How to Finance Buying Property Abroad: A Guide for U.S. Investors

sarah2309
Sep 9
3 min read

Buying property abroad may sound like a dream reserved for the wealthy, but the truth is, many Americans are already doing it, and they’re not all paying cash. Whether you’re eyeing a seaside villa in Croatia, an apartment in Spain, or a chalet in the Alps, financing options exist that make international real estate more accessible than you might think.

In this guide, we’ll walk through how to finance buying property abroad as a U.S. investor, including creative strategies, common pitfalls, and why destinations like Croatia are attracting smart buyers right now.

Can U.S. Investors Get a Mortgage Abroad?

The short answer: sometimes. 🏡

Some countries allow foreign buyers to access local mortgages, but the process can be slow, and requirements are strict. Banks abroad often require:

A larger down payment (30–50% is common).
Proof of income, tax returns, and assets.
Residency or a local company setup in certain cases.

For example, in Croatia, foreign buyers typically cannot use a Croatian mortgage unless they have residency or purchase through a company. This is why many Americans look to financing options at home instead.

Financing Options for Buying Abroad

Here are the most common strategies U.S. buyers use to fund international property purchases:

1. Cash-Out Refinance

If you already own a home in the U.S., you can refinance your mortgage and pull out equity. That cash can then be used to buy property overseas.

Pros: Lower interest rates compared to personal loans, large sums available.
Cons: Extends your mortgage term, requires strong credit and home equity.

2. Home Equity Line of Credit (HELOC)

A HELOC allows you to borrow against your U.S. property’s equity like a credit card.

Pros: Flexible, interest-only payments available, good for staged payments during the buying process.
Cons: Variable interest rates, your U.S. home is collateral.

3. Personal Loans or Portfolio Loans

High-net-worth investors sometimes use personal or portfolio loans through private banks.

Pros: Faster approval, flexible terms.
Cons: Higher interest rates, often requires strong banking relationships.

4. Savings + Investment Accounts

Some buyers liquidate stocks, retirement accounts (carefully), or other investments to fund their overseas property.

Pros: No debt, clean purchase.
Cons: Potential tax implications, missing out on investment growth.

5. Partnerships or Syndicates

Pooling funds with family, friends, or investor groups is another way to enter the international property market.

Pros: Shared costs, easier entry.
Cons: Requires clear agreements and trust.

Why Croatia Is a Hotspot for U.S. Investors

Croatia is one of Europe’s fastest-growing tourism markets, with over 20 million visitors annually. For investors, this means:

High rental demand: Coastal properties can earn 5–8% ROI.
Affordable entry point: Homes cost significantly less than in California, New York, or major EU capitals.
Lifestyle value: Beautiful coastlines, rich culture, and healthy Mediterranean living.

The catch? Financing usually comes from the U.S. side, since local mortgage options for foreigners are limited. This makes strategies like HELOCs and refinances especially valuable for buyers targeting Croatia.

Tips for Financing an Overseas Purchase

Plan for all costs: Beyond the property price, budget for taxes, legal fees, and maintenance.
Get professional advice: Talk to both a U.S. financial advisor and a local lawyer in your target country.
Think about currency exchange: Shifts in the dollar/euro rate can impact your investment.
Don’t over-leverage: Remember, overseas property is often a long-term investment.

Final Thoughts

Financing a property abroad doesn’t have to be complicated, you just need to know where to look. For many Americans, the key is leveraging existing U.S. equity and credit tools to unlock international opportunities.

Whether you’re dreaming of an Airbnb in Dubrovnik or a seaside retreat in Spain, smart financing makes the dream possible.

👉 Want the full breakdown of costs, fees, and buying steps in Croatia? Download my free guide when you sign up for the newsletter.