Embarking on the journey to buy a home in the United States is a monumental milestone, especially for immigrants who envision establishing roots in a new country. The path to homeownership may appear intricate, but with the right guidance, it’s entirely within your reach.

    At JVM Lending, we are dedicated to shedding light on the mortgage application process to help you transition from homebuyer to homeowner seamlessly. Ready to explore how you can qualify for a mortgage and make your American dream home a reality?

    Understanding Your Mortgage Eligibility

    Comprehending the eligibility criteria is your first stride toward applying for a mortgage. Here’s a snapshot of the key factors that will influence your mortgage approval:

    Immigration Status

    • Lawful Permanent Residents (LPRs): If you are an LPR, you have the right to live and work in the U.S. indefinitely, which significantly eases the mortgage acquisition process. LPRs are treated similarly to U.S. citizens by mortgage lenders, making conventional loan options readily accessible.
    • Non-Permanent Residents: As a non-permanent resident, your eligibility for a mortgage hinges on your visa status. Common visas like H-1B, L-1, or E-1/E-2 are usually acceptable to lenders. Your visa needs to have a reasonable amount of time remaining; a general guideline is at least one year left on your visa. Some loan programs might also require a history of visa renewals to show stability.
    • Additional Documentation: Lenders may require additional documentation such as your Employment Authorization Document (EAD), or evidence of a strong likelihood of visa renewal based on your profession and employer.

    Credit History

    • Establishing Credit: A robust credit history is crucial in the U.S. mortgage landscape. If you are new to the country, start by obtaining a secured credit card, becoming an authorized user on a credit account, or getting a small installment loan to build credit. You may also request that your landlord and utilities providers (electricity, gas, water, phone and internet, etc). report payments to the credit bureaus, as these can count as “tradelines” from which the credit bureaus calculate your score. Rent and utilities payments are not reported by default, so you must specifically opt in.
    • Credit Score: Your credit score, a three-digit number derived from your credit history, is a significant factor in determining your mortgage eligibility. A higher score could unlock better loan terms and interest rates. Aim for a score above 680 for the best options, although some loan programs cater to scores as low as 580. There are also no credit score options, which analyze “non-traditional” credit payment history from utilities providers and landlords. These options are less advantageous, however, as they have added approval restrictions such as lower debt ratios and mortgage insurance. Because of this, we recommend establishing a credit score to access the best mortgage options.
    • Credit Report Review: Obtain free credit reports from the major credit bureaus, review them for inaccuracies, and dispute any errors. Maintaining a clean credit report is vital for mortgage approval. The credit bureaus will provide you with a free copy of your credit report every year; to obtain your copy, follow the instructions on the Consumer Finance Protection Bureau’s (CFPB) website here.


    • Stable Employment: Lenders prefer borrowers with a stable employment history. Ideally, you should have at least two years of continuous employment, which showcases your reliable income stream. This 2-year employment time frame can cover the time you have worked in other countries as long as we can adequately document the employment with documentation that has been translated into English. The 2 years can also include time spent in school.
    • Income Verification: Your income significantly influences the loan amount you qualify for. Lenders will request recent pay stubs, tax returns, W-2 or 1099 forms, and may also contact your employer for verification. Please note that we will need the equivalent forms of these documents from other countries if we are planning to use work history from outside of the US.
    • Self-Employed Borrowers: If you are self-employed, the documentation required to prove your income is more extensive. You may need to provide business tax returns, profit-and-loss statements, and additional proof of ongoing business activity.
    • Additional Income: If you have additional sources of income, such as social security, alimony, or rental income, these can also be factored into your mortgage eligibility. Ensure you have documentation to substantiate these income streams.

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    Steps to Getting a U.S. Mortgage as an Immigrant

    1 – Gather Necessary Documentation

    Begin by assembling all crucial documents that reflect your financial stability and eligibility. This includes:

    • Immigration documents: Visa, Green Card, or other relevant immigration paperwork that validates your residency status.
    • Employment verification: Recent pay stubs, W-2 or 1099 forms, and proof of additional income like retirement or alimony.
    • Credit reports: Make sure you are ready for our team to pull your credit report. Have accounts established and in good standing and pay off or pay down your credit cards.
    • Tax returns: Usually, the last two years of tax returns are required.

    2 – Consult with a Mortgage Expert

    Schedule a consultation with the mortgage experts at JVM Lending to explore your loan options. They can provide insights into different types of mortgages, such as conventional or FHA loans, and advise which might be suitable given your financial situation. Their guidance can also help you understand how much you can afford and what to expect in the mortgage process.

    3 – Get Written Loan Offers

    Request written quotes that provide a detailed breakdown of the loan terms, estimated interest rates, and projected monthly mortgage payments. A written quote will give you a clear picture of the cost involved and help you compare loan offers from different lenders. It will also ensure transparency with a lender’s costs and fees.

    JVM Lending can help you compare quotes from other lenders to ensure you are getting the best possible rate and loan terms for your home purchase.

    4 – Get Pre-Approved

    Getting a mortgage loan pre-approval is a significant step that gives you a clear understanding of the loan amount you qualify for, based on your financial profile. It demonstrates to sellers that you are a serious buyer, which can be a strong advantage, and sometimes a firm requirement, in a competitive housing market.

    5 – Connect with a Real Estate Agent

    Partner with a seasoned real estate agent who has a solid understanding of the local market. They can guide you to homes that meet your criteria, and assist in negotiating the purchase price, making the homebuying process smoother. If you need a recommendation to an agent, please let us know. JVM works with extremely talented and knowledgeable agent partners who would be eager to assist you.

    6 – Shop for Your Home

    With a pre-approval letter and a trusted real estate agent by your side, start exploring homes within your budget. Take your time to find a home that meets your needs and falls within the amount you are pre-approved for.

    7 – Finalize Your Mortgage

    Once you have found your dream home, work with your lender to finalize your mortgage application. Carefully review the loan terms, interest rates, and monthly mortgage payments. Ensure you are comfortable with the terms before proceeding.

    Frequently Asked Questions

    Can I apply for a mortgage with a visa?

    Absolutely! Fannie Mae, a leading source of mortgage financing in the U.S., accommodates 57 different types of visa holders for mortgage financing, allowing for as little as a 3% down payment. Here are some of the visa types that Fannie Mae accepts:

    • A-1, A-2, A-3, E-1, E-1S, E-2, E-2S, E-3, E-3S (spouse), E-3D (spouse), E-3R (returning), G-1, G-2, G-3, G-4, G-5, H-1B, H-1B1, H-1B2, H-1B3, H1-C, H-4(spouse), I, IR1, CR1, CR6, J-1, J-2, K-3, K-4, L1-A, L1-B, L-2, L-2S, NATO-1, NATO-2, NATO-3, NATO-4, NATO-5, NATO-6, NATO-7, O-1A and O1B, O2, P-1A, P-1B, P-2, P-3, R1, S-1/S-2 (also coded as S-5 and S-6), S-7, T-1, T-2, T-3, T-4, TN, U-1, U-2, U-3, U-4.

    Among these visa types, some require diplomatic immunity and others have specific program requirements. However, the majority of these visas grant eligibility to finance homes with highly competitive Fannie Mae-backed mortgage financing options. This broad acceptance of various visa types further simplifies the path to securing a mortgage, making homeownership in the U.S. a viable goal for a wide array of immigrants.

    What are the common types of mortgages available for immigrants and visa holders?

    Navigating through the U.S. mortgage landscape may seem complex, especially for immigrants and visa holders. However, numerous loan programs cater to the diverse needs of prospective homebuyers. Here’s a detailed look at some of the common mortgage options:

    • Fannie Mae HomeReady Mortgage: Fannie Mae’s HomeReady mortgage is designed to assist low-to-moderate income homebuyers, including immigrants with valid visa statuses. With a down payment requirement as low as 3%, this program can be a viable option for many visa holders.
    • FHA Loans (Federal Housing Administration Loans): FHA loans offer a lower barrier to entry with minimal down payment requirements and more lenient credit score criteria. They are government-insured, providing a level of assurance to lenders, and can be a solid choice for first-time homebuyers or those with less-than-perfect credit. They will also allow for people with no credit score to qualify for mortgage financing.
    • Conventional Loans: Conventional loans are offered by private lenders without government backing. They often require a higher credit score and a lower debt-to-income ratio. While they may have stricter eligibility criteria, they offer a variety of loan terms and interest rate options.
    • Foreign National Loan Program: Foreign National Loan programs are tailored for non-resident aliens seeking to buy a home in the U.S. They often require a significant down payment but offer a pathway to homeownership for individuals with a valid visa and foreign income.
    • Non-Qualified Mortgage (Non-QM) Loans: Non-QM loans are an option for those who may not meet the traditional lending standards. They provide flexibility in documentation and qualification criteria, catering to self-employed individuals, and those with unconventional income sources.
    • ITIN Mortgage Loans: Individual Tax Identification Number (ITIN) mortgage loans are designed for immigrants who may not have a Social Security number but possess an ITIN. These loans provide a platform for undocumented immigrants to take a step toward homeownership.

    By understanding the various mortgage programs available, immigrants and visa holders can better assess their options and choose a mortgage that aligns with their financial and residency situation.

    Your Next Steps

    The journey to homeownership as an immigrant entails navigating through loan programs, understanding the types of mortgages, and aligning with experts like JVM Lending to streamline the process. The bottom line is, with the right guidance and preparation, purchasing a home in the U.S. is an attainable goal. At JVM Lending, we are devoted to assisting you every step of the way, making the mortgage application process less daunting and more rewarding.

    Ready to take the plunge and secure your dream home? Discover how JVM Lending can make your homebuying journey smooth and successful. Contact a mortgage expert at JVM Lending to get started.

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    Please Note: The information contained in this blog post is meant for informational and educational objectives only. JVM Lending is neither an immigration attorney nor a legal advisor. Immigration laws and mortgage regulations can be intricate and may differ based on location and personal circumstances. We highly advise engaging with a certified immigration attorney to receive personalized advice and additional guidance on mortgage matters pertaining to visa holders. If you require a referral to a reputable immigration attorney or financial advisor, feel free to reach out to us, and we will gladly connect you with a trusted professional within our network.

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