Mortgages in the US: A guide for expats [2026]

Mortgages in the US may not work in the same way as in your home country – so getting to grips with the local market is essential if you’ll need finance for your new US property.

This guide looks at how to get mortgages in the US as an expat or new arrival, including the types of mortgage commonly available, and the costs and limitations you should know about.

Understanding mortgages in the US: Overview

If you’re thinking of buying US real estate it helps to have a basic understanding of the US mortgage market.

• In 2024, 63% of adults in the US owned their own home, of which, two thirds had an outstanding mortgage to pay
• Average 30 year mortgage rates in the US are around 6% (January 2026), having fallen steadily from the 1980s to 2020 before rising again post-pandemic
• US banks offer a range of mortgage types for residential and investment purposes, as well as commercial loans
• Generally mortgages in the US are either fixed rate or adjustable rate mortgages (ARM) – fixed rates have the same rate for a defined period before reverting to the standard bank rate, while ARM rates change in line with the market
• Expats and new arrivals in the US can take a mortgage from a US bank, but the options may be more limited compared to long term and permanent residents, and US citizens

This guide is for information only and does not constitute advice. Seek specific guidance from a licensed mortgage broker or another professional before committing to a US mortgage.

Can you get a mortgage in the US as a foreigner?

Yes. There’s no legal reason why you can’t get a mortgage in the US as a foreigner. However, it’s easier to get a mortgage if you have been granted US permanent residency, compared to being a non-resident alien or a short term resident.

Some banks do offer mortgages to new arrivals in the US and to non-resident buyers. You may find you need to have a higher downpayment and the interest rate you’re offered is higher than for citizens and Green Card holders.

You can also apply through a specialist broker which can be an easier route to compare your options as an expat buying a property in the US.

Financial requirements for a mortgage in the US

When you apply for a mortgage in the US you’ll need to check the eligibility requirements thoroughly to see if the product is right for you.

Once you’ve found a suitable loan you can look into the documents needed to prove your financial status and credit history makes you a good candidate for the specific product.

Banks set their own rules about eligibility and creditworthiness, but you may find you need to provide documents and information such as the following:

• Proof of your identity and address – including details of any properties you own already and your own residential address for the past 2 years or more
• Proof of your income – you might need pay slips and you’ll be asked for details of your employer and a contact in your HR department in some cases. If you’re self employed you might need details of your accountant instead
• Proof of your assets – bank statement are usually needed to check your incoming and outgoing funds and to ensure you have enough for a downpayment
• Proof of your credit history – if you’re not a US resident or if you’re a new arrival, some banks can check your home credit history instead of your US credit score

Once you have a mortgage approved you’ll need a way to pay your upfront fees, deposit and regular repayments.

Using Wise for international payments can be a cheap option if you’re paying for your US mortgage from a different country.

Wise uses the mid-market exchange rate and low, transparent fees for fast secure transfers which are deposited right into your US bank account.

Mortgage rates in the US in 2026

According to Federal Reserve Bank of St Louis – FRED data the average 30 year mortgage rates in the US are around 6% (January 2026), having fallen steadily from the 1980s to 2020 before rising again post-pandemic.

Banks and mortgage providers offer both fixed and adjustable rate mortgages which have variable rates depending on the term and other factors. This means that shopping around is still well worthwhile to find the best mortgage deal based on your unique needs.

How much can you borrow for a US mortgage?

Different banks and providers will use slightly different metrics to decide on the value of a loan they may offer you. They’ll usually take into account factors like:

• Property value – you’re likely to find loans have a specific limit, such as a 65% loan- to-value (LTV) which dictates the maximum mortgage available based on property price
• Your Debt-to-Income (DTI) Ratio – how affordable your repayments will be based on other commitments and outgoings, normally in the region of 28-36% of gross income at most
• Your credit score – banks may be more inclined to offer higher loans if you have a solid credit score
• Mortgage type and tenure – loans have their own criteria which can also influence the amount you’re able to borrow

Services like Zillow offer affordability calculators which can help you figure out what level of loan might suit you. Bear in mind that banks may also take into account personal factors like your employment status, residency and legal right to reside in the US when calculating the maximum amount of loan you can get.

US mortgage calculator

There are several different types of tools out there which can help you figure out what mortgage you may qualify for, and what your costs would then ultimately be:

• Bank of America mortgage calculator – example of a bank’s own mortgage calculator tool, available from all major US banks based on their own specific mortgage rates
• Bankrate mortgage calculator – comparison website which offers a calculator you can use to estimate the costs of any mortgage based on the interest rate quoted

Other handy tools include:

• Bank of America closing costs calculator
• Bank of America affordability calculator

How to apply for a mortgage in the US in 2026

You can apply for a mortgage in the US from a bank or credit union, or through a broker who is able to connect you to a range of mortgage providers.

Before you apply you’ll want to make sure that the bank you’ve selected supports mortgages for properties in your preferred location – some have limits on which states are covered. You’ll then also have to check eligibility based on your residency, income and available downpayment.

Once you’ve selected a bank a mortgage consultant will be assigned to help you navigate the application process. You can then submit your application including your supporting documents, and the bank will complete a credit check if needed. Once your loan is approved you can proceed to closing on your new property.

Through a bank

Different banks have their own rules as to which customers they can support for a US mortgage. Choosing a major global bank like HSBC can be a good bet, as they’re able to use foreign credit history to check your eligibility for a loan.

Otherwise, a major US bank like Bank of America has an excellent range of mortgage products to consider:

• HSBC US – mortgages for US properties, for non-resident or foreign applicants
• Bank of America – US mortgages with variable conditions and requirements

Through a mortgage broker

You can also look for a mortgage through a mortgage broker – also known as a licensed Mortgage Loan Originator (MLO). Any provider you select should be properly licensed for your state via the NMLS (Nationwide Multistate Licensing System).

You can check details online on the nationwide register, or look for your own state’s licensing information which is also available online.

Building credit for better mortgage terms

Some banks can use your foreign credit history to check your suitability for a loan. However this is not always an option. If you can’t use your home credit score you may need to build a US credit history before applying for a mortgage.

You can use credit building credit cards to help increase your credit score – be careful to spend moderately and always repay on time to get the best outcomes. You can also ensure your bills are in your name as this can help to improve your local credit.

Check your credit score with a provider like Experian regularly to know how you’re getting on. Improvements to your score can start to show through in around 6 months.

Mortgage fees and costs in the US

The costs of your mortgage can vary and may include multiple different fees. Here are some to know about:

📌 Fee type	💡 Details
Appraisal and inspection fees	Variable costs depending on the home’s value and location
Closing costs	Set aside 2% – 5% of the home’s value
Private Mortgage and Homeowners Insurance	Often needed if you have a low down payment, with standard homeowners insurance needed by all borrowers
Interest	Variable rates depending on loan details
Currency conversion costs	If you’re paying your mortgage and deposit from abroad, currency conversion costs can mount up quickly

Types of mortgages in the US

The key difference between different types of US mortgage is the approach to setting interest rates:

• Fixed rate – rate and therefore repayment amount is fixed for an agreed term, may be available only for principal and interest monthly payments
• Adjustable rate mortgages (ARM) – rate and repayment rate can change at any time, may be available for both principal and interest monthly payments, and for interest only monthly payments

Aside from these differences there are also some variations in loan type depending on customer niche and property type.

Fixed rate

A fixed rate mortgage sets the rate you’ll repay for a certain length of time – often from 1 year to 5 years. Some loans even offer fixed repayments of 30 years which may cover the entire loan term.

Adjustable rate mortgages (ARM)

Adjustable rate mortgages do not have a fixed interest rate. Rates can go up or down which means your repayments may also change.

Jumbo Loans

Jumbo loans are large loans for higher value properties – these may be fixed or adjustable rate mortgages, and often have higher deposit requirements.

FHA & VA loans

Relatively low cost loans from the Federal Housing Administration or the US Department of Veterans Affairs, for eligible applicants. Not usually offered to foreigners.

Mortgages for investment properties

Buying a property is a popular way of investing in the US. Specific investment mortgages are available but they can come with a higher interest rate compared to a residential loan.

If you’re not a permanent resident of the US you might find some banks restrict access to investment loans.

Commercial mortgages

Commercial mortgages are offered through banks and specialist brokers, for businesses looking to acquire commercial properties. Commercial mortgages do not work in quite the same way a residential mortgage does, so you’ll need to get local advice if this is the mortgage type you prefer.

Help getting a mortgage in the US

You may be able to get US government backed mortgage and loan assistance – although this is not normally available if you’re not already a permanent resident of the US.

• Federal Housing Administration (FHA) loans – these are offered for people such as first-time homebuyers and seniors with a relatively low credit score buying an eligible property
• Mortgage support may be available locally through your home state housing finance agency (HFA)
• Specific government support may be available for groups including emergency workers, teachers and rural homebuyers

If you’re looking for good ways to manage the costs of your mortgage when paying from abroad, check out Wise.

Wise can offer low cost international payments which use the mid-market rate which can help you cut out unnecessary fees and pay less in the end.

Taxes and tax relief on mortgages in the US

You will need to pay some ongoing costs when you own a US property. Property taxes vary widely by state and local area, as can be seen on the Tax Foundation property tax map. If you’re renting out your property for income you’ll also need to report your rent and could be required to pay IRS Federal Income Tax from 10% to 37% depending on your overall taxable income.

There are also some IRS tax benefits for homeowners, who can deduct state and local real estate taxes up to $10,000 and also home mortgage interest, within allowed limits. Talk to your tax advisor to see how this works in your own specific case.

Do you need property insurance to get a mortgage in the US?

You may choose to get insurance in the US for a number of reasons – and in some cases, certain types of insurance are mandatory.

Banks like Wells Fargo recommend that you get homeowners insurance which may be mandatory for your mortgage – and you might also need to consider other types of insurance such as flood insurance or title insurance. Some people also need private insurance in addition if they’re taking out a mortgage with a very small downpayment.

How do mortgage repayments work in the US?

When you arrange your mortgage you’ll choose to either repay interest only or interest and principal on a monthly basis. If you pay back only interest you must be able to repay the principal borrowed at the end of the mortgage term.

Some banks also let you make overpayments on their mortgage which can help reduce the term of your loan. This can have cost benefits – Wells Fargo for example gives calculations showing how a small overpayment can reduce the amount you may pay for your US home overall.

Bear in mind though that banks often put limits on the amount of overpayment you can make before you pay a penalty fee.

Refinancing a mortgage in the US

Some US banks also offer refinancing options. This can be used if your fixed interest mortgage is ending and you want to open a new fixed product rather than reverting to the bank’s standard rate which may be higher. You might also choose to refinance if a different bank has a better offer available.

Check your specific mortgage before you consider this option, as there are often early repayment fees and penalties which you need to pay to be released from your initial mortgage. This may outweigh some or all of the benefits of refinancing.

Useful resources

Information last checked on 22nd of January, 2026.

• Wise – for international payments including mortgage payments and down payments
• HSBC US – bank explainer of US mortgage process, for foreigners unfamiliar with the system
• HSBC US international mortgage checklist – sample of documents needed for foreign buyers in the US applying for a mortgage
• Bank of America closing costs calculator
• Bank of America affordability calculator
• Federal Reserve Bank of St Louis – FRED data – average loan interest charts
• Zillow – mortgage affordability calculator
• NMLS (Nationwide Multistate Licensing System) – find a licensed Mortgage Loan Originator (MLO)
• Experian – credit checking service
• US government backed mortgage and loan assistance – landing page for Federal level mortgage help
• State housing finance agency (HFA) – landing page for state level mortgage help
• IRS tax benefits for homeowners – IRS information for homeowners
• HSBC US – landing page for mortgages for US properties, for non-resident or foreign applicants