At a glance
- Main option
- Conventional
- Also
- Non-QM programs
- Not available
- New FHA loans
- Since May 25, 2025
Educational overview, not a loan offer. Requirements vary by lender and borrower.
Overview
Borrowers with lawful non-permanent residency, such as those on a work visa, can qualify for conventional loans under Fannie Mae and Freddie Mac rules on the same terms as U.S. citizens, with documentation of their status. Non-QM lenders offer additional options.
Government programs have narrowed. Since May 25, 2025, non-permanent residents are no longer eligible for new FHA loans, and USDA loans are limited to U.S. citizens, U.S. non-citizen nationals and qualified aliens. Rules for VA loans and state programs differ, so your loan officer will review your documents.
Highlights
- Conventional loans on the same terms as citizens, with documented status
- Non-QM options at many lenders
- Primary residences, second homes and investment properties under conventional rules
How financing works for non-permanent residents
If you live in the U.S. lawfully without a green card, for example on an employment visa, the main path is a conventional loan. Fannie Mae buys loans made to non-U.S. citizens who are lawful permanent or non-permanent residents on the same terms available to citizens, and Freddie Mac's Guide also accepts lawful non-permanent residents. That means the same programs, occupancy types and underwriting standards, as long as the lender is satisfied you are lawfully present.
Fannie Mae does not list which documents prove lawful presence; each lender decides based on your circumstances and then represents to Fannie Mae that you are legally present. That is why one lender may ask for different paperwork than another.
Government programs are narrower. FHA no longer insures new loans to non-permanent residents, USDA limits its program to citizens, non-citizen nationals and qualified aliens, and Non-QM lenders offer options for situations the agencies do not cover.
Visa holders and lawful residents: who these options fit
These options are for people who live in the U.S. lawfully without a green card. If you live outside the U.S., foreign national programs are the relevant category, and if you file taxes with an ITIN rather than a Social Security number, ask about ITIN loans as well. Situations where these options come up:
- A professional on an employment-based visa buying a first home.
- A spouse with work authorization who will be a co-borrower.
- A visa holder buying a rental or second home under the same conventional rules as a citizen.
- A self-employed visa holder whose income suits a bank statement or other Non-QM program.
Eligibility by immigration status and loan type
For a conventional loan, each borrower must be lawfully present, meet the same credit and income standards as a citizen and, under Fannie Mae's general borrower rules, have a valid Social Security number or ITIN. Lenders choose the status documents they accept; common ones include an unexpired visa with your passport, or an employment authorization document (EAD).
Some lenders look at how much time your current status or work authorization has left and may ask for evidence that a renewal or extension has been filed. Those are lender practices rather than published Fannie Mae requirements, so they vary.
Every borrower on the loan must meet these rules; a spouse with a different status can be a co-borrower only if that spouse meets them too.
Credit when you are new to the U.S.
Conventional loans use U.S. credit reports and scores, with minimums set by the agencies and by each lender. If you are new to the country, your U.S. history may be short. Fannie Mae allows a nontraditional credit history, such as rent and utility payments, for borrowers without a credit score, with added limits: on manually underwritten loans, the property must be a one-unit home you live in and the transaction a purchase or limited cash-out refinance. Not every lender offers this path.
Some Non-QM programs for non-permanent residents require an established U.S. credit history, so opening and paying a few accounts early helps.
Funds, gifts and reserves for non-permanent residents
Down payment rules on conventional loans are the same as for citizens, including programs such as HomeReady and Home Possible if you meet their rules, and gifts from acceptable donors on a home you will live in. Your loan officer can show the figures for your purchase.
Funds held abroad can be used under Fannie Mae's foreign asset rules if they are documented, translated where needed, exchanged into U.S. dollars and held in a U.S. or state-regulated financial institution before closing. Start transfers early to allow for currency conversion and bank holds.
Documenting status and income
Fannie Mae requires non-citizen borrowers to meet the same employment and income verification standards as citizens, whatever the type or source of income. Wage earners typically provide pay stubs and W-2s; self-employed borrowers provide tax returns, under the same rules a citizen would follow.
Income must be likely to continue. Under Fannie Mae's continuance rule, income without a defined end date and with the required history is generally presumed to continue unless the lender learns otherwise. Fannie Mae's income topic does not set a separate test tied to visa expiration dates, so lenders apply their own judgment and may ask about renewal plans.
Property types and occupancy for visa holders
Under conventional rules, non-permanent residents can finance a primary residence, a second home or an investment property, with the same property types, financed-property limits and reserve requirements as citizens. Non-QM options, including DSCR loans for rentals, often accept non-permanent residents too, subject to each lender's visa and credit rules.
FHA is not available to non-permanent residents for case numbers assigned on or after May 25, 2025, including for two- to four-unit homes where you would live in one unit and rent the others. HUD's one remaining exception covers citizens of the Federated States of Micronesia, the Marshall Islands and Palau.
Where status limits the options
The biggest limits are in government programs. FHA closed to non-permanent residents in 2025, USDA loans are limited to citizens, non-citizen nationals and qualified aliens, and VA eligibility depends on qualifying military service, so check each with your loan officer. State housing finance agency programs set their own residency rules.
Lender practices also vary more for non-citizens than for citizens. One lender may accept a status document another questions, or want more time remaining on your authorization. If one lender declines, another may view the same file differently, which is why early document review matters.
Talk it through with Ruben
Options for non-citizen borrowers compared
Your residency, where you live and the documents you hold point to different programs. The table compares features only, not costs.
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| Feature | Conventional (non-permanent resident) | Non-QM | Foreign national | FHA |
|---|---|---|---|---|
| Who it serves | Lawful U.S. residents without a green card | Varies by lender | People living outside the U.S. | Citizens and permanent residents, plus citizens of Micronesia, the Marshall Islands and Palau |
| Status documents | Lender decides what proves lawful presence | Lender's accepted visa list | Passport, visa where required | Proof of permanent residence or qualifying citizenship |
| Occupancy | Primary, second home or investment | Varies by program | Second home or investment | Primary residence |
| Credit | U.S. credit, or nontraditional in limited cases | Often U.S. credit required | Foreign references accepted | U.S. or nontraditional credit |
| Rules set by | Fannie Mae, Freddie Mac | Each lender | Each lender | HUD |
Compare with
Visa holder scenarios: an engineer, a researcher, a mixed-status couple
Examples only; the lender's document review decides the outcome.
- An engineer on an employment visa with a steady job history buys a condo. The lender reviews the visa, passport and Social Security number, then underwrites the loan as it would for a citizen.
- A recently arrived researcher has little U.S. credit history. The lender considers rent and utility payment history under Fannie Mae's nontraditional credit rules for a one-unit home she will live in.
- A couple, one a citizen and one on a work visa, buys a duplex to live in. FHA is not available with the visa holder as a borrower, so they compare conventional options.
- A self-employed visa holder with strong deposits but complex tax returns compares a bank statement loan with a conventional loan.
Status documents, income review and timeline
Share your status documents at the start, before an offer if possible, so the lender can confirm what it will accept.
If a document expires during the process, tell your loan officer right away; renewing early avoids last-minute conditions.
Documents to gather:
- Passport, visa or EAD, and any extension or renewal notices.
- Social Security number or ITIN for each borrower.
- Pay stubs, W-2s or tax returns, as for any borrower.
- Statements for accounts used for the down payment and reserves, including foreign accounts if used.
Visa holder myths about green cards and government loans
Visa holders often hear conflicting advice, partly because federal rules changed in 2025.
- Myth: you need a green card to get a mortgage. Reality: Fannie Mae and Freddie Mac accept lawful non-permanent residents for conventional loans, though lender practices vary.
- Myth: every government loan is off the table. Reality: FHA is, but USDA accepts some statuses short of permanent residence, and VA depends on service.
- Myth: income is verified differently for non-citizens. Reality: Fannie Mae applies the same verification standards.
- Myth: a foreign national loan is the right choice for visa holders. Reality: those programs are for people living abroad and usually have stricter terms.
Common questions
13 questions
If I file taxes with an ITIN, do these visa-holder options apply to me?
ITIN loans are a separate option for borrowers who file U.S. taxes with an Individual Taxpayer Identification Number. Your loan officer can tell you which fits.
Do I need a green card to buy a home?
Not under Fannie Mae and Freddie Mac rules, which accept lawful non-permanent residents for conventional loans. Each lender decides which status documents it accepts, and permanent residents are treated like U.S. citizens.
What documents will the lender ask for to show my status?
Fannie Mae leaves it to each lender to decide which documents show you are lawfully present in the U.S., so the list varies. Lenders commonly ask for an unexpired visa or employment authorization document (EAD) along with your passport and Social Security number, and documents close to expiring may need proof that you applied to renew them.
Is my income verified differently because I am not a U.S. citizen?
No. Under Fannie Mae rules, borrowers who are not U.S. citizens meet the same employment and income verification requirements as citizens, whatever the type or source of income. As with any borrower, the lender checks that your income is stable and likely to continue.
How is this different from a foreign national loan?
Non-permanent residents live in the U.S. lawfully, such as on a work visa, and Fannie Mae buys loans made to them on the same terms as for citizens. Foreign national programs are for buyers who live outside the U.S.; they are Non-QM loans, usually limited to second homes or investment properties. Your loan officer can tell you which one fits.
Does my visa type matter for a conventional loan?
Fannie Mae does not list eligible visa types; it requires lawful non-permanent residency and leaves the documentation to each lender. Lenders therefore decide which visas and status documents they accept, and some keep internal lists. Non-QM programs often publish their accepted visa categories. Share your exact status with the loan officer early so they can check which programs accept it.
I have applied for a green card. Can I get an FHA loan now?
Not yet, under current HUD policy. For FHA case numbers assigned on or after May 25, 2025, borrowers must be U.S. citizens, lawful permanent residents or citizens of the Federated States of Micronesia, the Marshall Islands or Palau, with evidence of that status in the file. A pending green card application does not meet that test. Once you hold permanent residency, FHA treats you on the same terms as citizens. Until then, conventional or Non-QM options may fit.
Can I use HomeReady, Home Possible or other low down payment programs?
Each program's own rules apply, and Fannie Mae does not add separate ones for lawful non-permanent residents: it buys their loans on the same terms as citizens, so HomeReady applies on the same basis, including any income limits and homebuyer education requirements. Home Possible follows Freddie Mac's eligibility rules. Your loan officer can check which programs fit your income and location.
What if I have not built a U.S. credit history yet?
Some paths may still fit. Fannie Mae allows a nontraditional credit history, such as rent and utility payments, for borrowers without a credit score, with added limits such as a one-unit home you will live in on manually underwritten loans. Not every lender offers it. Opening a U.S. credit card or small loan early and paying on time builds a score, and some Non-QM programs require an established U.S. history.
Can my spouse be on the loan if we have different statuses?
A spouse with a different status can be a co-borrower when each borrower meets the lender's requirements. A citizen or permanent resident spouse is underwritten like any citizen, while a non-permanent resident spouse needs acceptable status documents and a Social Security number or ITIN. A spouse can also be left off the loan. Your loan officer can compare the application with and without each person's income.
Can I buy a rental property or second home as a visa holder?
Conventional rules allow it on the same terms as for a citizen: the same occupancy types, reserve requirements and financed-property limits apply. Many DSCR and other Non-QM programs also accept non-permanent residents for investment properties, subject to their visa and credit requirements. FHA cannot be used, because it no longer accepts non-permanent residents and is limited to homes you live in.
Is a USDA or VA loan possible for me?
USDA loans require U.S. citizenship, non-citizen national status or qualified alien status as defined in federal law, which includes asylees and refugees but not common temporary work visas. VA eligibility comes from qualifying military service, and lenders confirm how residency documentation applies. Ask your loan officer to check either program against your specific status.
This page explains how this type of loan generally works. Programs, guidelines and availability vary by lender and change often. Contact Ruben to see which options are available for your scenario today.