Written by Kellie Steed Reviewed by Lee Trett
2 June 2026
Full rewrite to update with current rules and regulations and provide additional information
10 September 2020
First Published
The USA has long been a top destination for UK expats, holiday-home hunters, and international investors alike. However, securing finance to purchase American real estate involves navigating a vast and highly unique financial landscape that is very different from the UK.
We look at how UK-based brokers with specialist knowledge in the US mortgage market can be an essential part of the process. Whether you’re looking to relocate to New York, invest in the perfect rental property in Florida, or buy a holiday home in California, at Money Helpdesk we can help you navigate US mortgage criteria, foreign national requirements, and other administrative hurdles that differ from the UK.
Can anyone buy property in the US?
Yes, you can. You do not need to be a US citizen or have resident status to buy property in the US.
However, if you’re looking to buy property with a US mortgage, those with a permanent residency (green card) or a work visa (E1, E2, H1B, H2A, H2B, H3, L1 and G1-G4) will usually find it easier to be accepted for a mortgage:
If you do not live or work in the US you might find it more difficult to apply for a US mortgage, but it's not impossible. Non-residents may find that the mortgages they are offered are not as favourable, but one of our expert brokers will be able to steer you towards the lenders most suited for your situation.
Can I buy in the US with a UK mortgage?
No, you can’t, from a UK high-street lender. They don’t currently offer mortgages to British citizens or expats who are looking to buy residential property, or invest in the US rental market. However, the good news is that the United States has no legal restrictions on foreign nationals buying property, and many US mortgage lenders offer specialised 'Foreign National' loan programs. While US mortgage rules and credit checks are quite different to those of UK lenders, a UK mortgage broker with experience in the American market will be able to help you.
Some UK buyers choose to remortgage their UK home with their lender in order to raise the funds to buy outright in the US. However, it's important to understand that if you do this you would still need to convert the funds into dollars and take out a US mortgage. Overseas mortgage brokers are not governed by the FCA (Financial Conduct Authority), so this would not offer any further protection than taking out a new mortgage.
How US mortgages work for non-residents
For UK nationals looking to buy property in the USA, mortgage lending relies heavily on your visa or residency status. While Green Card holders or those on long-term work visas (like the H-1B) can often access standard domestic mortgages, buyers living in the UK are classified as non-resident foreign nationals.
Non-residents are subject to stricter underwriting conditions, different maximum loan amounts, and larger down payment requirements than US citizens.
US mortgage criteria
Because non-residents usually do not have a US credit history (a FICO score), the maximum Loan-to-Value (LTV) ratio for foreign buyers is typically capped at 65% to 70%. This means you will need a substantial cash down payment (deposit) of at least 30% of the property's purchase price.
Lenders will apply a strict debt-to-income (DTI) ratio, usually capping your total global debt repayments at around 43% to 50% of your gross monthly income. To prove your income, you will generally need to provide two years of UK tax returns (SA302s), P60s, and bank statements, translated into US financial equivalents by a certified accountant.
How US lenders perform property valuations
Just like in the UK, US lenders require a professional property valuation, (known as an appraisal in the US), before they formally approve your mortgage. This ensures the property's market value provides adequate security for the loan. The appraisal is carried out by an independent, state-licensed appraiser assigned by the lender via an Appraisal Management Company (AMC). The buyer is required to pay this appraisal fee upfront.
How to secure a US mortgage as a UK buyer
A major hurdle for UK buyers is the lack of a US credit score. A crucial step in securing a US mortgage is proving your creditworthiness through alternative means.
Specialist foreign national lenders will either pull an international credit report (using your UK Experian or Equifax data) or ask you to provide three alternative "tradelines" of credit. This means providing letters from your UK bank, your current UK mortgage provider, or utility companies proving you have maintained flawless payment histories for at least 12 to 24 months.
Additionally, many lenders require foreign nationals to have a valid US visa (even just a B-1/B-2 tourist visa or an ESTA) to process the application.
Which lenders offer US mortgages?
The US mortgage market is vast. While some major retail banks (like HSBC or Chase) have international banking divisions that can assist foreign buyers with large deposit accounts, standard local branches will generally automatically reject applicants without a US Social Security Number (SSN) and US credit score.
Instead, the market for UK buyers is heavily serviced by specialist Non-QM (Non-Qualified Mortgage) lenders and private institutions that specifically underwrite foreign national loans. Working with a specialist overseas broker ensures you are matched with lenders who accept international credit reports and understand UK income structures.
Types of US Mortgages Available
The US mortgage market offers products that function quite differently from the short-term fixed deals common in the UK:
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30-Year Fixed-Rate Mortgage: The gold standard in the US. Unlike shorter term UK fixed rates, your interest rate is locked in for the entire duration of the loan, offering incredible long-term security. 15-year - 30-year fixed terms are also widely available
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Adjustable-Rate Mortgages (ARMs): Similar to a UK variable rate, but usually fixed for an initial period. For example, a "5/1 ARM" or "7/6 ARM" means the rate is fixed for the first 5 or 7 years, then adjusts annually or bi-annually based on a market index
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Interest-Only: Available through some specialist lenders, but much less common for standard residential purchases in the US than UK interest-only mortgages
Can I get a US Buy-to-let mortgage?
Yes, but in the US, these are typically referred to as Investment Property loans. For foreign nationals, the most popular way to finance a rental property is through a DSCR (Debt Service Coverage Ratio) loan.
With a DSCR loan, the lender does not look at your personal UK income or your personal debt-to-income ratio. Instead, they purely assess the cash flow of the American property you are buying, similarly to a UK buy-to-let. As long as the projected monthly rental income safely covers the monthly mortgage payment, taxes, and insurance (usually by a ratio of 1.1x or higher), the loan can be approved. This is an excellent route for UK investors buying in states like Florida.
Speak to a self-build mortgage specialist today
Mortgage and property costs in the USA
When purchasing property in the US, you need to budget for several significant upfront costs, known collectively as "closing costs." These typically total between 2% and 5% of the loan amount.
|
Expense Category |
Estimated Cost |
Details & Key Considerations |
|
Loan Origination Fees |
1% to 2% of the loan amount |
Charged by the US lender for underwriting and processing the foreign national mortgage. |
|
Title Insurance & Search Fees |
0.5% to 1% of property value |
Unique to the US, this mandatory insurance protects the lender (and you) against any historical legal claims or disputes over the property's ownership. |
|
Escrow / Settlement Fees |
$1,000 to $2,500 USD |
Paid to the Escrow or Title Company that acts as the neutral third party handling the legal transfer of funds and deeds. |
|
Property Appraisal |
$500 to $800 USD |
Paid upfront to the independent appraiser to value the property. |
|
Pre-paid Taxes and Insurance |
Varies (often 6 months upfront) |
Lenders usually require you to pre-pay several months of property taxes and homeowners insurance into an escrow account at closing. |
|
Down Payment |
30% to 35% of the property's purchase price |
Must be available in liquid cash. Non-residents typically require a much higher down payment than local US buyers. |
Considerations for non-residents when buying a home in the USA
When buying a home in the US as a non-resident, there are strict legal and tax considerations that you must factor into your long-term plans.
FIRPTA (Foreign Investment in Real Property Tax Act)
This is a vital tax law all UK buyers must understand. When a foreign person eventually sells their US property, the IRS mandates that the buyer must withhold 15% of the gross sale price and remit it to the IRS to cover potential capital gains taxes. You will need to file a US tax return to claim back any overpaid withholding. Structuring your purchase correctly from the start with a cross-border tax advisor can help manage this liability.
Reserve Requirements
US lenders are very strict about "reserves." After you have paid your down payment and closing costs, most foreign national lenders require you to show you still have 12 months' worth of mortgage payments, property taxes, and insurance sitting in liquid cash in your bank account. The funds do not need to be spent, but they must be verifiable.
Paying in USD - Fluctuating currency
All mortgage repayments in the US will need to be paid from a US bank account, in US Dollars (USD). If you live and earn your income in the UK, a shift in the exchange rate could mean your mortgage suddenly costs you more in British Pounds. Working with a specialist currency exchange broker is highly recommended to manage large transfers for closing and regular monthly mortgage payments efficiently.
Speed of transaction
It may surprise you to learn that US lenders move quickly. Even for non-US applicants, you could have your mortgage accepted in four weeks or less. If you’re a first-time non-US buyer, you may be required to make certain payments up front and in advance, such as certain local taxes, and your first year of home insurance payments.
The importance of specialist advice
Because of the lack of US credit files, unfamiliar terminology (like Title Insurance and Escrow), and strict FIRPTA tax rules, securing a US mortgage requires expert navigation.
Using a specialist UK-based broker with expert knowledge of the US market will save you time, ensure your income is presented correctly to US underwriters, and give you access to specialist Non-QM lenders who are genuinely willing to finance non-resident applications.
Get started to speak to one of our advisers with expertise in the US mortgage and property market. You initial consultation is free of charge and there is no obligation to proceed.
FAQs
An FHA mortgage is insured by the Federal Housing Association. If you were to fail to make payments or lose your home, the lender would be able to claim their lost income from the FHA, so lenders see these as less risky.
However, to benefit from an FHA mortgage, you will need to be a permanent resident in the US and make insurance payments to the FHA. These are not available to foreign buyers.
Typically, no. Unlike standard domestic US mortgages, foreign national loan programs usually prohibit the use of gifted funds for the down payment. Because non-residents pose a higher risk, US lenders require the borrower to demonstrate they have accumulated the 30% to 35% down payment entirely from their own personal savings or assets.
No, not currently. While you may see information in the UK about expat mortgages, this generally refers to international buyers purchasing property situated in the UK.
There are currently no standard UK high-street lenders that will directly finance the purchase of a property located in the United States. To buy there, you must use a US-based lender, an international bank, or a specialised foreign national mortgage provider.