How to Buy a House in the United States as an Indian Citizen

As of February 2024, over 3.2 million Indian citizens live in the US. They account for about 6.4% of the foreigners living in the United States. Are you from India and looking to buy property in the US? If so, stick around; this guide provides helpful information regarding how to buy a house in the United States as an Indian.

Can Indians Purchase Property in the US?

Yes! All non-American citizens, including Indians, can purchase property in the United States. If you hold a H1-B visa as an Indian citizen, you are likely to obtain a mortgage based on your credit report from your home country.

Why Indians Acquire Houses in the United States

• Many Indians prefer buying primary residence in the US to renting as they consider the former to make more financial sense than the latter.
• High ROI (return on investment) on American real estate is among the reasons for Indians to acquire property in the US. Recent data shows that home value in the United States has doubled over the past decade.
• The United States offers a better quality of life than India.
• It is easier for Indians to secure mortgages in the US than in many other countries. So long as you have a good credit report, you can get a home loan like Americans.

How Much American Real Estate Do Indians Purchase Every Year?

National Association of Realtors (NAR) data shows that Indians are the fourth-biggest foreign buyers in the US. They share the position with the UK citizens. Since 2020, Indians have been buying an average of 6,500 housing units every year. They have so far invested more than $14.3 billion over the past four years.

Where Do Indians Purchase Property in the United States

According to NAR, Most Indians buy houses in California. Other preferred locations include Texas, Florida, Missouri, Ohio, Michigan, New Jersey, Wisconsin, and Illinois.

Moreover, 75% of Indian citizens buy American houses in Suburban areas. Fifteen percent of Indians invest in urban areas, while 10% in rural areas and small towns.

How Do Indian Citizens Intend to Use Their American Property?

About 79% of Indians prefer using their American homes as primary residence. Meanwhile, 14% buy property in the United States to rent them out, while 7% purchase houses for student use.

How Does Housing Prices in the United States Compare to India?

Generally, the housing prices in the United States are relatively lower than those in major cities in India. For instance, per square meter of residential property in San Francisco costs roughly $5,800 compared to about $10,900 in Mumbai.

Understanding the Steps Involved in Buying Property in the US for Indian Citizens

Buying property in a foreign country can be challenging, given the many steps involved. Here is a rundown of what an Indian needs to consider when buying an American property:

1. Decide the location you want to purchase a house in the United States.

2. Find a qualified real estate agent who has experience in handling international real estate transactions. Ensure the agent holds a Certified International Property Specialist (CIPS) certification.

3. Ask the real estate agent about the housing market in the United States and your tax implications.

4. With the guidance of the agent, start searching for your ideal property.

5. Once you identify the house, consult with the real estate agent and send an official offer to the seller.

6. When your offer gets accepted, plan a home inspection to identify any areas that may require repairs.

7. Sign a sale contract with the property seller and make a down payment.

8. Find an American lender that offers home loans to foreigners and apply for a mortgage.

9. After loan approval, instruct the lender to transfer the funds to the seller to complete your home purchase.

10. Receive a new title deed and move into your American house.

And that is how an Indian citizen can buy property in the United States.