Getting a mortgage in the US: A complete guide for UK buyers

It’s easy to fall down a rabbit hole of American property listings from your sofa in London. One minute you’re idly scrolling, the next you’re seriously considering a three-bedroom house in Florida that costs less than a studio flat in Zone 3. But buying a home in the US as a UK resident, especially with a mortgage, involves a lot more than simply saving a listing and daydreaming about it.

The US mortgage system works differently from the UK's, and the process for foreigners comes with extra steps, higher deposits, and a few hurdles that US citizens don't face. This guide covers everything you need to know, from eligibility and deposit requirements to fees, lenders, and how to actually apply.

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Can foreigners get a mortgage in the US?

Yes. There's no legal restriction on foreign nationals buying property in the United States, and it's possible to get a mortgage in the US without being a US citizen.¹

That said, it's more complex than it is for Americans. US lenders prefer applicants with a US credit history, and they tend to favour Green Card holders and US citizens because their financial background is easier to verify.² If you're a UK resident without US ties, you may find that:

• Fewer lenders are willing to work with you
• You'll need a larger deposit
• Interest rates could be higher than standard US rates
• The documentation requirements are more rigorous

None of this makes it impossible. Instead, it just means you'll want to plan ahead and potentially work with a specialist lender or broker.

Getting a mortgage in the US from the UK

Your mortgage options depend heavily on your residency status in the US:

Green Card holders have essentially the same mortgage options as US citizens. You can apply for conventional loans with standard deposit requirements.

Work visa holders (H-1B, L-1, E-series, O-series, etc.) might be able to access conventional mortgages from private lenders. However, FHA loans (government-backed mortgages that previously accepted work visa holders) are now restricted to US citizens and permanent residents only, following a policy change effective May 2025.¹

Non-resident UK buyers (no US visa) face the most restrictions. You'll typically need a specialist lender that offers foreign national mortgage programmes, and you might get higher deposits and rates.³

A number of banks in the US offer specialist mortgages for international buyers, including some that also operate as American banks in the UK.

Mortgage eligibility criteria for UK citizens

Eligibility varies between lenders and states, but you'll generally need to meet these requirements:

How much deposit do you need for a mortgage in the US?

The deposit (or "down payment" in US terminology) you'll need depends on your residency status, age and the type of loan:

A larger deposit generally means more favourable interest rates and a wider choice of lenders. For foreign nationals without US credit history, putting down 30% or more might significantly improve your chances of approval.

Can you get a 100% mortgage in the US?

100% mortgages, or those where you borrow the full property value with no deposit, do exist in the US. However, they're extremely limited.

VA loans offer 0% deposit financing, but they're restricted to US military veterans, active service members, and eligible surviving spouses. The USDA also offers 100% loans to lower-income buyers purchasing homes in certain rural areas.⁸

For UK residents buying property in the US, a 0% deposit mortgage is very unlikely to be an option. You should budget for at least a 20–30% deposit as a starting point.

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Is it difficult to get a mortgage in the US as a foreigner?

Getting a mortgage in the US is more challenging than for US citizens, but it's far from impossible. The main hurdles are:

• No US credit history — Some lenders will accept international credit reports.
• Documentation — You'll need to provide more paperwork than a US citizen would, and the process may take longer.
• Higher costs — Expect larger deposits and potentially higher interest rates.

Working with a mortgage broker who specialises in international buyers can make the process considerably smoother. They'll know which lenders are most likely to accept your application and can help navigate the documentation requirements.

Step-by-step guide to applying for a US mortgage as a UK resident

Here's what the process typically looks like:

1. Check your visa or residency status. This determines which loan types you're eligible for.
2. Build US credit history if possible. Opening a US bank account and using a US credit card can help establish a credit score over time.
3. Get pre-qualified. Contact lenders or a mortgage broker to find out how much you could borrow. Pre-qualification also shows sellers you're a serious buyer.
4. Gather your documentation. Have everything ready before you formally apply (see checklist below).
5. Submit your application. Your lender will review your finances, employment, and creditworthiness.
6. Property appraisal and underwriting. The lender arranges a valuation and completes their checks.
7. Close on your home. Sign the legal documents and transfer the funds. The property is yours.⁵

Documents you'll need as a non-resident

Here’s a list of documents you might need to present to the mortgage provider:

• Valid passport
• US visa or Green Card (if applicable)
• Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN)
• Proof of income (typically 2 years)
• Bank statements
• Credit report
• Proof of deposit funds and their source⁵

How long does it take to get a mortgage in the US?

For US residents, the typical timeline from application to closing is around 30–60 days.⁹

As a foreign national, it could take longer, particularly if your lender needs to verify international documentation or order an international credit report. Getting pre-qualified early can help speed things up.

Fees and costs for getting a mortgage in the US

Beyond the deposit, you'll need to budget for several fees:

Closing costs in the US can add up quickly. On a $400,000 property, you might pay $8,000–$20,000 in total closing costs on top of your deposit.

Another thing to note is that international transfers could get expensive, especially if the provider adds a margin to the exchange rate to convert your British pounds to US dollars.

Consider checking out the Wise account to handle your international transfers with mid-market exchange rates and transparent fees.

Tax implications for UK residents with a US mortgage

Owning US property as a UK resident comes with tax obligations in both countries:

• US property taxes. These are paid annually and vary significantly by state. Some states, like New Jersey and Illinois, have notably high property tax rates, while others, like Hawaii, are comparatively low.¹¹
• FIRPTA withholding. When you sell US property as a foreign owner, the IRS typically withholds 15% of the sale price under the Foreign Investment in Real Property Tax Act (FIRPTA). You may be able to reclaim some of this if your actual tax liability is lower.¹²
• UK-US double taxation treaty. The UK and US have a tax treaty that may help prevent you from being taxed twice on the same income or gains.¹³
• Rental income. If you rent out your US property, you'll likely have tax obligations in both the US and the UK.

It's worth consulting a cross-border tax specialist before buying. The rules are complex, and getting professional advice early could help you avoid unexpected costs.

US lenders offering mortgages to foreigners

Several US lenders have programmes specifically for international buyers:

• HSBC. Offers mortgages for international borrowers through its US arm. No US credit history required for qualifying applicants.²
• First American Bank. May offer mortgages up to $2 million to non-citizens.¹⁴
• Quontic. A specialist lender offering non-traditional mortgages for foreign nationals.³

Mortgage rates in the US for foreigners

US mortgage rates fluctuate regularly based on economic conditions and Federal Reserve policy. Rates depend on several factors, including your loan type, deposit size, credit profile, and chosen lender. Always compare offers from multiple lenders before committing.

The current average rate for a 30‑year fixed mortgage is 6.11%.¹⁵

Do UK banks offer mortgages for US property?

Most UK high-street lenders don't offer mortgages for overseas property. HSBC is a notable exception, as its international mortgage programme can help UK-based customers buy property in the US.

Some specialist UK-based mortgage brokers can also arrange US mortgages, acting as intermediaries between you and US lenders. However, for most UK buyers, working directly with a US-based lender or broker tends to be more straightforward.

If you're making mortgage payments in USD from a GBP income, the exchange rate will affect your effective monthly cost. This is something worth factoring into your budget.

Buy-to-let mortgages in the US

Investment property mortgages are available to foreign nationals, though the requirements are stricter:

• Deposits of 25–40% are typical
• DSCR loans assess the property's rental income rather than your personal income
• Interest rates tend to be higher than for primary residences
• Tax implications differ for rental properties (you'll need to file US tax returns on rental income)¹⁶

If you're considering buying property in Florida as an investment, it's worth researching state-specific rules and tax rates.

Types of mortgages in the US

Here’s a list of the main types of mortgages you can get in the US:

Tips for getting a mortgage in the US as a non-resident

• Start building US credit history as early as possible
• Work with a mortgage broker who specialises in international buyers
• Get pre-qualified before you start house hunting
• Budget for a deposit, plus 2–5% in closing costs
• Factor in the GBP/USD exchange rate when planning your budget
• Keep thorough records of all financial documentation, as lenders may ask for more than you expect
• Consider the cost of living in the US when choosing a location

Key takeaways

• UK nationals can legally obtain US mortgages, though non-residents without a US credit history typically face stricter requirements, including a higher down payment of 30% to 50%.
• Lenders assess eligibility primarily through the debt-to-income (DTI) ratio, which generally needs to remain below 43% to 50% to demonstrate your ability to handle monthly repayments.
• Following a May 2025 policy change, government-backed FHA loans are now restricted to US citizens and permanent residents, meaning most UK buyers must use conventional or specialist "foreign national" loan programs.
• Beyond the deposit, buyers must budget for closing costs, which typically range from 2% to 5% of the purchase price and include fees for appraisals, title searches, and loan origination.
• Non-resident owners are subject to specific tax rules, including annual state property taxes and FIRPTA withholding, which requires 15% of the sale price to be withheld by the IRS when the property is eventually sold.

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Sources used:

1. US Department of Housing and Urban Development — HUD Mortgagee Letter 2025-09
2. HSBC US - Mortgage checklist
3. Quontic Bank - Mortgages for non-US citizens
4. LendFriend Mortgage - Debt-to-income (DTI) ratio explained
5. Coast 2 Coast Mortgage - Guide to qualifying for a mortgage as a non-US citizen
6. Bankrate - What is the typical down payment on a house?
7. Realting - Buying real estate in the US as a foreigner
8. Bankrate - Guide to no-down-payment mortgages
9. Investopedia - Understanding the six steps of the mortgage process
10. The Mortgage Reports - Average closing costs 2026
11. Tax Foundation - Property taxes by state
12. IRS - FIRPTA withholding
13. GOV.UK - USA: tax treaties
14. First American Bank - Foreign national lending
15. Freddie Mac - Mortgage rates
16. Swoop US - Buy-to-let mortgage
17. Bankrate - What are the major types of mortgage loans?

Sources last checked on date: 17-Mar-2026.