For many H-1B visa holders dreaming of homeownership in the United States, a common question is whether they can secure a mortgage without an established US credit history. The short answer is: yes, it’s possible, but it isn’t simple, and one of the easiest pathways has recently closed.
Historically, many immigrants and foreign professionals on work visas used Federal Housing Administration (FHA) loans to buy homes. These government-backed mortgages were attractive because they required lower down payments and were more flexible with credit history. But late last year, FHA loans were discontinued for non-permanent US residents, including H-1B visa holders.
The US Department of Housing and Urban Development updated lending rules to limit these loans to US citizens and lawful permanent residents (green card holders), effectively shutting that door for temporary workers.
What other mortgage options do H-1B holders have?
That change means H-1B holders now must rely on other mortgage options. One of the most common alternatives is a conventional mortgage, the type backed by Fannie Mae or Freddie Mac. Conventional loans can be available to non-citizens and temporary residents, but lenders typically require a US credit history (often at least 2–3 years), a solid credit score (commonly 620+), documented employment and income, and a sizeable down payment, according to HomeAbroad Inc.
What about H-1B workers who don’t have any US credit?
For H-1B workers who don’t yet have US credit, some lenders offer foreign national or “newcomer” mortgage programs. These specialised loans evaluate alternative factors, such as international credit reports, employment documents, income verification and assets, including down payment funds from abroad, to assess creditworthiness. Many of these programs ask for higher down payments (often 20% or more) and stronger proof of financial stability to offset risk.
Other non-traditional mortgage products, including portfolio loans, non-QM (non-qualified mortgage) loans, and bank-statement loans for self-employed borrowers, may also be options but vary widely by lender and typically carry higher interest rates or stricter terms, according to General Mortgage Capital Corporation.