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How German Nationals Can Get Mortgages in Florida

Purchasing a home in Florida as a German citizen may seem daunting if you're unfamiliar with the American real estate system.

Whether you're moving to the U.S. on specific visas or seeking investment opportunities, it's essential to understand the complete process of acquiring property in Florida.

This guide outlines each step involved in the home buying procedure, tailored specifically for German citizens. The information covers critical factors that both newcomers and non-resident investors from Germany should consider when purchasing property in Florida.

Is it Possible for German Citizens to Buy a Home in Florida?

Various types of real estate, such as residential, commercial, vacation properties, and land, are available for purchase in the United States.

The buying process is generally straightforward, offering individuals from Germany the chance to become property owners in Florida and reap the advantages of real estate investment.

Consult this guide to familiarize yourself with the criteria, procedures, and tax ramifications germane to German citizens buying a home in Florida.

Overview of Real Estate Purchases by Foreign Nationals in the U.S.

According to the National Association of Realtors (NAR), from April 2021 to March 2022, foreign nationals bought $59 billion worth of existing homes in the U.S., a figure that reached as high as $153 billion in 2017.

During this period, 57% of foreign purchasers were either new arrivals to the U.S. or held valid visas. The remaining approximately 40% were non-resident buyers.

In terms of transaction volume, 98,600 existing homes, valued at $59 billion, were purchased by foreigners between April 2021 and March 2022—an 8.45% increase in dollar volume compared to the $54.4 billion during the same timeframe the prior year.

This upward trend is partially due to global conditions normalizing after the COVID-19 pandemic, and the real estate market is expected to sustain this growth in the coming years.

Model house on pile of coins

Rules for German Citizens Purchasing Property in Florida

German citizens can acquire property in Florida without any specific limitations and have equivalent property ownership rights as U.S. citizens.

However, there are particular points to consider.

  • German citizens are required to secure a Taxpayer Identification Number (TIN) from the Internal Revenue Service (IRS) before completing a property purchase in Florida.

  • Financing for the property must generally be obtained from a U.S.-based bank or financial institution. Documentation like proof of income, employment history, and credit history might be necessary.

    Notably, some mortgage programs in the U.S. are designed for foreigners, which can facilitate obtaining a mortgage without a U.S. credit history.

  • A higher down payment, ranging from 20% to 25%, may be expected from German buyers.

  • The tax obligations for German citizens purchasing property in Florida are the same as for U.S. citizens.

  • There are no additional restrictions or implications for German citizens looking to buy either a primary residence or an investment property in Florida.

Required Documents for German Citizens to Purchase Property in Florida

The documentation required to purchase property in Florida can vary depending on the mortgage lender selected.

Below are some commonly required documents:

  • A valid German passport.

  • A U.S. visa or a driver's license may be necessary. Some mortgage lenders might request a B1/B2 visa specifically for global investors.

  • Citizens from visa waiver countries or certain lenders may not require a visa.

  • A Social Security Number or an Individual Taxpayer Identification Number (ITIN) is typically required.

  • Bank statements, along with any pertinent financial documents from your German bank, are generally needed.

  • Evidence of reserves, which means proof of funds to cover the mortgage for a specific period.

  • Pay stubs to verify income.

  • Most recent tax return.

  • Credit Score, if applicable in your case.

It's worth noting that even if you do not have a U.S. credit history, mortgage programs are available in Florida that allow German citizens to secure a mortgage.

Buying a House in the USA as a German: A Step-by-Step Guide

The duration for completing a property purchase can vary. Cash purchases generally take approximately 30 days, whereas financed purchases take about 60 days.

Step 1 – Location Selection

There are no restrictions for Germans interested in buying property in the United States. Resident foreign nationals and non-resident foreign investors should consider different factors when choosing a location.

Proximity to work, types of communities, and quality of schools are factors that resident foreign nationals may consider, while non-resident foreign investors should research optimal cities for real estate investment.

Step 2 – Real Estate Agent Selection

The selection of an experienced real estate agent is critical. Agents with a Certified International Property Specialist (CIPS) designation have specialized training in dealing with foreign nationals and can assist with state-specific rules and language needs.

Step 3 – Working with the Real Estate Agent

The agent–client relationship in the United States is formalized through a buyer representation agreement. The seller typically covers all agent commissions. The buyer is not responsible for agent fees.

Step 4 – Understanding Tax Implications

Foreign nationals, whether resident or non-resident, have similar tax liabilities to U.S. citizens. Non-resident foreign investors will owe taxes on net income but not on property appreciation. An Individual Taxpayer Identification Number (ITIN) is generally required.

Step 5 – Home Search

Once you've briefed your agent on the type of property you’re interested in, the agent will help you find and visit properties that meet your criteria. Virtual tours are also available for overseas buyers.

Step 6 – Making an Offer

Your agent will provide you with information on similar properties to help you make an informed offer. Once an offer is made, the seller can either accept, reject, or counter the offer.

Step 7 – Home Inspection

Conducting a home inspection is recommended to identify any potential issues with the property. This process involves hiring a professional to examine the property for defects or damages.

Step 8 – Contract Signing

After a successful home inspection, a contract of sale is drawn up and signed. An Earnest Money deposit is usually required at this point.

Step 9 – Title Report

A Title Report will identify previous owners and any current liens against the property. The report is crucial to ensure that the buyer receives clear title upon purchase.

Step 10 – Financing

Financing options are available even for those without a U.S. credit history. Mortgages are accessible for new immigrants as well as non-resident buyers.

Step 11 – Taking Ownership

On the closing day, multiple documents, including the deed, are signed to finalize the transfer of ownership. After this process is complete, the keys are handed over to the new owner.

This guide provides a structured overview of the steps involved in purchasing a home in the United States as a foreign national. It is advisable to consult professionals at each step to ensure a smooth transaction.

Mortgage Options for Germans Buying Property in the USA

Mortgages can be categorized based on whether they cater to Germans with no U.S. credit history or those with an established U.S. credit history.

Below are five mortgage options that are commonly available to foreigners seeking to buy property in the United States.

Mortgages for Germans with No US Credit

Foreign National Mortgage

This loan is tailored for foreign nationals who lack a U.S. credit history. Traditional mortgage loans often pose challenges for such buyers due to the absence of U.S. credit history and limited income documentation.

A foreign national mortgage usually demands a higher down payment, typically ranging from 20-25%, and may carry a slightly elevated interest rate compared to standard mortgage loans.

DSCR Loan (For Investment Properties)

Debt Service Coverage Ratio (DSCR) loans are specialized mortgage options targeting foreign nationals who aim to invest in U.S. properties. These loans consider the property's projected income against its debt obligations.

While a specific credit score is generally required, some lenders do provide DSCR loans to foreigners with no U.S. credit history. However, these loans usually come with a higher down payment and interest rate compared to standard DSCR loans.

ITIN Loans

An ITIN loan is specifically designed for those who possess an Individual Taxpayer Identification Number (ITIN) instead of a Social Security Number (SSN).

These loans accommodate individuals without a SSN, including undocumented immigrants, enabling them to become homeowners in the U.S.

Mortgages for Germans with Established US Credit

FHA Loan

An FHA loan is insured by the Federal Housing Administration and aims to make homeownership more attainable by offering lower down payments and more relaxed credit requirements.

Foreign nationals with an established U.S. credit history can qualify for an FHA loan. The minimum credit score required for this loan usually starts at 580.

Conventional Mortgage

Conventional mortgages follow the standards set by government-sponsored entities such as Fannie Mae and Freddie Mac.

Foreigners with a solid U.S. credit history can qualify for these loans, which typically demand a minimum credit score of 620 or higher.

Both FHA and conventional mortgages are favorable options due to their lower interest rates and down payment requirements.

MakeFloridaYourHome can assist in connecting you with lenders who specialize in FHA or conventional loans for non-U.S. citizens, thereby simplifying your home financing process.

Visa Rules for Germans Buying Homes in Florida, USA

Permanent Residents

If you're from Germany and hold a U.S. Green Card, you can get a mortgage in Florida almost like any American citizen. Options like FHA, Fannie Mae, or Freddie Mac loans are available.

You might be able to pay as little as a 3% down payment, but you'll need to show at least two years of work and tax history.

Workers with Temporary Visas

If you're in Florida on a work visa from Germany, FHA loans are a choice for you. You'll need to show an Employment Authorization Document and your Social Security Number.

Also, you might have to prove you can legally live and work in the U.S. for at least the next three years.

Refugees and Those Granted Asylum

If you’ve been granted refugee or asylum status in the U.S., you can get a home loan in Florida just like a U.S. citizen.

You'll need to have a valid Form I-94 that’s stamped "Employment Authorized" or show an Employment Authorization Document.

International Investors

If you're from Germany and investing in Florida property, you might need a B1/B2 visa, depending on the lender.

However, if Germany is part of a visa waiver program with the U.S., you might not need a visa to secure a mortgage in Florida.

Tax Considerations for Germans Buying Homes in Florida, USA

  • IRS Guide 515 - This guide is meant for Germans contemplating property purchases in Florida, USA. It outlines various tax issues, such as withholding, capital gains, and estate taxes that might arise from owning property in the U.S.

  • Withholding Tax Rate - Germans who own property in Florida can expect a 30% withholding tax on their property income.

  • Options for Property Income Treatment - Property income from Florida can either be tied to a U.S. trade or business or not. If you opt for the former, you’ll be taxed like a U.S. citizen. If not, the 30% withholding tax applies.

  • Election Choices - There are two types of elections you can make regarding how your property income is taxed.

    Net Election - Choosing this means you can subtract costs like mortgage interest and repairs from your rental income. What remains will be taxed at your standard income tax rate.

    Gross Election - In this case, your rental income won’t be reduced by any expenses and will be subject to the 30% withholding tax.

  • Tax Treaties - Germany has a tax treaty with the U.S., which might entitle you to a reduced withholding tax rate. For more details, consult IRS Publication 515.

  • Capital Gains Tax - Selling your Florida property as a German citizen will incur a capital gains tax. The rate for most is 15%.

  • Sales Withholding Tax - If you sell your Florida property, the buyer is mandated to withhold 10% of the sales price and forward it to the IRS. This withholding can potentially be decreased or nullified if you choose under IRC 897(I).

  • Florida Property Tax - Owning property in Florida will also require you to pay state property taxes. The rate depends on the property’s location within Florida.

  • Tax Return Requirement - Income from your Florida property necessitates filing a U.S. tax return, specifically Form 1040NR.

Advantages and Disadvantages for Germans Buying Property in Florida, USA


  • Robust Real Estate Market - The U.S. real estate market has historically been stable and growing, making it a promising investment for Germans.

  • Varied Property Types - Whether you're interested in city condos, suburban houses, or rural farmland, the U.S. offers a broad range of property options.

  • Rental Income Opportunity - The U.S. housing market can offer a consistent income through renting. For instance, the average rent for a 1-bedroom apartment in the U.S. is $1,702, while it's significantly higher in cities like Miami.

  • Mortgage Covered by Rent - A strategically located rental property can generate enough income to cover your mortgage payments. For example, a $300,000 house in Florida with a 20% down payment and a 6% interest rate could have monthly payments of $1,702, which can be covered by rental income.

  • Property Appreciation - The U.S. property market has shown an average annual appreciation of around 12.2%, creating the potential for substantial return on investment over time.


  • Living Abroad - For those who are not permanent residents, there is always the issue of managing property from Germany. However, the property can still appreciate in value, be sold for a profit, or be rented out for additional income.

  • Language and Cultural Differences - Navigating the U.S. real estate market can be challenging due to language and cultural differences. Services like MakeFloridaYourHome can connect you with Certified International Property Specialists (CIPS) to facilitate the buying process.

  • Mortgage Challenges - Although securing a mortgage can be a hurdle, specialized foreign national mortgages are available to Germans, so financing shouldn’t pose an obstacle.

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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