If you are on an H1B, L1, or F1 visa and you were planning to use an FHA loan to buy a home, the rules changed in May 2025. FHA mortgage eligibility for non-permanent residents was eliminated by HUD Mortgagee Letter 2025-09, effective May 25, 2025.
This does not mean you cannot buy a home. It means FHA is no longer one of your options. Conventional loans, non-QM programs, and DSCR loans for investment properties still work for visa holders. This post explains what changed, who is affected, and how to move forward.
What Changed in May 2025
HUD Mortgagee Letter 2025-09 restricted FHA mortgage eligibility to U.S. citizens, lawful permanent residents (green card holders), and select Pacific Island nations under the Compact of Free Association. Non-permanent residents, which includes essentially all work visa and student visa holders, are no longer eligible for FHA-insured mortgages.
Before May 25, 2025, non-permanent residents with valid visas, a Social Security number, and U.S. credit history could use FHA loans. The program's low down payment (3.5% at 580+ credit) made it one of the most accessible paths to homeownership for foreign nationals working legally in the United States.
That path is now closed for visa holders. For more background on visa holder mortgages in Houston, see the H1B visa mortgage Houston guide.
Who Is Affected
The policy change affects anyone with a non-immigrant visa, including:
- H1B - specialty occupation workers (technology, engineering, medicine, finance)
- L1 - intracompany transferees
- F1 - international students, including those on OPT or STEM OPT extensions
- TN - professionals under the USMCA/NAFTA agreement
- O1 - individuals with extraordinary ability
- E2 - treaty investors
- Other non-immigrant categories that were previously FHA-eligible
If you have a pending green card application (I-485 filed, priority date current), check with a lender about whether your status qualifies as permanent resident for mortgage purposes. Some programs treat certain pending adjustment cases differently.
What Still Works: Conventional Loans
Conventional loans are still available to H1B and most other visa holders. These are loans that meet Fannie Mae and Freddie Mac guidelines. The key requirements:
Credit score: 620 minimum. Rates improve meaningfully above 700.
Visa validity: Most conventional programs require that your visa has at least 3 years of remaining validity, or documentation that renewal is likely. For H1B holders working at established U.S. employers, this is typically verifiable through an employer letter confirming continued sponsorship.
Down payment: As low as 3% to 5% on a primary residence for qualified borrowers. 15% to 25% for investment properties.
Income verification: Standard W-2 and pay stub documentation. If you have been employed in the U.S. for at least two years, this is usually straightforward.
U.S. credit history: Conventional lenders require a U.S. credit score. If you have been in the U.S. for two or more years and have used credit (credit card, auto loan, student loan), you likely have enough history to qualify.
For many H1B holders with steady W-2 employment and two-plus years of U.S. credit history, conventional is the clearest path.
What Still Works: Non-QM Programs
If you do not have two years of U.S. credit history, or if your income documentation is more complex, non-QM programs offer alternatives that conventional loans do not. Visit the foreign national loans Houston page for a full overview of available programs.
Foreign credit reports: Several non-QM lenders accept international credit reports from your home country. If you have a strong credit history in India, China, Vietnam, Mexico, or another country with established credit bureaus, that history can be used for qualification.
No U.S. credit programs: Some non-QM programs require no U.S. credit history at all, as long as you can document alternative payment history, including 12 to 24 months of on-time rental payments, utility bills, or bank statements showing consistent financial management.
Down payment: Typically 20% to 30% for non-QM programs without U.S. credit history. This reflects the higher documentation risk, not a judgment about your creditworthiness.
Income documentation: Non-QM programs can use W-2s, 1099s, bank statements, or a combination depending on your situation. If you are on H1B with W-2 employment, your income documentation is usually clean.
Visa flexibility: Non-QM lenders often have more flexibility on visa type and remaining validity than conventional programs. This is worth exploring if your visa situation is more complex.
ITIN Loans: Buying Without a Social Security Number
ITIN mortgages are for buyers who have an Individual Taxpayer Identification Number but no Social Security number. This is a smaller market, with approximately 5,000 to 6,000 ITIN loans originated per year, but it exists for borrowers who are not yet eligible for an SSN. For a detailed breakdown, see the ITIN mortgage Houston guide.
ITIN mortgages typically require:
- An active ITIN number
- 12 to 24 months of tax returns filed with the ITIN
- 12 to 24 months of U.S. bank statement history or alternative credit documentation
- Down payment of 10% to 20% depending on the program and credit profile
If you are an F1 or OPT student without an SSN, or if your visa situation limits your SSN eligibility, ITIN loans are worth exploring. Brandon can identify which lenders in his network handle ITIN programs and what the requirements are for your specific situation.
DSCR Loans for Investment Properties
If you want to buy a rental property rather than a primary residence, DSCR loans have always been available to foreign nationals and visa holders, and that has not changed. DSCR loans qualify the borrower based on the property's rental income, not personal income, not visa status, not U.S. credit history.
Minimum requirements typically include a credit score (some programs accept foreign credit reports), a down payment of 20% to 25%, and a DSCR ratio of 1.0 or above, meaning the monthly rent covers the monthly mortgage payment.
For H1B professionals who want to start building a U.S. real estate portfolio while renting their primary residence, DSCR is often the most accessible first step.
Documentation Requirements by Visa Type
Different visa types carry different documentation needs. Here is a practical summary:
H1B holders:
- Visa copy showing current validity and expiration date
- I-94 showing most recent entry
- Employer letter confirming continued sponsorship and intent to renew (standard on conventional programs)
- If I-140 is approved, include that documentation, as it strengthens the renewal expectation
- W-2s and pay stubs for income
L1 holders:
- Visa copy and I-94
- Employer letter confirming intracompany transfer and anticipated length of assignment
- W-2s and pay stubs
- Some lenders require additional documentation around the specific L1A or L1B classification
F1/OPT/STEM OPT holders:
- F1 visa, I-20, and EAD (Employment Authorization Document) for OPT status
- OPT and STEM OPT timelines vary. Lenders look at remaining authorized employment duration
- Conventional loans are harder for F1/OPT holders because of the shorter visa validity windows. Non-QM may be a better fit
- Full-time W-2 employment during OPT strengthens the file
TN holders:
- TN status (Canada and Mexico nationals)
- TN is renewed annually, which can complicate the 3-year remaining validity requirement for some conventional programs
- Non-QM lenders who work with TN holders understand this and can structure around it
For a complete checklist of what to prepare, visit the foreign national homebuyer guide.
Frequently Asked Questions
I was pre-approved for an FHA loan before May 2025. Is that still valid?
No. HUD Mortgagee Letter 2025-09 changed the eligibility rules effective May 25, 2025. Pre-approvals issued before that date based on FHA guidelines for non-permanent residents are no longer valid. You will need to be re-qualified under conventional or non-QM programs.
Can I use my home country credit history for a U.S. mortgage?
Yes, through non-QM programs. Certain non-QM lenders accept international credit reports directly. Brandon can identify which lenders in his network accept your specific country's credit history.
What if my H1B expires in 18 months?
This is where conventional programs often have issues, as they typically want 3 years of remaining validity. Non-QM lenders are more flexible. If you have an approved I-140 or other evidence of long-term employment intent, that helps. Call Brandon to review your specific timeline.
Is buying a home risky if I might return to my home country?
That is a personal decision, not a mortgage question. If there is a chance you will leave the U.S., you need to think through what you would do with the property, whether that means renting it out (where a DSCR loan might make sense) or selling it. Brandon can help you structure the purchase in a way that gives you options.
Can my spouse co-borrow if they are a U.S. citizen even if I am on a visa?
Yes. A U.S. citizen co-borrower strengthens the file significantly and opens up conventional loan options. The income and assets of both borrowers are combined, and the citizenship status of the co-borrower helps with program eligibility.
On a Visa and Ready to Buy?
Brandon works with H1B, L1, F1, TN, and O1 visa holders as a regular part of his practice. The first step is a review of your visa type, credit history, and what you are trying to buy. No credit pull required. For Houston's Vietnamese community, Brandon also works in Vietnamese.
Book a Free CallOr call or text directly: 832-997-1527
For more on visa holder mortgages: H1B Visa Mortgage Houston
For foreign national loan programs: Foreign National Loans Houston
For ITIN mortgages: ITIN Mortgage Houston
For the full homebuyer guide: Foreign National Homebuyer Guide
Brandon Huynh, NMLS #2522494. Lock It Mortgage, powered by Swift Home Loans Inc., NMLS #2075228. This content is for informational purposes only and does not constitute a commitment to lend or a loan approval. Loan terms, rates, and qualification requirements are subject to change and vary based on individual creditworthiness, property, and market conditions. All loans are subject to credit approval. Equal Housing Lender.