Many Vietnamese investors believe that purchasing U.S. real estate is the shortest path to immigration. In reality, this is one of the most common misconceptions about U.S. immigration. This article provides a direct answer: Can foreigners buy homes in the United States? How much do homes cost across different states? What is FIRPTA tax and how does it affect your finances? Most importantly, if your true goal is immigration, what is the correct pathway?
Can Foreigners Buy U.S. Real Estate?
Buying U.S. real estate as a foreigner legal regulations FIRPTA tax 2026
The short answer: Yes but buying a house does not help you immigrate.
The United States has one of the most open property ownership systems in the world for foreign investors. Federal law does not prohibit non-U.S. citizens from purchasing real estate. This is an important distinction compared to many other countries: in the U.S., property ownership and immigration status are completely separate legal matters.
Non-residents are allowed to purchase real estate in the United States. However, they must comply with the Foreign Investment in Real Property Tax Act (FIRPTA), may face higher tax obligations when selling property, and must demonstrate legitimate financial sources. Certain areas near military installations or other sensitive locations may impose additional review procedures for foreign buyers.
To put it plainly: you can own a home in California, Texas, or Florida without a visa, green card, or U.S. citizenship. However, owning one house or even ten houses does not grant any residency rights in the United States.
(See also: What Should Vietnamese Investors Invest in the U.S. in 2026?)
How Much Does a House Cost in America? Real Market Data as of May 2026
This is the first practical question Vietnamese investors should understand before making any decisions regarding U.S. real estate.
According to Redfin data from March 2026, the median home price in the United States reached $436,523, up 1.2% year-over-year. The average 30-year fixed mortgage rate nationwide stands at 6.2%, down 0.47 percentage points from the previous year. In March 2026, 415,907 homes were sold, representing a 2.4% increase compared to the same period last year.
How much a house costs in America depends heavily on the state and market segment. Expensive states such as Hawaii, California, Massachusetts, and Washington, D.C. have median prices exceeding $700,000. Mid-range states such as Florida, Virginia, and Arizona typically range between $350,000 and $550,000. More affordable states such as West Virginia, Mississippi, and Arkansas remain below $260,000.
Average Home Prices in States Popular Among Vietnamese Buyers (Q1 2026)
State
Average Price
Notes
Hawaii
~$973,000
Most expensive state
California
~$809,000
Bay Area and Los Angeles significantly higher
Washington
~$626,000
Seattle technology corridor
Colorado
~$567,000
Denver and ski resort regions
Utah
~$546,000
Strong growth around Salt Lake City
Nevada
~$472,000
Las Vegas and surrounding suburbs
Virginia
~$416,000
Near Washington, D.C.
Florida
~$405,000
Miami, Orlando, Tampa
Texas
~$308,000
Dallas, Houston, Austin
Wisconsin
~$334,000
Milwaukee – FPP region
Mississippi
~$161,000
Lowest-cost state
Mortgage rates remaining around 6% throughout 2026 have made financed real estate purchases more attractive again. However, for foreign investors without green cards, the mortgage process differs substantially from that of U.S. citizens or permanent residents.
Mortgage Reality for Vietnamese Buyers Without a Green Card
Foreign nationals can obtain financing in the U.S., but requirements vary depending on immigration status. Typical conditions include:
Down payments of 30–40% instead of the 20% commonly required from U.S. citizens.
Interest rates typically 1–2% higher than those offered to permanent residents.
Additional financial documentation from Vietnam is often required.
FIRPTA Tax: The Most Overlooked Real Estate Cost for Vietnamese Buyers
This is arguably the most important legal issue that Vietnamese investors overlook when calculating returns from U.S. real estate and one of the main reasons many are shocked when it comes time to sell.
What Is FIRPTA?
FIRPTA stands for the Foreign Investment in Real Property Tax Act, enacted in 1980.
Its purpose was straightforward: the U.S. government recognized that many foreign investors were purchasing and selling U.S. property for profit, then leaving the country without reporting or paying capital gains taxes. FIRPTA was designed to address this issue.
How Does FIRPTA Work?
When a foreign owner sells U.S. real estate, the buyer must withhold 15% of the gross sales price and remit it directly to the IRS.
This is a withholding amount not necessarily the final tax liability. A portion may later be refunded after tax filings are completed, but the refund process can be lengthy and complicated.
Real-Life Example
Suppose you purchase a property for $500,000 and later sell it for $650,000, earning a profit of $150,000.
At closing, the buyer must withhold:
15% × $650,000 = $97,500
This amount is immediately sent to the IRS.
As a result, you do not receive the full proceeds at closing and must wait until tax reconciliation is completed to determine how much of the withheld amount may be refunded.
If you are holding a tourist visa (B1/B2), student visa (F-1), or have a pending immigration case but have not yet obtained a green card, FIRPTA generally applies when you sell U.S. real estate.
Many Vietnamese investors have been caught off guard because they failed to anticipate this substantial withholding requirement.
All Taxes Foreigners Must Pay When Owning U.S. Real Estate
Vietnamese investors who own U.S. property are required to pay property taxes regardless of immigration status. These taxes apply equally to U.S. citizens, green card holders, and foreign nationals.
Summary of Taxes and Ownership Costs for Vietnamese Investors Without Green Cards
Tax / Expense
Typical Rate
Notes
Property Tax (Annual)
~1–2% of property value per year
Mandatory regardless of nationality
FIRPTA (Upon Sale)
15% withholding of sales price
Applies to foreign owners
Capital Gains Tax
15–20% of profit
Depends on holding period and income
Rental Income Tax
30% of rental income
If no ITIN and improper reporting
HOA Fees (if applicable)
$200–$1,000+ per month
Depends on community or condominium
Property Manager
8–12% of rental income
Common for overseas owners
Estate Tax
Higher than U.S. residents
Applies when transferring assets to heirs
Rental income tax rates commonly reach 30%, although treatment may vary depending on tax treaties.
Important note: Vietnam and the United States do not currently have a comprehensive income tax treaty. Therefore, Vietnamese investors generally do not receive the same tax advantages available to citizens of certain other countries.
Do you want to own U.S. real estate with the full benefits available to permanent residents without FIRPTA withholding, with favorable mortgage access, and without the 30% rental income tax treatment? Contact VITA CAPITAL to learn how an EB-5 green card can unlock the full benefits of U.S. real estate ownership through a completely free consultation.
Does Buying a House in America Help You Immigrate? The Direct Answer
U.S. real estate versus EB-5 immigration comparison buying property does not provide a green card real estate USA foreigner
This is the central question and the answer is unequivocally no. Only individuals who qualify through immigration programs such as EB-5 can obtain residency rights leading to a green card. Simply purchasing real estate, regardless of the amount invested, does not create any legal basis for obtaining a visa or permanent residence in the United States.
The U.S. immigration system does not offer a real-estate-based "Golden Visa" program like those historically available in some European countries such as Portugal, Greece, or Spain.
Buying a house in America does not create residency rights under any provision of current federal immigration law.
The Three Most Common Misconceptions
Misconception #1: “Buying an expensive home in America makes it easier to get a visa.”
Completely false.
Owning U.S. real estate has no impact on a consular officer's decision to approve or deny a visa application. In some cases, it may even be interpreted as evidence of a potential intention to remain in the United States.
Misconception #2: “Buying a house makes education cheaper for my children.”
Not true.
Children of foreign property owners remain international students and must pay international tuition rates unless the family obtains permanent residency or U.S. citizenship.
Misconception #3: “Owning U.S. property helps me get a green card.”
False.
USCIS does not consider property ownership a qualifying factor under any immigration category, including EB-5. The EB-5 program requires investment into a job-creating commercial enterprise not residential property purchased for personal use.
The Correct Strategy: Combining EB-5 and U.S. Real Estate
The good news is that you do not need to choose between immigration and U.S. real estate—you can achieve both, in the right order.
Phase 1: EB-5 First
Invest $800,000 in a Rural TEA project through a USCIS-approved Regional Center. File your application before September 30, 2026, to secure grandfathering protection. Within approximately 17–36 months, your entire family can obtain conditional green cards.
Phase 2: Purchase U.S. Real Estate After Receiving a Green Card
Once you become a lawful permanent resident (Green Card holder), the entire U.S. real estate landscape changes dramatically in your favor.
With a U.S. green card, you may qualify for a Homestead Exemption, reducing the taxable value of your primary residence by approximately $25,000–$50,000, along with additional exemptions available to seniors, veterans, and individuals with disabilities.
Key Advantages of Buying U.S. Real Estate as a Green Card Holder vs. a Foreign Non-Resident
Criteria
Green Card Holder
No Green Card
FIRPTA Upon Sale
No 15% withholding
15% withholding on sale price
Rental Income Tax
Resident tax rates (10–37%)
Flat 30% rate
Mortgage Financing
10–20% down payment, standard rates
30–40% down payment, higher rates
Homestead Exemption
Eligible
Not eligible
Estate Tax Treatment
Permanent resident treatment
Foreign national treatment (less favorable)
Bank Account Opening
Easy with SSN
More complex, often requires ITIN
Operating a Real Estate LLC
Full operational rights
More restrictions
(See also: EB-5 Investment Green Card Eligibility Requirements)
Is Buying U.S. Real Estate Through an LLC a Better Option?
Purchasing real estate through a Limited Liability Company (LLC) is a popular strategy among both foreign investors and U.S. residents seeking asset protection and tax efficiency.
When property is owned by an LLC, it becomes a business asset rather than a personally held asset. This separation can provide liability protection and may be especially useful for rental properties, commercial investments, or investors holding multiple properties.
However, for Vietnamese investors who do not yet have a green card, there are important realities to consider.
Advantages of an LLC
Protects personal assets from certain legal liabilities.
Offers flexibility for ownership transfers and estate planning.
May provide tax-planning benefits in specific situations.
Important Considerations
Foreign-owned LLCs are still subject to FIRPTA when selling U.S. real estate.
Opening a U.S. business bank account for an LLC owned by a foreign national without an SSN can be challenging.
The IRS imposes additional reporting requirements, including Form 5472, on foreign-owned LLCs.
Practical Conclusion
An LLC is a useful tool, but it is most effective when you already have legal residency status in the United States through a green card or citizenship.
Using an LLC without permanent residency solves only part of the problem while creating additional reporting and compliance obligations.
(See also: EB-5 vs. the U.S. Golden Visa – What Are the Differences?)
VITA CAPITAL The Optimal Path from EB-5 to Full U.S. Real Estate Ownership
The right question is not:
“Should I buy U.S. real estate or pursue EB-5?”
The better question is:
“How can I obtain a green card as efficiently as possible and then purchase U.S. real estate with full rights and benefits?”
VITA CAPITAL – Your Global Future supports Vietnamese investors throughout the entire journey:
EB-5 Rural TEA investment planning
Green card acquisition in approximately three years
Post-immigration consulting and relocation support
Home purchasing assistance
U.S. bank account setup
Tax guidance
Essential settlement services after arrival in the United States
A Proven Professional Network
Toppins Law Firm, P.C.
With more than 30 years of U.S. immigration law experience, Toppins Law Firm manages the complete immigration process from I-526E through I-829.
FirstPathway Partners (FPP)
Operating since 2008 with a 100% success rate, FPP provides investors with a proven pathway toward permanent residency and permanent green cards.
Together, these partners help Vietnamese investors arrive in the United States as lawful permanent residents with full rights and protections, not as foreign property owners subject to significant legal and tax disadvantages.
Final Takeaway
If your goal is to own U.S. real estate with all available benefits—including:
No FIRPTA withholding
No 30% rental income tax treatment for foreign owners
Access to favorable mortgage financing
Greater tax efficiency
Stronger legal protections
Then the smartest first step is securing an EB-5 green card before the September 30, 2026 deadline.
Contact VITA CAPITAL today for a complimentary consultation and receive a customized roadmap tailored to your family's goals.
