Buying a home in 78209 as a non‑U.S. citizen is absolutely possible. The path is different, though, and recent rule changes have shifted which mortgage programs you can use. If you understand what lenders require, how much cash to budget, and how local taxes work, you can shop with confidence in Alamo Heights and Uptown. This guide breaks it down so you can move forward with clarity. Let’s dive in.
What changed in 2025
FHA updated its rules in 2025 and removed eligibility for many non‑permanent residents. According to HUD’s Mortgagee Letter, FHA case numbers assigned on or after May 25, 2025 are limited to U.S. citizens, lawful permanent residents, and select categories specified by FHA. This is a major shift for work‑visa buyers who previously used FHA financing. You can review the update in HUD’s announcement of the change for full context (HUD Mortgagee Letter summary).
USDA’s temporary expansion for some non‑citizens ended in 2025. Current guidance narrows eligibility back to citizens and qualified aliens per program rules, so USDA is not a common path for foreign‑national buyers in San Antonio’s urban zip codes (USDA update overview).
Who can finance a 78209 home today
Conventional loans
Fannie Mae’s guide allows financing for lawful permanent residents and certain non‑permanent residents, with documentation of lawful presence and a valid tax ID. Lenders must verify status and meet the guide’s documentation rules, so your exact options depend on your visa, credit, and income profile. Review the borrower eligibility section for the most up‑to‑date requirements (Fannie Mae non‑U.S. citizen eligibility).
Portfolio and non‑QM programs
Many specialty lenders offer foreign‑national mortgages held in their own portfolios. Common features include larger down payments, asset‑based underwriting, acceptance of foreign income and credit references, and reserves equal to several months of payments. Program terms vary, so expect pricing and documentation to be stricter than conforming loans (example of foreign‑national program features).
What lenders will ask for
- Government ID and immigration docs: a valid passport is standard, plus your visa or USCIS documentation where applicable. Be ready to provide clear scans, translations, and, in some cases, notarized copies or apostilles (typical documentation highlights).
- Tax ID: a Social Security number if eligible, or an Individual Taxpayer Identification Number. If you need an ITIN, apply early using Form W‑7, since processing can take several weeks (IRS Form W‑7 guidance).
- Income and assets: foreign tax returns or CPA letters, employer verifications, and bank statements showing the source of funds. Many programs want funds transferred into a U.S. bank and “seasoned” for a specific period before closing (program norms example).
- Credit: a U.S. credit score if you have one, or documented foreign credit and bank references if you do not (what to prepare).
Plan your cash and timeline
- Down payment: foreign‑national programs commonly require 20 to 40 percent down, and many non‑resident buyers should plan for at least 25 percent. Larger down payments may be required for investment or luxury properties (down payment norms).
- Reserves: expect 6 to 12 months of principal, interest, taxes, and insurance left over after closing. These funds may need to be liquid and verifiable in a U.S. account.
- Closing costs: in addition to your down payment, budget about 3 to 7 percent of the price for closing costs, depending on your lender, title fees, and prepaid items (cost overview).
- Timeline: international document checks, translations, and funds transfers can add time. Build in extra weeks for underwriting and closing logistics.
Local context: 78209 prices and property taxes
Home values in 78209 cover a wide range by neighborhood and property type. The City of Alamo Heights, located within 78209, often trades higher than the zip code overall, which is helpful context as you set expectations for purchase power (Alamo Heights context).
Property taxes are a key part of your monthly payment. Bexar County publishes adopted rates for each taxing entity that applies to a given parcel. As a simple example, a 1.5 percent effective rate on a 500,000 dollar purchase would be about 7,500 dollars per year, before exemptions. Always verify the current rates and the exact bill for the property you choose using county resources (Bexar County tax rates and exemptions).
Simple prep checklist
- Gather identification: passport, visa or USCIS documents, and any required translations.
- Secure your tax ID: apply for an ITIN if you are not eligible for a Social Security number (Form W‑7 details).
- Organize finances: collect 2 years of income documentation, bank statements, and proof of funds. Move down payment funds into a U.S. bank early if your lender requires seasoning.
- Choose lender type: confirm whether you fit conventional eligibility or need a portfolio foreign‑national program (Fannie Mae overview; portfolio program example).
- Plan for cash to close: target a 25 percent down payment plus closing costs and required reserves.
Closing logistics for international buyers
Depending on your lender and title company, you may sign in person in Texas, use a remote online notary where permitted, or sign at a U.S. embassy or consulate. International notarizations and apostilles can add a few weeks, especially if courier times are involved. Wire transfers should be planned in advance with proper documentation of the source and currency conversion.
If you plan to rent or sell later
- Rental income taxation: nonresident owners can elect to treat rental income as effectively connected to a U.S. trade or business, which allows deductions and graduated tax rates. That election generally requires filing Form 1040‑NR. See IRS Publication 519 for a practical overview (IRS Pub 519).
- Selling and FIRPTA: when a foreign person sells U.S. real property, the buyer usually must withhold 15 percent of the amount realized unless an exception applies. If you expect to sell in the future, plan ahead so withholding is handled correctly and refunds are not delayed (IRS FIRPTA guidance).
Ready to explore elegant homes in 78209 with a plan that fits your status and timeline? For discreet, multilingual guidance and a smooth process from first tour to closing, connect with Paulette Jemal.
FAQs
Can a foreign national still use FHA to buy in 78209?
- FHA removed eligibility for most non‑permanent residents for case numbers assigned on or after May 25, 2025, so only U.S. citizens, lawful permanent residents, and specific categories remain eligible (HUD update).
What down payment do foreign‑national loans usually require in Alamo Heights and Uptown?
- Many programs require 20 to 40 percent down, with 25 percent a common target for non‑resident buyers and higher equities for investment or luxury properties (program norms).
Can I qualify for a conventional mortgage if I am not a U.S. citizen?
- Yes, if you meet Fannie Mae’s eligibility and documentation requirements for lawful permanent residents or certain non‑permanent residents; lenders must verify lawful presence and a valid tax ID (Fannie Mae guide).
Do I need an ITIN to get a mortgage as a foreign national?
- Many lenders accept ITINs, and you should apply early if you will file U.S. tax returns or a lender requests it; use Form W‑7 to obtain an ITIN (IRS W‑7).
How do property taxes affect my payment in 78209?
- Property taxes vary by the property’s taxing entities; a simple estimate is price times an assumed effective rate, then confirm the exact bill with Bexar County resources (tax rates and exemptions).
