By Phil Ganz
Edited by Ryan Skerritt
Buying a home in Florida as a foreigner can feel overwhelming, especially if you're unfamiliar with the process.
Whether you're moving to Florida on a visa like H1-B or L-1 or investing from abroad, this guide will walk you through every step of buying property in the state.
Is It Possible for Foreigners to Purchase a House in Florida?
Yes, foreigners can buy property in Florida without any restrictions based on citizenship. Non-U.S. residents can purchase homes, vacation properties, commercial buildings, or even land.
The process is simple, allowing buyers to own property and enjoy the benefits of real estate investment.
This guide will walk you through the requirements, steps, and tax considerations for buying a home in Florida as an international buyer.
Foreign Real Estate Transactions in Florida - A Closer Look
According to the National Association of Realtors (NAR), foreign buyers spent about $9 billion on existing homes in Florida between April 2023 and March 2024, with a peak of $23 billion in 2022.
Of these buyers, 57% were either recent immigrants or visa holders living in Florida, while about 40% were non-residents purchasing from abroad.
During this period, foreign buyers purchased 8,600 homes in Florida, marking an 8.45% increase in total dollar volume compared to the previous year's $7.4 billion.
As the market continues to rebound and regain momentum, experts predict a sustained growth trajectory for years to come within the flourishing real estate sector of Florida.
Buying in Florida as a Foreign Buyer? Let an Expert Guide You!
Guidelines for Foreigners Purchasing Property in Florida
Foreign nationals can buy property in Florida with the same rights as U.S. citizens, offering flexibility in homeownership.
However, there are a few key considerations:
- Foreign buyers must obtain a Taxpayer Identification Number (TIN) from the IRS before purchasing property.
- Non-U.S. citizens need to secure financing through a U.S.-based bank or lender if they require a mortgage.
- Lenders may require income verification, employment history, and credit records, though some mortgage programs allow foreigners to qualify without a U.S. credit history.
- Foreign buyers typically need a higher down payment, usually between 20% and 25% of the property's price.
- Tax obligations for foreign buyers are generally the same as for U.S. citizens.
There are no restrictions on foreigners buying a primary residence or investment property in Florida.
Required Documentation for Foreigners Purchasing Property in Florida
When selecting your mortgage lender, you may be asked to provide some or all of the following documents as part of the process to buy property in Florida.
Documents foreigners need to buy property in Florida:
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A valid foreign passport.
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A US visa or a driver’s license.
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For global investors, some lenders might require b1/b2 (visitor visa).
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Visa waiver countries don’t need that, and some lenders don’t need a visa at all.
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Social security number or ITIN.
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Bank statements and, if relevant, financial documents from your foreign bank.
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Evidence of reserves.
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Check stubs.
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Tax return.
- Credit Score(if applicable).
Even if you lack a US credit history, it's still possible to secure a mortgage for your Florida property acquisition.
Buying in Florida as a Foreign Buyer? Let an Expert Guide You!
How to Buy a House in Florida as a Foreigner – Step-by-Step
Buying a home in Florida as a foreigner is easier than you might think. This guide will walk you through the entire process, from choosing a location to finalizing the purchase.
Step 1 – Choose the Right Location
There are no restrictions on foreign buyers purchasing property in Florida. However, choosing the right location is key.
- If you're moving to Florida, consider factors like commute time, neighborhood quality, schools (if applicable), and nearby amenities.
- If you're an investor, research cities and regions that offer the best rental potential and property appreciation.
Step 2 – Find a Real Estate Agent Who Specializes in Foreign Buyers
Working with an experienced real estate agent who understands international transactions can make the process much smoother.
- Look for an agent who specializes in helping foreign buyers, especially those with visas like H1-B, L-1, or F1.
- The Certified International Property Specialist (CIPS) designation ensures the agent has expertise in global real estate and risk management.
- Many CIPS agents speak multiple languages and can guide you through Florida's specific regulations.
MakeFloridaYourHome can help connect you with a CIPS-certified agent for expert assistance.
Step 3 – Work with Your Real Estate Agent
Your agent will guide you through each step, helping you find properties, negotiate prices, and handle paperwork.
- Foreign buyers typically sign a buyer representation agreement when working with an agent.
- In Florida, the seller pays the agent’s commission, so buyers don’t have to worry about extra fees.
- A good real estate agent will provide expert guidance at no cost to you.
Step 4 – Understand Taxes for Foreign Buyers
Foreign buyers in Florida do not pay extra property taxes compared to U.S. citizens. However, tax rules depend on how you use the property:
- If you live in the home, you’ll only pay standard property taxes.
- If you rent out the home, you must pay taxes on rental income.
- If you sell the property, you may have additional tax obligations.
Most foreign buyers need an Individual Taxpayer Identification Number (ITIN) to purchase property. A knowledgeable real estate agent can help you apply.
Step 5 – Start Searching for a Home
Tell your real estate agent what you’re looking for, including:
- Price range
- Property type (house, condo, investment property, etc.)
- Preferred location
If you’re living in Florida, your agent will schedule home visits. If you’re buying from abroad, they can provide photos, videos, and virtual tours.
Your agent can also answer questions about schools, transportation, and local amenities.
Step 6 – Make an Offer
Once you find the right home, your agent will help you make an offer based on comparable recent sales.
- Most list prices are negotiable, and your agent will advise on the best offer.
- The seller may accept, reject, or counter your offer with a different price.
- Once your offer is accepted, you’re one step closer to owning a home in Florida!
Step 7 – Get Financing as a Foreign Buyer
You don’t need a U.S. credit history to get a mortgage. Some U.S. lenders offer home loans for foreign buyers, including those on visas like H1-B and L-1.
- These lenders specialize in mortgages for international buyers at competitive interest rates.
- You typically need a 20-25% down payment to qualify.
- If you pay in cash, you can complete the purchase in about 30 days.
- If you finance with a mortgage, expect the process to take about 60 days.
If you need more time, your real estate agent can negotiate the closing date to fit your schedule.
5 Mortgage Options for International Buyers Purchasing Property in the USA
Financing a property purchase in the US as a foreigner can be a nuanced endeavor, but various mortgage options are available to accommodate your specific circumstances.
Here are five notable mortgage options tailored to the needs of international buyers:
Mortgages for Foreigners with No US Credit
Foreign National Mortgage
A foreign national mortgage is thoughtfully designed to facilitate property acquisition for newcomers in the US.
Conventional mortgage loans can pose challenges for foreign nationals due to factors like an absence of US credit history and limited income documentation.
As a result, foreign national mortgage loans typically necessitate a higher down payment (ranging from 20% to 25%) and may carry slightly elevated interest rates.
Nonetheless, these mortgages present an appealing avenue for foreign nationals aspiring to invest in US real estate.
DSCR Loan (Designed for Investment Properties)
A DSCR (Debt Service Coverage Ratio) loan geared towards foreign buyers is a specialized financing choice, particularly beneficial for non-residents and foreign nationals looking to secure funds for investment properties within the US.
This loan assesses the projected income of the property vis-à-vis its debt obligations, factoring in the borrower's capacity to cover monthly loan payments. DSCR loans cater to international investors aiming to expand their investment property portfolios.
While conventional DSCR loans usually require a specific credit score, certain lenders extend DSCR loans to foreign buyers lacking a US credit history.
However, it's worth noting that these loans may entail higher down payments and interest rates compared to standard DSCR loans.
MakeFloridaYourHome is equipped to facilitate your connection with appropriate DSCR lenders that specialize in serving the needs of foreign buyers and non-US residents.
ITIN Loans
ITIN loans stand as a mortgage financing solution tailored for individuals who possess an Individual Taxpayer Identification Number (ITIN) instead of a Social Security number.
These loans extend support to undocumented immigrants striving to attain homeownership within the United States.
ITIN loans present specific eligibility criteria, affording the opportunity for individuals lacking a Social Security number to embark on their journey as homeowners.
Mortgages for Non-US Residents with Established Credit
FHA Loan
An FHA loan, backed by the Federal Housing Administration (FHA), endeavors to enhance accessibility to homeownership. It grants more flexible credit requirements and reduced down payment options in comparison to conventional loans.
Foreign individuals boasting an established credit history in the United States can qualify for an FHA loan by meeting the stipulated minimum credit score prerequisite, which generally commences at 580.
Conventional Mortgage
A conventional mortgage adheres to the parameters outlined by government-sponsored entities such as Fannie Mae and Freddie Mac.
Qualifying for a conventional mortgage as a foreigner often entails meeting specific lender criteria, encompassing a robust credit history and satisfying the credit score benchmarks, commonly set around 620 or higher.
FHA and conventional mortgages emerge as optimal selections due to their favorable interest rates and down payment requisites.
These options are within reach for non-US residents equipped with an established US credit history.
If your US credit score is commendable, MakeFloridaYourHome is poised to establish a connection with lenders catering to foreign individuals.
These lenders are proficient in facilitating the FHA or conventional loan processes for non-US citizens, simplifying your home financing endeavors.
Buying in Florida as a Foreign Buyer? Let an Expert Guide You!
Visa Requirements for Foreigners Purchasing Property in the US
Green Card Holders
Individuals holding green cards enjoy privileges akin to those of US citizens when seeking mortgage options.
They are eligible for FHA loans, Fannie Mae loans, or Freddie Mac loans.
The possibility of a down payment as low as 3% exists, contingent upon a minimum of two years' tax and work history.
Temporary Non-Resident Aliens
Temporary non-resident aliens possessing valid work visas can explore FHA loans.
Requirements may involve furnishing an Employment Authorization Document and a Social Security Number.
Demonstration of the capacity to reside and work in the US for a minimum of three years could be necessary.
Refugees and Asylees
Refugees and individuals granted asylum in the US have the privilege of applying for home loans under the same conditions as US citizens, given that foreigners are legally allowed to purchase property in the USA.
Documentation such as a valid Form I-94 bearing an "Employment Authorized" stamp or an Employment Authorization Document will be required.
Global Investors
Global investors might necessitate a B1/B2 visa, depending on the specific lender engaged. If you hail from a visa waiver country, procuring a visa isn't mandatory to secure a US mortgage.
Navigating the visa landscape is crucial when embarking on the journey of acquiring property in the US, and MakeFloridaYourHome is adept at guiding foreign buyers through the intricate requirements to ensure a smooth mortgage application process.
With over 50 years of mortgage industry experience, we are here to help you achieve the American dream of owning a home. We strive to provide the best education before, during, and after you buy a home. Our advice is based on experience with Phil Ganz and Team closing over One billion dollars and helping countless families.
About Author - Phil Ganz
Phil Ganz has over 20+ years of experience in the residential financing space. With over a billion dollars of funded loans, Phil helps homebuyers configure the perfect mortgage plan. Whether it's your first home, a complex multiple-property purchase, or anything in between, Phil has the experience to help you achieve your goals.
About Editor - Ryan Skerritt
Ryan Skerritt has over 10+ years of experience in the residential financing space. With over two hundred and fifty million of funded loan volume, Ryan has the skill set to help any homebuyer configure the perfect mortgage plan.
