Buying a House on H-1B in 2026: Mortgage Rules & Risks
You can buy a house on H-1B or with I-485 pending. The real question is whether it makes sense given your timeline, down payment, and what happens if your case is delayed or you have to leave.
Quick Answer
Yes — you can legally buy a house on H-1B or with an I-485 pending, through a conventional, ITIN, or foreign-national loan. US law places no citizenship or immigration-status restriction on owning property. Important 2025 change: FHA-insured loans are no longer available to non-permanent residents (H-1B, L-1, F-1, and other work-visa holders) as of HUD Mortgagee Letter 2025-09, effective for FHA case numbers assigned on or after May 25, 2025 — FHA is now restricted to US citizens and lawful permanent residents. What conventional lenders actually want is a valid I-94, an SSN (or ITIN with some lenders), a documented 2-year work history, and typically at least 1 year of visa validity remaining. The real question is not legality but risk: what happens to the mortgage if you have to leave.
FHA eligibility changed in 2025 — verify before you plan around it
- If you are relying on old advice that says "H-1B holders can get an FHA loan with 3.5% down," that is now outdated. HUD Mortgagee Letter 2025-09 ended FHA eligibility for non-permanent residents effective May 25, 2025. If your FHA case number was assigned before that date, you proceed under the prior rules; existing FHA loans are unaffected. New applicants on H-1B, L-1, F-1, or a pending I-485 (without a green card) should plan around conventional, ITIN, or foreign-national loan programs instead.
Key takeaways
- FHA is gone for non-permanent residents as of May 25, 2025 (HUD ML 2025-09) — only US citizens and green card holders remain FHA-eligible.
- Work-visa holders now generally use conventional (5%–20% down), ITIN loans (15%–25%), or foreign-national loans (20%–40%) — no citizenship requirement exists for any of these.
- Expect lenders to want at least ~1 year of remaining visa validity, and many prefer to see an approved I-140 for stability.
- Keep 6 months of mortgage reserves — the H-1B 60-day grace period after a layoff is your entire runway.
- Remember the mortgage does not require US residence: if you leave, you can rent it out and file a US return on the rental income.
Buying a house while your green card is years away is one of the most common financial decisions Indian H-1B families face — and the legal part is the easy part. This guide is for H-1B, H-4 EAD, and I-485-pending buyers who want to know which loan types they actually qualify for, how much down payment each requires, how immigration timing changes the risk, and what happens to the property if a layoff or a denied case forces them to leave. The short answer to the underlying worry: property ownership has no effect whatsoever on your immigration case, and a mortgage does not require you to remain in the country. Below: mortgage eligibility by visa status, the loan-type comparison table, timing the purchase around your immigration stage, exit scenarios, and a financial readiness checklist.
Can You Get a Mortgage on an H-1B Visa?
H-1B mortgage basics
- Most major lenders (Fannie Mae/Freddie Mac conforming loans) allow H-1B borrowers with at least 1–2 years remaining on the visa
- You need a valid H-1B I-94, SSN, and documented income (W-2s, employment letter)
- Foreign national loans (no SSN, no credit history) are available but require larger down payments (20–40%) and higher rates
- ITIN loans: Some lenders accept ITIN instead of SSN — useful if you are in a status transition
- FHA is no longer an option for non-permanent residents since May 25, 2025 — see the warning above
| Loan type | Available on a work visa? | Typical minimum down payment | Notes |
|---|---|---|---|
| Conventional (Fannie/Freddie) | Yes | 5% (3% some programs) | Needs SSN, 2-year work history; PMI under 20% |
| FHA | No (non-permanent residents), unless your case number was assigned before May 25, 2025 | — | HUD Mortgagee Letter 2025-09 restricts FHA to US citizens and lawful permanent residents |
| VA | Only if you are a qualifying service member/veteran | 0% | Rare for visa holders |
| ITIN loan | Yes | 15%–25% | For borrowers without an SSN; higher rates |
| Foreign national loan | Yes | 20%–40% | No US credit history required; highest rates |
| Jumbo | Yes | 10%–20% | Stricter reserves; visa validity scrutinised |
> Down payments and overlays vary by lender. Confirm current requirements with the lender and, for FHA history, see HUD's Mortgagee Letter 2025-09.
Which visa statuses can borrow?
| Your status | Conventional | FHA | What lenders look at |
|---|---|---|---|
| H-1B | Yes | No (since May 25, 2025) | I-797/I-94 validity, ideally 1+ year remaining |
| H-4 with EAD | Yes | No (since May 25, 2025) | EAD validity and documented income |
| L-1 | Yes | No (since May 25, 2025) | Same as H-1B |
| F-1 / OPT | Case by case | No | Short status horizon is the obstacle |
| I-485 pending with EAD | Yes | No (since May 25, 2025) | Often viewed favourably — approved I-140 helps |
| Green card holder | Yes | Yes | Treated as a permanent resident borrower |
When Should You Buy Relative to Your Immigration Stage?
Lower risk to buy
Higher risk / pause and plan
- left_items:
- H-1B with 3+ years remaining and strong employer history
- I-140 approved, I-485 filed, EAD in hand (job flexibility)
- Permanent resident (green card received)
- Priority date is close — you expect to file I-485 within 1–2 years
- right_items:
- H-1B cap-gap period or visa expiring within 12 months
- I-485 just filed (high uncertainty in timeline)
- PERM pending — employer may leave or be acquired
- Considering AC21 job change within the next 6 months
- Strong possibility of needing to return to India
What Happens to the House If You Have to Leave the US?
Scenarios to plan for before buying
- Case delayed but you stay: Your mortgage continues normally. You can rent the property if you temporarily leave. Your mortgage does not require you to live in the US.
- You move abroad but return: You can keep the property as a rental or sell it. Rental income is US-source income taxed in the US; you will need to file a US tax return.
- Green card denial / you must leave permanently: You can sell the house (capital gains rules apply), rent it, or transfer it to a trust. Plan this scenario BEFORE buying, not after.
- Employer closes / you lose H-1B: You have a 60-day grace period to find new H-1B sponsorship. If you cannot, you may need to leave — plan mortgage and housing accordingly.
Are You Financially Ready to Buy?
Questions to answer before signing
- Can you afford the mortgage on one income if your H-4 EAD spouse faces a gap?
- Do you have 6 months of reserves in a US account?
- What is your expected time to green card — and does the house purchase timeline align?
- Have you considered ITIN vs SSN for both spouses on the mortgage?
- If buying near a specific employer, what is your plan if you change jobs via AC21?
How This Connects to the Rest of Your Immigration and Money Picture
A home purchase sits on top of two timelines you do not fully control. The immigration one runs through your priority date and the India backlog — the longer that wait, the longer you will hold the property in nonimmigrant status, and the more the 60-day layoff grace period matters as a risk. The money one runs through your India-side assets: a down payment funded from Indian savings can trigger FBAR and FATCA reporting, and if you ever move back, rental income and the eventual sale interact with RNOR rules. If your spouse's income is on the loan, their H-4 EAD renewal timing becomes a mortgage risk too.
Official sources
- HUD Mortgagee Letter 2025-09 — Revisions to Residency Requirements (FHA eligibility change, effective May 25, 2025)
- USCIS — Working in the United States (visa status overview)
- Check your case status
Frequently asked questions
Can I buy a house on an H-1B visa?
Yes. US law places no immigration-status restriction on buying property, and H-1B holders qualify for conventional mortgages on standard terms with a valid I-94, an SSN, and a documented two-year work history. Most lenders also want to see roughly a year or more of remaining visa validity. FHA is no longer an option for non-permanent residents (see below).
Can I get an FHA loan on a work visa?
Generally no, since May 25, 2025. HUD Mortgagee Letter 2025-09 restricts new FHA-insured loans to US citizens and lawful permanent residents — H-1B, L-1, F-1, and other non-permanent residents no longer qualify, even with a valid EAD. If your FHA case number was assigned before that date, the prior rules still apply to your loan. Otherwise, look at conventional, ITIN, or foreign-national loan programs instead.
Does buying a house affect my green card case?
No. Property ownership does not affect USCIS adjudication of any petition or application. It does not demonstrate immigrant intent in a way that creates a problem for your nonimmigrant status.
Can my H-4 spouse be on the mortgage?
Yes — if your H-4 spouse has an EAD, they can be a co-borrower with documented income. Without work authorization, they can be a non-occupant co-borrower, but their income typically cannot be counted toward qualifying.
Can I use my Indian savings as a down payment?
Yes. Large down payments sourced from foreign accounts must be documented with bank statements showing the source of funds, to satisfy anti-money-laundering rules. Holding those accounts may also trigger FBAR or FATCA reporting obligations.
What if I buy a house and then get laid off?
You have a 60-day H-1B grace period to find new sponsorship. If you cannot and must leave, you can rent the property out or sell it — a mortgage does not require you to live in the US. Plan that scenario with a property manager or real estate attorney before you buy, not after.
How much down payment do I need as a visa holder?
It depends on the loan: typically 5%–20% conventional, 15%–25% on an ITIN loan, and 20%–40% on a foreign-national loan with no US credit history. Anything under 20% on a conventional loan adds private mortgage insurance. FHA's 3.5% down payment is no longer available to non-permanent residents since May 25, 2025.
Deepak Middha, CA, Series 65Founder & Author
Deepak has experience in cross-border finance, tax-aware planning, and immigrant money decisions. View full profile →
Educational content, not personalized tax, legal, immigration, or financial advice. Rules, fees, and processing times change — always verify with the official source before acting. See our full disclaimer.
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