Can you get a mortgage on H1B? Yes — here's how lenders evaluate you
Most conventional mortgage lenders (Fannie Mae, Freddie Mac backed loans) have guidelines that allow non-permanent residents to qualify. The key requirements: valid employment authorization, at least 2 years of US employment history (or strong foreign history), US credit score (FICO 620+ for conventional, 580+ for FHA), and a US bank account with sufficient funds for down payment and reserves.
Lenders look at remaining visa validity when approving mortgages. If your H1B expires in 14 months and you don't have an extension filed, some lenders will hesitate. Having an I-140 approval on file (showing you're in the green card process) significantly strengthens your application — lenders see it as evidence of long-term US work authorization.
Down payment requirements and programs for H1B buyers
For conventional loans: 5% down payment is typical for owner-occupied homes. Some lenders require 10% for non-permanent residents, though this is not universal.
FHA loans: available to non-permanent residents with as little as 3.5% down. FHA is insured by the federal government and has more flexible credit requirements. The tradeoff: you pay mortgage insurance for the life of the loan unless you refinance.
Gifted down payment: parents or relatives sending money from India, Pakistan, or elsewhere as a down payment gift is allowed, but must be documented. You'll need a gift letter signed by the donor and evidence the funds transferred from their account to yours. The lender may require additional documentation for large foreign transfers.
What to know about buying a home when you have Indian financial accounts
If you have money in Indian bank accounts (NRE/NRO) that you plan to use for a down payment, you can wire those funds to the US. The lender will need to see 2-3 months of bank statements from all accounts used for down payment.
For large transfers ($50,000+), consult a US-India tax CPA before the transfer. Depending on the source of funds (earnings, inheritance, property sale), there may be gift tax implications or FEMA (Foreign Exchange Management Act) considerations on the Indian side.
If you own property in India and plan to sell it to fund a US purchase, the capital gains in India need proper tax treatment on both sides. Do not assume your US CPA handles Indian tax — you may need both a US CPA and an Indian CA.
Cities with the most South Asian homebuyers on work visas
The Bay Area, Dallas, New Jersey, Seattle, Chicago, and Houston have the largest concentrations of H1B homebuyers. Local real estate agents in these markets understand visa buyers and can connect you with lenders who routinely handle non-resident mortgages.
One tactical tip: use an Indian or South Asian real estate agent in these markets. Not because they give better deals, but because they understand the specific questions visa buyers have (H1B renewal timing, using NRE account funds, gift from parents abroad) and can connect you with lenders who are comfortable with these situations.