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Key Takeaways:
1. Foreign nationals can buy property in California without US citizenship or a visa.
2. Mortgage options are available for foreign buyers even without a US credit history.
3. HomeAbroad provides a one-stop platform with tailored financing and personalized support for global buyers.
Table of Contents
California has long been a top choice for international real estate buyers, thanks to its strong economy, diverse property options, and potential for high returns. In 2024, 11% of all foreign homebuyers in the US chose California, making it the third most popular state for international real estate investment.
The good news? Foreigners can buy property in California without US citizenship or residency. Understanding the process will help ensure a smooth and successful investment.
This guide covers everything you need to know from financing options to a step-by-step breakdown of the home-buying process.
Requirements to Buy Property in California as a Foreigner
While foreign nationals are legally allowed to purchase real estate in California, there are a few essential requirements you’ll need to meet to ensure a smooth transaction.
1. Valid Passport or Government-Issued ID
A valid passport or equivalent government-issued photo ID is required for identity verification during transactions and when interacting with agents, banks, or lenders.
2. Proof of Funds
You’ll need to show documentation proving you have sufficient funds to purchase the property.
3. Pre-Approval (If Financing)
If you plan to use a mortgage, getting pre-approved by a trusted lender is a key step. As a specialized mortgage platform, HomeAbroad simplifies this process for foreign buyers from start to finish.
Pre-qualify for a US mortgage as an international buyer.
No US credit history needed.
Meeting these basic requirements sets the foundation for a successful purchase. If you’re planning to finance your property, let’s explore the mortgage options available to foreign buyers in California.
Foreign National Mortgages
Securing a mortgage as a foreign national in California is possible even without US credit history, citizenship, or permanent residency. I’ve worked with many global buyers to help them successfully secure mortgage financing and turn their California real estate goals into reality.
At HomeAbroad Loans, we offer tailored mortgage solutions specifically for foreign nationals. Whether you’re investing in rental property or planning for relocation, our mortgage options allow you to qualify even without a US credit history.
To explore all the mortgage options available for foreign buyers, including eligibility criteria, and required documentation, check out our complete Mortgage Guide for Foreign Nationals.
Steps to Buying Property in California for Foreigners
Buying property in California as a foreign national follows the same core process as it does for local buyers. HomeAbroad offers a streamlined path tailored to global buyers, making it easier to find, finance, and close on your ideal property in the US.
Here’s a quick overview of the key steps:
- Step 1 – Get Started with HomeAbroad Loans
- Step 2 – Connect with a HomeAbroad Mortgage Officer
- Step 3 – Get Preapproval
- Step 4 – Gather Your Documents
- Step 5 – Make an Offer on Your Dream Home
- Step 6 – Lock in Your Interest Rate
- Step 7 – Underwriting & Appraisal
- Step 8 – Closing
For a complete breakdown of each stage, check out our Home Buying Guide for Foreign Nationals, where we outline the entire process and provide actionable guidance tailored for international buyers.
Case Study: UK Investor Secures Property in California Without a US Credit History
James Taylor, a UK-based professional, had always dreamed of owning a property in the US. But he wasn’t sure if it was even possible for him, considering he wasn’t a US citizen and had no US credit history.
That changed when he connected with HomeAbroad. Our team helped James explore investment opportunities in San Francisco and secure a DSCR loan based entirely on the property’s rental income. With dedicated support every step of the way, he was able to move forward confidently and make his US real estate dream a reality.
Property Details:
Location: San Francisco
Property Value: $437,500
Monthly Rental Income: $4,308
Loan Details:
Loan Amount: $328,125
Down Payment: 25% ($109,375)
Interest Rate: 7.2%
Loan Term: 30 years
Monthly Mortgage (PITIA): $2,986
DSCR Calculation:
DSCR = Gross Rental Income ÷ PITIA
DSCR = $4,308 ÷ $2,986
DSCR = 1.44
With the help of HomeAbroad, James secured a DSCR loan that allowed him to qualify based on the property’s rental income. He now earns a healthy monthly cash flow of $1,322 from his investment in San Francisco.
With years of experience working with global buyers, I’ve seen where the common roadblocks are and what really helps move things forward. I focus on providing solutions that match your background and goals, and I make sure you feel supported from start to finish.
Rachel Spaccarotelli, Sr. Customer Loan Manager, HomeAbroad
Tax Implications for Foreign Buyers
Foreign nationals buying property in California should be aware of the tax obligations that come with owning US real estate. If your home country has a tax treaty with the US, it may help reduce your tax liability and protect you from double taxation.
You may be subject to US income tax on rental income, annual property taxes, and potential capital gains tax if you sell the property in the future. In some cases, FIRPTA (Foreign Investment in Real Property Tax Act) may also apply at the time of sale.
To learn more about these tax considerations, explore our full Tax Guide for Foreign Nationals.
Common Challenges and How to Overcome Them
Buying property in California as a foreign national can be incredibly rewarding, but it also comes with a few unique challenges. Here’s how to overcome them with the right approach and expert guidance.
1. Understanding Local Real Estate Markets
Foreign nationals may not be familiar with regional trends, property values, or zoning laws in California leading to uninformed or risky decisions.
Solution: Connecting with a real estate agent who specializes in working with international buyers can make all the difference. At HomeAbroad, our CIPS-certified agents understand the California market and provide the guidance foreign nationals need to make confident, well-informed investment decisions.
2. Securing Financing
Securing a mortgage can be difficult without a US credit history, and many traditional lenders may require strong credit and a large down payment.
Solution: Instead of relying on traditional lenders, explore foreign national mortgage options designed for foreign nationals. HomeAbroad offers tailored mortgage solutions that don’t require a US credit history, making it easier to finance property in the US.
3. Understanding US Tax Laws
Understanding US tax responsibilities, such as property tax, rental income tax, capital gains, and FIRPTA, can be challenging, especially if your home country has different systems.
Solution: HomeAbroad offers consistent support and flexible communication so you can manage your transaction smoothly from anywhere in the world, without unnecessary delays or confusion.
4. Time Zone and Communication Barriers
Coordinating with agents, lenders, or other professionals in a different time zone can create delays or miscommunication.
Solution: At HomeAbroad, we offer flexible communication options and ensure seamless coordination with our global clients across different time zones.
At HomeAbroad, we bring years of experience in helping foreign nationals successfully invest in US real estate. With expert CIPS agents, tailored mortgage solutions, and professionals who understand the cross-border buying process, we serve as a one-stop platform to simplify your journey and help you make informed, confident decisions every step of the way.
Conclusion
Buying property in California as a foreign national is not only possible. With the right support and financing options, it’s a realistic and rewarding opportunity. From steady rental income to long-term property appreciation, the benefits of investing in California real estate can be significant.
At HomeAbroad, we specialize in helping international buyers turn these opportunities into reality. From mortgage solutions that do not require a US credit history to expert guidance on the entire purchase process, we offer everything you need to simplify your property purchase in California.
Ready to take the next step? Get started with HomeAbroad and make your California real estate goals a reality.
Pre-qualify for a US mortgage as an international buyer.
No US credit history needed.
FAQs
Can foreigners buy property in California without a visa or green card?
Yes, foreigners can legally buy property in California without a visa, green card, or any immigration status. There are no residency or citizenship requirements to purchase real estate in the US.
Do I need a US credit history to get a mortgage as a foreign buyer?
No, HomeAbroad offers tailored foreign national mortgages that don’t require a US credit history. We also offer DSCR loans, which allow you to qualify based on the property’s rental income rather than personal income or credit score.
How much down payment is typically required for foreign buyers?
At HomeAbroad, most foreign national mortgage programs require a minimum down payment of 20% to 30%, depending on the loan type and the buyer’s financial profile.
At HomeAbroad, we ensure the reliability of our content by relying on primary sources such as government data, industry reports, firsthand accounts from our network of experts, and interviews with specialists. We also incorporate original research from respected publishers when relevant. Discover more about our commitment to delivering precise and impartial information in our editorial policy.
National Association of Realtors: 2024 International Transactions in U.S. Residential Real Estate
