The American Dream often includes homeownership, and it’s a dream accessible to more than just U.S. citizens and Green Card holders. In fact, under U.S. law, almost anyone can purchase and own real estate in the United States, regardless of their immigration status. This means whether you’re here on a temporary visa, are a lawful permanent resident, or even if you lack legal status, the fundamental right to own property is generally available.

However, while the ability to buy property is broad, the practicalities and implications vary significantly based on your immigration standing.

The Core Truth: Property Ownership Does NOT Grant Immigration Benefits

Before we dive into the specifics, let’s address a critical point: owning real estate in the U.S. does not, by itself, grant you any immigration benefits, a visa, a Green Card, or a pathway to citizenship. This is a common misconception, particularly for those from countries with “golden visa” programs tied to real estate investment. The U.S. primarily focuses on employment, family reunification, or specific investment programs (like EB-5, which requires active business investment, not passive real estate ownership) for immigration purposes.

You can visit frequently on a tourist visa to manage your property, but each entry is at the discretion of border officers, and property ownership does not guarantee the right to live or work in the U.S. long-term.

Who Can Buy Property in the USA?

The simple answer is: anyone with the financial means and required documentation.

• U.S. Citizens & Lawful Permanent Residents (Green Card Holders): Enjoy the most straightforward path, similar to any other citizen, with access to conventional financing, FHA loans (for LPRs), and favorable terms.
• Non-Immigrant Visa Holders (H-1B, L-1, F-1, O-1, E-2, etc.): You can purchase property. While your visa is temporary, U.S. property laws are generally distinct from immigration laws.
• Individuals on B1/B2 Tourist Visas: Yes, even on a short-term tourist visa, you can technically purchase property. The key is that your intent during your visit aligns with your visa purpose (tourism), and the property purchase is a secondary activity. You cannot claim an intent to live in the property as a permanent residence on a tourist visa.
• Undocumented Individuals: While fraught with practical challenges, there are no federal laws preventing an undocumented individual from buying property. However, securing financing and opening bank accounts will be significantly more difficult, often requiring an Individual Taxpayer Identification Number (ITIN) and cash purchases or specialized ITIN loans.

Practical Considerations & Challenges Based on Visa Status

While the legal right exists, the process becomes more complex when you consider financing, tax, and the purpose of your purchase.

1. Financing Your Purchase: The Biggest Hurdle

This is where your immigration status plays the most significant role.

• Cash Purchases: The easiest route for non-citizens. Many foreign buyers opt to pay cash to avoid the complexities of U.S. mortgage requirements. You’ll still need proper identification (passport, potentially an ITIN) and proof of funds. Any cash transaction over $10,000 must be reported to the IRS.
• Traditional Mortgages (for Green Card Holders): Lawful Permanent Residents generally qualify for conventional mortgages and, as of May 25, 2025, are the primary non-citizen group eligible for FHA-insured loans, provided they meet standard credit and income requirements.
• Mortgages for Non-Permanent Residents (H-1B, L-1, F-1, etc.): This is where it gets tougher.
  • Limited FHA Eligibility (2025 Update): As of May 25, 2025, the U.S. Department of Housing and Urban Development (HUD) eliminated FHA loan eligibility for non-permanent residents. This means temporary visa holders are no longer eligible for FHA-insured financing.
  • “Foreign National” Loan Programs: Some U.S. banks and private lenders offer specialized mortgage programs for non-citizens. These often come with:
    • Higher Down Payments: Expect 20-40% or more.
    • Higher Interest Rates: Due to perceived higher risk.
    • Extensive Documentation: Proof of stable income (often from abroad), foreign credit reports, and a U.S. tax identification number (SSN or ITIN) are typically required.
    • U.S. Bank Account: Essential for managing mortgage payments and property expenses.
• Mortgages for Undocumented Individuals (ITIN Loans): Some smaller banks and private lenders offer ITIN loans for those without a Social Security Number. These loans often require larger down payments and may have higher interest rates.

2. Taxation: An Important Planning Point

Owning U.S. real estate comes with tax obligations, regardless of your immigration status.

• Property Taxes: These are local taxes paid annually to the county or municipality where the property is located.
• Income Tax on Rental Properties: If you rent out your property, the rental income is subject to U.S. income tax. Non-U.S. residents may face a 30% withholding rate on gross rental income unless they make an election to treat it as “effectively connected income” (allowing for deductions).
• Capital Gains Tax: If you sell the property for a profit, you’ll be subject to capital gains tax.
• FIRPTA (Foreign Investment in Real Property Tax Act): When a “foreign person” (which can include certain Green Card holders or long-term residents, depending on tax residency rules) sells U.S. real estate, the buyer is generally required to withhold 15% of the gross sales price and remit it to the IRS. There are exemptions and ways to apply for a withholding certificate to reduce or eliminate this, but it requires careful planning.
• Estate Tax: For non-U.S. citizens, the U.S. estate tax exemption for U.S. property is significantly lower ($60,000) compared to U.S. citizens (over $13 million in 2025). This can have major implications for inherited property.

3. State-Specific Restrictions (Limited but Evolving)

While there are no federal restrictions on foreign property ownership, a growing number of states are enacting laws that limit foreign ownership of certain types of land, particularly agricultural land or land near military bases. In 2025, states like Florida and Texas have implemented or are challenging laws restricting individuals or entities from “countries of concern” (e.g., China, Russia, Iran, North Korea) from owning real property. It’s crucial to check specific state and local laws.

How LforLaw Can Help Your Real Estate Journey

Navigating U.S. real estate as a non-citizen involves unique legal and financial considerations that go beyond a standard property transaction. An experienced legal team can make all the difference.

At LforLaw, we understand the intricate interplay between immigration status and real estate law. Our services for foreign national buyers include:

• Clarifying Eligibility: Assessing your specific visa or immigration status and advising on your ability to purchase property.
• Navigating Financing: Connecting you with lenders specializing in foreign national loans and helping you understand the requirements.
• Tax Planning: Guiding you through the complexities of U.S. property taxes, rental income taxes, capital gains, FIRPTA, and estate planning to minimize your tax burden.
• Understanding State Laws: Advising on any state-specific restrictions or requirements related to foreign property ownership.
• Ensuring Compliance: Helping you gather the necessary documentation and ensuring your purchase aligns with both real estate and immigration regulations.

Don’t let misconceptions or complexities deter your dream of U.S. homeownership. Contact LforLaw today for a comprehensive consultation, and let us help you confidently secure your real estate investment in the United States.