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The Ultimate Guide for China (and Hong Kong) Citizens Buying Property in Florida

Are you a resident of China looking to purchase a home or investment property in the state of Florida, USA? If so, it's important to note that the real estate market in this region is increasingly appealing.

The economic situation in the state is steady, and it's viable to consider making lasting investments to achieve gradual expansion in the future.

Can Individuals from China or Hong Kong Buy Property in Florida, USA?

Absolutely, if you're a citizen of China or Hong Kong looking to buy a home in Florida, USA, you have the freedom to do so without facing any restrictions imposed by the US government.

Furthermore, there are no limitations on foreign nationals purchasing real estate in the state of Florida. You also have the option to apply for a mortgage as a non-citizen in America, even if you lack a US credit history.

This could be an enticing opportunity for many individuals from China and Hong Kong due to the relatively lower housing costs in Florida compared to certain metropolitan areas in other Western countries.

Additionally, there's the availability of properties in coastal areas and rural locations. However, it's important to note that Florida's property market differs from one region to another.

Because of this variation, it's advisable to thoroughly explore property prices and market trends in the specific city within Florida where you're considering buying a property.

Given that housing expenses are a significant part of most Americans' budgets, ensuring that you're making a wise investment and getting good value for your money is crucial.

In recent times, individuals from different countries, especially Asian nations like China and Hong Kong, have shown significant interest in investing in the real estate market of the United States.

However, before delving into this market, it's essential to familiarize yourself with local regulations, taxes, and the buying procedures specific to the US.

For someone who isn't acquainted with the US real estate procedures, the process of purchasing property might seem overwhelming. Similarly, acquiring property in the United States from China or Hong Kong can feel like a daunting task.

Consequently, many Chinese and Hong Kong investors approach foreign markets with caution due to the uncertainty and unfamiliarity of the process. Nevertheless, investing in US real estate can be a wise choice.

This article will explore the primary considerations that Chinese and Hong Kong investors should keep in mind when engaging in cross-border real estate transactions in the United States.

Luxury mansions in Miami Florida

How much American real estate do people from China, including Hong Kong, buy each year?

According to the National Association of Realtors (NAR), China, along with Hong Kong, was the top foreign buyer of US homes in 2021. They made up 8% of all foreign buyers.

In 2021, Chinese buyers bought 6,300 existing homes in the US, spending $4.5 billion. This was a big drop from the previous year, with 66% fewer homes bought and 61% less money spent.

The main reason for this drop was travel restrictions due to Covid-19. From 2010 to 2021, Chinese buyers bought around $18 billion worth of US homes each year, with 27,000 homes bought annually.

This makes Chinese buyers, including those from the People’s Republic of China and Hong Kong, the biggest foreign investors in US real estate.

In 2022, China still topped the list for the most money spent on US homes. However, because the average home price increased to $1.0 million (up from $710,400), Chinese buyers spent a total of $6.1 billion on existing homes, which is a 30% increase from before.

5 Reasons Why Chinese and Hong Kong Citizens Choose Florida, USA

People from China and Hong Kong are drawn to buying property in Florida, USA, for these reasons:

  • Top Universities Access - Many of the world's best universities are in the United States. Wealthy families from China aim to help their children excel by purchasing homes in Florida, where they can live and study.

  • Stable Investment - While China's property market has concerns, US real estate, especially in Florida, offers stability and growth potential.

  • Path to Citizenship - The EB-5 visa can lead to a green card, particularly appealing to high-net-worth individuals using Florida real estate for this purpose.

  • Favorable Financing - Florida provides attractive mortgage options for non-residents, making buying property there even more beneficial.

  • Quality and Value - Florida offers great real estate quality and affordability. Positive returns can be gained after mortgage payments, and Florida's property prices are relatively lower compared to other cities.

These factors make Florida, USA, an appealing choice for property buyers from China and Hong Kong.

Mortgages in Florida for Buyers from China

If you're from China and want to buy a home in Florida, it's important to find a lender who understands your financial situation.

Mortgages designed for people like you, who are not US citizens, can make it easier to buy a home in Florida.

Getting a Mortgage with US Credit

Buying a house in the US can be complicated, but having a good credit history in the US can help a lot. This history shows that you handle money well and can help you get better loan terms and interest rates.

FHA Loans for Chinese Buyers

FHA loans are backed by a US government agency and can be a good choice for Chinese buyers looking to buy a home in Florida.

You need to show that you have a job and a history of managing credit in the US.

Qualifying for FHA Loans:

  • Credit Score - Most lenders like to see a credit score of at least 580. If your score is between 500 and 579, you might still qualify, but you'll need to make a bigger down payment (10%).

  • Down Payment - With an FHA loan, you might only need to put down 3.5% of the home's price or its appraised value, whichever is less. But if your credit score is below 580, you'll need to put down 10%.

  • Job and Income - Lenders want to see that you have a steady job or a good source of income. It's best if you've had the same job or income for around two years.

  • Right Property - FHA loans are for homes where you'll live. The property has to meet certain rules from the FHA.

Conventional Mortgages for Chinese Buyers

Another option is a conventional mortgage. This kind of loan requires a stable income, a good credit score, and the ability to put down about 20% of the home's value.

These mortgages have good interest rates and flexible terms.

Qualifying for Conventional Loans:

  • Credit Score - Most lenders want a credit score of 620 or higher. The rules can vary among lenders and types of loans.

  • Down Payment - These loans usually need a bigger down payment than FHA loans. Usually, you need to put down 5% of the home's price. Some loans allow down payments as low as 3%.

  • Job and Income - Lenders will check your job history and income. They want to know you have a steady job, usually for about two years. If you're self-employed, you might need to show extra documents.

  • Checking the Property - The home's value needs to be assessed before you get the loan. The home should be in good shape and meet the lender's rules.

Getting Mortgages with Limited US Credit History

Getting a mortgage in the US can be tricky if you don't have much credit history here. This often applies to recent immigrants, international students, and those who haven't built a strong credit record.

But don't worry, even if your US credit history is thin, you might still get a mortgage. There are other options and requirements to explore, increasing your chances of owning a home in Florida.

Foreign National Mortgage for Chinese Buyers

A Foreign National Mortgage is for people from other countries who want to invest in US real estate, specifically in Florida.

This mortgage is designed for international buyers and might need a larger down payment and slightly higher interest rates compared to regular mortgages.

One great thing about this mortgage is that Chinese immigrants and property investors can access it without needing a social security number or permanent residency.


  • Valid Passport and Visa - Foreign nationals need a valid passport and visa to show they're legally in the US. The type of visa could depend on what the lender asks for.

  • Credit History - Lenders might want to see a credit history from your home country or an international credit report. This helps them know if you can pay back the loan and if you're trustworthy with credit.

  • Bigger Down Payment - Foreign buyers might need to put down more money than US citizens or residents. This is because there's more risk. Usually, it's around 20% or more of the home's price.

  • Proving Income and Assets - You'll need to show documents like bank statements, proof of employment, tax returns, and information about what you own.

  • International References - Some lenders might want references from your home country to prove you're financially stable and reliable.

DSCR Loan for Chinese Buyers

A DSCR (Debt Service Coverage Ratio) loan is often used to buy investment properties in Florida. It checks if the property can make enough money to pay back the loan.

Even though DSCR loans might ask for a bigger down payment and slightly higher interest rates, they let Chinese buyers buy properties in Florida and grow their real estate investments.


  • DSCR of 1 or Higher - Lenders usually want a DSCR of 1 or more for these loans. DSCR looks at how much money the property makes compared to the loan payments and expenses. A DSCR of 1 means the property earns as much as it owes, which is good for the lender.

  • Credit Score of 620 or More - Lenders might want a credit score of 620 or higher for DSCR loans. A good credit score shows you're responsible with credit and debt.

  • Paying 20-25% Down - DSCR loans often ask for a down payment of 20% to 25% of the home's price. A bigger down payment makes the lender feel safer and shows you're serious about investing.

  • Checking Property Value - If you're getting a DSCR loan, the property's value needs to be checked. An appraisal figures out how much the property is worth and if it matches the loan amount.

  • 1007 Rent Schedule - This is a paper showing how much money a property makes in rent and how much it spends. If you're borrowing to buy a property, the bank might ask for this to see if the rental income can cover the mortgage and other costs.

You might also want to think about hiring a CIPS (Certified International Property Specialist) real estate agent. They're trained to help people from other countries buy homes in Florida.

Step-by-Step Guide: Buying Property in the US for Chinese and Hong Kong Citizens

Buying a house in a foreign country like the United States can seem challenging if you're not familiar with the process.

But with some learning and effort, it can also be an exciting adventure. Here's a step-by-step guide for Chinese and Hong Kong citizens looking to purchase property in the US:

  • Choose Your Location - Decide where you want to buy a house in the United States. Consider factors like lifestyle, job opportunities, and climate.

  • Find a Qualified Real Estate Agent - Connect with a real estate agent who has experience handling international transactions, ideally with a certification like CIPS (Certified International Property Specialist). These agents are skilled in assisting foreign buyers, including Chinese and Hong Kong residents.

  • Learn About Working with Real Estate Agents - Understand how the real estate process works in the US and how to effectively collaborate with your chosen real estate agent.

  • Know Your Tax Situation - Familiarize yourself with the cross-border tax implications of buying property in the US as a foreign citizen. It's essential to be aware of potential tax obligations.

  • Start Your House Hunt - Work closely with your real estate agent to search for homes that match your preferences and budget.

  • Make an Offer and Finalize Your Purchase - Once you find a house you like, submit an offer to the seller. Negotiate and finalize the terms of the purchase, taking steps to make your American dream home a reality.

  • Conduct a Property Inspection - Before closing the deal, have the property thoroughly inspected to ensure there are no hidden issues.

  • Create a Purchase Agreement - Draft a purchase agreement that outlines the terms and conditions of the sale. This legally binding document protects both parties involved.

  • Complete a Title Report - Obtain a title report to confirm the property's ownership history and ensure there are no legal disputes or claims.

  • Secure Home Financing - If needed, explore options for obtaining a U.S. mortgage designed for foreign nationals. This can help you finance your property purchase.

  • Take Possession of Your New Home - Once all agreements are in place and financing is secured, you can officially take possession of your new home in the United States.

Remember that each step might involve specific requirements and paperwork.

It's crucial to work closely with your real estate agent and other professionals to navigate the process smoothly and successfully.

With careful planning and guidance, you can make your international property purchase a rewarding experience.

Tax Considerations for Chinese Investors Buying Real Estate in the United States

If you're a foreign investor from China looking to buy real estate in the United States, it's important to understand the tax implications involved.

The IRS (Internal Revenue Service) has specific rules for non-resident buyers, and here's what you need to know:

  • Property Taxes - When you own property in the US, you're required to pay property taxes. The rates vary by state and locality, so research the tax rules in the area where you plan to invest.

  • Income Taxes - If you make money by renting out your property, you'll be subject to US income taxes. Even if you're not a US resident, you might need to file a US tax return and report your rental income.

    Tax treaties between the US and China can help prevent double taxation, but it's wise to consult a tax expert familiar with global tax laws.

  • Capital Gains Taxes - Selling your property at a profit might trigger capital gains taxes. The specific tax rate depends on factors like how long you owned the property and your overall tax situation. Tax treaties between the US and China could impact your tax responsibilities.

  • Estate Taxes - If you pass away, your US real estate might be subject to estate taxes. Estate tax laws are complex, and the exemption threshold can change, so seek advice from an international estate planning specialist.

According to the Internal Revenue Code, foreign individuals' US income is usually taxed at 30%. However, provisions in the code or tax treaties can lead to lower rates or exemptions.

Non-residents can choose to treat rental income as if it's connected to a US trade or business.

This allows for deductions of rental expenses, resulting in tax on net rental income rather than a flat 30% on gross rent. To apply this, you'll need to fill out form W-8ECI.

Tax Compliance for Selling US Property

When a non-resident sells US real estate, FIRPTA (Foreign Investment in Real Property Tax Act) requires a withholding tax of 10% or 15% on the gross selling price.

If the property sells for over $300,000 but less than $1,000,000 and the buyer plans to live there, the withholding tax is 10%.

Any capital gain from the sale can be offset by FIRPTA tax withholdings. It's crucial to understand these tax requirements to ensure compliance and accurate tax planning.

Frequently Asked Questions (FAQs) - Buying US Real Estate for Chinese and Hong Kong Citizens

Can Chinese or Hong Kong Citizens Buy a House in the US?

Yes, both Chinese and Hong Kong citizens can buy houses in the US.

There are no restrictions for foreigners purchasing property in the US, and the market offers numerous opportunities for real estate investment.

Why Do Chinese Invest in US Real Estate?

Chinese investors are drawn to US real estate for several reasons. The stability and history of appreciation make it a safe investment.

Additionally, the potential for good returns compared to other Chinese investment options, coupled with perceived reliability in the US legal system, contribute to their interest.

Can Chinese or Hong Kong Citizens Obtain a US Mortgage?

Yes, citizens of China or Hong Kong can obtain US mortgages.

Whether for investment or residential purposes, the process is similar to that of US citizens seeking mortgages.

Can Investors from China Affect Property Prices in the USA?

Chinese investors can significantly impact property prices, particularly in popular urban areas.

Their willingness to pay above market value can create intense competition and drive up prices for both domestic and overseas buyers.

Are Chinese Citizens Buying Houses in America?

Yes, China ranks third among foreign property buyers in the US, acquiring between 20,000 to 40,000 residential properties.

In 2022, 6% of foreign buyers spending $6.1 billion were from China.

How Do Chinese (Hong Kong) Investors Buy Houses with Cash?

Chinese (Hong Kong) investors transfer money from their accounts in China or Hong Kong to a US bank account to purchase properties with cash.

However, FIRPTA requires a 15% withholding tax, and compliance with anti-money laundering laws is necessary.

Are Chinese Investors Buying California Real Estate?

Yes, California is appealing to Chinese buyers due to its quality of life and education opportunities. In 2022, Chinese buyers purchased California properties averaging $1 million.

A significant percentage made all-cash purchases, with intentions to use the properties for primary residences or student purposes.

How Much Real Estate Does China Own in the USA?

China acquired $6.1 billion worth of real estate in 2022, making it the third-largest foreign buyer in the US.

Is China the Top Foreign Buyer of US Housing?

Yes, Chinese buyers are the largest group of foreign residential property purchasers in the US.

They tend to buy more expensive properties than other foreign buyers and have historically purchased between 20,000 to 40,000 residential properties.

In 2022, they accounted for 6% of all foreign property sales.

Where Are Chinese Investors Focusing in the US Housing Market?

Chinese buyers concentrate their residential real estate investments on the Atlantic Coast, particularly in Florida.

This differs from buyers from other countries who tend to distribute their investments across the entire United States.

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.

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