If you are stationed in Japan under SOFA, you might assume buying property here is off limits. It is not. There are no restrictions on foreign nationals owning real estate in Japan — whether you are active-duty military, a DoD civilian, or a dependent. You can buy a condo or a house in your own name.

So What’s the Problem?

The challenge is not buying — it is financing. Japanese banks require a residence card (Zairyu card) and Japanese-source income to approve a mortgage. SOFA personnel have neither, which means every major bank in Japan will turn you down regardless of your credit history, savings, or income. And if you are thinking about your VA loan — it cannot be used for properties outside the United States.

Until recently, the only option was to buy in cash. That has changed. Yen Loans K.K. is a licensed mortgage lender based in Tokyo that provides yen-denominated property loans to buyers of condominiums who cannot access conventional Japanese bank financing — and that includes SOFA personnel. No residence card, no Japanese bank account, and no Japanese income required. You can put your Basic Housing Allowance to work toward owning property instead of renting.

What to Know Before You Start Looking

Property ownership in Japan is straightforward. The purchase process is well-established and foreigners have the same ownership rights as Japanese nationals. A bilingual real estate agent and a judicial scrivener (“shiho-shoshi”) handle the legal and registration work. The entire process can be conducted in English.

Condos come with ongoing costs beyond the mortgage. Japanese condos have monthly management fees (“kanri-hi”) and a repair reserve fund (“shuzen tsumitate-kin”). These typically run ¥15,000 to ¥40,000 per month combined, depending on the building. Factor these into your budget from the start.

Think about your rotation timeline. If you are on a two- or three-year assignment, consider how you will manage the property after you PCS. Many owners rent their property out, and there are English-speaking property management companies in Japan that handle everything from tenant placement to maintenance. A property in a strong rental market can generate income while you are posted elsewhere — and you still own an asset in one of the world’s most stable real estate markets.

Know your tax obligations. Property ownership in Japan means annual property tax (“kotei shisan zei”) and city planning tax. These are modest compared to most US states. You may also have reporting obligations in the US — consult a tax advisor familiar with both jurisdictions before you buy.

Location matters. The strongest property markets in Japan for both value retention and rental demand are in central Tokyo, Yokohama, Osaka, and other major cities. Not all areas appreciate equally, so research the local market carefully.

Eligible Markets Near Your Base

Yen Loans finances freehold residential condominiums in major markets across Japan. If you are stationed at one of the following installations, there are eligible property markets nearby:

- Atsugi Air Base: Chigasaki, Machida, Fujisawa

- Yokosuka Naval Base: Zushi, Kamakura, and Yokohama

- Yokota Air Base: Akishima, Tachikawa, Hachioji, Hino

- Other Eligible markets are: Tokyo’s 23 wards, Osaka, Kyoto, Kobe, Nagoya, Fukuoka, and Sapporo. A full list of eligible areas is available at yenloans.com.

About Yen Loans

Yen Loans K.K. is a licensed money lending business based in Tokyo (Governor of Tokyo License No. (1) 31998), regulated under Japan’s Money Lending Business Act. We provide yen-denominated first mortgage loans of up to 60% of the appraised property value. The entire process — from initial enquiry to settlement — is conducted in English. Our Head of Sales is a US Navy veteran.

If you have questions or want to find out whether you qualify, contact us at inquiry@yenloans.com or visit yenloans.com.

This article was provided by Yen Loans K.K., a Tokyo-based licensed mortgage lender serving non-resident and SOFA-status borrowers.