Foreign citizens can legally buy a home in Massachusetts, though getting a mortgage and handling U.S. taxes take extra planning.
Your 2026 residency status dictates your loan options, while state and federal taxes and FIRPTA withholding shape your total ownership costs.
Check Your Alternative Mortgage Eligibility
Match your residency status to the right financing path and build a buying plan to review with your lender, real estate attorney, and cross-border tax advisor.
Can Foreigners Buy Property in Massachusetts?
Yes. No Massachusetts statute bars foreign citizens or non-residents from buying residential property in the state. You can take title to a house or condominium in your own name or through a legal entity, subject to federal rules.
As of October 2026, Massachusetts has not enacted a foreign-ownership restriction. Bills on foreign ownership of farmland have been filed, including one to bar foreign governments from buying farmland within 20 miles of U.S. military bases, which went to a study order on March 19, 2026 (a step where bills normally stall).
Confirm current law with a Massachusetts attorney before signing a contract.
Buying Farmland or Timberland
Typical homes and condos are not affected by federal agricultural reporting rules. If the purchase includes farmland, pasture, or timberland, foreign buyers must report it to the USDA Farm Service Agency within 90 days under the Agricultural Foreign Investment Disclosure Act (AFIDA), so ask your attorney whether it applies.
Which Mortgage Fits Your Residency Status
You do not need to pay all cash to buy in Massachusetts as a non-U.S. citizen. Your loan options depend on two things: your U.S. residency status and how you will use the property (primary residence, second home, or rental).
| Your status | Conventional loan | FHA loan | Foreign national loan |
|---|---|---|---|
| Green card holder (lawful permanent resident) | Yes, same terms as U.S. citizens | Yes, primary residence only | Possible, but agency loans usually fit better |
| Living here on a visa (lawfully present non-permanent resident) | Yes, through Fannie Mae when the lender confirms legal presence | No, since May 25, 2025 | Some lenders |
| Living abroad with no U.S. residency | Generally no | No | Main financing path; terms vary |
Conventional Loans
Fannie Mae buys mortgages made to green card holders and lawfully present non-permanent residents on the same terms available to U.S. citizens. The lender determines your residency status and warrants that you are legally present in the United States.
Freddie Mac will not buy a mortgage made to a non-U.S. citizen who has no lawful U.S. residency status. Because of these secondary-market rules, a buyer living abroad without U.S. residency generally cannot get a Fannie Mae or Freddie Mac loan.
FHA Loans
Under a federal rule change, FHA no longer lends to non-permanent residents for FHA case numbers assigned on or after May 25, 2025. FHA borrowers must now be U.S. citizens, lawful permanent residents, or citizens of the Federated States of Micronesia, the Republic of the Marshall Islands, or Palau.
FHA loans are also strictly for principal residences, so they never fit a buyer who lives abroad. If you live in Massachusetts on a work or student visa, look at conventional or alternative loans instead.
Foreign National Loans for Buyers Living Abroad
If you live outside the United States and hold no U.S. residency status, your main financing path is a foreign national loan. These are private, non-agency (non-QM) mortgages built for international buyers, and each lender sets its own underwriting rules:
- Down payment: Typically larger than standard agency loans, with minimums varying by lender.
- Documents: A valid foreign passport, U.S. visa documents where applicable, foreign bank statements, and foreign credit references or international income documents, depending on the program.
- Property types: Lenders may finance second homes or investment properties; eligible types vary by lender.
As a mortgage broker, our team compares foreign national and alternative programs across multiple wholesale lenders, with no hard credit pull to start.
DSCR Loans for Rentals
International investors buying a rental property often compare foreign national programs with a DSCR loan in Massachusetts (debt service coverage ratio loan), which weighs the property's rental income potential alongside your assets and credit profile. Specific rules for foreign nationals vary by lender.
Buying a Condo
When you finance a condominium, the condo project itself must be acceptable to your lender, not just you. See how project reviews work in our guide to condo loans in Massachusetts.
Check Your Eligibility for a Foreign National Mortgage in Massachusetts
Do You Need an ITIN?
You generally need a U.S. taxpayer identification number such as an Individual Taxpayer Identification Number (ITIN) once you earn U.S. rental income or sell U.S. real estate, because IRS filings and withholding forms require one; whether your loan needs an SSN or ITIN depends on the program.
An ITIN is a tax processing number issued by the IRS to people who must file U.S. taxes but cannot get a Social Security number, and you apply for it through the IRS.
Some non-QM lenders offer ITIN loans for people who live and work in the United States, while foreign national programs use your passport and foreign income or assets. Ask your loan officer early which documentation path matches your situation.
Taxes Foreign Owners Pay in Massachusetts
Expect local property tax, Massachusetts income tax on any rent you collect, possible Massachusetts estate tax, and the state deed excise tax when you sell (paid by the seller).
Because tax rules depend on your residency status, how you hold title, and any tax treaty with your home country, review your plan with a cross-border CPA or tax attorney.
| Tax | Who collects it | What it means for you |
|---|---|---|
| Local property tax | Your city or town | All owners pay; second homes and rentals don't get the residential exemption where a town offers one |
| Massachusetts income tax on rent | Massachusetts Department of Revenue | Owed by nonresidents on Massachusetts rent: 5%, plus a 4% surtax on taxable income above $1 million (threshold adjusts yearly) |
| Federal income tax on rent | IRS | Nonresident aliens face federal reporting and withholding rules; treaties may apply |
| Massachusetts estate tax | The Commonwealth | Can apply to Massachusetts real estate of a nonresident who dies; nothing owed if the federal taxable estate is $2,000,000 or less |
| Deed excise tax | The Commonwealth | Paid by the seller at sale |
Property taxes are set by each of the 351 cities and towns; see Massachusetts property tax rates by town. Some communities, including Boston, offer a residential exemption that lowers the taxable value of an owner's principal residence, which a second home, pied-à-terre, or rental won't get.
Keep in mind that Massachusetts estate tax can apply to nonresidents who own real estate or tangible personal property in the Commonwealth. For deaths on or after January 1, 2023, estates above $2,000,000 receive a credit of up to $99,600.
High-value homes and Boston condos can quickly approach that threshold, so speak with a Massachusetts estate planning attorney and cross-border tax advisor before choosing whether to hold title in your own name, an LLC, or a trust.
Massachusetts also taxes rent from Massachusetts property even if you live abroad full time, so set up federal and state filings with a cross-border CPA before your first tenant moves in. For resale planning, see our guide to the Massachusetts deed excise tax.
Compare Foreign National and Alternative Loan Options
What Happens When You Sell: FIRPTA Withholding
When a foreign owner sells U.S. real estate, the buyer must generally withhold 15% of the sales price at closing and send it to the IRS under FIRPTA (the Foreign Investment in Real Property Tax Act).
FIRPTA withholding is a tax prepayment, not a penalty: you file a U.S. tax return after the sale to report your actual capital gain or loss, claim a refund if too much was withheld, or pay the balance.
| Sales price | Who is buying | Withholding |
|---|---|---|
| $300,000 or less | Individual buying it as a residence | 0% |
| Over $300,000 up to $1,000,000 | Individual buying it as a residence | 10% |
| Over $1,000,000, or any price | Any buyer above $1,000,000; an investor or entity at any price | 15% |
For the $300,000 exemption or the 10% rate to apply, the buyer must be an individual (not an LLC, corporation, or trust). The buyer or a family member must also plan to live there at least 50% of the days it is used in each of the first two 12-month periods after the sale.
The buyer reports and pays the withholding to the IRS, though before closing either the seller or the buyer can apply to the IRS for a withholding certificate to reduce or eliminate it.
Because these IRS forms require a U.S. taxpayer identification number, get your ITIN in place well before you list the property for sale.
Steps to Buy a Massachusetts Home as a Foreign Buyer
These six steps build on our general guide to the requirements to buy a house in Massachusetts.
Step 1: Decide How You'll Use the Property
Decide upfront whether the home will be your primary residence on an eligible visa or green card, a second home, or a rental. Your occupancy plan determines whether you compare conventional loans, foreign national loans, or a DSCR loan in Massachusetts, and whether you can get local principal-residence tax breaks.
Step 2: Open a U.S. Bank Account and Gather Documents
International wire transfers, currency exchange checks, and anti-money-laundering reviews take extra time during underwriting and closing. Both your mortgage lender and the Massachusetts closing attorney will verify your identity and the source of funds for your earnest money deposit, down payment, and closing costs.
Gather these items early:
- Valid passport and U.S. visa or lawful permanent resident card, if applicable
- Proof of income and employment (U.S. or foreign, depending on the loan program)
- Bank and asset statements showing your down payment and cash reserves
- A clear paper trail for any funds moved from abroad into a U.S. bank account
- An SSN or ITIN, if applicable to your loan or tax situation
Step 3: Get Pre-Approved and Budget for Closing Costs
Sellers in competitive Massachusetts markets expect a mortgage pre-approval letter with your offer. With our team, starting an eligibility check or pre-approval takes no hard credit pull, and pre-approval typically takes 1 to 3 business days once your documents are in.
Review our guide to Massachusetts closing costs so you know what to budget on top of your down payment for lender fees, attorney fees, title insurance, property tax escrows, and recording charges.
Step 4: Hire a Buyer's Agent and a Massachusetts Real Estate Attorney
Massachusetts closings commonly involve real estate attorneys who review contracts, examine title, and run the closing. Purchases use a two-step contract process: an Offer to Purchase followed by a Purchase and Sale Agreement (P&S).
Choose a buyer's agent and an attorney experienced with international buyers, foreign wire timing, and power-of-attorney or remote signing if you will be abroad at closing.
Step 5: Know the Massachusetts Inspection Rules
Beyond a standard home inspection, Massachusetts has two state-specific property rules to factor into your purchase:
- Title 5 septic inspection: Generally required at the time of sale for homes on a private septic system rather than town sewer, confirming the system meets state environmental standards.
- Lead Paint Law: Homes built before 1978 may contain lead paint, and owners have strict legal duties to remove or cover lead hazards when a child under six lives in the home, which matters for family homes and rentals.
Step 6: Underwriting and Closing
Once your Purchase and Sale Agreement is signed, your lender orders the appraisal, reviews condo documents if relevant, and finishes underwriting; purchase closings typically take 30 to 45 days.
Confirm wire instructions with your closing attorney using a verified phone number, and send international transfers well ahead of closing day.
Next Steps
Buying in Massachusetts as a foreign citizen comes down to matching your residency status to the right mortgage program and planning early for local property taxes, state rental and estate tax rules, and future FIRPTA withholding.
As a mortgage broker comparing options across multiple wholesale lenders, our team can review conventional, DSCR, and foreign national loan options in one place. Check your eligibility online with no hard credit pull, or schedule a free 15-minute call with a loan officer to talk through your purchase plan.
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