International buyers should consider a second home in California because few places combine a world-class lifestyle, globally ranked schools and universities, and a housing market backed by the AI boom and one of the largest economies on earth. California drew 19% of all foreign buyers of U.S. homes in the year to March 2026, second only to Florida.
For foreign nationals and U.S. expats, financing is available through programs that often do not require a U.S. credit history, so buying no longer has to mean paying all cash.
This guide covers why overseas families are buying in California, what the market data says, and how to finance the purchase from abroad.
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Why Is a Second Home in California So Popular With Overseas Buyers?
California is popular with overseas buyers because it offers a deep, globally connected property market that attracts buyers from Asia, Latin America and beyond. According to the National Association of Realtors 2026 International Transactions report, foreign buyers purchased $45.3 billion of U.S. existing homes between April 2025 and March 2026, and California captured 19% of them.
The detail behind that number is telling.
- Buyers from Mexico, China and India each ranked California as their top U.S. destination, according to NAR.
- Chinese buyers spent the most dollars of any nationality because they bought higher-priced homes, specifically in California, NAR’s chief economist noted.
- The year before, Chinese buyers spent $13.7 billion on U.S. homes and 36% of them bought in California, per NAR’s 2025 report.
- 48% of foreign buyers paid all cash in the latest report. Many buyers who can pay cash still choose to finance, keeping capital free for other investments or currency planning.
California also ranked as the world’s fourth largest economy with a nominal GDP of $4.1 trillion, ahead of Japan. That economic weight underpins long-term housing demand.
What Lifestyle Benefits Come With a California Second Home?
A California second home gives you year-round access to beaches, mountains, wine country and major cities within a single state. The state has roughly 840 miles of Pacific coastline and nine national parks, more than any other state, including Yosemite, Joshua Tree and Sequoia.
Coastal Living and a Year-Round Climate
The temperate climate is a major draw for families who want to spend school holidays, winters or long summers in the U.S. Coastal cities like San Diego, Santa Barbara and the Orange County beach towns offer a relaxed pace with direct access to international airports. For many buyers from Asia, California’s Pacific location also means shorter flights home than the East Coast or Florida.
Where International Buyers Look for a California Vacation Home
The right location for a California vacation home depends on whether you prioritize lifestyle, schools or long-term value. Areas highlighted in Your Overseas Home’s California buying guide include the following.
- Irvine is a master-planned Orange County city with a University of California campus and corporate offices. See our guide to investing in Irvine, California.
- Santa Barbara is a coastal city where limited land restricts overdevelopment and supports price resilience.
- San Diego combines big-city services with a beach lifestyle and a mature property management sector.
- Palo Alto sits beside Stanford University in Silicon Valley and is among the most expensive markets in the country.
- Palm Springs is known for mid-century homes and short-term rental demand, subject to local rules.
- Sacramento is the state capital, with lower prices than the coast and a growing tech sector.
How Does a Second Home in California Help With Schooling for Kids?
A second home in California places your family close to some of the highest-ranked universities and international schools in the world. That makes it a practical base for children during secondary school terms, university years or summer programs.
World-Ranked Universities Within Driving Distance
In the U.S. News 2026–27 Best Global Universities ranking, California schools placed heavily in the global top 25.
| University | Global rank (2026–27) | Region |
|---|---|---|
| Stanford University | #3 | Silicon Valley |
| UC Berkeley | #7 | San Francisco Bay Area |
| UCLA | #11 | Los Angeles |
| UC San Francisco | #22 | San Francisco |
| UC San Diego | #23 | San Diego |
The same ranking listed eight UC campuses among the top 30 public universities in the U.S. For younger children, California has 235 International Baccalaureate World Schools, giving globally mobile families a familiar curriculum.
Buying a Second Home in California for a Student Child
Many parents compare four or more years of student rent against owning a home their child lives in, which the family can keep, rent or sell after graduation. The AM Student+ loan program is built for this situation.
- Who it suits are parents buying a property for their children to live in while attending school.
- Loan amounts range from $150,000 to $3,000,000.
- Financing is available up to 75% of the purchase price, with 30-year fixed and 10-year interest-only options.
- Qualification can use U.S. and/or foreign income, with no U.S. credit history required.
- Closing documents can be signed outside the U.S.
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How Is the AI Boom Driving Demand for California Property?
The AI boom is pulling record investment, high-paying jobs and housing demand into California, especially the San Francisco Bay Area. Startups in the San Francisco metro area received 44.9% of all U.S. venture capital dollars in 2025, the highest share since at least 2013, and together with Silicon Valley the figure reached 52.3%, according to PitchBook and NVCA data.
That capital is showing up in housing.
- San Francisco home prices rose nearly 20% over the past year, according to Redfin data, the fastest pace in a decade.
- Rents in San Francisco rose 14% year over year in early 2026, the fastest growth in the country, per Apartment List.
- Luxury neighborhoods have led the gains as highly paid AI workers compete for limited inventory.
The gains are not uniform. Across the bay in Oakland, prices have lagged, which shows why choosing the right submarket matters as much as choosing the right state. For buyers who want rental income from tech-driven demand, a DSCR loan that qualifies on the property’s rent may fit better than a second home loan.
What Is the Investment Potential of a Second Home in California?
A second home in California can hold long-term value because statewide prices have stayed near record levels even as higher mortgage rates cooled sales. The California Association of Realtors reported a statewide median price of $899,720 in September 2026, up 1.7% from a year earlier, after a record high of $930,260 in May 2026. Homes sold in a median of 29 days, and 33 of the 53 counties tracked posted annual price gains.
Past performance does not guarantee future results, and prices vary widely by county. Still, limited housing supply, a large economy and steady international demand support the long-term case.
Property Taxes on a Second Home in California
California’s property tax system is predictable for long-term owners. Under Proposition 13, the base tax rate is limited to 1% of assessed value plus voter-approved local charges, and assessed value can rise by no more than 2% per year until the property is sold or newly built on, as explained by the California State Board of Equalization. Buyers are reassessed at the purchase price, so budget from that figure.
U.S. expats who file U.S. returns may be able to deduct mortgage interest on combined primary and second home debt up to $750,000, as LA Homes outlines. Our U.S. tax filing service can help you confirm what applies.
Renting Out a Second Home in California
Occasional renting is possible, but the amount of rental use affects both taxes and loan type.
- Under 15 rental days a year, the IRS says you generally do not report the rental income, per IRS Topic 415.
- Personal use above 14 days, or 10% of rented days if greater, keeps the home classed as a residence for tax purposes.
- Mostly rental use usually calls for an investment loan such as a DSCR loan instead of a second home mortgage.
- Short-term rental rules are set city by city in California, so check local permits before you buy.
Foreign sellers should also plan the exit. Under FIRPTA, buyers generally withhold 15% of the gross sale price when purchasing from a foreign person. Our FIRPTA withholding calculator estimates your net proceeds.
How Can You Buy Property in California as a Foreign National or U.S. Expat?
You can buy property in California as a foreign national or a U.S. expat with a mortgage from a lender that underwrites international income and assets. A second home mortgage for foreign nationals typically requires a larger down payment than a U.S. resident would pay, but it may not require a U.S. credit score, Social Security number or U.S. income.
| Program | Best for | Key published terms |
|---|---|---|
| Second Home Mortgage | Vacation or family use | Up to 75% LTV on purchase, $150K to $5M, 5/10/30-year terms, interest-only option |
| AM Student+ | Parents housing a student | Up to 75% LTV on purchase, $150K to $3M, 30-year fixed or 10-year interest-only |
| DSCR Loan | Mostly rental properties | Qualifies on the property’s rental income, not personal income |
U.S. expats may qualify for up to 80% financing on some programs, depending on the lender and profile. Terms, rates and LTV are confirmed in writing at pre-approval.
America Mortgages focuses only on lending to foreign nationals and U.S. citizens living overseas.
- Access to 150+ U.S. bank and lender programs under one application.
- A 97% approval rate over the trailing 12 months on submitted files.
- Borrowers from 57 nationalities financed across all 50 states.
- A fully remote process from pre-qualification to closing.
- Concierge support for realtor matching, LLC setup and money transfer when needed.
How to Start Financing Your California Second Home With America Mortgages
Starting is simple, and you can do every step from overseas.
- Share your goals using the form below, including your target area, budget and how you plan to use the home.
- Speak with a specialist who reviews your income, assets and residency to match you with suitable programs.
- Receive written pre-approval so you can make offers with confidence.
- Get matched with a local realtor in your chosen California market if you need one.
- Close remotely, with documents signed in your country of residence where the program allows.
Have questions about financing a home in California from overseas? Message us on WhatsApp at +65 8430-1541, call +1 (845) 583-0830, or email [email protected] and a specialist will walk you through your options.
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Frequently Asked Questions
Q1: Can a foreign national buy a second home in California?
Yes. Non-U.S. citizens can buy and finance residential property in California. Specialist lenders offer programs that may accept foreign income and international credit references instead of a U.S. credit score.
Q2: How much down payment do I need for a California second home?
Foreign nationals should typically plan for at least 25% down, since second home programs finance up to 75% of the purchase price. Some U.S. expat programs may finance up to 80%, depending on the lender and borrower profile.
Q3: Can I rent out my second home in California when I’m not using it?
Occasional rental may be possible depending on your loan terms and city rules. If you rent fewer than 15 days a year, the IRS generally does not require you to report that income. Homes used mainly as rentals are usually financed with a DSCR loan.
Q4: Do I need to travel to the U.S. to close on a California property?
Not necessarily. America Mortgages offers a fully remote process, and some programs allow closing documents to be signed outside the U.S.
Q5: What taxes apply to a second home in California?
Owners pay annual property tax, generally starting at 1% of assessed value plus local charges under Proposition 13. Foreign sellers are also subject to FIRPTA withholding of 15% of the gross sale price when they sell, unless an exception applies. Speak with a tax adviser about your situation.
Q6: Can I buy a California home for my child who is studying there?
Yes. Programs like AM Student+ are designed for parents buying a home for a child attending school, with loans from $150,000 to $3,000,000 and no U.S. credit history required.
This page is for general information only and is not financial, tax or legal advice. Loan terms, rates and eligibility vary by lender, program, property and location, and all loans are subject to underwriting and approval. Speak with an America Mortgages specialist to confirm current terms for your situation. America Mortgages, Inc. NMLS #2810389.
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