First-Time Homebuyer Programs Immigrants Qualify For

If you’re a work-visa holder, first-time homebuyer assistance may be available, but eligibility depends on the program and lender. Conventional products, some local assistance programs, and federally insured loans each use different residency rules. In particular, FHA no longer allows non-permanent resident borrowers under HUD’s policy effective May 25, 2025. Here’s what to check before you count on a program.

What “first-time homebuyer” actually means

HUD’s standard definition boils down to this: you haven’t owned a US principal residence in the past 3 years. If you owned property in India, or anywhere outside the US, before moving here, that generally doesn’t disqualify you — you can still qualify as a first-time buyer for US programs. A lot of people assume “first-time” is some kind of lifetime designation, and it isn’t.

The programs, and what each actually asks of a visa holder

FHA loans (3.5% down). FHA-insured mortgages are no longer available to non-permanent resident borrowers under HUD Mortgagee Letter 2025-09, effective May 25, 2025. U.S. citizens and lawful permanent residents may still qualify subject to FHA underwriting. For eligible borrowers, FHA is more forgiving on credit score than many conventional loans, but mortgage insurance costs and cancellation rules depend on the loan’s terms and down payment. Work-visa holders should compare conventional options and verify current program rules with a lender.

Conventional 97 (3% down, Fannie Mae/Freddie Mac). Eligibility depends on the product, agency guide, and lender overlays. Fannie Mae’s Selling Guide allows eligible lawful non-permanent residents under the same terms as U.S. citizens; lenders must document lawful presence and may apply additional requirements. Credit and mortgage-insurance terms differ from FHA; review the applicable PMI cancellation rules and your loan estimate.

Freddie Mac Home Possible (low-to-moderate income, 3% down). Similar SSN and work-authorization requirements to Conventional 97, with income limits tied to the area median income of wherever the property sits — worth checking specifically, since it varies by county rather than following one flat national number.

State and local down payment assistance (DPA) programs. These vary the most of anything on this list, since each state or municipal housing authority sets its own eligibility rules. Some restrict to citizens and permanent residents, plenty don’t — genuinely worth checking your specific state’s housing finance agency rather than assuming either way. These typically stack with FHA or Conventional 97, which can turn a 3-3.5% down payment requirement into a much smaller out-of-pocket number.

USDA loans (0% down, income and location limits). The narrowest fit here for most visa holders. USDA generally requires US citizenship, a qualified non-citizen national, or a “qualified alien” status under specific federal definitions that exclude most work-visa categories. Worth checking directly against USDA’s eligibility criteria if you’re eyeing a rural or USDA-eligible suburban property, rather than assuming it’s off the table or on it.

CRA-driven bank grants. Community Reinvestment Act obligations push a lot of large banks to run their own down-payment or closing-cost grant programs, often with looser eligibility than government programs since the bank writes its own criteria. Worth asking any lender you’re already talking to whether one exists — these aren’t always advertised prominently.

What documentation actually gets checked

For a conventional loan or assistance program that accepts non-permanent residents, underwriting may focus on items such as:

1. Valid Social Security number — this is where ITIN-only borrowers need ITIN-specific loan products instead, since most first-time homebuyer programs above require an SSN.
2. Documented, verifiable income — typically 2 years of tax returns and pay stubs.
3. Reasonable likelihood of continued work authorization — for H1B specifically, lenders generally want to see visa history and a renewal pattern (initial approval plus at least one renewal is a common ask), not a guarantee of permanent status.

Run the numbers on your down payment options

FHA and Conventional 97 land at meaningfully different monthly payments once mortgage insurance is factored in, so it’s worth running both through the calculator below with your actual purchase price.

If your down payment is going to be tight either way, renting vs. buying on a visa is worth reading before you commit — visa timeline uncertainty changes this math more than most other factors.