Buying a House in USA as an Expat
Are you considering buying a house in USA but don’t know where to start?
If the idea of owning a property in the United States is your dream, you are not the only one.
With its iconic cities, sprawling landscapes, and endless lifestyle options, the USA continues to attract international buyers looking for something more, whether it’s a sun-drenched coastal hideaway, a chic Manhattan apartment, or a spacious suburban home.
The good news? You don’t need to be a U.S. citizen to buy a house here.
In fact, the process is surprisingly accessible if you’re well-informed and know what to expect.
Whether you’re planning a long-term relocation, looking for a high-yield investment, or searching for the perfect holiday base, owning U.S. property can be both emotionally rewarding and financially smart.
There are plenty of reasons to take the plunge, from potential tax perks and rental income to the long-term value of real estate appreciation.
Best of all, U.S. property laws offer solid protections to foreign owners, so your investment is well-secured.
This guide covers everything you need to know about choosing the right location, understanding local regulations, securing financing, and more.
By the end, we will be equipped with all the tools to navigate the American property market confidently.
So, if you’re ready to turn the dream into a plan, let’s get started.
What Makes the USA an Ideal Place to Buy?
Several factors make America a good place to buy a home.
Beyond its investment appeal, the United States offers British expats a rare combination of the familiar and the exciting.
It’s a country where you can enjoy many home comforts while stepping into a distinctly American lifestyle.
One major advantage? There’s no language barrier to worry about. While you might need a moment to adjust to regional accents or the odd local idiom (think “faucet” instead of “tap” or “cookie” for “biscuit”), everyday communication is easy, and that makes a huge difference when it comes to settling in.
For many UK buyers, the similarities between British and American life provide reassurance.
Much of the culture feels comfortably familiar, from shared media and music to comparable legal systems and globally recognised brands.
At the same time, each U.S. state brings its flavour, whether it’s the Southern charm of Georgia, the high-octane energy of New York, or the laid-back lifestyle of California.
Whether you’re a student heading overseas for education, a family ready to make a fresh start, or a retiree looking for sun and space, buying a home in the USA unlocks a world of exciting possibilities.
Understanding Legal Requirements for Foreign Buyers
Having a strong understanding of the legal requirements is essential when buying a house in USA.
The United States maintains an open policy regarding foreign property ownership.
Non-U.S. citizens are permitted to purchase real estate without specific restrictions.
However, it’s important to note that owning property does not confer residency or immigration status. Therefore, if you intend to reside in the U.S., you must obtain the appropriate visa.
While property ownership can support specific visa applications, it doesn’t guarantee approval.
Take time to research your visa options thoroughly.
A good place to start is the US embassy’s website. Based in London, the embassy is an excellent source of important information.
No matter what visa you are trying to obtain, getting it right is crucial because the United States is extremely strict about it.
Financial Considerations and Budgeting
Managing your finances is essential when buying a home in USA.
Before embarking on your property search, it’s vital to assess your financial situation thoroughly.
The “idea” of relocating to the States is very appealing.
However, it is crucial that you budget for every eventuality; getting it wrong could be disastrous.
Budgeting: Establish a realistic budget that includes the property’s purchase price, closing costs, taxes, insurance, and ongoing maintenance expenses.
As of April 2025, the median home price in the U.S. is approximately $396,900 (£307,240).
Financing Options: While securing a mortgage as a foreign national is possible, it generally requires a larger down payment, typically around 20-30%, and comes with higher interest rates.
Lenders will evaluate your credit history, income, and employment status.
Obtaining an Individual Taxpayer Identification Number (ITIN) from the Internal Revenue Service (IRS) is often necessary for tax purposes and can facilitate financial transactions.
For more detailed insights, visit resources like the Homebuying Institute, which can help guide your investment choices.
What Costs Expats Should be Aware of?
Aside from the high deposit to get a mortgage (if you need one), there are other associated costs to consider.
Closing costs typically range from 2% to 5% of the purchase price and cover legal fees, inspections, taxes, and title insurance.
Property taxes vary by state but can average around 1.1% annually.
Please also consider ongoing expenses like homeowners’ insurance, maintenance, and utilities.
Ongoing expenses include homeowners’ insurance, general maintenance, and utility bills.
Are you planning to rent it out?
You should also factor in rental income tax and the cost of a property management service.
Also, remember currency exchange fees and international transfer charges when moving money across borders.
While the costs can add up, working with an experienced estate agent and legal expert will help you avoid surprises and stay on track.
Engaging Real Estate Professionals
Having the support of trusted local real estate experts is essential.
Navigating the U.S. real estate market can be complex if you have little knowledge of it, making the engagement of experienced professionals invaluable:
- Real Estate Agents: Partner with a licensed real estate agent familiar with the local market and experienced in working with international buyers. They can provide insights into neighbourhoods, market trends, and assist in negotiations.Greenback Expat Tax Services+2Our Midland+2Wise+2
- Legal Advisors: Hire a real estate attorney to ensure all legal aspects of the transaction are handled appropriately, including contract reviews and compliance with local laws.Wise
The Experts You Will Need on Your Side
Buying property in the USA as a UK expat comes with a unique set of challenges, so surrounding yourself with the right professionals is essential to a smooth, successful purchase.
Work with a Trusted Real Estate Agent
A local, licensed real estate agent with experience working with international buyers can make all the difference.
They will help you identify suitable neighbourhoods, understand market trends, negotiate a fair price, and guide you through each stage of the process.
Look for agents affiliated with the National Association of Realtors (NAR). Search their database to find a reputable agent near you.
Hire a U.S.-Based Real Estate Attorney
Unlike in the UK, not all U.S. states require you to use a solicitor when buying property. However, hiring a qualified real estate attorney is highly recommended.
They will ensure your contract is watertight, review title documents, and confirm you meet all legal requirements. You can find state-approved attorneys via www.americanbar.org.
Get Expert Tax Advice
As a non-resident buyer, tax implications can be tricky, especially if you plan to rent out the property.
Firms like Greenback Expat Tax Services specialise in helping expats understand U.S. tax laws, avoid double taxation, and stay compliant with the IRS.
Consider Using a Currency Specialist
To transfer large sums of money from the UK to the USA, consider using a currency exchange platform like Wise.
These platforms often offer better rates and lower fees than high-street banks.
Building a knowledgeable and trustworthy support team around you will help you avoid costly mistakes and feel far more confident navigating the American housing market.
Selecting the Right Location
Choosing the right places to live is a decision you need to consider carefully.
Arguably, just about the most important decision to make is where exactly you intend to relocate to.
The U.S. offers a diverse range of locales, each with its unique appeal:
- Urban Centres: Cities like New York, Los Angeles, and Chicago offer vibrant cultural scenes and robust job markets, but come with higher property prices.
- Suburban Areas: Suburbs provide a balance between city access and residential tranquillity, often featuring larger properties at more affordable prices.
- Emerging Markets: Consider cities like Tampa, Florida, known for affordable property prices and favourable tax advantages, making it an attractive option for expatriates.
Where Are You Going to Live – Top Locations for Expats
There are some wonderful places to consider living in.
With 50 states and thousands of towns and cities to choose from, deciding where to settle in the USA can feel overwhelming.
The best place for you will depend on your lifestyle preferences, career goals, and budget, but here are some top picks where British expats often feel right at home:
New York City, NY
A fast-paced cultural and financial hub, New York City offers unmatched career prospects, world-class dining, theatre, and iconic sights. It’s ideal for those seeking excitement and opportunity.
Los Angeles, CA
Think endless sunshine, beaches, and a thriving entertainment industry. Los Angeles also has a growing tech sector and a strong British expat community.
Austin, TX
One of the USA’s fastest-growing cities, Austin is famous for its music, food, and booming tech scene. It offers a relaxed lifestyle, lower cost of living, and no state income tax.
Miami, FL
A vibrant coastal city with year-round sunshine and a strong multicultural vibe. Miami is popular with retirees and digital nomads alike. Great for beach lovers and nightlife seekers.
San Francisco, CA
San Francisco is the heart of Silicon Valley, a city steeped in innovation. It’s ideal for tech and finance professionals, though living costs are among the highest in the country.
Many factors come into play when you are choosing your best-fit location.
Property prices, climate, job availability, school quality (if relocating with children), and healthcare access are the most common concerns for new expats.
By taking time to visit some of the popular expat websites you can post questions about particular locations you are interested in.
These portals are a very useful source of information.
Expat.com and GoExpat are good places to start.
The Home Buying Process
Follow these steps for a straightforward move.
Once you have discovered your ideal location and found a property you love, understanding the steps involved in buying your American dream home will streamline your experience:
- Property Search: Utilise online platforms and your real local estate agent’s expertise to identify properties that meet your criteria.
- Making an Offer: Once you’ve selected a property, your agent will help you submit a competitive offer based on market analysis.
- Due Diligence: Conduct thorough inspections to assess the property’s condition and ensure there are no hidden issues.
- Closing the Deal: To officially transfer ownership, finalise financing, complete all necessary paperwork, and settle closing costs.
Tax Implications and Ongoing Responsibilities
Be aware of the tax obligations associated with property ownership:
- Property Taxes: Rates vary by state and locality; ensure you understand the annual tax liabilities.
- Income Tax: If you plan to rent out the property, rental income is subject to U.S. taxation. Consult with a tax professional to understand your obligations and any applicable treaties that may prevent double taxation.
- Estate Tax: The U.S. estate tax may apply to your property upon your passing. Proper estate planning can help mitigate potential liabilities.
HomeAbroad have published a very informative tax guide for foreigners buying a home in the States.
Relocating Your Belongings to the US
Finalised buying a house in USA? White & Company are the top choice to get your belongings there.
Once you’ve chosen your new home and finalised the paperwork, the next big step is getting your belongings safely across the Atlantic.
That’s where White & Company comes in.
With decades of experience in international removals, we understand that relocating to a new country can be both exciting and overwhelming.
Our team is here to make the entire process smooth, stress-free, and tailored to your needs, whether moving to a Manhattan high-rise or a Californian coastal retreat.
Getting started couldn’t be easier.
Give us a call, request a quote online, or chat with our friendly BOT.
From there, we will arrange a home survey in person or virtually, depending on what suits you best.
After your survey, we will receive a free, no-obligation quotation and expert advice from our experienced team.
As proud members of the British Association of Removers (BAR), we’re committed to the highest industry standards, giving you added peace of mind throughout your move.
So, why not let White & Company take the weight off your shoulders? With decades of trusted service and an excellent reputation, your American homeownership dream can become a rewarding reality.
Max is a seasoned writer and blogger in the real estate and home moving sectors, as well as a knowledgeable source of information for expatriates living and working abroad. His detailed insights have helped thousands of people move and live abroad with greater simplicity and ease.
Posted in: News
Leave a Comment (0) ↓
