Can H-1B and Green Card Holders Buy a House in the US? What Lenders Actually Look At (2026)

Last Updated: May 2026

Short answer: yes, you can. There’s no law stopping H-1B or green card holders from buying property in the US — and plenty of people do it every year. The bigger question is what the process actually looks like, because it’s changed a lot recently and the information out there is mostly outdated or written for US citizens.

I’m a green card holder actively researching this right now, so here’s what I’ve put together.

The FHA Change You Probably Haven’t Heard About

In March 2025, HUD quietly issued Mortgagee Letter 2025-09. It removed FHA loan eligibility for non-permanent residents — which includes H-1B holders. Took effect May 25, 2025.

This matters because FHA loans were the most common path for immigrants buying their first home. 3.5% down, more flexible credit requirements, easier to qualify for. That option is basically gone now if you’re on H-1B.

Green card holders aren’t affected. Permanent residents can still get FHA loans. This change only hits non-permanent residents — H-1B, O-1, L-1, etc.

For H-1B holders, the main path now is conventional loans through Fannie Mae or Freddie Mac. They still allow non-permanent residents — the requirements are just stricter.

What Lenders Actually Care About

Your visa status matters less than people think. What lenders are really looking at:

Factor What they want Notes
Credit score 620+ minimum, 740+ for best rates Biggest single factor
Employment history 2 years W-2 preferred Pay stubs + tax returns required
Visa validity 12+ months left at closing File your extension early if it’s close
DTI ratio Under 43% Monthly debts ÷ gross income
Down payment 5–20%; 20% recommended for H-1B 20% removes PMI and signals stability
I-140 approval Not required, but a major advantage Lenders see it as long-term stability signal

The I-140 point is worth highlighting separately. If you have an approved I-140 petition, use it. Lenders’ main concern with H-1B borrowers is the risk of you having to leave the country mid-mortgage. An approved I-140 shows you have a path to permanent residency — it changes the risk calculation meaningfully.

Green Card vs H-1B: How Different Is It?

Green Card H-1B
FHA loan ✅ Yes ❌ No (since May 2025)
Conventional loan ✅ Same as US citizen ✅ Yes, Fannie/Freddie allow it
Min. down payment 3% 5–20% (20% strongly advised)
Extra docs needed Green card (I-551) I-797, passport, employer letter
Lender experience needed Most lenders fine Find one with H-1B experience

Lenders That Know What They’re Doing with H-1B

Not all lenders are set up for this. Some will just deny you the moment they see your visa status. These ones come up most often in the community as having actual H-1B experience: HSBC (especially good if you have less than 2 years of US credit history), Better Mortgage, Bank of America, and Rocket Mortgage.

Apply to multiple lenders. Requirements vary more than you’d expect even within the same loan type.

The Job Loss Question Nobody Wants to Ask

If you lose your H-1B job and have to leave the US, your mortgage doesn’t pause. You’d need to either rent the property, sell it, or keep paying from abroad. None of those are great options, but they’re manageable.

One thing to know: if you sell as a non-resident, FIRPTA withholding applies — the buyer withholds 15% of the sale price for the IRS. If you’re still a US tax resident at time of sale (which most H-1B holders are), this usually doesn’t apply for a primary residence.

The honest version: buying on H-1B ties you more closely to your employer and your city. If your job situation feels shaky, factor that in before committing.

Where I Am With This

I have a green card, so the FHA change doesn’t affect me. What I’m working on right now: saving toward 20% down to avoid PMI, keeping my credit score above 740, and waiting until I hit 2 years at my current job for cleaner income verification. No rush — doing it right matters more than doing it fast.

For anyone still on H-1B: the path is harder but it’s not closed. Get your score up, save more than you think you need, and find a lender who’s actually done H-1B loans before. The first “no” doesn’t mean much.


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