The American dream of homeownership isn’t limited to U.S. citizens. Non-citizens, including permanent residents and certain visa holders, can qualify for a mortgage and buy a home in the United States. However, the process comes with specific requirements that vary based on residency status, credit history, and lender guidelines. In this blog, we’ll break down what non-citizens need to know when applying for a home loan.

Who Qualifies as a Non-Citizen Borrower?

Non-citizen borrowers generally fall into the following categories:

  1. Permanent Residents (Green Card Holders): Individuals with a valid Green Card are treated similarly to U.S. citizens for mortgage purposes. They typically qualify for conventional, FHA, VA (if military service requirements are met), and other loan programs.
  2. Non-Permanent Residents (Visa Holders): Borrowers on work visas, such as H-1B, L-1, O-1, or TN visas, can also be eligible for home loans. Lenders often require a valid visa, a stable employment history, and a U.S. credit score.
  3. DACA Recipients: As of recent changes, some lenders allow recipients of the Deferred Action for Childhood Arrivals (DACA) program to qualify for FHA loans and other mortgage options.
  4. Foreign Nationals (Non-Resident Aliens): Individuals who do not reside in the U.S. but wish to purchase property may qualify for specialized foreign national loan programs, typically requiring higher down payments and alternative credit documentation.

Key Mortgage Requirements for Non-Citizens

While non-citizens can obtain a mortgage, lenders will assess several factors to determine eligibility:

1. Proof of Legal Residency

  • Permanent residents must provide a copy of their Green Card.
  • Non-permanent residents must present a valid visa and proof of continued employment in the U.S.
  • DACA borrowers need an Employment Authorization Document (EAD).

2. Credit History & Score

  • A U.S. credit score is typically required, with most lenders preferring a score of 620 or higher for conventional loans.
  • Some lenders accept alternative credit documentation, such as international credit reports or utility payment histories.

3. Employment & Income Verification

  • Most lenders require at least two years of stable employment in the U.S.
  • A valid Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) may be needed for tax verification.

4. Down Payment Requirements

  • Permanent residents often qualify for conventional down payment requirements (as low as 3%).
  • Non-permanent residents may need to put down at least 5-10%.
  • Foreign national loans generally require 25-30% down.

5. Loan Program Availability

  • FHA Loans: Available for Green Card holders and certain visa holders.
  • Conventional Loans: Available to most non-citizens with a valid visa and credit history.
  • Jumbo & Portfolio Loans: May be required for foreign nationals or borrowers without traditional credit.

Common Challenges & How to Overcome Them

  • Limited U.S. Credit History: Building credit through secured credit cards or reporting rent payments can help.
  • Visa Expiration Issues: Some lenders may require proof of visa renewal eligibility.
  • Higher Down Payment Needs: Saving early or looking into specialized loan programs can ease the burden.

Each lender has different rules on what and who they allow so the important thing to know is that just because a lender says no does not mean the agencies do not allow it.

FHA, VA, and USDA have different guides than what I am talking about today.

This is specifically for Fannie Mae as I am using their document which a link will share with you below.

Fannie makes it quite simple. Ask three questions to get your answer if a borrower is eligible.

  • #1 – IS THE BORROWER LEGALLY PRESENT? – Fannie says if a borrower has a SS # or ITIN then yes, they are legally present. So, if you have SS# or ITIN you pass this test.
  • #2 – DOES BORROWER HAVE DOCUMENTATION TO VERIFY THEIR STATUS IN THE STATES? – The most common documents are the Permanent Resident Alien Card (Green Card), Work Visa, Entry Stamps, EAD (Employment Authorization Document) and I-551 Stamps. Have a legal one of those with a proper type then they pass.
  • #3 – DO THEY HAVE STANDARD INCOME DOCUMENTATION? – Can they prove 3-year continuance of income when applicable. Do they have two full years of self-employment and standard income documents.

Here is a link to Fannie’s quick guide and I thought it was very well done with good examples.

FANNIE NON-CITIZEN BORROWER ELIGIBILITY

Final Thoughts

Non-citizens have a clear path to homeownership in the U.S., but preparation is key. Working with a mortgage professional who understands the unique requirements of non-citizen borrowers can make the process smoother. At North Star Mortgage Network, we specialize in helping all borrowers—citizens and non-citizens alike—navigate the mortgage process with confidence.

If you’re a non-citizen interested in purchasing a home, contact us today to explore your options!

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