To buy a home in the U.S. as a non-local resident, first secure pre-approval from a mortgage lender specializing in foreign national loans. These lenders often require a higher down payment (20-35%) and may need a U.S.-based cosigner. Next, search for properties in areas with foreign-friendly programs, such as certain states or developments offering non-domiciled buyer options. Secure a purchase agreement with a real estate attorney to address title insurance, escrow, and tax implications. During closing, wire funds through a U.S. bank and ensure compliance with IRS reporting for foreign-owned property.

Non-residents face unique challenges due to stricter lending criteria and higher down payment requirements compared to U.S. citizens. According to the National Association of Realtors (NAR), foreign buyers represented 7% of U.S. home purchases in 2022, with a median purchase price of $535,000. Lenders like Fannie Mae and Freddie Mac restrict non-resident loans to conforming loan limits ($766,550 in 2024), necessitating jumbo loans for higher-priced properties. The Federal Housing Finance Agency (FHFA) data shows non-residents typically pay 15-20% more in mortgage interest rates due to perceived risk. Tax obligations include federal income tax on rental income (up to 30%) and state-level property taxes (average 1.2% of assessed value, per the Tax Foundation). Title insurance costs average $1,000-$2,000, and closing fees range from $5,000-$10,000, depending on the state. These factors, combined with the 2023 World Bank Ease of Doing Business Index ranking the U.S. 31st for construction permits, highlight the importance of professional guidance for non-resident buyers.