Buying property in the United States is open to noncitizens. Foreigners buying real estate in New York City are not limited to certain property types, and the city welcomes international buyers. You’ve got plenty of choices, from condos and co-ops to townhouses and new developments. Just be aware that the NYC real estate scene has its own unique rules that can catch you by surprise, especially when it comes to things like board approvals, financing, taxes, and timing. If you are among the many foreigners buying real estate in New York City, a little guidance goes a long way.
Before you make any decisions, it is important to speak with a qualified New York City foreign investment lawyer. Sishodia PLLC can help you compare property options, review contracts, work with your agent and lender, and set up the right purchase structure for your goals. For example, if the seller is not a US citizen, you may need to withhold FIRPTA at closing. We can explain how the process works and help you with every stage of the transaction. Contact us today at (833) 616-4646 for a smooth and secure path to your real estate goals.
Can a Foreigner Buy a House in the US?
You do not need to be a U.S. citizen to buy property in the United States. You have the same property ownership rights as citizens. You can buy a home, a rental, a commercial space, a vacation place, or land. No citizenship-based limits apply.
You may be asked for extra paperwork at closing. The list changes based on how you pay and your residency status. Paying cash usually means fewer documents. Using a mortgage means more checks and forms.
Some requirements for non-US citizen buyers often include:
- A foreign passport, US visa, or driver’s license.
- A Social Security number or an Individual Taxpayer Identification Number (ITIN) (not required to close an all-cash purchase, but often needed for obtaining a mortgage and for later U.S. tax reporting/withholding matters).
- Financial statements from the applicant’s foreign bank, if applicable.
- Evidence of financial assets and income, such as bank statements.
- Tax returns, preferably US tax returns if applicable.
Buying from abroad can feel tougher than it is for citizens. Financing is often the first hurdle, since many lenders are cautious with nonresident borrowers. Some property types are not a great fit for owners who live overseas. Taxes can also surprise you. Planning ahead allows you to save time and avoid stress.
Acquiring property in the United States as a foreign national can seem overwhelming. At Sishodia PLLC, our New York City foreign investment lawyers can help you manage the legal requirements, tax implications, and investment strategies for your specific situation. Our attorneys can guide you through the legal details for purchasing a dream home, an investment property, or a vacation retreat. Contact us today to schedule a consultation.
Can a Foreigner Get a Mortgage in New York?
Yes, a foreigner is eligible to obtain a mortgage in New York. The process is open to non-U.S. citizens, including those with work visas, green cards, and even foreign nationals without a U.S. residence. Lenders in New York generally require more documentation from foreign buyers, such as proof of income, employment, and a substantial down payment.
Foreign buyers may also need to establish a U.S. credit history, although some lenders are willing to accept international credit reports. The mortgage terms and interest rates might differ from those available to U.S. citizens, and additional costs, such as higher interest rates or private mortgage insurance, could apply.
Foreign buyers should work closely with professionals who are knowledgeable about U.S. real estate transactions. Clear communication and a thorough understanding of both U.S. and international financial regulations are crucial to ensuring a smooth transaction. Additionally, understanding the implications of U.S. tax laws for foreign property owners is vital. In New York, several banks and financial institutions are willing to extend mortgage loans to foreign nationals, provided they meet the necessary criteria.
Because many factors are involved, consulting a New York City foreign investment lawyer is highly recommended. They can provide valuable guidance on the mortgage process, aid in complying with local laws, and protect your investment. With careful planning and the right support, foreign nationals can successfully invest in New York real estate and secure a mortgage tailored to their unique situation.
Buying a Condo or Co-op as a Foreigner
Besides rental units, there are two predominant forms of apartment housing in New York City – the condominium and the co-op. While condos and co-ops are similar in structure, they each have differentiating characteristics.
Condos
Condos offer apartment ownership where the buyer owns the unit they live in and a portion of the common areas of the building. A condo owner will pay monthly maintenance to care for these common areas, which are typically maintained by a professional management company.
Condos generally have fewer rules and restrictions than co-ops and are more flexible for investors, though specifics depend on each building’s by-laws. Unlike co-ops, condo purchasers typically do not need the board’s approval. Instead, most condo boards have a right of first refusal, letting them review a sales contract. They can then issue a waiver or, in rare cases, buy the unit themselves on the same terms.
Co-ops
Co-ops are also apartment dwellings, but unlike condos, the building is owned by a Cooperative Housing Corporation, and the buyer buys a share in the corporation with a proprietary lease on the unit rather than owning it outright.
While co-ops are usually more reasonably priced and can be perfect for some buyers, they are typically less suitable for foreigners and investors. While it is not impossible for an international buyer to purchase a co-op unit, co-op boards tend to be very demanding, and a foreign purchaser may find the whole ordeal much more challenging.
Approval by the co-op board of directors can be time-consuming and difficult. Co-op boards typically want to see that their shareholders have established credit in the United States, work here, and file a U.S. tax return. They also usually have stringent rules on renting out, subletting, or renovating units. When an owner goes to sell their unit, it will be subject to the approval of this board as well, which can turn down any prospective buyers.
Financing For Foreign/International Buyers
A mortgage loan financing option is available for foreign buyers. It can be obtained through either a U.S. or a non-U.S. bank. Downpayment amounts depend on the lender and the borrower’s financial profile. For programs assisting foreign nationals, a down payment of 25% to 40% is common, and investors may be required to pay more.
Financing allows the buyer to leverage funds and magnify returns. For example, an investor might buy a condo for $1 million cash and get the appreciation benefit of one apartment. If the investor is able to obtain mortgage financing with a down payment of 50%, he can buy two apartments and benefit from the appreciation of both properties.
There are two ways to finance foreign buyers:
- U.S. lender financing: This is an option that can be arranged easily through a U.S. bank. For programs available to foreign nationals, the minimum down payment is typically between 25% and 40%, and proof of liquid funds is also needed. When a mortgage is recorded in New York City, a Mortgage Recording Tax applies. For residential condos and homes with one to three families, the tax is 1.8% of the loan amount for mortgages under $500,000. For mortgages of $500,000 or more, the rate is 1.925%.
- Home country financing: You avoid the New York Mortgage Recording Tax when your home-country lender does not record the mortgage in the state. If the lender records it, the tax applies normally. Before choosing a loan, compare all associated costs, including rates, fees, and the potential mortgage recording tax.
An international investor must do a cost-benefit analysis before choosing which financing suits them best. It is a matter of comparing loan terms and amortization periods, interest rates, costs, etc. Speaking to an experienced foreign investment lawyer may help.
Sishodia PLLC has a team of NYC real estate attorneys who are experienced in dealing with foreign investments. They may be able to help you understand which type of financing will suit your needs best. Contact us today to schedule a consultation.
| Feature | Condos | Co-ops |
|---|---|---|
| Ownership Structure | Buyer owns the unit and a share of common areas | Buyer owns shares in a housing corporation with a proprietary lease |
| Board Approval | Usually no board approval; only a right of first refusal | Strict board approval required; can reject buyers at purchase or resale |
| Suitability for Foreign Buyers | Generally more accessible and flexible | Often difficult due to board demands (U.S. credit, tax returns, employment) |
| Rules and Restrictions | Fewer restrictions; more flexible for renting and investing | More restrictive; limitations on subletting, renovations, and resale |
| Price Range | Usually more expensive upfront | Often less expensive but harder to qualify for |
| Management | Managed by professional management companies | Governed by co-op board with strict oversight |
New York City Foreign Investment Lawyer – Sishodia PLLC
Natalia A. Sishodia, Esq., LL.M.
Natalia A. Sishodia is a seasoned New York City attorney who crafts individualized strategies for domestic and international clients in real estate, business law, elder law, estate planning, and taxation. Fluent in English and Russian, she routinely guides clients from Russia, Switzerland, Japan, Canada, the UK, the UAE, India, Turkey, China, South Korea, Italy, France, Singapore, Bulgaria, and Ukraine on matters centered in New York. Trusted by high-net-worth individuals, celebrities, businesses, and leading mortgage lenders, Ms. Sishodia is known for meticulous preparation and clear, client-focused counsel.
Her legal work centers on high-end real estate transactions, including condo and co-op purchases and sales, single-family and multifamily deals, new developments and conversions, deed transfers, leasing, lending, and 1031 exchanges. She has negotiated and closed hundreds of New York transactions and is recognized for producing “stress-free” closings. Beyond transactions, her private client work includes multijurisdictional wealth management, cross-border tax and estate planning for individuals, businesses, and trusts, as well as tailored solutions for digital assets and cryptocurrency in estate plans.
A believer in service, Ms. Sishodia has contributed at the United Nations (DESA and the Convention on the Rights of Persons with Disabilities), supports Travelogion’s programs for post-treatment brain cancer patients, and regularly delivers legal education seminars. Her honors include the Award for Outstanding Achievement in International Law and the Avvo Client’s Choice Award. She is admitted to practice in New York State.
Other Challenges For Foreign Purchasers
Foreign purchasers can access conventional mortgages if they are lawful U.S. residents; Fannie Mae permits loans to non-U.S. citizens under the same terms as U.S. citizens when eligibility is met. Nonresident foreign nationals (no U.S. residence) typically use “foreign national” or portfolio programs that involve additional documentation, higher down payments, and potentially higher rates.
While there are several available lenders for foreign nationals, they tend to require larger down payments and charge higher interest rates than traditional conventional lenders.
Do Foreign Buyers Pay Extra Taxes or Fees in New York?
If you are thinking about buying property in New York as a foreign investor, you may have heard rumors about extra taxes or penalties. The good news is that you are not singled out. Foreign buyers pay the same taxes and fees as local buyers. There is no special surcharge, stamp duty, or penalty just because you are not a U.S. citizen.
What you will encounter are the standard closing costs that apply in New York. Transfer taxes are typically seller-paid unless the contract says otherwise. The seller generally pays the New York State transfer tax (0.4%) and the NYC Real Property Transfer Tax (RPTT). For residential properties (1–3 family homes, individual condos, and co-ops), NYC’s RPTT is 1% for sales $500,000 or less and 1.425% for sales over $500,000. For property purchases of $1,000,000 or more, the buyer is responsible for a 1% state tax. In New York City, this tax increases with the price. The rate climbs incrementally on more expensive properties, reaching a maximum of 3.9% on the highest-priced homes.
Your actual closing costs will also include items like title insurance, mortgage recording tax (if financing), and attorney fees. Again, these are standard for everyone. The only additional expenses you might choose to take on are structuring your purchase through an LLC or trust. Many New Yorkers do this too, often for privacy or estate planning reasons.
Working with a real estate attorney can help you understand how these taxes apply to your purchase and what strategies make sense for your situation.
Getting Experienced Assistance as a Foreign Buyer
The best way for a foreign buyer to understand their options for buying property and financing this purchase in New York City is to get the advice of an experienced New York City real estate lawyer. At Sishodia PLLC, we have worked with international clientele from around the world, helping them make knowledgeable and educated decisions about real estate purchases in New York City. Contact our skilled NYC real estate attorneys at (833) 616-4646 or schedule a consultation with us via our online contact form.
