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Key Takeaways:
1. HUD’s 2025 update (Mortgagee Letter 2025-09) bars H1B visa holders from FHA loans, limiting eligibility to US citizens and permanent residents.
2. However, H1B visa holders have another option - DSCR loans. This foreign national mortgage option qualifies you based on the property's rental income and not your personal income.
3. HomeAbroad is a one-stop shop that makes the entire process simple for international real estate investors, helping you find properties using our AI-driven investment property platform, get mortgages, set up a US-based LLC, open a local bank account, and handle paperwork required for closing.
4. With HomeAbroad, you can finance investment properties with a 25% down payment, loan amounts from $75K to $10M, and approvals in under 30 days.
As of May 25, 2025, H-1B visa holders are no longer eligible for FHA loans, following HUD’s Mortgagee Letter 2025-09. This decision closed the door on one of the most accessible mortgage programs for foreign professionals working in the U.S.
But while FHA loans are no longer available, alternatives exist. Conventional mortgages and HomeAbroad’s US Newcomer Mortgage provide viable paths to homeownership, and for investors, DSCR loans remain a strong option.
This article will give you a complete overview of what has changed, what financing options remain, and which programs are most practical for H-1B professionals who want to buy or invest in U.S. real estate.
Table of Contents
Why FHA Loans Are No Longer Available to H-1B Visa Holders
For years, FHA loans were considered one of the most accessible mortgage products for H-1B visa holders:
- Low down payments (as little as 3.5%)
- More flexible credit requirements
- Government-backed assurance for lenders
However, in May 2025, HUD announced a policy change that excluded all non-permanent residents from FHA eligibility. This includes H-1B, L-1, F-1, and other work- or study-based visas.
According to the official HUD release:
- Only U.S. citizens, green card holders, and certain immigrants with permanent residency status remain eligible.
- Temporary visa holders are no longer allowed to access FHA-insured mortgages.
(Source: HUD Mortgagee Letter 2025-09, U.S. Department of Housing and Urban Development)
This change has left many highly skilled foreign professionals searching for alternative mortgage solutions.
What Mortgage Options Do H-1B Visa Holders Have Now?
Despite the FHA exclusion, H-1B professionals are not shut out of the U.S. housing market. Here are the primary mortgage alternatives:
1. Conventional Mortgages
Conventional loans are the most common alternative to FHA loans. However, they are often less accessible for newcomers.
Requirements typically include:
- Credit Score: Minimum of 620+ FICO score
- U.S. Credit History: At least 2 – 3 years of credit activity preferred
- Down Payment: 5 – 20% depending on profile
- Income Verification: Documented U.S. income and employment history
- Visa Validity: Proof that your H-1B status is valid for the duration of the loan
Who It Works For:
- H-1B holders who have been in the U.S. for several years
- Those who have built strong U.S. credit profiles
Limitations:
- May require larger upfront cash commitments
- Not beginner-friendly for new arrivals
2. HomeAbroad’s US Newcomer Mortgage (The Best Fit for H-1B Professionals)
For newcomers without a U.S. credit history, HomeAbroad’s US Newcomer Mortgage is often the most practical option.
Why It’s Better Suited for H-1B Holders:
- No U.S. Credit History Required: H1B visa holders do not need US credit history.
- Competitive Loan Terms: Interest rates and terms aligned with market standards
- Streamlined Approval Process: Simplifies documentation for foreign professionals
- Expert Guidance: Assistance from HomeAbroad’s mortgage officers experienced with international clients
Who It Works For:
- New H-1B professionals just starting their U.S. journey
- Professionals with limited or no U.S. credit history
- Borrowers who want a program designed to accommodate international situations
This program was created to fill the exact gap left by FHA’s withdrawal and is now the leading solution for foreign nationals working in the U.S.
DSCR Loan for International Real Estate Investors
For H-1B visa holders who want to invest in real estate rather than buy a primary home, HomeAbroad's Debt Service Coverage Ratio (DSCR) loan is highly effective.
Key Highlights of DSCR Loans:
1. Approval is based on property's rental income, not borrower's income
2. No U.S. credit history required
3. Flexible for both U.S. residents and non-residents
4. Ideal for building a rental portfolio
Important Note: DSCR loans are not for primary residences. They are specifically for investment purchases. You can get more information on HomeAbroad's DSCR Loan here.
How to Choose the Right Mortgage Option
- If you’re new to the U.S. with no credit history: The US Newcomer Mortgage is designed for your situation.
- If you’ve been in the U.S. for years and built strong credit: A conventional mortgage may be possible.
Requirements for HomeAbroad’s US Newcomer Mortgage
To qualify for HomeAbroad’s US Newcomer Mortgage, H-1B visa holders must meet the following requirements:
- Down Payment: 20%
- Credit Score: No U.S. credit history needed
- Debt-to-Income (DTI) Ratio: Maximum 43%
- Income Documents: Pay stubs and employment verification
- Loan Tenure: Up to 30 years
- Loan Amount: Up to $3 million
- Cash Reserves: At least 6 months required
- Foreign Assets: Accepted for down payment, closing costs, and reserves
- Prepayment: No prepayment penalty
- Other Documents: International credit report or alternative proof of creditworthiness from the home country
These requirements make the program more flexible than conventional mortgages, while still ensuring responsible lending standards.
Steps to Apply for HomeAbroad’s US Newcomer Mortgage
Applying for HomeAbroad’s US Newcomer Mortgage is straightforward with expert guidance. Here’s a quick process:
1. Contact Our Loan Officers
Work with a HomeAbroad loan officer to get the mortgage program tailored to your needs.
2. Pre-Approval
Submit your income and fund details to determine eligibility and receive pre-approval.
3. Submit Application
With assistance from your loan officer, prepare the required documents and complete your application.
4. Loan Approval
Receive approval after underwriting and finalize your loan details.
5. Closing
Sign the closing documents and secure your new home.
Conclusion
While FHA loans are no longer available to H-1B visa holders, homeownership remains within reach. Conventional mortgages are an option for those with established credit, but for most newcomers, HomeAbroad’s US Newcomer Mortgage is the most accessible and effective solution.
For H-1B professionals interested in investment opportunities, DSCR loans provide another route.
The future of homeownership for H-1B holders lies not in outdated programs, but in solutions built specifically for their needs, and HomeAbroad is leading that change with our personalized mortgage options.
FAQs
Can H-1B visa holders still qualify for FHA loans?
No. As of May 25, 2025, FHA loans are no longer available to non-permanent residents, including H-1B holders.
What is the best mortgage option for newcomers without U.S. credit history?
The US Newcomer Mortgage is the most practical solution, designed for international professionals without U.S. credit.
Do H-1B holders qualify for conventional mortgages?
Yes, but they must meet stricter requirements, including a 620+ credit score, U.S. credit history, and stable employment.
Can H-1B visa holders invest in U.S. real estate?
Yes. A DSCR loan allows H-1B visa holders to purchase rental properties based on property cash flow instead of personal income.
![H1B Visa Mortgages: How to Qualify with No US Credit? [2025]](https://homeabroadinc.com/wp-content/uploads/2024/09/H1B-visa-mortgage-guide-scaled.jpg)
![How to Buy a House on an H1B Visa [2025]](https://homeabroadinc.com/wp-content/uploads/2021/08/BuyingonH1BVisa-scaled.jpg)
