How to Buy a Home in Texas as a Foreign National
Written by Gabrielle Strout, Luxury Realtor in Cypress, TX
Can a foreign national buy a home in Texas?
Yes. Foreign nationals — including non-residents without a U.S. Social Security number — can legally purchase real estate in Texas and finance it through specialized mortgage programs.
If you're relocating to Houston for work or planning to invest in Texas real estate from abroad, the first thing you need to know is this: you don't need a green card, a U.S. passport, or even a U.S. bank account to buy a home here.
What you do need is the right agent, the right lender, and a clear understanding of a process that's different from what you're used to in your home country.
I'm Gabrielle Strout, a REALTOR® with Compass Real Estate in Houston, and I hold the Certified International Property Specialist (CIPS) designation — one of fewer than 4,000 agents in the U.S. to earn it. I work with buyers relocating to Houston from Europe, Latin America, Asia, and the Middle East regularly, and this guide covers exactly what the process looks like from the outside in.
First: Texas Has Almost No Restrictions on Foreign Ownership
Unlike some countries that limit foreign real estate ownership, Texas has only very few restrictions. Most people can own a home, a condo, a rental property, or vacant land as a non-citizen with the same rights as any U.S. buyer. There are a few exceptions that were recently implemented through Senate Bill (SB) 17 prohibiting certain individuals and entities connected to “designated countries” from purchasing or acquiring interests in real property in Texas.
The state's reputation for low property taxes (relative to income tax-heavy states), no personal state income tax, and strong employment markets — especially in the energy, medical, and technology sectors — makes Houston one of the most attractive markets in the country for international buyers.
According to the National Association of REALTORS®, Texas consistently ranks among the top three states for international home purchases. Houston alone draws buyers from more than 90 countries.
Step 1: Get Your ITIN — It's Very Helpful
If you don't have a U.S. Social Security number, your first step is applying for an Individual Taxpayer Identification Number (ITIN) through the IRS. This is a nine-digit number issued specifically for tax purposes — it's not a work permit or immigration document, and it doesn't indicate your immigration status.
You'll need an ITIN to:
Apply for a mortgage through most foreign national lending programs
File U.S. tax returns on any rental income or capital gains from the property
Establish a relationship with U.S. banks and financial institutions
You can apply for an ITIN using IRS Form W-7. Processing typically takes 7–11 weeks, so apply early. Many buyers handle this before they start touring homes. It’s important for financing and tax compliance but not strictly required for all purchases.
Step 2: Understand Your Financing Options
This is where most international buyers are surprised. You have more options than you think — but they're different from conventional loans.
ITIN Loans (Foreign National Mortgages)
Several U.S. lenders offer mortgage products specifically designed for non-U.S. residents. These programs use your ITIN instead of a Social Security number and underwrite the loan based on alternative criteria.
What lenders typically look at:
Foreign credit history — Many lenders accept international credit reports (particularly from credit bureaus in the EU, Canada, Mexico, and Australia)
Employment documentation — Offer letters, pay stubs, or employer verification letters, often translated and notarized
Bank statements — Typically 12–24 months of statements from your home country bank
Down payment — Foreign national loans generally require 20–30% down
Reserves — Lenders typically want to see 6–12 months of mortgage payments in liquid assets
Interest rates on foreign national loans are modestly higher than conventional U.S. loans — usually 0.5 to 1.5 percentage points above current market rates — because they're non-conforming products not sold to Fannie Mae or Freddie Mac.
Cash Purchases
A large percentage of international buyers in Houston purchase with cash. This simplifies the process significantly: no loan underwriting, faster closings, and stronger negotiating position. If you're purchasing through a corporate entity or family trust, your attorney and CPA should structure the ownership correctly from a tax perspective before closing.
U.S.-Based Financing for Established Residents
If you're relocating on a work visa (H-1B, L-1, O-1) and have been in the U.S. for at least two years with established U.S. credit, you may qualify for conventional financing at standard rates. Talk to a lender experienced with visa holders — the documentation requirements are specific but very manageable.
Step 3: Know the Tax Implications Before You Close
Buying real estate in the U.S. as a foreign national creates tax obligations you'll want to understand upfront.
FIRPTA (Foreign Investment in Real Property Tax Act): When you eventually sell the property, the IRS requires the buyer to withhold 15% of the gross sales price and remit it to the IRS as a tax deposit. This isn't necessarily your final tax liability — it's a withholding mechanism. Your accountant can file for a reduced withholding certificate if your gain is lower than 15% of the sales price.
Property taxes in Texas: Property taxes are assessed annually at the county level and are typically 1.5–2.5% of assessed value in the Houston metro, depending on the municipality and school district. There's no Texas state income tax, which offsets this significantly for high earners.
Rental income: If you rent the property while you're outside the U.S., that income is taxable in the U.S. You'll need to file a U.S. return and may owe taxes in your home country depending on your tax treaty status. Work with a CPA who specializes in cross-border real estate tax.
For more on FIRPTA and international tax obligations, the IRS Foreign Investors page is the authoritative source.
Step 4: The Closing Process in Texas
Texas real estate closings are handled by title companies — not attorneys, as in some other states. This is a key difference from many international markets where a notary or solicitor controls the closing.
Here's what to expect:
Accepted offer — Once your offer is accepted, you'll execute a Texas Real Estate Commission (TREC) contract, which is a standardized form. Your agent fills this out with you.
Earnest money deposit — Typically 1% of the purchase price, deposited with the title company within 3 business days of contract execution.
Option period — Texas contracts include an option period (usually 7–10 days) during which you can walk away for any reason for a small fee. This is your due diligence window.
Inspection — Hire a licensed Texas home inspector. Your agent can recommend qualified inspectors.
Title search and survey — The title company conducts a title search to confirm there are no liens or ownership disputes. A survey confirms the property boundaries.
Closing disclosure — You'll receive a closing disclosure 3 business days before closing showing all final costs.
Closing day — In Texas, you'll sign documents at the title company. If you're overseas, most transactions can be handled remotely via a Power of Attorney or electronic notarization, depending on your country.
Closing costs in Texas typically run 2–4% of the purchase price, covering title insurance, escrow fees, lender fees (if financing), and prepaid items like homeowner's insurance and property taxes.
Why Working With a CIPS Agent Matters
The CIPS designation isn't just a credential — it's a signal that your agent has been trained specifically in international real estate transactions, currency exchange considerations, visa and ownership structures, and cross-border communication protocols.
Most Houston agents have never facilitated a foreign national purchase. The documentation is different, the lender pool is different, and the tax implications require a specific kind of coordination with your attorney and CPA that takes experience to navigate well.
I've worked with buyers relocating from the Netherlands, France, Brazil, Australia, and the UK — and the details that trip up these transactions are almost never the property itself. They're the financial documentation, the title company's requirements for foreign identification, and FIRPTA compliance at the closing table.
If you're buying from abroad, you want someone who has done this before.
Houston: Why International Buyers Choose It
Houston is the most ethnically diverse major city in the United States, and it shows in the real estate market. International buyers find genuine community here — whether that's in the Westheimer corridor, Sugarland, or the Energy Corridor.
For energy professionals, the proximity to major operators and service companies along I-10 West is the obvious draw. For medical professionals, the Texas Medical Center — the largest in the world — anchors the southern part of the metro. For families, the suburban communities of Cypress, Katy, The Woodlands, and Sugar Land offer excellent infrastructure at a fraction of the cost of comparable global cities.
Compared to London, Singapore, or Sydney, Houston real estate is still a significant value — and the lack of state income tax makes the effective cost of living considerably lower than it looks on paper.
For current market data, HAR.com is the most comprehensive source for Houston MLS statistics.
Frequently Asked Questions
Can a foreign national get a mortgage in Texas without a Social Security number?
Yes. Foreign national mortgage programs use your ITIN (Individual Taxpayer Identification Number) instead of a Social Security number. These programs typically require 20–30% down and 12–24 months of international bank statements. Interest rates are slightly higher than conventional loans, but the programs are widely available through specialized lenders.
Do I need to be present in Texas to close on a home purchase?
Not necessarily. Texas allows remote closings through a Power of Attorney, and many title companies are experienced with international buyers who can't travel for the closing. Your REALTOR® and the title company can guide you through the remote signing process, which typically involves notarized documents through a U.S. consulate or embassy. Remote closing is often possible, but requirements vary by title company and country. It’s important to discuss your plans with your Realtor prior to going under contract on a property.
What taxes will I owe when I sell my Texas home as a foreign national?
When a foreign national sells U.S. real estate, FIRPTA requires the buyer to withhold 15% of the gross sales price as a tax deposit to the IRS. This is not necessarily your final tax liability — a tax professional can file for a reduced withholding certificate if your actual gain is less than 15% of the sale price. You may also have tax obligations in your home country depending on applicable tax treaties.
Ready to Buy in Houston?
The process is more straightforward than most international buyers expect — with the right team in place.
Schedule your complimentary and confidential consultation with Gabrielle Strout, REALTOR® and Certified International Property Specialist (CIPS) at Compass Real Estate, serving Houston, Cypress, Magnolia, Tomball, and Spring, TX.
📞 281-435-3729 | 🌐 GabrielleStrout.com
Sincerely,
Gabrielle Strout
REALTOR® | Compass Real Estate
281-435-3729 | GabrielleStrout.com