How International Buyers Purchase U.S. Real Estate in Boston
Michelle Easter May 2, 2026
Michelle Easter May 2, 2026
If you're asking how the US home buying process works for international buyers, the short answer is: it's more accessible than most people assume. At the federal level, foreign nationals have the same legal right to purchase residential property as U.S. citizens, no visa, green card, or special permits required.
What makes it complicated isn't the eligibility. It's the layers that come after: the ITIN application, the non-resident mortgage programs, the FIRPTA withholding rules, and closing costs that look different when you're wiring funds from overseas. Getting these steps out of order costs money and time, sometimes both at once.
Easter Entwistle Advisors runs a dedicated international division with Mandarin-language support, handling these details daily for overseas buyers navigating the Boston market. This guide distills what that experience looks like in practice, walking you through the full process from first documents to keys in hand.
The legal foundation is simple: non-resident aliens and non-U.S. citizens can buy residential real estate anywhere in the United States. No federal restrictions apply based on nationality for residential purchases. Some states have introduced scrutiny around large agricultural landholdings, particularly involving buyers from certain foreign nations, but single-family homes, condominiums, and multi-family residential properties remain fully open to international buyers. Confirm the current rules in your target state with a local real estate attorney, because state-level regulations do evolve.
The documents you'll need before making an offer are straightforward but require advance preparation. Your valid passport serves as your primary identification. You'll also need proof of funds or a mortgage pre-approval letter, proof of a foreign address (a utility bill or official bank statement works), and any purchase-specific documentation required by the title company. Having proof of funds ready upfront signals credibility to sellers and listing agents, financing uncertainty is a common reason deals fall apart.
The one document that trips up most international buyers is the Individual Taxpayer Identification Number (ITIN). Issued by the IRS via IRS Form W-7, it's commonly needed for opening a U.S. bank account, qualifying for most mortgages, and fulfilling tax obligations, though individual bank and lender policies vary. IRS guidance indicates processing currently runs approximately 7 weeks to 3 months, sometimes longer during tax season; check irs.gov for the latest timelines. Apply early, before you're under contract, not after.
A category of lenders specifically exists for non-resident buyers. Foreign national loan programs, also called portfolio loans, are offered by lenders including Griffin Funding, Quontic Bank, New Omni Bank, HSBC Bank USA, and others who work regularly with overseas buyers. These programs don't require a U.S. credit history. Lenders instead accept foreign bank statements, foreign credit reports, or letters of credit as alternative documentation. Not every major bank participates, so working with a lender experienced in non-resident transactions saves weeks of wasted applications. For a practical overview of foreign-national mortgage requirements see New Omni Bank's foreign-national mortgage guide.
The trade-offs are real and worth understanding upfront. Foreign national mortgage programs typically require 25 to 40 percent down, compared to 3 to 20 percent for U.S. residents. Interest rates run higher than qualified mortgage rates because these are portfolio loans held by the lender rather than sold on secondary markets. Green card holders and H-1B visa holders can sometimes qualify for conventional financing with more favorable terms, so your visa status matters when evaluating options. If you'd like a practical breakdown of mortgage options and documentation pathways for immigrants, this mortgage guide for immigrants provides useful context.
Many international buyers, particularly those purchasing investment properties or second homes, choose to buy all-cash to avoid lender complexity entirely. Cash buyers still need proof of funds documentation, but they bypass appraisals, lender fees, and lengthy underwriting timelines. In competitive markets, a cash offer carries meaningful negotiating weight that a foreign national loan program simply can't replicate.
FIRPTA, the Foreign Investment in Real Property Tax Act, is a withholding rule that applies when a foreign seller sells U.S. real estate. As the buyer, you are legally responsible for withholding a portion of the sales price and remitting it to the IRS. The rates are tiered: 0 percent if you intend to use the property as a primary residence and the price is under $300,000; 10 percent for purchases between $300,001 and $1 million used as a residence; and 15 percent above $1 million regardless of intended use. If you're buying from another foreign seller, you carry withholding responsibility, and non-compliance makes you liable for the tax plus penalties. (See IRS Forms 8288 and 8288-A for the full compliance requirements.) For the official IRS guidance on withholding and compliance see FIRPTA withholding guidance.
Once you own U.S. property, rental income is subject to U.S. federal taxation, typically 30 percent withholding on gross rental income unless you elect net-income treatment via Form 1040-NR. Capital gains on a future sale are reportable on the same form, with FIRPTA withholding crediting against your actual tax liability. Long-term capital gains rates apply after 12 months of ownership. Most states layer additional withholding obligations on top of federal rules, so the total picture varies depending on where you buy.
The estate tax exposure is the part most international buyers miss entirely. Non-resident aliens face a federal estate tax exemption of only $60,000 on U.S.-situs assets, compared to over $15 million for U.S. citizens in 2026. U.S. real property is classified as a U.S.-situs asset, meaning it's directly exposed. A cross-border tax attorney can structure ownership through a foreign corporation, specialized trust, or other tailored vehicle to address this exposure before closing, note that a standard U.S. LLC often does not provide the same protection, so the right structure depends on your specific situation. Have this conversation with counsel before you close, not after.
Start your property search by working with a licensed buyer's agent who has direct experience with non-resident transactions. Access to MLS listings is standard, but serious buyers also benefit from off-market inventory sourced through advisor networks, particularly in competitive luxury markets where the best properties never hit public listings. Your proof of funds documentation needs to be ready before you make an offer; sellers want assurance that an overseas buyer can actually close. Earnest money deposits typically run 1 to 3 percent of the purchase price and are held in escrow.
Once an offer is accepted, escrow opens with a title company or real estate attorney, depending on the state. Massachusetts is an attorney-closing state, which means a real estate attorney handles the settlement rather than a title company. The inspection contingency period, commonly 10 to 15 business days, though the exact timeframe varies by state and contract, is your window to hire licensed inspectors, identify issues, and negotiate repairs or credits. A title search confirms clear ownership history. FIRPTA compliance review happens at closing, not during the inspection window, but it directly affects how the closing statement is prepared.
Non-resident buyers routinely close without traveling to the U.S. Options include remote online notarization, an apostilled power of attorney executed abroad, or coordination with a U.S.-based attorney who can sign on your behalf. Wire transfers for closing funds require advance coordination, confirm cutoff times with your bank and title company well in advance, as requirements vary. Budget approximately 0.5 to 1.5 percent for currency conversion costs on international wires; that line item doesn't appear in domestic buyer guides, but it's real.
Buyer closing costs in the U.S. run 2 to 5 percent of the purchase price. On a $1 million property, that's $20,000 to $50,000. The main components are lender origination fees (0.5 to 1.5 percent), title insurance and escrow or attorney fees ($2,500 to $5,000 depending on market), prepaid property taxes (3 to 6 months deposited into escrow), homeowners insurance prepayment, and recording fees. Cash buyers skip lender fees, bringing the total closer to 1 to 3 percent. In Massachusetts, the deed excise tax is paid by the seller, not the buyer, a favorable distinction compared to markets like New York where buyer transfer taxes can add meaningful cost. (See Expert Advice for Selling in MA | Easter Entwistle Advisors.)
Ongoing ownership costs are where international buyers consistently underestimate the numbers. Property taxes vary by municipality; in Massachusetts, rates commonly fall in the range of 0.9 to 1.5 percent of assessed value annually, though buyers should verify current rates with the local assessor. Non-residents don't qualify for the homestead exemption available to primary residents.
Add homeowners insurance ($1,500 to $3,000 or more annually), HOA fees where applicable, and property management if you're not living in the U.S. full time, typically 6 to 10 percent of monthly rental income. On a $500,000 property, budget $15,000 to $40,000 per year in carrying costs depending on location and use.
Many agents lack the specialized cross-border experience needed to walk an overseas buyer through FIRPTA compliance, ITIN applications, non-resident mortgage referrals, and remote closing logistics at the same time. A generalist handles the transaction. A specialist handles the full picture: connecting you with cross-border tax counsel, currency exchange professionals, international title specialists, and property managers who understand non-resident ownership obligations. Look for agents with documented international transaction experience.
Language and cultural fluency matter more than people expect in a high-stakes transaction. Easter Entwistle Advisors operates a dedicated Chinese Buyer Services division offering Mandarin-language guidance, WeChat communication, and deep expertise in school district selection, a primary driver for many Chinese-speaking families purchasing in the Boston market. Their international division extends that depth of service to buyers from other countries navigating the US home buying process for the first time, with multilingual support and the kind of local market access that comes from years of working in the Boston luxury residential market.
When evaluating a market from thousands of miles away, that combination of local depth and specialist reach isn't a luxury. It's what determines whether the process is smooth or expensive.
Understanding how the US home buying process works for international buyers starts with recognizing that the process is genuinely accessible. What requires attention is the sequence: ITIN first, financing structure second, tax planning before you close, and a full cost model before you commit. Get those in order and the transaction itself is straightforward.
The buyers who navigate this smoothly aren't the ones who researched the most. They're the ones who assembled the right team early: a buyer's agent experienced with non-resident transactions, a cross-border tax attorney, and a lender who actually works with foreign nationals regularly. Each one handles a piece of the picture the others don't.
If you're considering property in the Boston area and want guidance from a team that has walked international buyers through this process across multiple languages and markets, Easter Entwistle Advisors is a practical starting point. Their international division handles exactly this, ITIN logistics, non-resident financing referrals, FIRPTA compliance, and multilingual support across the full transaction.
Foreign nationals can purchase U.S. residential property without a visa or green card. The process broadly follows the same steps as a domestic purchase, offer, escrow, inspection, and closing, but with additional preparation around your ITIN, non-resident financing, FIRPTA withholding obligations, and remote closing logistics. Working with a buyer's agent who specializes in non-resident transactions is the most efficient way to manage those layers.
You don't need an ITIN to make an offer, but you'll commonly need one for mortgage qualification and to meet tax filing obligations as a property owner. Apply via IRS Form W-7 well before you go under contract, processing currently takes approximately 7 weeks to 3 months.
FIRPTA (Foreign Investment in Real Property Tax Act) requires the buyer to withhold a percentage of the purchase price when buying from a foreign seller and remit it to the IRS. Withholding rates are 0%, 10%, or 15% depending on the price and intended use. If you're buying from a U.S. citizen or permanent resident, FIRPTA typically doesn't apply. Your real estate attorney or title company will handle the compliance paperwork at closing.
Yes. Specialist lenders offer foreign national loan programs that accept alternative documentation, such as foreign bank statements or letters of credit, in place of a U.S. credit history. Expect to put down 25 to 40 percent and pay rates above conventional mortgage levels. Many international buyers also choose to purchase all-cash to simplify the process.
Disclaimer:
The information provided in this article is for general informational purposes only and is not intended as legal, tax, or financial advice. While every effort has been made to ensure accuracy, laws, regulations, and market conditions are subject to change, and errors or omissions may occur. Readers are advised to consult with qualified legal, tax, and financial professionals regarding their specific circumstances before making any real estate decisions.
We don't just close deals; we build portfolios and long-term wealth. Whether you are an international buyer or a local seller, we provide a concierge experience that manages every detail. Reach out to us to experience the power of having a dedicated advisory team in your corner.
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