Can H-1B Visa Holders Get a Mortgage? The 2025 FHA Rule Explained

Quick answer

FHA loans are closed to H-1B and other non-permanent-resident visa holders as of May 25, 2025. HUD's Mortgagee Letter 2025-09 removed the entire "Non-Permanent Residents" eligibility category from the FHA handbook, leaving only lawful permanent residents (green card holders) and citizens of the Federated States of Micronesia, the Marshall Islands, and Palau eligible. That does not mean H-1B holders can't get a mortgage — it means FHA specifically is off the table. Conventional loans, which most homebuyers use regardless of visa status, remain open to non-permanent residents on the same terms as citizens, and a handful of lenders explicitly underwrite borrowers with no U.S. credit history at all. The average conventional 30-year rate today runs near 6.72% APR.

What HUD actually changed

On March 26, 2025, HUD issued Mortgagee Letter 2025-09, titled "Revisions to Residency Requirements." The letter is short and direct: it "removes the Non-Permanent Residents sections in its entirety, eliminating eligibility for non-permanent resident Borrowers" from FHA's Single Family Housing Policy Handbook (4000.1), covering both standard forward mortgages and HECM reverse mortgages. It applied to FHA case numbers assigned on or after May 25, 2025; loans already in process under an earlier case number were unaffected.

The rewritten eligibility section names only two categories now:

1. Lawful permanent residents — eligible "under the same requirements, terms, and conditions as those for U.S. citizens," documented through USCIS evidence of LPR status.
2. Citizens of the Federated States of Micronesia, the Republic of the Marshall Islands, or the Republic of Palau — a narrow carve-out tied to those countries' Compacts of Free Association with the U.S.

Everyone else who previously qualified under the "Non-Permanent Residents" category, including H-1B, L-1, O-1, TN, and every other work-visa holder, is no longer eligible. HUD's letter also states plainly that "a Social Security card is not sufficient to prove immigration or work status." HUD's stated rationale ties the change to federal executive actions prioritizing resources for U.S. citizens and to the reasoning that non-permanent residents are "subject to immigration laws that can affect their ability to remain legally in the country," which the letter frames as a source of uncertainty for a 15- or 30-year loan obligation.

What's still open to you

FHA closing doesn't mean the mortgage market closed. Three real paths remain.

Conventional loans are unaffected. Fannie Mae's Selling Guide states directly that Fannie Mae "purchases and securitizes mortgages made to non-U.S. citizens who are lawful permanent or non-permanent residents of the United States under the same terms that are available to U.S. citizens." The guide leaves the specific eligibility determination to the lender rather than listing approved visa types, so the practical requirement is finding a lender comfortable underwriting your situation, not a change in the program itself. This is the most important thing to know: the loan type most Americans actually use was never touched by the FHA rule change.

A small number of lenders serve visa holders with no U.S. credit history at all. HSBC's Elite Mortgage program, for example, states on its own site that it doesn't require U.S. credit history and will pull an international credit report for applicants without two years of U.S. residency or employment. Programs like this exist specifically because a thin or absent U.S. credit file is one of the biggest real obstacles for a recent arrival, regardless of visa type.

ITIN and Non-QM loans exist for borrowers without an SSN. If you have an ITIN rather than a Social Security number, you're generally routed to a Non-QM or portfolio loan rather than a conventional Fannie Mae or Freddie Mac product. These loans are real and available, but they commonly require a larger down payment, often in the 20–30% range, and carry a rate roughly one to two percentage points above conventional financing. They're worth comparing carefully rather than assuming they're your only option if you actually have a valid SSN.

Documents to have ready

A visa-holder mortgage application asks for everything a standard application asks for, plus proof of your legal status and continued ability to work and reside in the U.S.:

• Valid passport and current visa stamp
• I-797 approval notice (the document confirming your visa petition approval)
• Employment Authorization Document, if your visa category requires one separately from work authorization
• Valid SSN, or an ITIN if you don't have one, which routes you toward Non-QM/ITIN-specific products
• Two years of tax returns and W-2s (or equivalent income documentation if you don't have two years of U.S. filing history)
• Recent pay stubs and bank statements
• An international credit report, if the lender offers that underwriting path and you lack a U.S. credit file

Which path fits your situation

If you're still working out whether now is the right time to buy at all, Money Map shows how a home purchase compares against your other financial priorities, and the home affordability calculator puts real numbers behind what you can support.

Sources

• HUD Mortgagee Letter 2025-09, "Revisions to Residency Requirements" — the primary source for the rule change and its effective date.
• Fannie Mae Selling Guide B2-2-02, Non-U.S. Citizen Borrower Eligibility Requirements — the conventional-loan eligibility standard for non-permanent residents.
• HSBC Elite Mortgage, international borrowers — an example of a lender program built around no U.S. credit history.
• CFPB's owning-a-home resources — general mortgage process and disclosure timelines.

Rules and lender programs referenced here were verified August 22, 2026. Mortgage eligibility policies vary by lender and change without much notice; confirm current terms directly with any lender before applying. This article is educational information, not individualized financial, legal, or immigration advice.