Foreign National Mortgages in Texas

Under Texas Property Code §5.005, non-U.S. citizens generally have the same real and personal property rights as U.S. citizens, except as restricted by Subchapter H (enacted by Texas SB 17, effective September 1, 2025). SB 17 prohibits certain governments, entities, and individuals tied to or domiciled in designated countries from purchasing or acquiring Texas real property, subject to specific statutory exemptions. This is general information, not legal advice; if SB 17 may affect you, consult a qualified Texas real estate attorney before entering into a contract.

Yes, depending on your legal status and eligibility to purchase under Texas law. According to Fannie Mae's Selling Guide, lawful permanent residents and lawful non-permanent residents living in the U.S. can qualify for conventional loans under the same terms available to U.S. citizens when the lender warrants legal presence. Buyers who live outside the U.S. and are not lawfully present here are not covered by Fannie Mae guidelines, so they typically use non-agency (non-QM) foreign national or DSCR loan programs.

The text of Texas Property Code §5.251(3) does not list specific country names; instead, it defines a designated country as one identified by the U.S. Director of National Intelligence as a national-security risk in at least one of the three most recent Annual Threat Assessments, plus any country the Governor designates under §5.254. The statute itself names no countries. However, the bill's legislative findings discuss China, Russia, Iran, and North Korea from the 2025 Annual Threat Assessment, and the Texas Attorney General's October 9, 2026 release says that the law restricts purchases by those connected to designated adversarial nations, including China, Russia, Iran, and North Korea.

Yes. Under Texas Property Code §5.252, the restrictions do not apply to U.S. citizens, lawful permanent residents (green card holders), companies owned or controlled by U.S. citizens or lawful permanent residents with no covered individual holding an interest, or leaseholds of less than one year. Additionally, under §5.253(4)(A), an individual domiciled in a designated country who is lawfully present and residing in the United States at the time of purchase may acquire residential real property intended for use as their residence homestead.

Under §§5.255–5.259, the Texas Attorney General investigates violations and may file an in rem court action in the county where the property sits. A prohibited purchase (other than a leasehold) is not void and does not invalidate the conveyance itself, but a court finding a violation will appoint a receiver to divest the property, paying off liens and state enforcement costs before remitting any remaining proceeds to the owner. Intentionally or knowingly violating the law is a state jail felony for an individual, and violating companies face a civil penalty of the greater of $250,000 or 50% of the market value of the interest.

Only if the home is occupied as the owner's principal residence under Texas Tax Code §11.13(j). If you live abroad and buy a Texas vacation home or rental property, the property does not qualify for the Texas residence homestead exemption, and your bill will reflect county, city, school district, and special district rates without it.

Under federal FIRPTA rules from the IRS, when a foreign person sells U.S. real property, the buyer is required to act as the withholding agent and generally withhold 15% of the amount realized, using Forms 8288 and 8288-A, with Form 8288 generally due by the 20th day after the disposition. An exception from withholding applies if an individual buyer acquires the property as a residence, the amount realized is not more than $300,000, and the buyer or a family member has definite plans to live there at least 50% of the days the property is used during each of the first two 12-month periods after the sale.