Who Can Buy a House in the USA?

Property ownership in the United States is broadly accessible to both domestic and international buyers. This guide outlines the eligibility criteria and common steps for purchasing property within the U.S.

Eligibility for US Citizens and Permanent Residents

United States citizens have the inherent right to acquire and own property across the nation, facing minimal restrictions related to their citizenship status. Their primary considerations for purchasing a home typically revolve around financial readiness and market conditions.

Lawful permanent residents (Green Card holders) also enjoy nearly identical property rights to U.S. citizens, able to purchase, sell, and own real estate without specific immigration impediments. The mortgage process is largely consistent with that for citizens, though some lenders might require additional documentation. For both groups, financial aspects are the central focus.

Eligibility for Non-US Citizens

Non-U.S. citizens, including those residing in the country on various visas or even those living abroad, are generally permitted to purchase property in the United States. This includes individuals holding non-immigrant visas such as H-1B for specialized workers, L-1 for intra-company transferees, E-2 for treaty investors, and F-1 for students. Property ownership does not, however, grant any specific immigration benefits or provide a direct pathway to permanent residency or citizenship. While some states may have specific regulations regarding foreign ownership of agricultural land or properties near sensitive infrastructure, these are not universal federal restrictions.

A significant practical requirement for non-U.S. citizens without a Social Security Number (SSN) is obtaining an Individual Taxpayer Identification Number (ITIN). The IRS issues an ITIN for tax processing, and it is often necessary for non-residents to apply for a mortgage, as lenders use it for federal tax reporting and identity verification. Establishing a U.S. bank account is also advisable for managing property-related expenses and mortgage payments.

Obtaining financing can present a challenge for non-U.S. citizens, particularly those without an established U.S. credit history. However, some lenders offer specialized “foreign national loans” designed for individuals with limited or no domestic credit history, sometimes allowing the use of international credit reports or alternative documentation for creditworthiness assessment. While obtaining a mortgage as an F-1 student can be challenging due to limited income and credit history, some specialized lenders offer programs that consider parental income or the property’s rental income potential. For E-2 visa holders, while they can purchase property, the investment must be in an active business enterprise, not merely a passive real estate holding, to qualify for the visa itself.

Common Requirements for All Buyers

Regardless of citizenship or residency status, all individuals seeking to purchase real estate in the U.S. must meet certain universal requirements. The legal age to enter into a binding contract, including a real estate transaction, is typically 18 years old in most states. A few states, however, have an age of majority that is 19 or 21 years old. Proper identification, such as a valid government-issued photo ID like a passport or driver’s license, is essential for identity verification during the transaction, especially at closing. Lenders often require a second form of identification as well.

Demonstrating financial capacity is a central prerequisite for all buyers, particularly when seeking a mortgage. Lenders assess income stability, employment history, and available assets to determine loan eligibility. A down payment, typically ranging from 3.5% to 20% or more of the purchase price, is generally required, though specific loan programs may offer lower or no down payment options. Credit history is another important factor, with most conventional mortgages requiring a minimum credit score around 620, while government-backed options like FHA loans may accept scores as low as 500 or 580 with specific down payment terms.

Purchasing Through Legal Entities

An alternative method for property acquisition involves purchasing through legal entities such as Limited Liability Companies (LLCs), corporations, or trusts. This approach is often utilized by investors, including non-U.S. citizens, seeking specific financial or legal advantages. Owning property through an LLC, for instance, can provide a layer of liability protection, separating personal assets from potential liabilities associated with the property.

This method can also offer benefits related to estate planning and, in some instances, may streamline the transfer of ownership or provide certain tax advantages, such as the ability to offset real estate expenses against income. The decision to purchase through a legal entity often depends on the buyer’s long-term investment goals and risk management strategies.