How to get mortgage for overseas property as an American

There are plenty of reasons you might choose to buy a house overseas. You could be looking for a new home to let you live and work abroad, buying a perfect vacation property, or diversifying your investment portfolio with international real estate.

No matter why you’re interested in buying an international property, you’ll need to figure out how to pay for it, and that could mean getting an overseas property mortgage. This guide runs through some key pointers on how to get a mortgage for an overseas property, and some alternatives you may also like to consider.

We'll also introduce Wise — your international money transfer alternative. Use Wise to send stress-free transfers to over 140 countries - all at the standard mid-market exchange rate.

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Table of contents

How to buy a property internationally? Can I get a mortgage for overseas property? 7 ways to finance your overseas property purchase US bank financing HELOC/Home Equity Seller financing Developer financing Use retirement accounts Pay in cash Get a mortgage from an overseas bank How to transfer money to buy property overseas? Why is it a good idea to buy property abroad? The most popular locations for Americans to buy property abroad What to be aware of when buying property overseas How much deposit do you need to get a mortgage for overseas property? Look out for potential scams Frequently asked questions

How to buy a property internationally?

As an American, you can own property in another country. The US government doesn't have any legal restrictions preventing you from buying real estate around the world.

Some individual countries may have their own rules about foreign ownership, but from the American side, you're free to purchase property internationally.

The buying process often looks familiar. You find a property you like, make an offer, and pay for it. While some countries have different procedures or require additional legal steps, that's the basic framework pretty much everywhere.

However, the challenge often comes with financing.

In the US, getting a mortgage is what most homeowners do, and the process is relatively straightforward. But when you're buying overseas, it can be hard or impossible to get a mortgage for foreign property from your US bank.

Can I get a mortgage for overseas property?

Yes, but it requires solving a few different puzzles. If you've been searching "How to buy property overseas?" you've probably already discovered that financing can be tricky.

However, you still have a few options. You can pursue a foreign property mortgage from your US bank, explore financing options in the country where you're buying, or consider alternative funding methods, like HELOC or seller financing.

Here's what you need to know:

7 ways to finance your overseas property purchase

US bank financing

Getting a mortgage or home loan from a bank in the US may seem like an obvious option when buying a property overseas, but it’s rarely possible with mainstream banks. You may need to select a bank with a specific international operation rather than rely on your normal provider.

International mortgages are not available from many US banks Interest rates and deposit requirements will likely be much higher than what you're used to for domestic mortgages Large multinational banks, such as Citibank and HSBC, often offer specific international services, including mortgage products

💡 Learn more about international mortgage lenders in this guide.

HELOC/Home Equity

HELOC, or Home Equity Line of Credit, can be an option for people who already own a property in the US. Your bank may be willing to allow you to release equity in your US property through a HELOC plan, and you could then use these funds to buy your new home abroad.

It can be a fairly rapid way to access the funds you need to buy overseas Your US mortgage repayments are likely to increase If the value of your US property falls dramatically, you may end up owing more than it’s worth

Seller financing

Seller financing means the property owner acts as your lender instead of a bank. You make payments directly to the seller over an agreed period, usually with interest.

This arrangement typically lasts a year or a couple of years, not the 30-year terms you'd expect from a traditional US mortgage. So, while it's still financing, you'll likely be making larger payments on a shorter timeline.

Seller financing is more or less common depending on the part of the world you want to buy property in Terms and rates will depend entirely on what you can agree with the seller Make sure you have adequate legal protections in place before going ahead with seller financing, like a written contract reviewed by a lawyer

Developer financing

If you're buying a property that hasn't been built yet, the developer might offer their financing plan. Instead of paying the full purchase price upfront, you make payments as construction progresses—typically when the foundation is complete, when walls go up, when the roof is finished, and so on.

Your final payment is usually due when construction is complete and you receive the keys to your finished property. This arrangement protects you because you only pay as you see progress on your property. In some countries, the construction of a new property can take years longer than initially discussed.

Spread the cost of the purchase over time Don't part with your money until you can see the development progressing Financing terms vary widely, so check all the details carefully

Use retirement accounts

If you have a self-directed IRA, you may be able to use the funds in it to invest in an international real estate purchase. That’s because, unlike traditional IRAs, self-directed IRA products often allow investments in a broader range of assets.

However, the rules around what you can and can't do with the property from a tax perspective are complex. Get professional advice to make sure you stay on the right side of the law with your home purchase.

For investment purchases only You won't be able to live in or vacation in the property until you’re of retirement age Get professional tax advice before deciding to use your self-directed IRA to fund an investment property overseas

Pay in cash

Paying the full value of your new property upfront may be an option worth considering if you have the funds available. However, it’s only recommended when buying a pre-existing property. If you’re buying off plan, paying upfront in cash is a risky option. If the developer runs into difficulties or turns out to be fraudulent, you could lose your money.

You may get a better deal from the seller You may be able to close on your new home faster Not a good option when buying from unfinished developments

Get a mortgage from an overseas bank

A final option is to get a mortgage from a bank in the country you’re planning to buy in. How feasible and how attractive this will be depends on the specific county, your residence situation, and local bank practices.

It’s common to find that although a bank may theoretically offer mortgages to foreign buyers, there are practical challenges. However, if you have an established presence in the country and want to buy property there, it can be a good option.

Interest rates and eligibility requirements vary widely by location You may struggle if you don’t have a local credit history in the country This option becomes much more feasible if you have residency and/or an established credit history, so that banks see you as less of a risk Expect to see higher interest rates and down payment requirements than in the US

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How to transfer money to buy property overseas?

Most people use a wire transfer to send money from the US to buy property overseas.

However, when you buy property overseas, you'll likely need to convert your USD into the local currency. This foreign exchange is where many buyers lose money without realizing it.

Most banks make a profit by giving you a poor exchange rate. For example, when you check Google for the USD to EUR conversion, you see the mid-market exchange rate. But when your bank does this conversion, they usually give you a rate that's 3% to 5% worse than what you saw online.

On a 200,000 USD property purchase, that markup alone could cost you 6,000 USD to 10,000 USD. Plus, your bank will also charge you a separate transfer fee. These costs add up, and quickly.

Check out Wise for fast¹, secure, and transparent international money transfers with no currency exchange rate markups. Even for large transfers, you get the mid-market exchange rate similar to the one you see on Google.

¹Transaction speed claimed depends on individual circumstances and may not be available for all transactions.

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Why is it a good idea to buy property abroad?

There are quite a few reasons why you may have been Googling, "How to buy a house overseas?". Here's what they are:

• Diversification: Spreading your investments across different countries reduces risk and protects you from local market downturns
• Currency hedging: Owning property in different currencies can protect your wealth if the USD weakens
• Rental income potential: Popular tourist destinations and expat hubs often generate strong rental yields
• Personal use: Your investment property can double as a vacation home or future retirement residence

In other words, while getting a mortgage abroad can take a lot of time and research, the potential benefits are often worth it for American investors.

The most popular locations for Americans to buy property abroad

Americans often choose international destinations with good weather and a lower cost of living. Most of these destinations are in Latin America or Europe, but you can also explore Asian countries like Japan. Ultimately, all countries have their pros and cons.

Here are the average property prices per square meter for the most popular destinations:

Country	Price per square meter (USD)
Mexico¹	2,006 USD
Panama²	2,012 USD
Costa Rica³	2,532 USD
Portugal⁴	3,998 USD
Italy⁵	4,209 USD
Spain⁶	4,313 USD

Each country has different rules for foreign property ownership. For example, Mexico restricts foreign ownership in certain coastal and border areas, but you may be able to work around this restriction if you start a Mexican company.⁷

However, most countries welcome American buyers with open arms. Countries like Belize and Greece even offer residency when you make a qualifying real estate investment, making it easy to move and live in your property long-term.⁸⁹

👉 Learn more about the best countries to buy property abroad as an American.

What to be aware of when buying property overseas

Local laws

It's not very common for countries to have property restrictions on foreign buyers, but some countries do have them. For example, in Thailand, foreigners can't own land directly but can purchase condominium units.¹⁰

In some countries, you can work around these restrictions by establishing a local company, but this adds extra costs and legal steps to your purchase, so not everyone will want to do this.

On the flip side, some countries offer Golden Visas—residency permits you can get by purchasing real estate above a certain value. These programs can come in handy because as an American, you need some form of visa or residency permit to live in any country long-term, even if you don't need a visa for short visits.

Rental yields

Rental yield measures how much income your property generates compared to its value. You can calculate it by dividing your annual rental income by the property's value.

For example, if you buy a 200,000 USD property that earns 12,000 USD per year in rent, your rental yield is 6%.

Higher yields often mean better ROI, but you should also pay attention to factors like how much your rental income is when converted back into USD. In some countries, the cost of living is low compared to the US, so you won't make that much in rental income even if the rental yield is high.

Currency exchange

If you buy a property in EUR and the EUR strengthens against the USD, your property becomes more valuable in USD terms. However, the opposite is also true. If the local currency weakens, your investment loses value.

This risk affects both your initial purchase and any ongoing rental income you receive in foreign currency. It's often a good idea to choose countries with stable currencies.

Residency or citizenship potential

Before buying your property abroad, check whether your investment qualifies you for residency or citizenship benefits. Some countries offer automatic residency with property purchases above certain thresholds.

You don't want to buy a property and then discover you can't legally live there long-term, if that was your plan.

Political stability

When a country is politically unstable, property values, rental markets, and your ability to sell your investment are unstable, too. Research the political climate and recent history of any country you're considering for property investment.

Sometimes, unstable countries have low property prices, but these investments often come with high risks, too. There’s a reason prices are so low, and they’re usually not good ones.

How much deposit do you need to get a mortgage for overseas property?

International mortgages typically require much larger down payments than what you're used to in the US. Don't be surprised if you need to put down 20%, 30% or 40% as a deposit, and some lenders may require as much as 50% down.

However, all of this depends on the country and how you're getting financing.

Look out for potential scams

International property purchases can attract scammers who target foreign buyers, especially Americans, whom they often consider to have a lot of money.

Here are a few common scams to watch out for:

• Fake property listings: Scammers advertise properties they don't own at attractive prices and request deposits before disappearing with your money
• Phony legal services: Fraudsters pose as lawyers or notaries, offering to handle your purchase paperwork for a fee but provide fake documentation or no services at all
• Overpriced properties: Some sellers inflate prices by a lot when they know the buyer is American, assuming you won't know local market values
• Advance fee frauds: Scammers request upfront payments for mortgage processing, legal fees, or property inspections that never happen
• Title scams: Fraudsters forge property documents or sell properties with disputed ownership, so you end up with no legal title to your property

Always verify property ownership through official channels and work only with licensed professionals whose credentials you can independently confirm.

Also, never send large payments to people you don't know (or don't know well) before seeing the property in person.

Frequently asked questions

Can a US citizen living abroad get a mortgage?

Yes, US citizens living abroad can get mortgages, but the process is naturally more complicated. Many US lenders are hesitant to work with expats because it's hard to verify your overseas income and how high a risk they perceive you to be.You may be more successful getting a mortgage abroad from a local bank in the country where you currently live or using an international lender.

Can a foreigner get a mortgage in the US?

Theoretically, yes. However, in practice, this is usually difficult unless you have a Green Card or other significant ties to the US. Most lenders will also require you to have a good US credit history.

Do I need to declare foreign property in the USA?

You don't usually need to report your foreign real estate itself, but you'll need to report any rental income that it generates on your tax return. Since the US taxes its citizens and permanent residents on worldwide income, you may have to pay taxes on it, too. If you hold the property through a foreign entity or trust, additional reporting requirements may apply.

Which US banks offer overseas mortgages?

There are not that many banks that offer overseas mortgages, but large multinational banks like Citibank, HSBC, and JPMorgan Chase have international mortgage products that you may qualify for.

Does the US tax foreign property?

The US doesn't tax foreign property ownership directly, but it does tax any income you generate from your foreign real estate.You'll need to report all rental income and capital gains, but you can often offset some of this with foreign tax credits and other exclusions, especially if there's a tax treaty between the US and the country where you own your real estate.

Can foreign income be used to qualify for a mortgage?

Sometimes yes, but lenders will likely scrutinize it more carefully than domestic income. It's harder to get approved for a mortgage this way.

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Getting a mortgage or home loan in the US for an international property is possible, but not always easy. Most people buying a home overseas will need to consider a range of payment options, including mortgages with local and international lenders, as well as different approaches for financing, like HELOC or developer financing.

By shopping around and comparing a range of options, providers, and strategies, you’ll find the right fit for you.

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Sources

1. Numbeo - Cost of Living in Mexico
2. Numbeo - Cost of Living in Costa Rica
3. Numbeo - Cost of Living in Spain
4. Numbeo - Cost of Living in Panama
5. Numbeo - Cost of Living in Portugal
6. Numbeo - Cost of Living in Italy
7. Relaciones Exteriores Mexico - Acquisition of properties in Mexico
8. Ministry of Immigration Belize - Residence Qualify
9. Henley & Partners - Greece
10. Thailand Law Online - Thailand Property Law Overview

Sources checked 07/31/2025