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Foreign National and Non-Permanent Resident Mortgage Options

Non-U.S. citizens have multiple pathways to mortgage financing depending on their immigration status. Permanent residents qualify for all standard programs. Non-permanent residents with work visas can access conventional and FHA loans with additional documentation. Foreign nationals without U.S. status must use portfolio lending programs with higher down payments and rates. ITIN borrowers have limited options through specialized portfolio and CDFI lenders.

Key Takeaways

  • Permanent resident aliens (green card holders) qualify for all standard mortgage programs on the same terms as U.S. citizens.
  • Non-permanent resident aliens with valid work visas (H-1B, L-1, E-2, O-1, TN) can qualify for conventional and FHA loans with a valid SSN and work authorization documentation.
  • ITIN borrowers generally cannot access agency loan programs and must use portfolio lenders with higher down payments and rates.
  • Foreign nationals without U.S. immigration status require specialized portfolio lending programs with 25-40% down payments.
  • Thin or nonexistent U.S. credit history can be supplemented with non-traditional credit references such as rent and utility payment records.
  • FIRPTA withholding requirements apply when foreign nationals eventually sell U.S. property and should be planned for at the time of purchase.
  • Visa expiration dates are reviewed during underwriting, and evidence of renewal or extension may be required.
  • Some portfolio lenders require foreign nationals to maintain U.S. bank accounts with minimum balances as a condition of the loan.

How It Works

Permanent Resident Aliens (Green Card Holders)

Borrowers with lawful permanent resident status (Form I-551, commonly known as a green card) are eligible for all conventional, FHA, VA (if they meet service requirements), and USDA loan programs under the same terms as U.S. citizens. The lender verifies permanent residency through a copy of the green card (front and back) and may verify the alien registration number through USCIS. No additional documentation beyond what is required for a citizen applicant is needed for income, credit, or asset verification .

Non-Permanent Resident Aliens (Work Visa Holders)

Non-permanent resident aliens with valid work visas can qualify for conventional loans through Fannie Mae and Freddie Mac, as well as FHA loans. The key requirements are a valid Social Security Number (SSN), a valid work visa with authorization to work in the U.S., and evidence that the visa will not expire before or shortly after closing (or evidence of a pending renewal). Common qualifying visa types include H-1B (specialty occupation), L-1 (intracompany transfer), E-2 (treaty investor), O-1 (extraordinary ability), and TN (NAFTA professional) .

Fannie Mae requires that non-permanent resident aliens have a valid SSN and that the lender obtain a copy of the visa, Employment Authorization Document (EAD), or other evidence of lawful residency with work authorization. The borrower must also have a U.S. credit history sufficient for the automated underwriting system to evaluate, or the lender must use alternative credit documentation if the borrower has a thin credit file .

ITIN Borrowers

An Individual Taxpayer Identification Number (ITIN) is issued by the IRS to individuals who are required to file taxes but are not eligible for a Social Security Number. ITIN borrowers generally do not qualify for agency loan programs (Fannie Mae, Freddie Mac, FHA, VA) because these programs require a valid SSN. However, some portfolio lenders and CDFI (Community Development Financial Institution) lenders offer ITIN mortgage programs with modified terms .

ITIN loans typically require larger down payments (15-25%), carry higher interest rates, and may have lower maximum loan amounts. The borrower must demonstrate U.S. tax filing history using the ITIN and provide alternative credit documentation since traditional credit bureaus may not have a file under an ITIN.

Foreign National Programs

Foreign nationals who do not reside in the U.S. and have no U.S. immigration status can still purchase property through specialized foreign national mortgage programs offered by portfolio lenders. These programs are designed for investment or vacation property purchases and typically require down payments of 25-40%, interest rates 2-4% above conventional rates, and may require the borrower to maintain a U.S. bank account with a specified minimum balance .

Income verification for foreign nationals may accept foreign income documentation including employment letters, bank statements from foreign institutions, and tax returns from the borrower’s country of residence. Some lenders require translation and certification of foreign documents.

Related topics include self-employed borrower challenges and solutions, recent job change, relocation, and employment gaps, non-occupant co-borrower rules and guidelines, and special borrower situations: a decision guide.

Key Factors

Factors relevant to Foreign National and Non-Permanent Resident Mortgage Options
Factor Description Typical Range
Immigration Status
U.S. Credit History
Down Payment Requirements
Visa Expiration and Renewal

Examples

Scenario: H-1B visa holder purchasing a primary residence with conventional financing
Outcome: The borrower qualifies for a conventional loan at 5% down ($20,000). The lender documents the H-1B visa, SSN, employment verification, and pending renewal petition. Standard income documentation (pay stubs, W-2s) is used since the borrower is employed by a U.S. company. The rate and terms are identical to a U.S. citizen with the same credit profile.

Scenario: ITIN borrower purchasing a home through a CDFI lender
Outcome: A CDFI lender offers an ITIN mortgage at 20% down ($50,000) with a rate of 7.5%. Income is documented through ITIN tax returns and employer verification letter. The non-traditional credit references substitute for a credit score. The loan is held in portfolio and not sold to the secondary market.

Scenario: Foreign national purchasing a vacation condo in Florida
Outcome: A portfolio lender offers a foreign national mortgage at 50% down ($300,000) with a rate of 8.0%. The borrower must open a U.S. bank account and maintain a minimum balance of $25,000. Income is verified through Canadian tax returns and employment letter, translated if necessary. The loan has a 30-year term but is a 5/1 ARM.

Common Mistakes to Avoid

  • Assuming that having a U.S. job automatically qualifies a non-citizen for any mortgage program
  • Not building U.S. credit history before applying for a mortgage
  • Letting a visa expire or lapse during the mortgage process
  • Failing to plan for FIRPTA withholding on a future sale
  • Applying to lenders who do not offer foreign national or ITIN programs

Documents You May Need

  • Copy of green card (Form I-551, front and back) for permanent residents
  • Copy of valid work visa (H-1B, L-1, E-2, O-1, TN, or other) for non-permanent residents
  • Employment Authorization Document (EAD) if applicable
  • Valid Social Security Number documentation or ITIN documentation
  • Valid passport (all non-U.S. citizens)
  • Non-traditional credit references (12 months of rent, utility, insurance payments) if credit history is thin
  • Foreign income documentation (employment letter, bank statements, tax returns from country of residence) for foreign nationals
  • Evidence of U.S. bank account for foreign national programs
  • Visa renewal or extension documentation if visa expires within one year

Frequently Asked Questions

Can I get a mortgage in the U.S. if I am not a U.S. citizen?
Yes. Permanent residents qualify for all standard programs. Non-permanent residents with valid work visas and SSNs can access most conventional and FHA programs. ITIN holders and foreign nationals have access to specialized portfolio lending programs with modified terms.
Do I need a Social Security Number to get a mortgage?
For agency loan programs (conventional through Fannie Mae/Freddie Mac, FHA, VA), yes, a valid SSN is typically required. ITIN holders may qualify for portfolio or CDFI lending programs that do not require an SSN.
What visa types qualify for conventional mortgages?
Common qualifying visa types include H-1B, L-1, E-2, O-1, and TN visas. The key requirement is valid work authorization and a reasonable expectation that the authorization will continue. Each lender may have specific visa policies.
How much do I need for a down payment as a foreign national?
Foreign national mortgage programs typically require 25-40% down payment, depending on the property type and lender. Investment properties and higher-value properties generally require the higher end of this range.
Can I use income from my home country to qualify?
For foreign national programs, yes. Lenders will accept employment letters, bank statements, and tax returns from your country of residence. Documents may need to be translated into English and in some cases certified or notarized.
What is an ITIN loan?
An ITIN loan is a mortgage product offered by portfolio lenders or CDFIs that allows borrowers with an Individual Taxpayer Identification Number (instead of an SSN) to qualify for financing. These loans typically require 15-25% down, carry higher interest rates, and use ITIN tax returns and non-traditional credit for qualification.
Will my interest rate be higher because I am not a citizen?
For permanent residents and non-permanent residents who qualify for agency programs, rates are the same as for U.S. citizens. For ITIN borrowers and foreign nationals using portfolio products, rates are typically 1-4% higher than standard conventional rates due to the increased risk and non-agency nature of the loan.
What is FIRPTA and how does it affect me?
FIRPTA (Foreign Investment in Real Property Tax Act) requires buyers of U.S. property from foreign sellers to withhold 15% of the gross sales price for IRS remittance. This affects foreign national property owners when they sell. An IRS withholding certificate can reduce or eliminate the withholding if the expected tax is less than 15%.
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