Foreign nationals typically look for markets that have high demand and a good lifestyle. Examples of such markets are Florida, California, Texas, Arizona, and New York. All markets provide various types of properties and other features for foreign buyers.
Also, expats must check for property tax rates, cost of insurance, and local regulations. Market situations may differ greatly from one city to another. In addition, buyers must examine employment situation, infrastructure developments, population trend, and resales situation before selecting their preferred destination.
Before selecting any market, it is important to consider factors such as price comparison, tax, insurance, and rent restrictions. America Mortgages assists foreign investors in discovering the best mortgage choice for their purchase of second properties in America.
Which U.S. Markets Attract the Most Foreign Second-Home Buyers?
Florida, California, Texas, New York, and Arizona receive the maximum number of foreign buyers in the USA. These markets provide diverse lifestyle options, investment opportunities, and real estate to foreign investors.
| U.S. Market | Share of Foreign Purchases | Why International Buyers Consider It |
| Florida | 21% | Vacation lifestyle, warm climate, tourism, and strong international demand |
| California | 15% | Coastal locations, major cities, and strong global connections |
| Texas | 10% | Growing economies, diverse cities, and business opportunities |
| New York | 7% | Global business hub, luxury housing, and international connectivity |
| Arizona | 5% | Warm climate, outdoor lifestyle, and popular retirement destinations |
First on the list comes Florida. California is second, but backed by high interest from Asian and foreign investors. Texas ranks third for its ability to attract investors looking for economic development and cities. On the other hand, New York provides global access while Arizona provides buyers with warm climates and lifestyle homes.
The housing market is relatively stable even though the interest rates have gone up. In July 2026, the NAR recorded a fall in the number of existing home sales by 1.7%. Nevertheless, the existing home sales in July increased by 0.7% compared to July 2025. The median price for existing home was at $434,100 and the inventory was 1.54 million units.
What Makes These U.S. Cities Attractive for Second Homes?
US Cities offer vacation home buyers the benefit of lifestyle, tourism, and global reach. The other benefits include demand for rentals and varied types of properties. This makes it possible for foreigners to have a place where they can live while traveling or investing.
The following are some characteristics that make the places desirable:
- Miami: Has beaches, luxury homes, international connections, and activities throughout the year.
- Orlando: Has a lot of tourism and vacation homes available.
- San Diego: Is a place where one can enjoy coastal living with moderate climate and easy international travel.
- Los Angeles: Has luxury neighborhoods, international business connections, and cultural attractions.
- Scottsdale: Is for people who like golfing, outdoor sports, sunny climate, and resort lifestyle.
- Dallas: Has an international business center with different kinds of neighborhoods and easy connections.
- Houston: Has an international business center and a variety of neighborhoods.
Usually, lifestyle is the most important consideration for buyers who plan on frequent visits to the property. Nevertheless, practical considerations need to be taken into account as well. Accessibility to an airport may make travel abroad easier, while local tourism could provide for some rental income.
Also, one needs to look at property costs and expenses. One needs to check taxes, insurances, maintenance, and lease requirements before making an investment. Also, financing could determine the correct market and budget for the potential buyer. Get information on financing for non-U.S. citizens purchasing property in the United States.
How Should International Buyers Compare Second-Home Markets?
The international buyer should make sure to compare the second home markets. They should analyze location, costs, renting regulations, financing, personal use, and resale possibilities. These aspects assist buyers in selecting a property according to their needs and preferences.
Personal Usage and Accessibility
Consider how frequently you will be visiting the property. Look at its accessibility via airports, distance traveled, public transportation, and local attractions. Having an accessible location makes it easier for regular visits to the place.
Purchase Price and Ongoing Costs
While considering market comparisons, don’t just focus on the property’s purchase price. Consider property taxes, insurance costs, maintenance, HOA, and utility costs. These will differ from one location to another.
Rental Opportunities and Local Regulations
Do some research on the local regulations for renting out your property before deciding to earn rental income from the property. Some places restrict short-term rentals and even need permits for it. Furthermore, check the local market demands and seasonal changes.
Financing and Income from Abroad
The ways of financing might vary for buyers living outside the country. It is important to understand that banks will evaluate their income, assets, credit history, and other things differently. This will help future buyers set realistic budgets before putting an offer.
Resale Opportunity and Market Situation
Buyers should think about the opportunity to sell their property in the future. Check the inventory, prices, local employment and economy, etc. Having a different buying audience is always good to have.
Choosing a good second home requires consideration of lifestyle needs and finances. It is important for buyers to evaluate more than one location. Financing is an important aspect of the decision-making process too. Read this guide on buying a second home for U.S. expat before selecting your market.
What Can Expats Learn From a Real Second-Home Purchase?
Expats can learn that foreign income is not always a barrier to securing U.S. second homes mortgages. Nevertheless, different lenders have various needs from foreign customers. Knowing the terms beforehand will allow one to budget, gather documentation, review loan programs, and avoid surprises.
Expats need to shop around among different lenders prior to settling on a mortgage. The requirements may differ from one lender to another. They may require documents, down payment, and other loan details. Additionally, a competent lender will help you understand how foreign sources of income will influence your application.
In addition, buyers must also consider more than just the mortgage. The costs associated with property tax, insurance, HOA dues, maintenance, and rentals could affect the total cost of owning the secondary home. This will assist expatriates in deciding if the property meets their budget and expectations.
In an IMF research, foreign demand in U.S. housing markets was considered. Foreign demand can cause higher prices for homes locally. The effect might also be long-lasting. In addition, its effect was more pronounced in already expensive neighborhoods. Hence, the advice is to pay attention to the local market situation prior to purchase.
Case Study: Chinese National Secures $18M Los Angeles Financing in 8 Days
Case study by America Mortgages in 2026 included a Chinese technology founder. He provided financing for the purchase of his luxurious house in Bird Streets, Los Angeles. His company has not been sold yet. It is impossible to get traditional mortgage financing in such a situation.
America Mortgages created the financing package around the asset and the future sale of the company. No standard American income proof was needed. The bridge loan was made for $18 million with the LTV ratio of 70%. It took just eight days to close the deal.
Explore Second-Home Financing With America Mortgages
Buying a second home in the U.S. needs to be well planned financially. For instance, first check the budget, down payment, closing costs, and monthly payment expectations before application. In addition, take into account taxes, insurance, maintenance expenses, and currency conversion fees.
Different loan programs will have different conditions depending on whether you are a citizen of the U.S. Therefore, have income documentation, assets documentation, identification, and property documentation at hand.
In case you are considering buying a second property in America, America Mortgages can assist you in finding the best financing options for you. Feel free to reach out to us by phone at +1 (845) 583-0830 or by email at [email protected]. Our experts can help you find suitable U.S. second-home financing opportunities.
FAQs
Q1: Can a foreign national get a mortgage in the U.S.?
Yes, foreign nationals can be eligible to apply for mortgages in the United States. However, the lenders might ask for more documentation and also for higher down payments. So, do some comparisons before settling on which mortgage program is best for you.
Q2: Is it better to buy a second home or investment property in the U.S.?
The best option will depend upon your objectives, finances, and the purpose you have for it. If you are thinking of owning a vacation property, then this is the right choice. However, in case of investment, the focus will be on earning rents.
Q3: How much money do I need to buy a U.S. vacation home?
A down payment, closing costs, savings, and other expenses associated with owning the property may be required. But this depends on the lender and the property. Thus, it is important to consider the above factors before you establish the vacation home budget.
Q4: Can I rent out my U.S. second home when I live abroad?
Yes, you are allowed to lease your U.S. vacation home even when residing overseas. Nevertheless, there may be restrictions imposed by the local authorities. In addition, make sure to review the mortgage agreement, HOA agreement, and any tax implications.
Q5: What documents do foreign buyers need to purchase U.S. property?
Foreign buyers usually have to show proof of identification, their income, assets, and property information. The requirements depend on the lender. Nevertheless, applications often include passports, bank statements, evidence of employment, tax information, and purchase agreement. Moreover, proof of income, credit rating, and foreign income information can be required.
