Can we buy a home in the USA?

Visa holders can buy a home in the US: the main mortgage rules allow it, and only a few states restrict buyers from certain countries. The hard part is the loan. Lenders look at your immigration status, your US credit history and your deposit, and closing costs add 2% to 5% on top of the price.

Your visa and the loan

Two sets of rules shape what lenders offer: those of Fannie Mae and Freddie Mac (government-sponsored companies that buy mortgages from lenders), and those of the FHA (Federal Housing Administration), which insures low-deposit loans.

Lenders are free to set stricter rules of their own, so expect questions about how long your visa runs and whether your employer will extend it. An ITIN (Individual Taxpayer Identification Number) is the IRS number for people who can’t get a Social Security number. ITIN loans are offered by specialist lenders outside the Fannie Mae and Freddie Mac rules. Terms vary: one such lender lends up to 80% of the price with a credit score of 660 on its main programme, so a 20% deposit; another allows gifts for up to half of the deposit. See Social Security number and US tax.

Credit history from scratch

Your UK credit record doesn’t move with you, and a thin US file is the most common problem for new arrivals. Fannie Mae’s rules let a lender build a “nontraditional” credit history when there isn’t enough for a score: rent paid to a landlord, utilities, phone and internet, insurance premiums and similar regular payments. A lender can also use a credit report from another country, but borrowers with foreign credit reports must be manually underwritten (checked by a person rather than the automated system), so ask early whether your lender does this. Building a US score for a year or two first gives you more choice. See How do I build a US credit score?.

Down payment and mortgage insurance

• Freddie Mac says buyers put down from 3% to 20% of the price, depending on credit history and other factors
• On a conventional loan with less than 20% down, you usually pay private mortgage insurance (PMI). It protects the lender, not you, and can be monthly or a one-off payment at closing
• You can ask to cancel PMI once your balance is scheduled to reach 80% of the home’s original value, and it must end automatically at 78%, if you are up to date with payments
• On 8 October 2026 the average fixed rate was 7.40% for a 30-year loan and 6.73% for a 15-year loan

Example: a $700,000 home (about £530,300) with 20% down ($140,000, about £106,100) leaves a $560,000 loan. At 7.40% over 30 years, principal and interest alone come to about $3,877 a month (about £2,940), before property tax, insurance and any HOA fee. The cost of living calculator helps you compare that with rent.

Closing costs

Closing is the day the sale completes. Freddie Mac and the CFPB (the federal consumer finance regulator) say closing costs usually run from 2% to 5% of the purchase price, not counting the deposit. The buyer generally pays most of them, though you can negotiate for the seller to pay some.

• Earnest money: a good-faith deposit with your offer, typically 1% to 2% of the price, held in escrow and credited at closing
• Lender fees: an origination fee (often 0.5% to 1% of the loan), appraisal and credit report fees
• Title insurance: lenders usually require a lender’s policy. An owner’s policy, which protects you if someone later claims an old debt or right over the home, is optional. You can usually shop around for title insurance
• Prepaid items and escrow: many lenders collect property tax and home insurance with each monthly payment and hold it in an escrow account, often with two months’ reserves paid at closing
• Transfer taxes set by the state or city (see below)

The lender must give you a standard Loan Estimate within 3 business days of your application, and a Closing Disclosure at least 3 business days before closing. Compare the two line by line. Never wire your deposit or closing funds on the strength of an email alone: phone your settlement agent on a number you already have.

Property tax in our eight places

Property tax is a yearly bill set by your county, city and school district, and it pays for local schools and services. The figures below are the median tax paid as a share of home value by owner-occupiers (Tax Foundation, 2024 data). New buyers can pay more than this, because several states cap rises for long-time owners.

Exemptions for your main home must usually be claimed; they are not automatic. Ask the county assessor or property appraiser whether your visa status counts as permanent residence for their rules. For anywhere else, search for the county assessor’s website and the state revenue department.

Transfer taxes

• New York State: $2 per $500 of the price (0.4%), normally paid by the seller. Buyers pay a 1% “mansion tax” on homes of $1 million or more
• New York City: its own transfer tax of 1% on homes up to $500,000 and 1.425% above that
• Florida: documentary stamp tax on deeds of 70 cents per $100 of the price (60 cents in Miami-Dade)
• Elsewhere: rates and who pays differ by state and city. Your agent or attorney will show them on your estimate

How buying works

1. Get pre-approved for a loan, so sellers take your offer seriously
2. Sign a written agreement with a buyer’s agent. Since 17 August 2024, agents in Realtor-run listing systems must have one before you tour a home. It must say what the agent is paid, and commissions are not set by law and are negotiable
3. Make an offer, usually subject to inspection, appraisal and finance, and pay earnest money
4. Inspect, appraise and check the title
5. Close: sign, pay the balance and get the keys. In some states an attorney runs the closing; in others a title or escrow company does

Condos, co-ops and HOAs

Many condos, townhouses and newer estates have a homeowners association (HOA), which charges monthly dues and sets rules on things like renovations, pets and letting. HOAs can also levy one-off “special assessments” for big repairs, and can place a lien on your home if you don’t pay. Before you commit, ask for the HOA’s rules, budget, reserve fund figures, recent meeting minutes and any planned assessments, and get a real estate attorney to read them.

A few states restrict some foreign buyers

Florida (since 2023) and Texas (since 1 September 2025) restrict buying by people linked to certain countries, such as China, Russia, Iran and North Korea. The UK isn’t on either list, but check if you hold another nationality.

Selling later: FIRPTA

If you sell US property while you are a “foreign person” for US tax (a nonresident alien), the buyer must usually withhold 15% of the sale price and pay it to the IRS, under the Foreign Investment in Real Property Tax Act (FIRPTA). You then file a US tax return to get back anything withheld beyond the tax you owe. A resident alien for tax is not a foreign person: if you are still a US tax resident when you sell, you can give the buyer a signed certificate saying you are not a foreign person.

• There is no withholding if the buyer will live in the home and the price is $300,000 or less (about £227,300)
• If you have lived in the home as your main home, you may be able to exclude up to $250,000 of gain from US tax ($500,000 for a married couple filing jointly). See What do I need to close before I leave the USA?