What Documents Do International Buyers Need to Purchase U.S. Real Estate?

International buyers need specific documentation to purchase U.S. real estate, including a valid passport, proof of funds, and an Individual Taxpayer Identification Number (ITIN). Preparing these documents in advance can expedite the process and minimize delays at closing, ensuring a smoother transaction experience.

What Identity Documentation Is Required for U.S. Real Estate Transactions?

Identity verification is crucial in U.S. real estate transactions. A valid government-issued foreign passport is mandatory. Additional identification, such as a national ID card or driver's license, may also be requested.

These documents are submitted to the escrow company, lender, and title company during the closing process.

How Can You Provide Proof of Funds for Your Purchase?

To document the source of your down payment and closing costs, you need recent bank statements covering the last 2 to 3 months that show sufficient liquid funds. For financed purchases, lenders require 60 to 90 days of bank statements evidencing that the down payment funds are seasoned assets, not recently transferred from unexplained sources.

Why Is an ITIN Necessary for International Buyers?

An Individual Taxpayer Identification Number (ITIN) is essential for U.S. tax filing after your purchase. You must report rental income on a U.S. tax return annually. The ITIN serves as your tax identifier as a non-resident.

The ITIN application (IRS Form W-7) can be submitted with supporting documentation through a Certified Acceptance Agent. Buldora's team facilitates this process for clients as part of the onboarding workflow.

What Financing Documentation Is Needed for Foreign Buyers?

For DSCR loans, the documentation requirements are minimal:

1. Passport
2. Bank statements for proof of down payment
3. Signed purchase contract

The lender assesses the property's rental income against the debt service obligation rather than your personal income.

For conventional foreign national mortgages, additional documentation is required, including:

• Two years of tax returns: Or equivalent income documentation from your home country
• Credit report: From your home country
• Employment verification: Or business ownership documentation
• Letter from your accountant or employer: To support your application

What Documents Are Needed If Purchasing Through an LLC?

If you choose to purchase through a U.S. LLC, which is recommended for investment properties, you will need:

• Articles of Organization: To establish the LLC
• Operating Agreement: Outlining the management structure
• Employer Identification Number (EIN): From the IRS
• LLC's bank account information: For transactions

Buldora coordinates LLC formation for investors who need this structure established before closing.

FAQ

How long does it take to get an ITIN?

ITIN processing by the IRS typically takes 7 to 11 weeks. Applications can be expedited through a Certified Acceptance Agent, which is the recommended approach for investors on a transaction timeline.

Do I need a U.S. bank account to buy property?

For financed purchases, yes. You will need a U.S. bank account to receive rental deposits and service the mortgage. For cash purchases, funds can often be wired from a foreign bank account directly to the escrow company. However, a U.S. account is still recommended for ongoing management purposes.

"Understanding the documentation required for international buyers is crucial for a seamless transaction. Proper preparation can save time and reduce stress during the purchasing process." — Anthony Banks, Co-founder and Systems Architect