Yes! Foreign nationals are allowed to buy properties in Texas. Texas is a great place to buy a property, whether you are a foreigner or not. It has an open real estate market for every type of purchase.
Foreigners can buy any property available to U.S. citizens, with a few exceptions. However, buying property in Texas can be a significant investment, so don’t miss out on this opportunity! Keep reading to know everything about home buying in Texas as a foreigner.
Key Takeaways:
➡️Foreign nationals can buy property in Texas irrespective of their citizenship, immigration, or residency status without restrictions, enjoying the same rights as US citizens and no extra taxes.
➡️Expats on visas can own homes in Texas, even without a US credit history, using tailored mortgage solutions for foreign nationals and non-US citizens.
➡️Foreign investors can purchase real estate in Texas from their home countries without a tourist visa or any other visa. They can even close on the property remotely in a US embassy.
Table of Contents
Required Documents for Foreigners to Buy Property in Texas
These are the following documents that you need to provide to buy a property as a foreigner in Texas:
- Your valid passport
- A US visa
- Social Security number or Individual Taxpayer Identification Number (ITIN)
- Bank statements, including previous and current and, if relevant, financial documents from your foreign bank
- Proof of reserves
Steps to Buy a House as a Foreign National in Texas
Embarking on the journey to purchase a home in Texas as a foreign national can be challenging. But with HomeAbroad, we make the process simple and more straightforward. Here are the steps to help you navigate the process:
Step 1: Choose the Right Location
Pick a location based on your needs. Visa holders should stay close to work or school, while investors should focus on areas with high rental demand.
Step 2: Work with an Internationally Minded Real Estate Agent
HomeAbroad connects you with expert agents, many with CIPS credentials, ensuring seamless international transactions.
Step 3: Understand Tax Obligations
Primary residences require property tax payments, while rental properties are subject to income tax. Foreign buyers need an ITIN to comply with tax laws. Check HomeAbroad’s tax guide for details.
Step 4: Get a Pre-Approval Letter from HomeAbroad
Plan to finance early! HomeAbroad offers foreign national mortgage programs with flexible terms, even for those without a US credit history. A pre-approval letter strengthens your offer.
Step 5: Search for a Suitable Property
Use HomeAbroad’s AI-driven search tool to find properties matching your budget and preferences. Virtual tours make it easy to explore homes remotely.
Step 6: Make a Competitive Offer
Your agent will analyze the market and help draft a firm offer. A pre-approval letter boosts credibility with sellers.
Step 7: Sign the Purchase Agreement
Once accepted, sign the contract and pay an Earnest Money Deposit (1%- 3%) held securely in escrow until closing.
Step 8: Get a Title Report
A title agent ensures the property has no legal issues, guaranteeing you receive clear ownership.
Step 9: Conduct a Home Inspection
A professional inspector checks the property. If issues arise, you can negotiate repairs, adjust the price, or withdraw.
Step 10: Closing
Finalize paperwork with your agent and lender. Remote closing is available if you’re not in the U.S.
Congratulations!
You’re now a real estate owner in Texas. Whether for personal use or investment, this is a significant accomplishment. With expert guidance from HomeAbroad, your home-buying process can be stress-free and rewarding. Start your journey today!
Check out HomeAbroad’s foreign-national homebuying guide and detailed video to learn more about these steps.
Mortgage Options for Foreign Nationals in Texas
At HomeAbroad, we provide specialized foreign national mortgage options to meet the diverse needs of international property owners and foreign investors in the US. Whether you’re purchasing a home or investing in property, these loans offer flexibility and convenience:
Without an Established US Credit History
1. Full Documentation Loan
A Full Documentation Loan is ideal for foreign investors and newcomers to the US who lack a US credit history. Instead of relying on domestic credit, it allows qualification based on international credit reports, foreign income, or assets.
Requirements:
✔ No US credit history needed
✔ International Credit Report (ICR) or alternative Proof of creditworthiness
✔ Proof of foreign income and assets
✔ Bank reference letter or payment history on two tradelines (credit card, mortgage, etc.)
2. DSCR Loan (Debt Service Coverage Ratio Loan)
Specifically designed for real estate investors, the DSCR Loan evaluates the income generated by the investment property instead of the borrower’s income. It’s a practical solution for expanding portfolios without personal financial constraints.
Requirements:
✔ DSCR ratio of 0.75+
✔ Minimum 25% down payment
✔ 6 months of PITIA cash reserves
✔ 12-month rental income history (for short-term rentals like Airbnb)
✔ Market rent appraisal or 12-month documented rental income
✔ Can close from the home country
3. Fix and Flip Loan
For investors looking to purchase, renovate, and resell properties, Fix and Flip loans provide short-term financing for both the purchase and renovation costs. They’re perfect for those seeking to capitalize on value-added projects and offer fast approval and closing timelines of less than seven days.
Requirements:
✔ 6-24 months loan term
✔ 25% – 30% down payment
✔ Up to 85% Loan-to-Cost (LTC) and 75% After Repair Value (ARV)
✔ Detailed renovation plan with cost estimates
✔ Proof of previous successful flip projects
4. Bridge Loan
This short-term financing solution helps real estate investors secure new properties while waiting to sell their current ones. It provides quick access to capital in less than 7 days without needing a US credit history.
Requirements:
✔ 6-24 months loan term
✔ 25% – 30% down payment
✔ Up to 75% LTV (Purchase)
✔ Up to 70% LTV (Rate term refinance)
✔ Up to 65% LTV (Cash-out refinance)
✔ Proof of existing property equity
✔ Exit strategy for loan repayment (e.g., property sale)
5. HomeAbroad’s US Newcomer Mortgage
HomeAbroad’s US Newcomer Mortgage program is ideal for L1 visa holders purchasing a primary residence without a US credit history. These loans assess financial stability through comprehensive documentation.
Requirements:
✔ Down payment: 20%
✔ No US credit is needed
✔ Max DTI Ratio: 43%
✔ Loan term: Up to 30 years
✔ Loan amount: Up to $3 million
✔ 6 months of cash reserves required
✔ Foreign assets accepted for down payment and closing costs
✔ No prepayment penalty
With an Established US Credit History
However, foreigners buying real estate in Texas with an established credit can qualify for traditional loans like FHA, Freddie Mac, and Fannie Mae.
1. FHA Loan
FHA Loans are mortgages insured by the Federal Housing Administration (FHA). As a result, FHA loans often have more lenient credit requirements and lower down payments than conventional loans; they’re especially popular with first-time homebuyers.
Requirements:
✔ This loan allows for a lower down payment of 3.5% and offers attractive, low-interest rates.
✔ To qualify for an FHA loan, applicants need a credit score of more than 500.
✔ Additionally, they must have verifiable employment and income records.
✔ While FHA loans benefit US citizens, stricter criteria may make it challenging for most foreigners and non-residents to qualify.
2. Conventional Loan
Conventional Loans are suitable for homebuyers with an established US credit history. They offer competitive terms for primary residences.
Requirements:
✔ Lenders require borrowers to meet specific criteria to be eligible for these loans.
✔ Conventional mortgage lenders typically prefer a credit score of 620 or higher from borrowers.
✔ A 43% or lower debt-to-income ratio is desirable for qualifying these loans.
✔ Finding a lender who works with foreigners and understands the process is essential for a smooth approval process.
At HomeAbroad, we simplify US real estate investments for foreign nationals by offering expert guidance and tailored mortgages. Whether you’re a newcomer or a seasoned investor, we’re here to make the process smooth and straightforward.
Texas offers a strong real estate market, affordable housing, and no state income tax, making it an attractive destination for foreign buyers. HomeAbroad simplifies the process by connecting international buyers with experienced mortgage lenders, real estate agents, and essential resources to ensure a seamless home-buying experience.
Rachel Spaccarotelli, Senior Customer Loan Manager, HomeAbroad | NMLS# 1497555
Let HomeAbroad help you achieve the same success in Texas!
Why Texas is a Top Choice for Foreign Home Buyers
Texas continues to attract international real estate investors, ranking as the second most popular state for foreign buyers in the U.S. Its strong economy, diverse housing market, and tax-friendly policies make it a prime destination. Here’s a data-driven look at why Texas remains a top investment hub for global buyers:
Key Factors | Major Benefits |
|---|---|
High Foreign Buyer Activity | Texas accounted for 13% of all foreign buyer transactions in the U.S. from April 2023 to March 2024, making it the second most popular state among international buyers. (NAR) |
Top Choice for Mexican Buyers | 37% of international real estate transactions in Texas were by buyers from Mexico, highlighting Texas as their preferred destination. (Statista) |
Diverse Buyer Demographics | 49% of Texas’s foreign buyers originated from Latin America and the Caribbean, while 31% came from Asia/Oceania, reflecting a broad international appeal. (NAR) |
Significant Economic Contribution | International homebuyers purchased nearly 10,000 homes in Texas from April 2020 to March 2021, contributing $4.9 billion to the state’s economy. (Texas A&M Real Estate Center) |
Preferred Property Types | Preferred Property Types |
These factors highlight Texas’s unmatched appeal to global investors. Texas offers strong returns, affordability, and a welcoming investment environment.
Own a Property in Texas with HomeAbroad
The Texas real estate market offers strong investment potential, with steady growth, affordable housing, and no state income tax—making it a top choice for global buyers.
HomeAbroad simplifies the process with tailored mortgage solutions, an AI-powered property search, and expert guidance to help you find the perfect home. From financing to LLC setup and property management, our end-to-end services ensure a seamless buying experience.
Whether investing in Texas or anywhere in the US, HomeAbroad is your trusted partner in turning your real estate vision into reality.
FAQs
What properties can I buy with a foreign national mortgage in Texas?
Foreign nationals can buy single-family homes, condos, townhouses, and investment properties. The type of property you can purchase may depend on the specific loan program and lender requirements.
Can you buy a house in Texas without a green card?
Yes, you can buy a house in Texas without a green card.
Do foreign nationals need a US credit history to buy a house in Texas?
Foreign national loans are tailored for foreign buyers without a US credit history. We use credit reports from your home country and other assessment methods to bypass the traditional credit check, making your foreign investments easily accessible.
How Does HomeAbroad Help?
"Democratizing US real estate for the world with our tailored offerings."
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