topic Hi All, question relative to mortgage interest deduction. If I make the mortgage from foreign banker to buy the home in the US, will I meet IRS mortgage requirements? in Deductions & credits

Hi All, question relative to mortgage interest deduction. If I make the mortgage from foreign banker to buy the home in the US, will I meet IRS mortgage requirements?

applermark — Tue, 03 Feb 2026 06:55:11 GMT

I have foreign bank account and found the interest rate is way lower, so I am planning about make the mortgage from other countries.

Re: Hi All, question relative to mortgage interest deduction. If I make the mortgage from foreign banker to buy the home in the US, will I meet IRS mortgage requirements?

Opus 17 — Wed, 08 Jan 2025 18:37:56 GMT

Unknown. The key thing is that, to be deductible as mortgage interest, the mortgage must be secured by the home (this is sometimes called "perfected"). Basically, it means the loan must be recorded as a lien against the property in the county clerk's office, or wherever property records are kept, so that the bank could foreclose and take the house if you stopped making payments. If the loan is secured, then you can deduct the interest even though the bank is overseas and does not issue a 1098 form. (Up to the usual limits, of course.) If the loan is not secured, it does not count as a mortgage for the interest deduction.

Re: Hi All, question relative to mortgage interest deduction. If I make the mortgage from foreign banker to buy the home in the US, will I meet IRS mortgage requirements?

applermark — Wed, 15 Jan 2025 19:28:57 GMT

Hi Opus 17,

Thank you for the clarification. Will try to ask the oversea bank’s local branch banker to see if they know this answer. Agree your answer.