Can a Foreign National Buy an Investment Property in the US?
Who can buy, where state law draws lines, how a DSCR loan qualifies you without U.S. income, and the tax rule at sale.
Yes. A foreign national can buy an investment property in the U.S. Federal law does not require citizenship, a green card or a visa to hold title to U.S. real estate. A handful of states restrict buyers tied to specific countries, and most financing runs through a debt service coverage ratio (DSCR) loan that qualifies on the property’s rent.
Where state law draws the lines
The limits on foreign buyers come mostly from state legislatures, and they target a short list of countries rather than foreign buyers in general.
Florida’s SB 264 bars people domiciled in China who are not U.S. citizens or permanent residents from buying real property in the state. It also restricts buyers connected to a longer list of countries near military sites and critical infrastructure. The Eleventh Circuit has since allowed Florida to keep enforcing the law while legal challenges continue. Texas SB 17 prohibits individuals domiciled in China, Iran, North Korea or Russia who are not U.S. citizens from acquiring real property in Texas.
The test in both states is domicile, where you live, rather than the passport you carry. Both laws also reach companies owned or controlled by covered buyers, so forming a U.S. limited liability company (LLC) does not take a purchase outside them. Florida purchases by foreign buyers come with a sworn affidavit at closing. See the program details for Florida and Texas foreign national buyers.
Florida and Texas are the broadest. The law firm Gibson Dunn counted 15 states that enacted foreign ownership laws in 2023 alone, Indiana among them, and many of those focus on farmland or land near military sites. If you are not domiciled in one of the named countries, most of these laws will not touch a residential rental. A real estate attorney in the state you are buying in should still confirm that before you sign a contract.
One more point people ask about. Owning U.S. property does not give you a visa, residency or a path to a green card, and it does not change your current status.
How a lender qualifies you without U.S. income
A conventional mortgage runs on U.S. credit history, U.S. tax returns and a debt-to-income calculation. Most foreign investors have none of the three, which is why the standard bank answer is no.
A DSCR loan asks a different question. It divides the property’s monthly rent by the property’s full monthly payment, meaning principal, interest, taxes, insurance and any association dues. Say a property rents for $2,400 and the full payment is $2,000. The DSCR is 1.20, and the rent covers the payment with $400 to spare. At $2,000 in rent the DSCR is 1.00, and the rent covers the payment exactly.
If the property cash flows, the deal works. Your salary in London or São Paulo never enters the math, and neither does a tax return you would struggle to produce in U.S. form. You can run your own numbers on the DSCR calculator and check current DSCR loan rates before you talk to anyone.
What Total Quality Lending’s foreign national program requires
Total Quality Lending offers a Foreign National DSCR loan for non-U.S. residents buying or refinancing U.S. rental property. It is a DSCR loan and an investment property loan, and those two facts set every other rule.
The property has to be an investment. You cannot live in it. Qualification runs on the property’s rent, with no U.S. income documents or U.S. tax returns. A U.S. credit score helps, and a separate path exists for borrowers with no U.S. credit score. Expect a larger down payment than a U.S. borrower would put down on a DSCR purchase.
The money has to be yours, documented and traced. Gift funds are not allowed, and you will need several months of payments documented in your accounts after closing. International wires, currency conversion and accounts in your home country all need a paper trail, so settle what documentation counts before the money moves, not after.
The program covers single-family homes, 2–4 unit properties, condos and condotels. Short-term rentals are eligible, including properties listed on Airbnb or VRBO. The short-term rental calculator helps you test the revenue before you buy. Owners can also use a cash-out refinance later to fund the next property.
Total Quality Lending does not offer foreign national financing on the Hybrid Investor Loan. It also does not offer it on 5–8 unit buildings, mixed-use property, home equity lines or second mortgages. Rural property is not eligible on this program. Neither are citizens of countries sanctioned by the Office of Foreign Assets Control (OFAC). If you want a home you will live in part of the year, this is the wrong loan.
The tax rule that shows up when you sell
The Foreign Investment in Real Property Tax Act, known as FIRPTA, applies when a foreign person sells U.S. real estate. Under IRS rules, the buyer generally must withhold 15% of the amount realized and send it to the IRS on Form 8288.
That 15% comes off the sale price, not your profit. Sell a rental for $400,000 with a $30,000 gain and $60,000 can be held back at closing. You recover the excess by filing a U.S. tax return, and IRS Form 8288-B lets you apply for reduced withholding before the sale closes.
Rental income from U.S. property is also taxable in the U.S. while you own it. Bring a U.S. tax professional in before you buy, because the filing plan you set in year one decides how much of that 15% comes back to you at the sale. Total Quality Lending also partners with CPAs and tax professionals.
Should you buy in an LLC?
Many foreign investors want to hold U.S. property in an LLC. Total Quality Lending closes the loan and the title in the LLC, where many lenders make you take title personally and transfer it later.
Whether an LLC is the right structure for you is a question for your attorney and your CPA. The answer depends on your home country’s tax treatment as much as on U.S. rules. Read more on buying in an LLC before that conversation.
Buying from abroad, in the right order
Start with the rent. Pick a market where the rent supports the payment at the down payment you plan to make, and check whether local rules allow the rental use you have in mind. A short-term rental and a buy-and-hold rental in the same city can produce very different numbers.
Then line up your people. You need an agent in the market, a property manager who will run the property while you are abroad, and a CPA and attorney who work with foreign owners. Total Quality Lending’s investor concierge connects you with vetted investor agents. The team also runs deal analysis, cash-flow and rental projections at no cost before you commit to anything.
Next, document your funds and confirm what the lender will accept before you wire anything. The underwriting process page shows what happens to your file once it is submitted.
Finally, agree on how you will sign. Remote closings depend on the state, the title company and the transaction, so arrange signing and notarization with the lender and title company well before the closing date. Check whether your state is covered on where we lend.
Talk to a lender who structures the deal first
Total Quality Lending is a direct lender with its own underwriters, so the structure of a foreign national file is the first conversation rather than the last. You get real numbers, an honest read on whether the rent supports the loan, and a straight answer when it does not. Meet the team or read client reviews.
Income pays for your life. Assets change your family’s trajectory. Start your investment plan or call (800) 304-1925.