Under the party platform, foreign owners of homes in Australia would have two years to sell their property or have it repossessed by the government.
When asked if the measure also applied to permanent residents who were not citizens, One Nation MP Barnaby Joyce said they would also be forced to divest their properties.
"Become an Australian citizen and that's going to deal with the issue, right? Become an Australian citizen," he told Sky News on Thursday night.
Mr Joyce later conducted a second interview on Sky, in which he confirmed the party's policy did not extend to permanent residents, after making several phone calls to verify the platform.
"On further investigation and discussions with One Nation, no, we are not going to be kicking permanent residents out of their house," he said.
The interview prompted party leader Pauline Hanson to confirm the measures would not affect permanent residents.
"If you are a temporary visa holder or a foreign citizen residing overseas, One Nation will give you two years to sell their property to an Australian," she wrote on social media on Friday.
"One Nation would remove the ability for international students, non-permanent residents, and non-Australian citizens from buying future property within Australia."
But confusion over the policy continued when One Nation senator Sean Bell could not provide details on what would happen if homes were not sold within the two-year time frame and whether the government would still be able to repossess them.
"That is an excellent question, but what we're saying, and it is perfectly reasonable to expect that homes in Australia go to Australian citizens," he told radio 2GB Sydney.
The interview ended early after host Mark Levy said it was "turning into a train wreck" and the senator needed clarity on the policy.
"You can't come on the radio and say 'we're going to give people two years to divest their property' and then not answer the question," Mr Levy said.
Deputy opposition leader Jane Hume said One Nation was at a loss to explain how its housing plan would work.
"I'm not entirely sure even One Nation knows their policy here, but if their policy is to kick people out of their homes, I think that that should set off alarm bells for millions of Australians, because that is a very new development," she told Sky News.
"Even Barnaby Joyce said, 'well, this policy is formative'.Â
"What does that mean? It's a slogan. It's not a policy. It's got no substance behind it."
