Last week, America Mortgages hosted a webinar on financing New York real estate as an international buyer, covering everything from neighborhood selection to mortgage options for foreign nationals. This article pulls together the key takeaways from that session.
Purchasing property in New York as an international buyer will open the door to one of the largest real estate markets in the world. However, purchasing property in New York involves a lot of preparation. The first step is for buyers to understand their motives, finances, and more.
The international buyer will be able to buy real estate in New York, whether for residences, pied-à-terre purpose, students or as investments. The Midtown East, Turtle Bay, Murray Hill and Sutton Place present good convenience while the Upper East Side and Upper West Side present good residential environment. There are other developing areas that can be considered by the international buyer too. There are ways to obtain mortgages in U.S. as a foreigner.
First, define your purpose and visit frequency for the property in question. Second, contrast different neighborhoods, property types, monthly costs, and any possible taxes involved. Third, consider the building guidelines prior to submitting your offer. America Mortgages is available to assist foreign purchasers in determining appropriate mortgage options.
Where Are International Buyers Buying in New York?
Opportunities for international buyers abound everywhere in Manhattan, whether they be in expensive neighborhoods or those that are more affordable. The best one will depend on the budget and needs of the purchaser.
| Neighborhood | Why It May Suit International Buyers | Recent Market Indicator |
| Midtown East | Central location and easy commuting | $1.33M median listing price |
| Turtle Bay | Walkability and Midtown access | $1.13M median listing price |
| Murray Hill | Convenience with relatively lower entry prices | $862,500 median listing price |
| Sutton Place | Quiet setting near the East River | $1.20M median listing price |
| Upper East Side | Residential feel and Central Park access | $1.71M median listing price |
| Upper West Side | Established residential neighborhood | $1.77M median listing price |
There are notable differences in prices currently in the market in these regions. For instance, Murray Hill is more affordable compared to Midtown East region. The average median sale price in Manhattan was approximately $1.4 million in mid-2026. There were also price increases by 6.2% year over year.
The budget will influence the kind of houses that buyers will want to consider. Those who have about one million dollars may concentrate on more affordable apartments. The 2026 StreetEasy report also considers Midtown East and Midtown West as good areas for buyers searching for good opportunities. Investors can also check on how investors can buy and finance New York real estate.
According to the National Association of REALTORS®, New York accounted for 7% of all international U.S. property buyers in 2025. New York was one of the leading cities in America where international buyers purchased properties.
What Should International Buyers Know About the Pied-à-Terre Tax?
Buyers in international markets need to consider the new annual fee imposed on second homes in New York State. It may be applicable to certain condo or co-op units having a value of more than $1 million.
This is what buyers need to be aware of:
- 4% surcharge is applicable on condos and co-ops ranging between $1 million and $3 million.
- 5.25% surcharge is applicable on properties that range from $3 million to $5 million.
- 6.5% surcharge is applicable on units that are valued above $5 million.
- The charges are levied based on the Department of Finance market value.
- The main residence is eligible for exemption.
- Immediate family members can also become main residents.
- The owner eligible for exemption needs to produce relevant documents.
- The surcharge will be shown in property tax bills where applicable.
- Applications for exemption in 2026 have to be submitted before September 18, 2026.
According to the Department of Finance in New York City, the pied-a-terre tax can apply to some of the non-primary residential properties. The properties with a value of more than $1 million can have to pay an annual tax. The tax rates are between 4% and 6.5%, according to the value.
As reported by Redfin, the median selling price in Manhattan stood at $1.4 million during June 2026. In addition, prices were up 6.2% year over year. This trend is due to the ongoing buyers’ demand in the market. Hence, the foreign buyers need to consider the relative cost of ownership.
Condo vs. Co-op: Which Is Better for International Buyers?
Most foreign purchasers will find the condo a superior choice. It provides increased flexibility and ease in selling the property and reduced limitations on use. The co-op may be less expensive, but its regulations could pose problems for foreign owners.
The co-op may be less expensive but more restricted due to its regulations. Some require residency in the apartment before it can be sublet. Other co-ops place restrictions on rentals. International buyers need to look at the regulations of each building before purchasing a co-op.
However, while it is true that the condo offers greater flexibility, the bank will certainly examine the structure before granting the mortgage. They can look into the finances of the building, its insurance, legal considerations, and whether it belongs to investors.
What Does It Cost to Own and Finance New York Property?
There are many costs associated with purchasing property in New York, apart from the price of the property itself. Some of them include the down payment, mortgage payments, taxes, insurance, closing costs, and construction costs.
Down Payment
A down payment is a certain sum that needs to be paid to secure a loan to finance a property. International buyers may require a bigger down payment compared to domestic buyers; however, the amount depends on the type of property, the loan program, financial situation, and the bank that provides the mortgage.
Interest Payments
Interest payments are part of the total cost of the mortgage. This amount of money depends on your credit score, income level, wealth, mortgage scheme, and market environment. Analyzing all available programs may allow you to save some money on your borrowing.
Property Taxes
Property taxes are one of the ownership costs that you will have to pay in addition to the monthly mortgage installment.
Closing Costs
Closing costs are incurred during the purchasing process. They can comprise attorney fees, lender fees, title fees, filing fees, and other taxes. Making preparations for the above in advance will ensure that there are no delays during the closing process.
Building Charges
Condos incur monthly common charges whereas co-ops incur maintenance charges. The fees incurred here may vary from one building to another. It is important for a buyer to look at recent bills before making a purchase.
Surcharge on Primary Residence
There may be an annual surcharge levied on certain primary residences whose market value exceeds $1 million. The current rates stand at 4%-6.5%. International buyers are supposed to verify their eligibility for this surcharge.
Insurance and Maintenance Fees
In property ownership, insurance and maintenance fees are incurred. Requirements of coverage may vary depending on the building and property. There should always be provision for unforeseen issues, replacement of items, etc.
Generally, an international buyer should consider the total ownership cost instead of just looking at the buying cost of the house. The buying cost may be lower but the monthly fees could be higher. It would be good to compare the finances involved in purchasing the house.
Case Study: Financing a $25 Million New York Real Estate Deal
America Mortgages demonstrates an example of a bridge loan for New York City that was completed in just 10 days for a property valued at $25 million. America Mortgages mentions that its NYC financing program is geared toward wealthy and international individuals who may have difficulties with financing from traditional U.S. financial institutions.
In this case, international buyers utilize alternative sources of financing because a traditional mortgage could not facilitate closing on schedule. Buyers that intend to buy a property in Manhattan or another valuable area of New York may benefit from securing their financing beforehand to be able to compete with cash buyers.
Start Your New York Property Purchase With America Mortgages
Investing in properties in New York involves a lot of planning. Start by establishing your budget and financing requirements. You can then evaluate the different types of mortgages that suit your financial standing. Foreign nationals and U.S. expats may be eligible for certain kinds of financing. Thus, seeking assistance will aid you in selecting a suitable property.
At America Mortgages, we help foreign investors in determining financing methods in purchasing US properties. Our team can discuss your financial standing and your property objectives. We can also help you determine what is required to proceed.
Ready to finance your New York property purchase? Contact America Mortgages today at [email protected]
or +1 (845) 583-0830. Discuss your financing options with the team and take the next step toward your New York property purchase.
FAQs
Q1: Can a foreigner buy property in New York without living in the U.S.?
Yes, it is possible for non-U.S. residents to own real estate in New York without having their permanent address in the U.Ss. They can buy condominiums, cooperatives, and other real estate that qualifies. Still, one should consider various issues before buying.
Q2: Can international buyers get a mortgage for a New York property?
Yes, it is possible to take out loans for New York properties from international sources. Different lenders have different requirements according to borrowers and their properties. Some schemes help foreigners who do not have any residential status in America.
Q3: How much money should I have to buy a home in New York?
You should be able to cover the expenses such as down payment, closing costs, taxes, and other recurring costs related to the property. You should also have some additional savings for maintenance and unforeseen costs.
Q4: Can I rent out my New York apartment if I live overseas?
Yes, it is possible to rent out your apartment in New York even when you are residing abroad. However, there are regulations and restrictions that can affect whether or not it will be allowed. It is easier for a condo than for a coop.
Q5: What documents do foreign buyers need to purchase property in New York?
Foreign buyers normally require a passport, proof of money, bank statements, income, and tax documents. Some lenders require more documents to issue mortgages. This depends on the specific lending institution and the property. Thus, buyers need to verify the list of the required documents prior to placing the offer.
