Buying a home: mortgages for foreigners

This page is for green card holders, visa holders, and Turks living outside the United States who are considering buying a home in the U.S. We compiled the steps of getting a home loan (mortgage), comparing loan offers, property tax and exemption applications, and the tax withholding foreign sellers face when selling a home in the U.S. (FIRPTA) from official sources. For credit scores, see 10.2 Opening a bank account; building a credit score.

• U.S. tax law separately regulates and taxes the sale or transfer of real estate in the United States by foreign persons (FIRPTA; below).
• Some states have imposed restrictions on buyers connected to certain countries.
  • Florida: The list of “foreign countries of concern” includes China, Russia, Iran, North Korea, Cuba, the Maduro regime in Venezuela, and Syria. Türkiye is not on this list.
  • Florida also applies additional restrictions to people who reside in China and are not U.S. citizens or green card holders.
• Similar regulations may exist in other states. Before buying, ask a real estate attorney about the state law.

• According to the CFPB’s home loan guide (July 2026 update):
  • A 20% or larger down payment generally means the best interest rates and the most options. But think carefully before putting all your savings into the down payment.
  • With a 5–19% down payment, interest rates or fees are generally higher, and the lender will most likely require private mortgage insurance (PMI).
  • Programs offering a down payment of less than 5% are generally more expensive.
• Examples of low-down-payment programs:
  • conventional loans (some with low down payments)
  • FHA: 3.5% down-payment program
  • VA: no down payment for eligible veterans
  • USDA: no down payment for eligible buyers in rural areas
• Each program has its own eligibility requirements. Ask the lender in writing about citizenship and immigration-status requirements.
• “No PMI” or “the lender pays the PMI” offers are not free; the interest rate is generally higher.

1. Prepare your credit. Your credit score significantly affects interest rates and fees; people with higher scores are generally offered lower rates. According to the CFPB, approximately 35% of your score is based on paying bills on time and approximately 30% on the amount of your debt. Get your report from AnnualCreditReport.com and correct errors. Avoid making large purchases on credit before closing.
2. Determine your budget and down payment. Include property taxes and insurance in the total monthly payment.
3. Speak with a HUD-approved housing counselor. You can find a counselor using the CFPB’s tool or HUD’s automated line (+1 800 569 4287). Some lenders offer discounts to buyers who complete a homebuyer education program.
4. Get written offers (Loan Estimates) from at least three lenders. A Loan Estimate is a standard form showing important information about the loan. It must be sent within 3 days after applying. The lender may charge only the small fee for your credit report for this; some charge no fee at all. Under most credit-scoring models, shopping for a mortgage within a certain period (usually between 14 and 45 days) has little or no effect on your score.
5. Compare costs. Sections A and B on page 2 of the Loan Estimate contain lender fees. You can research and choose the services in Section C yourself, regardless of which lender you select.
6. Understand the balance between points and interest. Paying points lowers the interest rate but increases closing costs.
7. Get the Closing Disclosure at least 3 days before closing. This five-page document shows the loan terms and all costs. The cost of the services you select may increase, but generally not by more than 10% of the amount on the most recent Loan Estimate.
8. Be careful at closing. The CFPB warns that scammers target homebuyers several days before closing. Confirm money-transfer instructions with the lender or closing company using a phone number you already know.

• The Fair Housing Act and the Equal Credit Opportunity Act prohibit discrimination in housing and credit. National origin is also a protected characteristic.
• If you believe you have experienced discrimination at any stage of the lending process:
  • CFPB: +1 855 411 2372 or consumerfinance.gov/complaint
  • HUD: +1 800 669 9777 (TTY +1 800 927 9275)
• You can also contact the CFPB if you are having difficulty making payments.

• Property taxes are generally imposed not by the state but by local governments (counties, cities, and school districts). For example, Texas has no state property tax; local taxing units set the rates, and the county appraisal district conducts the assessment.
• If you use the home as your primary residence, you can apply for a homestead exemption in most states. The application is not automatic.
• Texas
  • School districts deduct $140,000 from the home’s value. Local units may provide an additional exemption of up to 20% of the value (at least $5,000).
  • For owners age 65 or older or owners with disabilities, the school district provides an additional $60,000 exemption.
  • Apply to the county appraisal district; the general deadline is before May 1. Use Form 50-114.
  • You declare that you do not receive a homestead exemption elsewhere, whether inside or outside Texas.
• Florida
  • A person who owns the property on January 1 and makes the home their permanent residence in good faith may receive an exemption of up to $25,000.
  • Apply to the county property appraiser’s office by March 1. Missing the deadline is considered a waiver of that year’s exemption, except for statutory exceptions.
• California
  • $7,000 is deducted from the assessed value of the owner-occupied home. The home must be your primary residence on January 1.
  • Apply once to the county assessor using Form BOE-266. The deadline for the full exemption for that year is February 15.
  • If you lose eligibility, the last day to provide notice without penalty is December 10.
• New York
  • For the STAR school-tax reduction, register through the Tax Department’s online account as soon as the home becomes your primary residence. The STAR credit is paid each year as long as you remain eligible.
  • The registration requires the names and SSNs of all owners and their spouses.
• New Jersey and Illinois: Contact your county or municipality’s tax office for exemption and reduction applications.

• Mortgage interest (2025 returns): If you itemize deductions (Schedule A), you can deduct interest on the first $750,000 of debt; the limit is $375,000 for married taxpayers filing separately.
• State and local tax (SALT) deduction: Including property taxes, the limit for 2025 returns is $40,000 ($20,000 for married taxpayers filing separately); it decreases if your income exceeds a certain threshold.
• The deduction for mortgage insurance premiums has expired.
• FIRPTA withholding on sale: A person who buys U.S. real estate from a foreign person generally withholds 15% of the sales price and pays it to the IRS.
  • If the sales price is $300,000 or less and the buyer will use the home as a residence, no withholding is required. A lower withholding rate applies between $300,000 and $1 million.
  • If the buyer does not withhold from the foreign seller, the buyer may be held responsible for the tax.
  • If the withholding exceeds the actual tax liability, the seller may request a withholding certificate from the IRS.
  • Nonresident aliens may also qualify for the home-sale gain exclusion (up to $250,000) if they meet the requirements.
• For tax residency, see 15.1 Tax residency; for state tax, see 15.4 State income tax.

• CFPB — mortgage complaints and guides
  • Phone: +1 855 411 2372 (TTY +1 855 729 2372) · Monday–Friday 09:00–18:00 (U.S. Eastern Time)
• HUD-approved housing counselors — free or low-cost counseling
  • Phone: +1 800 569 4287 (automated line) · Web: Find a counselor
• HUD — housing and credit discrimination
  • Phone: +1 800 669 9777 (TTY +1 800 927 9275)
• Property tax and exemptions: County appraisal district in Texas, county property appraiser’s office in Florida, county assessor’s office in California, and the state Tax Department in New York.
• IRS — FIRPTA and tax questions: FIRPTA page

• Speaking with only one lender and not comparing offers.
• Putting all your savings into the down payment and forgetting closing costs and emergency funds.
• Waiting until after the deadline to apply for a homestead exemption.
• Sending money to new bank information received by email without verifying the instructions by phone.
• Not reading the Closing Disclosure until the last minute.
• Failing to withhold FIRPTA when buying from a foreign seller.

• Can I buy a home without a green card? Federal tax law separately regulates foreign ownership of real estate; some states have imposed restrictions on certain countries (Türkiye is not on Florida’s list). Ask the lender about loan requirements.
• How many loan offers should I get? The CFPB recommends at least three written offers.
• When does the Loan Estimate arrive? It must be sent within 3 days after applying.
• Who determines property taxes? Generally, local governments such as counties, cities, and school districts.
• Is the exemption automatic? No. Apply before May 1 in Texas, by March 1 in Florida, and by February 15 for the full exemption in California.
• I will sell my home and return to Türkiye. Will tax be withheld? If you are a foreign seller, the buyer generally withholds 15% of the sales price; exceptions and reduced rates apply. Consult a tax professional.

• CFPB – Your home loan toolkit (PDF)
• CFPB – Closing checklist (PDF)
• CFPB – Closing documents guide (PDF)
• CFPB – Loan Estimate explainer
• CFPB – Find a housing counselor
• Texas – Homestead exemption application Form 50-114 (PDF)
• IRS – Publication 530: tax information for homeowners (PDF)
• IRS – Publication 936: home mortgage interest deduction (PDF)
• IRS – Form 8288, FIRPTA withholding statement (PDF)
• Related: 10.3 Renting a home · 15.3 Tax return