their home country instead.
Tips for buying a house in the U.S.
To stay updated on new property listings, contact agents quickly, and arrange viewings, you’ll need a reliable internet connection. If you’re visiting the U.S. for a short trip, an unlimited data eSIM, such as Holafly’s, can help you stay connected throughout your search.
If you’re buying a home in the U.S. and planning to stay long term, Holafly’s monthly plans are a convenient option. You can choose between 25 GB or unlimited data and enjoy reliable 5G coverage. If you travel regularly, the same eSIM works in 160 destinations, so you can stay connected without changing SIM cards. Every monthly plan also includes Always On, which gives you 1 GB of free data in 70 countries, even if you cancel your subscription.
Tips for buying a house safely in the U.S.
Now that you know how to stay connected while buying a house in the U.S., here are a few final tips to help you avoid legal or financial problems during the process:
- Review the documentation: Make sure the property title is clear and free of liens. This verification is performed by a title company.
- Seek local advice: If you’re unfamiliar with the U.S. property market, working with a local real estate agent can make the buying process much easier and help you avoid common mistakes.
- Carefully research the area before buying: Consider factors like public transportation, safety, nearby hospitals, schools, and the everyday services you need.
- Study the real estate market: Compare prices in different cities and neighborhoods. This will help you identify good deals and avoid paying more than the property’s market value.
- Be on the lookout for scams: Some red flags to watch out for are pressure to pay quickly, prices that seem too good to be true, missing paperwork, and sellers who refuse to use escrow accounts.
- Try renting for a while: If you’re unsure about an area, rent an apartment there for a few weeks or even a month and see what daily life is like. This will help you decide if the neighborhood has everything you need.
Frequently asked questions about buying a house in the United States
Yes. In the U.S., there are no restrictions on foreigners buying land, so you can purchase anything from a condo to a home with land and own the property outright.
No, buying a home in the U.S. does not give you any type of visa. If you want to live in the country legally, you must apply for the appropriate visa through the U.S. embassy or consulate in your home country.
An ITIN is required to file taxes and complete legal transactions related to the property. You can apply for one online through the IRS (Internal Revenue Service), the U.S. tax agency.
It is an account managed by a third party where the money is held until the purchase is complete. It is a secure method that is widely used in the country.
Yes, you can, although you must comply with local regulations in the area and report the income you earn.
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