Many buyers in the Otay Mesa area live, work or have family on both sides of the border. Foreign nationals can buy a home in California, and the process has a few extra steps. This guide gives you the outline and the questions to bring to a lender, an attorney and a tax professional, who can give the answers for your situation.
The basics
- Citizenship does not limit who can own property in California. What changes is how you finance it, how you document your funds, and the tax questions around owning and selling.
- Financing: lenders differ on which kinds of income, credit history and immigration documents they accept. Some programs use an ITIN or a foreign credit history, and many require a larger down payment. Ask lenders which programs they have for your situation, and compare more than one.
- Documents: expect to show where your down payment came from, and to provide identity documents, income records and bank statements. If some funds are in another country, ask early how they will be verified and how long a transfer takes.
- Currency and timing: if your funds are in pesos, exchange rates and wire timing affect your budget and your closing date.
Taxes and ownership
- Property tax in California works the same for everyone. See the property tax estimator.
- If a foreign person later sells U.S. real estate, federal rules can require withholding at the sale. The IRS explains it at FIRPTA withholding.
- How you hold title (in your name, with a spouse, or through a trust or entity) can matter for taxes and inheritance. Ask an attorney and a tax professional who work with cross-border clients.
Making the process smoother
- Start early: lender conversations and document gathering take the most time.
- Ask for a bilingual agent or lender if that helps. Rudy has a Spanish-language page for Spanish speakers.
- Visit the area and test your routine, including the border commute.
- Keep copies of every document and wire receipt.
Talk to a lender. Rates, loan programs and approvals come from lenders, not from websites or real estate agents. Talk to your own mortgage broker, or use our preferred lender, Point Mortgage Corporation (NMLS #231073), at (619) 475-4095. You are always free to choose any lender you like, and you can verify any lender’s license at nmlsconsumeraccess.org.
General information, not legal, tax or lending advice. Rules, schedules and programs change, so confirm current details with the official source.
More guides
- The Best Time to Buy or Sell in San Diego, Month by Month — Charts and numbers show which months San Diego homes sell most, when prices peak and when buyers have the most room to negotiate.
- Printable Neighborhood Sheets by ZIP Code — A one-page, printable snapshot of any San Diego County ZIP code: typical values, rent, days to sell, income and the age of homes.
- Questions to Ask a Mortgage Lender Before You Choose One — A printable list of questions that help you compare lenders on equal footing, and what to look for on the Loan Estimate.
- HOA Dues and Mello-Roos Taxes: What They Are and What to Ask — Two costs that sit outside the mortgage and change what a home really costs each month, with the documents to request before you buy.