A US citizen who lives and earns in the United States can apply to YEN LOANS for a Yen mortgage on an apartment (condo) in Tokyo, Osaka or another of our five metropolitan areas. YEN LOANS accepts income evidence such as US tax returns in English, and does not require a Japanese bank account, visa or residency. The loan and every payment are in yen, so if you pay from dollar income, the exchange rate changes what each payment costs you in dollars.
In short
- A US passport meets the nationality test wherever you live. No Japanese bank account, visa, residency or Japanese company is needed.
- Loans run from ¥15M to ¥525M, up to 65% of an independent valuation. The maximum is 50% for second homes, short-term rentals and loans over ¥250M.
- Income is evidenced by at least two US documents, such as a W-2, Form 1040, a 1099 or an IRS transcript, accepted in English with nothing to translate.
- The balance and the monthly payments are in yen. Your cost in dollars moves with the exchange rate.
- Settlement can be completed remotely with a power of attorney. Application to settlement commonly takes four to eight weeks.
Can a US citizen get a mortgage in Japan?
Yes. YEN LOANS decides eligibility by nationality, evidenced by the passport you hold, and the United States is one of our eligible countries. A US national meets this test wherever they live: in the United States, in Japan or elsewhere. You do not need a Japanese bank account, a visa, residency status, a Japanese company or Japanese income.
Many Japanese lenders require Japanese income or permanent residency. YEN LOANS assesses income earned abroad and in foreign currency, including US dollars. If you live in Japan without permanent residency, your US passport is still what makes you eligible. If you are in Japan under the Status of Forces Agreement (SOFA), read our guide for US military and SOFA status holders first.
“Understand how real estate is valued and what drives the market in Tokyo, because it’s not the same thing as the United States. Understand the lending environment you’re part of. And understand your own goals.”
If you are a Japanese national living in the US
Japan is also on our list of eligible countries, so a Japanese passport meets the nationality test wherever you live, including in the United States. You do not need to live in Japan or have Japanese income. We assess the income you earn in the US, in dollars, and accept the same US income and tax documents as for a US citizen. Documents are accepted in Japanese as well as English and Chinese, and our team works in Japanese, so you can deal with us in either language.
The property rules, the loan terms and the effect of the exchange rate on a yen payment are the same as for a US citizen, so the rest of this guide applies to you too. Your tax position depends on your own circumstances, so ask a qualified adviser.
Which US income documents does YEN LOANS accept?
YEN LOANS asks for at least two US income and tax documents, such as those below. Documents are accepted in English, so US paperwork does not need translating, and offer documents are issued in English.
Tax returns
Filed with the IRS by April 15
Form 1040, with any schedules, such as Schedule C if you are self-employed or Schedule K-1 for income from a partnership
IRS records
From IRS Get Transcript or Form 4506-T
An IRS tax return transcript or wage and income transcript
Employment
W-2 issued by January 31
Form W-2, recent pay stubs, or verification of employment from your employer
Other income
Issued by January 31
Form 1099 for other income, or Form SSA-1099 for Social Security benefits
What YEN LOANS asks for
- At least two income documents, such as those above
- Recent bank statements
- A credit report from your country of residence, dated within the past three months: for a US resident, a US credit report
What affordability is assessed against
- Your verified net income after tax
- Existing debt commitments: payments that will continue, such as a mortgage on a US home, car finance or credit-card minimums
- Assets you hold, in the United States or elsewhere, which YEN LOANS can also take into account
- Rent, if you let the apartment, which counts towards your income too
If you are not sure whether a document counts, ask at the inquiry stage, before you gather anything.
How does your plan for the apartment change the loan?
How you plan to use the apartment changes the maximum LTV, and the payment reserve deducted from the loan at settlement.
A home you live in or a long-term rental
Up to 65%
Maximum loan-to-value, against the valuation
Payment reserve: three months of principal and interest
A second home or a short-term rental
Up to 50%
Maximum loan-to-value, against the valuation
A larger payment reserve: six months of principal and interest, rather than three
So the down payment is at least 35% of the price for a home or long-term rental, and at least 50% for a second home or short-term rental, more if the valuation comes in below the price. Our guide to how much down payment you need to buy in Japan sets out the cash, including fees and costs.
Investors letting the property often choose an interest-only period of up to five years, at a 1.00% p.a. premium; the monthly payment steps up when it ends. Our guide to buying a Japanese apartment to let covers letting from abroad.
If you plan to retire in Japan, the age rule matters. You must be 80 or under at loan maturity, so the longest term shortens as you get older:
About 25 years
Longest term for a borrower aged 55 at application
About 15 years
Longest term for a borrower aged 65 at application
For buyers returning to Japan, YEN LOANS assesses the full profile, including foreign earnings, assets, and pension or retirement income. US Social Security and military retirement pay count as income. One of our published borrower journeys follows a US-based family with ties to Japan who bought a family home in Tokyo ahead of moving back. Figures there are rounded, and a past case is not a promise of any term.
Outside our criteria today
What if your property does not qualify today?
YEN LOANS does not currently lend on:
- Detached houses
- Whole-building purchases
- Hotel-condominiums
- Akiya or other vacant stock
- Resort locations outside the five metropolitan areas
Our guide to which properties qualify for a mortgage in Japan explains each rule. If your property falls outside them, we still want to hear about it. Register your interest with the property type and location. We log every request and come back to you if it fits, now or later.
How does a Yen mortgage work when you earn in dollars?
The loan is in yen. The amount you borrow, the balance you owe and each monthly payment are all yen amounts, and none of them changes with the exchange rate.
What changes is the cost in dollars. If you meet the payments from US dollar income, each payment costs you more dollars when the dollar weakens against the yen, and fewer when it strengthens.
Worked example · illustrative, not a forecast
Your yen payment stays fixed, but what it costs in dollars moves with the exchange rate
The same ¥300,000 payment costs about $543 a month more at ¥130 to the dollar than at ¥170: about $6,516 a year, on the same loan. Conversion and transfer costs are left out.
The chart holds the yen payment fixed to show the effect of the exchange rate alone. In practice the rate is 1-month TIBOR + 3.50%, reset monthly, and the yen payment is recalculated every twelve months, so it can also change. Loan terms explains how, and our guide to variable-rate mortgages in Japan shows what a rate change does to the payment. The balance works the same way. The yen amount you owe does not move with the exchange rate, but its value in dollars does.
Rent earned in Japan matches the currency
If the property is let, the rent is paid in yen. That yen income can meet the yen payment directly, with no currency conversion. You convert dollars only for any part the rent does not cover.
Key point. The yen payment does not change with the exchange rate, but its cost in dollars does. YEN LOANS does not provide currency hedging or advice on it. If your income is not in yen, plan how you will fund the payments over the life of the loan. It can run for up to 35 years.
How the monthly payment is made from the US
Payments are due monthly, in yen. You do not need a Japanese bank account: without one, a local property manager (管理会社, kanri-gaisha) collects the payment from a management account that you keep funded from wherever you bank, and rent from a let apartment flows into the same account. If you do not already have a manager, we introduce one before your first payment falls due. The manager's fee is agreed with them directly and is not a YEN LOANS charge.
What taxes apply when an American owns property in Japan?
Owning Japanese property carries Japanese taxes. They are separate from the loan and are your responsibility as owner. The main ones are:
When you buy
One-off, prefectural
Real Estate Acquisition Tax (不動産取得税, fudōsan shutoku-zei), charged on purchase
Every year
Annual, municipal
Fixed Asset Tax (固定資産税, kotei shisan-zei), on the property's assessed value
If you let it
Withheld from the rent, then a tax return
Japanese income tax on rental income. If you are a non-resident, 20.42% of the rent is generally withheld at source by the tenant or agent who pays it to you, and you file a Japanese tax return to settle the final tax. The National Tax Agency publishes guidance in English.
When you sell
Depends on how long you owned it
Japanese tax on a gain. A gain is taxed at the lower long-term rate only if you had owned the property for more than five years on 1 January of the year you sell. Our guide to closing on a property in Japan explains the rule.
The standard rates, and the other one-off costs of buying, are listed under "Other costs to budget for" on the Fees page. Non-residents who have Japanese tax to file or pay generally appoint a tax agent in Japan (納税管理人, nōzei kanrinin) to receive tax notices and handle filings for them. Your adviser can confirm whether you need one.
As a US citizen, you may also have US reporting or tax obligations on the rental income and on any gain when you sell. The double-tax treaty between Japan and the United States may affect how these apply. YEN LOANS does not provide tax advice. This area is complex, so consult a qualified tax adviser familiar with both Japanese property tax and US tax.
Questions to take to a US tax adviser
The answers depend on your circumstances, but these are the questions to raise before you buy:
- How do I report rent from a Japanese apartment, and can I deduct the mortgage interest, Japanese property taxes and depreciation against it?
- Can I claim a foreign tax credit for Japanese tax withheld from the rent, or paid on a gain when I sell?
- Could repaying a yen loan create a taxable currency gain if the yen has weakened against the dollar since I borrowed?
- What do I need to report if I open a Japanese bank account, for example on an FBAR?
How do you sign and settle from the US?
You can apply, sign and settle without traveling to Japan, and settlement can be completed entirely remotely, with a power of attorney if you cannot attend.
Signing and funding from the US
Time zones. Tokyo is many hours ahead of the United States, so agree early when each document must be signed and returned, and allow for courier times in both directions.
Certified signatures. Documents that need a certified signature, such as a power of attorney for registration, can be notarized by a US notary public.
Your funds. Send your own funds for settlement early: transfers from US banks can be delayed, or reduced by intermediary-bank charges, for reasons outside YEN LOANS' control.
Application to settlement commonly takes four to eight weeks. Our guide to getting a Japan mortgage from overseas sets out each step, the documents and the pre-approval letter.
Reference
The loan and eligibility at a glance
These are the published terms and tests for the YEN LOANS All Japan Tracker, as they apply to a US passport holder.
| Item | For a US passport holder |
|---|---|
| Who can borrow | US nationals, wherever they live |
| Not required | A Japanese bank account, visa, residency status, Japanese income or a Japanese company |
| Borrower age | Aged 20 or over at application and 80 or under at loan maturity |
| Property | A strata-titled residential apartment, RC or SRC, completed in 1990 or later, in listed cities in Greater Tokyo, Kansai, Aichi (Nagoya), Fukuoka or Hokkaido (Sapporo). Outside central Tokyo, within a 10-minute walk of a station |
| Loan size | ¥15M to ¥525M |
| Maximum loan-to-value ratio (LTV) | 65% of an independent valuation, with the purchase price as a ceiling. 50% for second homes, short-term rentals and loans over ¥250M |
| Term | Up to 35 years, capped by age 80 at maturity and by 50 years from the building's construction |
| Interest rate | 1-month TIBOR + 3.50%, reset monthly (indicative 4.89627% p.a. on 1 October 2026). +0.50% p.a. on loans above ¥150M, and +1.00% p.a. during an optional interest-only period of up to 5 years |
| Repayment | Monthly, in yen. Equal payments of principal and interest, with an optional interest-only period |
| Documents | At least two US income documents (such as a W-2, Form 1040, a 1099 or an IRS transcript), recent bank statements, a US credit report dated within the past three months, your passport, identification and proof of address, accepted in English |
| Recourse | Full recourse to the borrower |
The full criteria are on the Eligibility page, the full terms on the Loan terms page, and our guide on whether foreigners can get a mortgage in Japan explains each rule. Our published terms are for individual borrowers, so if you plan to buy through a company, talk to us before you apply.
Frequently asked questions
Can I get a 30-year fixed rate, as with a US mortgage?
No. A YEN LOANS mortgage is variable only, and there is no fixed-rate option. The rate is 1-month TIBOR + 3.50%: the 3.50% is fixed for the life of the loan, and TIBOR is reset monthly, so your rate moves with it in both directions. Your monthly payment stays the same for twelve months at a time and is then recalculated. The term can run up to 35 years, capped by age 80 at maturity and by 50 years from the building's construction. Our guide to variable-rate mortgages in Japan shows what a rate change does to the payment.
Is YEN LOANS a regulated lender?
Yes. YEN LOANS K.K. is a principal lender, not a broker, registered with the Tokyo Metropolitan Government under the Money Lending Business Act, license Governor of Tokyo (1) No. 31998. Lending, disclosure and dispute handling are governed by that Act. You can check the registration on the Financial Services Agency's register of money lenders, in Japanese.
Can a Japanese citizen living in the US get a mortgage from YEN LOANS?
Yes. Japan is one of our eligible countries, so a Japanese passport meets the nationality test wherever you live. You do not need to live in Japan or have Japanese income: YEN LOANS assesses income earned in the US, and documents are accepted in Japanese or English. The property must qualify in the same way as for any borrower: a strata-titled apartment in a reinforced concrete (RC or SRC) building completed in 1990 or later, in one of five metropolitan areas. Loans run from ¥15M to ¥525M, up to 65% of an independent valuation.
Japanese terms in this guide
- 固定資産税kotei shisan-zei
- Fixed Asset Tax: an annual municipal tax on a property's assessed value, paid by the owner.
- 不動産取得税fudōsan shutoku-zei
- Real Estate Acquisition Tax: a one-off prefectural tax charged after you buy a property.
- 納税管理人nōzei kanrinin
- A tax agent: a person or firm in Japan that a non-resident appoints to receive tax notices and handle Japanese tax filings for them.
Written by Kyle Steele · Reviewed by Mark T. Drabkin, Representative Director & CEO · Last reviewed .
YEN LOANS K.K. is a money lender registered with the Tokyo Metropolitan Government under the Money Lending Business Act (MLBA), license Governor of Tokyo (1) No. 31998. This article is general information, not financial advice, and is not an offer of finance. Worked examples are illustrative. Rates are indicative, reset monthly, and subject to credit assessment and security review. Effective annual rate (実質年率) within 14.6%, calculated on the principal net of fees; late-payment charge up to 20.0% p.a. All loans are full recourse to the borrower. Applications are subject to careful review and may be declined. Please check the terms of your agreement and borrow within your means. 慎重な審査の結果、お申込みの意に沿えない場合がございます。ご契約内容をご確認のうえ、ご利用は計画的に。 Full product terms are set out under Loan terms, all costs under Fees, and the approved Japanese disclosure under 貸付条件の表示.