In my experience, the journey to buy a home in the United States as a non-citizen often looks intimidating at first. However, once you learn the steps and know your options, the path becomes much clearer. Today, I will explain the main options and requirements, offer practical tips, and break down what you can expect during the process. Whether you are a new immigrant, a foreign investor, or a non-resident dreaming about your American property, this guide is for you.
Understanding mortgage basics for foreigners
Before I talk about the specific loan types or requirements, let me clarify the basic idea. A mortgage (home loan) is a long-term loan you use to purchase property, which uses the home itself as collateral until the loan is paid off. If you are a foreigner, you can often still qualify for a mortgage, although the process and types of loans will sometimes be different from what US citizens or permanent residents experience.
Status matters: Who is considered a foreigner?
In most US lending, “foreigners” fall under several categories:
- Permanent residents (Green Card holders)
- Non-permanent residents (visa holders like E-2, H-1B, L-1, etc.)
- Non-resident aliens (living abroad, no US residency or work visa)
- Foreign nationals or international buyers (with little or no US presence)
Your residency status shapes your eligibility, the amount of documentation required, and what loan programs are available to you.
The main types of home loans available
If you want a home loan for foreigners in the USA, it is very helpful to understand the most common mortgage types. Below, I have grouped the most relevant ones for non-US citizens and immigrants.
Conventional loans
These are backed by private lenders and typically sold to agencies like Fannie Mae and Freddie Mac. Conventional loans usually require:
- Higher credit scores (often 620+)
- Larger down payments (usually at least 5% to 20%)
- Proof of stable income (often from US sources)
For permanent residents and some visa holders with strong US credit profiles, this is often the first option. However, non-residents or those with limited US credit history may find it harder to qualify.
FHA loans
Federal Housing Administration (FHA) loans are government-backed and only available to borrowers who plan to live in the home as their primary residence. They are known for:
- Lower minimum credit score requirements (as low as 580)
- Low down payment options (starting at 3.5%)
- More flexible approval for those with limited US credit
However, you generally need a valid Social Security Number (SSN) or ITIN (Individual Taxpayer Identification Number), along with lawful residency or certain eligible visas. According to a Federal Reserve Bank of New York analysis, FHA loans account for around 11% of mortgage balances nationally, but this rate is as high as 20% in some regions. These loans can sometimes carry higher default rates.
USDA loans
The US Department of Agriculture (USDA) offers special programs for rural and suburban homebuyers with low-to-moderate income. These require:
- The property to be in an eligible rural zone
- The buyer to meet income and residency requirements
USDA loans are limited to primary residences, so they work only for certain immigration types with proof of legal residency.
VA loans
Department of Veterans Affairs (VA) loans assist military personnel, veterans, and eligible spouses. These require specific service qualifications, and most foreigners will not qualify unless they have served in the US military.
Foreign national loans
There are also loan products meant specifically for foreign nationals who live abroad or in the US temporarily, and who cannot provide traditional US credit or income documentation. In my research and through client cases, these loans often come with:
- Higher down payments (commonly 25%-30% or more)
- Alternate credit history from foreign countries
- Flexible documentation for foreign income
- Higher interest rates and specific restrictions
If you want to understand these in detail, this in-depth guide to foreign national mortgages from Heart Mortgage’s blog is a solid starting point.
Eligibility rules for immigrants and non-citizens
I want to highlight a key point: most major home loan programs in the United States are open to non-citizens—if you can prove lawful residency, financial stability, and the ability to repay. Each program asks for slightly different evidence.
Residency and visa status
This is usually the first point lenders look at:
- Permanent residents (green card): Treated almost like US citizens, often eligible for any standard loan product.
- Non-permanent residents (valid visa): Usually accepted if you present a valid work visa (E-2, H1B, L-1, etc.). The lender will want to see your visa documents and often check how long you are legally allowed to stay.
- Non-residents / Foreign nationals: Special programs apply. These may be stricter and require larger down payments.
Credit history: US and foreign credit
If you are new to the US or have limited US credit, lenders may request foreign credit reports or alternate credit proofs (like international bank statements, letters from utility providers, etc.). A strong, stable international banking background can sometimes balance out a thin US credit profile.
To learn more about how ITIN programs help establish credit and give access to mortgage products, see Heart Mortgage’s resource on how ITIN mortgage loans work.
Proof of income
Most lenders will ask for two years of steady income, proven with documents. If your main source is outside the US, you’ll need:
- Official translations of foreign pay stubs or tax returns
- Bank statements or proof of deposits
- Employer letters or contracts, sometimes notarized
Documents required for a home loan application
Based on my experience helping foreign clients, here are the documents that are almost always required:
- Proof of identity (passport, visa, green card, etc.)
- Proof of legal eligibility to reside or work in the US (visa papers, I-797, etc.)
- Proof of Social Security Number or ITIN
- Proof of income (recent pay stubs, offer letter, tax returns—foreign or US)
- Bank statements showing available funds (US or foreign banks, translated as needed)
- Credit report (both US report, and possibly foreign credit documentation)
- Proof of current address (lease, utility bill, etc.)
- Down payment documentation (evidence money was not borrowed for this)
If your main income is abroad
I have seen several banks ask for both English translations and currency conversion records. Everything must be documented, with clear sources, to satisfy anti-money laundering and regulatory checks.
Special rules and costs for non-residents
If you are a non-resident or do not have a US-based source of income, you will often face some unique challenges. Here are a few of the most common, based on what I have observed in the market:
- Bigger down payments: Non-resident programs may expect 25–30% down or more.
- Higher interest rates: Without steady US credit, rates can be higher by 0.5–2% compared to resident borrowers.
- Extra documentation: Lenders will want to track your source of funds and verify income with extra care. Official translations and notarizations are often needed.
- Limited property types: Some loans are only for primary residences, not investments or vacation homes (especially relevant for programs like FHA or USDA).
- Costs and taxes: Some states have extra taxes or reporting requirements for foreign buyers.
Many of my clients find that working with mortgage experts that know international and non-resident deals—like those at Heart Mortgage—saves time and prevents unnecessary stress in these situations.
Step-by-step: The mortgage application process
The process for foreigners is similar to US buyers in the basic steps, but practical differences do appear along the way. I recommend reading the detailed post about steps to apply for a mortgage in the US to anticipate each stage, but I will summarize the main stages below from what I see most often:
- Financial review: Assess your net worth, set aside down payment and planning funds.
- Loan pre-approval: Present documentation for identity, address, legal status, and income. The lender may run a credit check or review foreign financial records.
- Property search and offer: Find the home, place an offer, and sign a contract (with any needed contingencies).
- Formal application: Submit all supporting paperwork (translation as needed).
- Appraisal and underwriting: The lender checks that the house value matches the price, reviews all risk, and confirms you meet all eligibility.
- Approval and closing: You receive the final approval. You will need to pay for closing costs, sign the mortgage documents, and officially become the homeowner.
At each stage, expect extra questions if your documents are foreign or require validation. The more organized and proactive you are, the smoother this will go.
How long does it take?
I often tell clients to plan for 45–60 days from initial application to closing, especially when documents need translation or bank wires must be verified from abroad.
Key costs: Down payment, interest, and closing
Let me break down the real costs you’ll see as a foreign or immigrant homebuyer. Your down payment, interest rate, and closing costs can be higher or more complex than for US citizens, but with planning, these surprises can be minimized.
- Down payment: As explained above, non-permanent residents and foreign nationals are often required to put 20–30% down, while citizens and green card holders can sometimes do as little as 3% through FHA or other programs.
- Interest rates: Non-resident programs regularly charge higher interest. I see rates anywhere from 0.5%–2% higher than for domestic buyers, based on risk and credit profile.
- Closing costs: Expect 2–5% of the home price in total fees, including title, escrow, taxes, and legal work. Some lenders also charge an “origination fee” that may be bigger for foreigners.
- Foreign transaction fees: Transferring funds from abroad can add extra banking fees or delays. Planning ahead—ideally several weeks before closing—is very wise.
Improving your approval odds: Practical strategies
Securing a mortgage as a non-citizen sometimes requires more effort, but it is far from impossible. In my view—and from stories clients have shared—these strategies offer the best results:
- Start building US credit as soon as you arrive: Even one or two credit cards, paid on time, makes a difference within six months to a year.
- Prepare detailed and translated financial records: Banks respect organization and transparency.
- Save a bigger down payment than you think you’ll need: More cash on hand gives lenders confidence.
- Open a US checking account and move funds ahead of time: This avoids payment delays or foreign transaction holdups near closing.
- Consult advisors that specialize in international buyers: Local experience matters, especially when international regulations and local customs mix.
- Choose the right loan program for your specific residency and financial profile. The Heart Mortgage site lists several options tailored to different foreign and immigrant situations.
Strong preparation leads to smooth approvals.
Building your banking relationship in the US
Creating a track record with US banks can make your mortgage journey much easier. In my experience, some lenders offer better rates or are more flexible if you have a checking or savings account with them, or if you establish direct deposit of your salary. Even routine banking activity helps build your credit score over time.
The Federal Housing Finance Agency’s fair-lending data shows how automated underwriting systems may be affected by both credit and banking history, so every step to strengthen your US presence counts.
How to choose the right lender and product
Choosing the right partner shapes not just your rate, but your entire experience. When you compare lenders and home loan products, weigh these factors:
- Residency requirements and eligibility: Does the bank accept your visa or non-resident status? Are they clear about what evidence is required?
- Experience with international buyers: What support do they offer for translations, foreign income, and cross-border fund transfers?
- Transparency about fees: Do they disclose all origination charges, interest rates, and closing costs upfront?
- Turnaround times: How quickly can they process applications with foreign paperwork?
- Mortgage program variety: Are they limited to one or two loan types, or do they give a range matched to non-citizen needs? You can find a breakdown of several key programs for non-citizens in this loan program guide from Heart Mortgage.
Asking these questions in your early discussions will reveal which providers really understand the unique needs of immigrant and foreign buyers.
Tips for a successful home purchase as a foreigner
Based on years of experience, these practical tips stand out for international and immigrant buyers:
- Work with real estate and mortgage professionals who have clear experience with foreign national deals—not just “general” agents.
- Get written pre-approval before house-hunting, so you know your budget and can move quickly if the right property appears.
- Plan for exchange rate changes and time money transfers to minimize costs associated with moving large sums to the US.
- Be prepared to provide additional documentation on the source of all funds (anti-money laundering is tightly enforced on international buyers).
- Set aside extra reserves for closing—non-citizen deals sometimes come with small, unexpected fees, like translation or apostille services.
- Don’t rush: take time to review your rights, obligations, and the fine print on any agreement before you sign.
What to expect at closing time
The closing is the last major hurdle in your home-buying timeline. This is where you sign final documents, transfer funds, and officially receive ownership of your property. If any funds are coming from abroad, coordinate wire transfers well in advance—and have backups for any required ID, since international documentation can sometimes be checked more than once.
Studies from the National Mortgage Database confirm that clear communication at this stage leads to higher satisfaction, especially for international buyers navigating both legal and language barriers.
Conclusion: Smart preparation makes it possible
In my view, getting a home loan as a foreigner or recent immigrant is entirely possible—sometimes even simpler than people expect if you arrive with the right documents, a realistic down payment, and partners who understand international buying. I’ve seen hundreds of buyers move from confusion to closing in a matter of months, as long as they have help from specialists like those at Heart Mortgage.
If you are ready for the next step, want more detailed advice, or are still unsure what path is right for your own status and background, connect with Heart Mortgage. The team is experienced in supporting international buyers, helping you overcome every step between a dream and the keys to your own American home.
Frequently asked questions about US home loans for foreigners
What is a home loan for foreigners?
A home loan for foreigners is a mortgage product designed for non-US citizens or non-residents who want to buy property in the United States. It usually comes with specific requirements and may need extra documentation, higher down payments, or special programs compared to loans for citizens.
How can foreigners qualify for a mortgage?
Foreigners can usually qualify by showing proof of legal residency or a valid visa, evidence of stable income (from US or foreign sources), credit history (US or international), and sufficient down payment. Some programs, such as FHA or ITIN mortgages, are open to certain visa holders and permanent residents, while foreign national loans are available for non-residents.
What documents do non-citizens need?
You will almost always need a valid passport and visa or green card, proof of legal residency or authorized status, ITIN or SSN, income documents (like pay stubs, tax returns, or employment letters), bank statements, and proof of address. Translations or certified copies may be required for foreign documents.
Is it hard for foreigners to get a loan?
It can be more challenging for foreigners due to higher documentation requirements, larger down payments, and sometimes stricter eligibility rules—but with organization and expert help, most non-citizens can qualify for a loan product that matches their status. The process gets easier with preparation and knowledgeable support.
Where can foreigners find good mortgage lenders?
Often the best results come from mortgage brokers and lenders with experience serving international and immigrant clients. Companies like Heart Mortgage offer tailored guidance for foreign buyers, with knowledge on a range of loan programs and the specific paperwork foreign buyers need. Checking reviews, referrals, and consulting with lenders who have proven experience with foreign national loans is always wise.
