Can a Non-Permanent Resident Get a Mortgage?

Homeownership in the United States can often seem unattainable for individuals who are not permanent residents. Many assume that without a green card, securing a mortgage is simply not possible. However, this is a common misconception, as non-permanent residents can indeed obtain mortgages to purchase homes in the U.S. The process may involve additional requirements compared to U.S. citizens or permanent residents. Lenders offer various programs for non-permanent residents, and understanding the specific criteria and preparing the necessary documentation can significantly enhance qualification.

Understanding Non-Permanent Resident Status for Mortgages

A “non-permanent resident” generally refers to individuals legally authorized to live and work in the U.S. for a specific period, often tied to employment or other qualifying reasons, and who hold various visa types. This status contrasts with permanent residents, who possess a green card and generally access the same mortgage products as U.S. citizens. For non-permanent residents, lenders assess eligibility based on the stability and duration of their legal presence in the country.

Lenders commonly consider several visa categories that may qualify for mortgages, including H-1B, L-1, TN, E-series, and O-1 visas. The length of time remaining on the visa and the history of visa extensions are important factors. Lenders typically prefer to see that an applicant has the right to remain in the U.S. for at least one to three years beyond the mortgage application date. This helps assure lenders of the borrower’s continued ability to reside, work, and make payments.

Financial prerequisites also apply, much like for any mortgage applicant. Lenders examine credit scores, seeking a history of responsible credit use in the U.S. A Social Security Number (SSN) is generally needed to establish a U.S. credit history. Some specialized programs may consider an Individual Taxpayer Identification Number (ITIN) for tax reporting purposes if an SSN is not available.

Income stability is a significant factor, with lenders looking for consistent employment history and a reliable source of income. This often involves verifying employment through pay stubs and employment verification letters. While down payment requirements can vary, non-permanent residents might face expectations for a higher down payment compared to U.S. citizens, sometimes ranging from 10% to 30% or more, depending on the loan type and lender’s assessment of risk.

Key Documentation for Non-Permanent Residents

Securing a mortgage as a non-permanent resident necessitates providing specific documents that verify legal status and financial stability beyond what a U.S. citizen typically provides. A valid passport and visa are foundational, as they confirm the applicant’s identity and legal authorization to be in the U.S. Lenders will carefully review the visa’s expiration date to ensure sufficient remaining validity.

The Form I-94, or Arrival/Departure Record, is another document often required, serving as proof of legal entry into the United States. If applicable, an Employment Authorization Document (EAD) demonstrates the legal right to work in the U.S., which is crucial for income verification. These immigration-specific documents are paramount for lenders to assess the borrower’s continued eligibility and ability to fulfill loan obligations.

In addition to immigration documents, standard financial records are necessary to demonstrate income, assets, and creditworthiness. This includes proof of continuous U.S. residency, such as utility bills or lease agreements, which help establish a stable presence. Lenders will also require proof of stable income and employment, typically in the form of W-2s, recent pay stubs, and employment verification letters from current employers.

U.S. tax returns for at least the past two years are routinely requested to verify reported income and tax compliance. Bank statements are also essential, providing insight into financial reserves and the source of funds for a down payment and closing costs. Finally, a comprehensive U.S. credit report and score are used to evaluate the applicant’s credit history and repayment behavior.

Mortgage Application Steps for Non-Permanent Residents

Once all necessary information and documentation are gathered, a non-permanent resident can proceed with the mortgage application process. The initial step involves identifying lenders experienced with non-permanent resident mortgages, as not all financial institutions offer these specialized programs. It is advisable to inquire about specific programs or search for lenders known for working with international clients.

The pre-approval process is a significant phase, providing an estimate of how much a non-permanent resident can borrow. During this stage, lenders will conduct a thorough review of the applicant’s financial situation and immigration status, which may involve more detailed questions regarding visa specifics and employment stability. Obtaining pre-approval offers a clearer understanding of buying power and demonstrates seriousness to real estate agents and sellers.

Upon pre-approval, the formal application submission requires presenting the complete package of documentation. This includes all the immigration and financial documents previously prepared. The application then moves to underwriting, where the lender’s team meticulously verifies all provided information. Underwriting for non-permanent residents may involve additional scrutiny, particularly concerning the long-term stability of their visa status, employment, and the source of funds.

Finally, if the application is approved, the process culminates in closing. This involves signing numerous legal documents, transferring funds for the down payment and closing costs, and officially taking ownership of the property. Throughout these steps, clear communication with the chosen lender is important to address any specific requirements or questions that may arise due to non-permanent resident status.

Types of Mortgages Available

Non-permanent residents have several mortgage options available, each with distinct characteristics and requirements. Conventional loans, which are not government-backed, are widely available and can be an option for non-permanent residents. However, these often require a higher credit score and may necessitate a larger down payment, sometimes 10% to 20% or more, depending on the lender’s assessment of risk.

FHA loans, insured by the Federal Housing Administration, historically offered lower down payment options. However, as of May 25, 2025, FHA guidelines have changed, and non-permanent residents with temporary legal status, such as those on H-1B visas, are generally no longer eligible unless they have a clear path to permanent residency. This means individuals with DACA, asylum, or pending refugee status are typically excluded from new FHA financing.

VA loans are another type of mortgage, available exclusively to eligible service members, veterans, and their spouses. While non-permanent residents may qualify if they meet the strict military service requirements and possess a valid Social Security Number, this option is not broadly accessible. VA loans offer significant benefits, including no down payment in many cases, but their eligibility is highly specific.

For higher loan amounts exceeding conventional conforming limits, jumbo loans are available. Non-permanent residents may access these, but they typically come with more stringent credit and asset requirements, and non-permanent resident status might influence their availability or terms. Additionally, some lenders offer “portfolio loans,” which are held by the lender rather than sold on the secondary market. These loans often feature more flexible underwriting criteria, making them a viable option for non-permanent residents who may not fit standard conventional loan guidelines.