What we verified in “Green card holders and mortgages: what lenders ask for”

Statements and where we checked them

The statements with rules, figures or dates, with the exact place in the source and the date we checked them.

1. According to HUD Mortgagee Letter 2025-09, which applies to case numbers assigned on or after May 25, 2025, a borrower with lawful permanent resident status may be eligible for an FHA loan if they meet the same requirements, terms and conditions as a citizen; the file must include evidence of permanent residence and the uniform application (URLA) must indicate that the borrower is a permanent resident; USCIS provides the evidence of that status; a Social Security card is not sufficient to prove immigration status; the URLA is Fannie Mae Form 1003 or Freddie Mac Form 65; and the letter also applies to HECM reverse mortgages.

   Sources 1 · Mortgagee Letter 2025-09 (March 26, 2025): 'must be implemented for FHA case numbers assigned on or after May 25, 2025'; 'A Borrower with lawful permanent resident status may be eligible for FHA-insured financing provided the Borrower satisfies the same requirements, terms, and conditions as those for U.S. citizens'; 'The mortgage file must include evidence of lawful permanent residence and indicate that the Borrower is a lawful permanent resident on the URLA'; 'provides evidence of lawful permanent resident status'; 'A Social Security card is not sufficient to prove immigration'; 'Home Equity Conversion Mortgage (HECM) programs'; 'Fannie Mae Form 1003/Freddie Mac Form 65, Uniform Residential Loan Application (URLA)' · Checked October 17, 2026

2. FHA Handbook 4000.1, in its version last revised August 12, 2026, includes permanent residence among the categories eligible for FHA loans, with the same documentation rule.

   Sources 2 · Handbook 4000.1 (Last Revised: 8/12/2026), II.A.1.b.ii(A)(9) Residency Requirements: 'The following categories of individuals are eligible for FHA-insured financing in accordance with the requirements set forth below'; 'The mortgage file must include evidence of lawful permanent residence and indicate that the Borrower is a lawful permanent resident on the URLA' · Checked October 17, 2026

3. According to HUD Handbook 4000.1, on an FHA loan the borrower must make a minimum required investment (the minimum down payment) of at least 3.5% of the adjusted value; with a credit score of 580 or more they can get maximum financing; with a score of 500 to 579 the loan is limited to 90% of the value; and below 500 they are not eligible.

   Sources 2 · Handbook 4000.1, II.A.2.a: 'must make a Minimum Required Investment (MRI) of at least 3.5 percent of the Adjusted Value'; II.A.1.b.ii: 'at or above 580 eligible for maximum financing'; 'between 500 and 579 limited to a maximum LTV of 90%'; 'The Borrower is not eligible for FHA-insured financing if the MDCS is less than 500' · Checked October 17, 2026

4. Fannie Mae buys mortgages made to non-U.S. citizens who are lawful permanent or non-permanent residents on the same terms available to citizens; it does not specify the exact documentation: the lender determines status based on the circumstances of each case, using documentation it deems appropriate, and warrants to Fannie Mae that the borrower is legally present in the country.

   Sources 3 · Selling Guide B2-2-02, Non-U.S. Citizen Borrower Eligibility Requirements: 'lawful permanent or non-permanent residents of the United States under the same terms that are available to U.S. citizens'; 'does not specify the precise documentation the lender must obtain'; 'based on the circumstances of the individual case, using documentation it deems appropriate'; 'the lender represents and warrants that the non-U.S. citizen borrower is legally present in this country' · Checked October 17, 2026

5. Fannie Mae's Selling Guide requires each borrower to have a valid Social Security number or ITIN, in addition to meeting legal residency and documentation requirements; and the lender must confirm each borrower's identity before extending credit.

   Sources 4 · Selling Guide B2-2-01, General Borrower Eligibility Requirements (09/03/2025): 'requires that each borrower have a valid Social Security number or Individual Taxpayer Identification Number (ITIN), in addition to meeting existing legal residency and documentation requirements'; 'Lenders must confirm each borrower's identity prior to the extension of credit' · Checked October 17, 2026

6. According to Fannie Mae, the lender must document that income is stable, has a documented history of receipt and is reasonably expected to continue; and borrowers who are not U.S. citizens must meet the same employment and income verification requirements as citizens, regardless of the type or source of income.

   Sources 5 · Selling Guide B3-3.1-01, General Income Information (10/07/2026): 'The lender must document income is stable, has a documented history of receipt, and is reasonably expected to continue'; 'Borrowers who are not U.S. citizens must meet the same employment and income verification requirements that are required for borrowers who are U.S. citizens, regardless of the type or source of income' · Checked October 17, 2026

7. According to Fannie Mae, HomeReady is a conventional mortgage for borrowers who meet certain income criteria: the loan can reach a loan-to-value ratio of 95.01% to 97% (a down payment from 3%) on purchases of a one-unit principal residence with a fixed rate of up to 30 years, and total annual qualifying income may not exceed 80% of the area median income.

   Sources 6 · Selling Guide B5-6-01, HomeReady Mortgage Loan and Borrower Eligibility: 'a conventional community lending mortgage that offers underwriting flexibilities to qualified borrowers who meet specific income criteria'; 'LTV, CLTV, or HCLTV Ratio 95.01 to 97%'; 'Fixed-rate loans with terms up to 30 years'; 'One-unit principal residence'; 'the total annual qualifying income may not exceed 80% of the AMI for the property's location' · Checked October 17, 2026

8. For the USDA Single Family Housing Guaranteed Loan, applicants must provide evidence acceptable to the agency that they are U.S. citizens, U.S. non-citizen nationals or 'qualified aliens', as defined in §3555.10, which points to 8 U.S.C. §1641.

   Sources 7 · 7 CFR §3555.151(b), Citizenship status: 'Applicants must provide evidence acceptable to the Agency of their status as United States citizens, U.S. non-citizen nationals, or qualified aliens, as defined in § 3555.10' · Checked October 17, 2026

9. Under 8 U.S.C. §1641(b), the first category of 'qualified alien' is a person lawfully admitted for permanent residence.

   Sources 8 · 8 U.S.C. §1641(b)(1): 'an alien who is lawfully admitted for permanent residence under the Immigration and Nationality Act' · Checked October 17, 2026

10. Under the USDA guaranteed program regulation, the loan may not exceed the lesser of two amounts: the appraised market value plus the upfront guarantee fee, or the purchase price plus eligible acquisition costs; in other words, it can cover the full price with no down payment.

    Sources 9 · 7 CFR §3555.103, Maximum loan amount: 'The amount of the loan must not exceed the lesser of'; 'The market value of the property as determined by an appraisal that meets Agency requirements plus the amount of the up-front loan guarantee fee'; 'The total of the purchase price and all eligible acquisition costs' · Checked October 17, 2026

11. Under the USDA guaranteed program regulation, Rural Development only guarantees loans in areas it has designated as rural.

    Sources 10 · 7 CFR §3555.201(a): 'Rural Development will only guarantee loans made in rural areas designated as rural by Rural Development' · Checked October 17, 2026

12. According to the VA, for a VA-backed purchase loan you must qualify for the Certificate of Eligibility (COE), meet the VA's and the lender's standards for credit and income, and live in the home; and the loan often requires no down payment as long as the price is not higher than the home's appraised value.

    Sources 11 · VA, Purchase loan: 'You qualify for a VA-backed home loan Certificate of Eligibility (COE)'; 'standards for credit, income, and any other requirements'; 'You will live in the home you're buying with the loan'; 'No down payment as long as the sales price isn't higher than the home's appraised value' · Checked October 17, 2026

13. Under 8 CFR §264.1, Form I-551, the Permanent Resident Card, is the registration evidence for a lawful permanent resident of the United States.

    Sources 12 · 8 CFR §264.1(b): 'I-551, Permanent Resident Card-Lawful permanent resident of the United States' · Checked October 17, 2026

14. Under 8 CFR §264.5, a permanent resident must apply for a replacement Permanent Resident Card in cases including when it was lost, stolen or destroyed; when the card will expire within six months; and when their name or other biographic information has legally changed.

    Sources 13 · 8 CFR §264.5(b): 'A permanent resident shall apply for a replacement Permanent Resident Card'; 'When the previous card has been lost, stolen, or destroyed'; 'When the existing card will be expiring within six months'; 'When the bearer's name or other biographic information has been legally changed since issuance of the existing card' · Checked October 17, 2026

15. Under 8 U.S.C. §1186a, certain spouses, sons and daughters obtain permanent residence on a conditional basis; the petition to remove the conditions must be filed during the 90 days before the second anniversary of residence; and if it is not filed, the government must terminate permanent residence on that anniversary.

    Sources 14 · 8 U.S.C. §1186a(a)(1), (c)(2)(A) and (d)(2)(A): 'to have obtained such status on a conditional basis subject to the provisions of this section'; 'must be filed during the 90-day period before the second anniversary'; 'no petition is filed with respect to the alien'; 'shall terminate the permanent resident status of the alien as of the second anniversary' · Checked October 17, 2026

16. Under the Social Security regulation (20 CFR §422.104), SSA can assign a Social Security number to a noncitizen lawfully admitted for permanent residence, if they meet the evidence requirements.

    Sources 15 · 20 CFR §422.104(a)(1)–(2): 'We can assign you a social security number if you meet the evidence requirements'; 'An alien lawfully admitted to the United States for permanent residence' · Checked October 17, 2026

17. According to the IRS, you are a resident for federal tax purposes if you are a lawful permanent resident at any time during the calendar year, which generally applies if USCIS issued you Form I-551; and you remain one unless you renounce in writing or USCIS or a federal court terminates your status.

    Sources 16 · U.S. tax residency - Green card test: 'You are a resident, for U.S. federal tax purposes, if you are a lawful'; 'Permanent Resident Card, Form I-551'; 'You voluntarily renounce and abandon this status in writing to the USCIS'; 'Your immigrant status is administratively terminated by the USCIS'; 'Your immigrant status is judicially terminated by a U.S. federal court' · Checked October 17, 2026

18. The CFPB recommends gathering, before you talk to lenders, a pay stub for the last 30 days, W-2 forms for the last two years, signed federal tax returns for the last two years, documentation of other sources of income, the two most recent bank statements, documentation of the source of your down payment, proof of identity and your Social Security number; it suggests starting by filling out Fannie Mae Form 1003, which is commonly used; and it says servicemembers or veterans should get a certificate of eligibility from the VA if they go that route.

    Sources 17 · Create a loan application packet: 'Pay stub for the last 30 days'; 'W-2 forms for the last two years'; 'Signed federal tax return for the last two years'; 'Bank statements, two most recent'; 'Documentation of the source of your down payment'; 'Proof of your identity'; 'Social Security number'; 'Documentation of other sources of income'; 'start with the Fannie Mae Form 1003 and fill it out'; 'It's a commonly used form'; 'Servicemembers or veterans should obtain a certificate of eligibility from the VA' · Checked October 17, 2026

19. Under Regulation B, a creditor may inquire about the permanent residency and immigration status of an applicant or any other person in connection with a credit transaction.

    Sources 18 · 12 CFR §1002.5(e), Permanent residency and immigration status: 'A creditor may inquire about the permanent residency and immigration status of an applicant or any other person in connection with a credit transaction' · Checked October 17, 2026

20. Under Regulation B, a creditor may consider the applicant's immigration status or status as a permanent resident, and any additional information needed to know its rights and remedies regarding repayment.

    Sources 19 · 12 CFR §1002.6(b)(7), Immigration status: 'A creditor may consider the applicant's immigration status or status as a permanent resident of the United States, and any additional information that may be necessary to ascertain the creditor's rights and remedies regarding repayment' · Checked October 17, 2026

21. The Equal Credit Opportunity Act makes it unlawful for a creditor to discriminate against an applicant in any aspect of a credit transaction on the basis of race, color, religion, national origin, sex, marital status or age.

    Sources 20 · 15 U.S.C. §1691(a): 'It shall be unlawful for any creditor to discriminate against any applicant, with respect to any aspect of a credit transaction'; 'on the basis of race, color, religion, national origin, sex or marital status, or age' · Checked October 17, 2026

22. According to the CFPB, many states and local organizations offer programs to help first-time buyers with a down payment or closing costs; to find them, it suggests looking up a HUD-approved housing counseling agency in your area or calling the HOPE Hotline, 24 hours a day, seven days a week, at (888) 995-4673.

    Sources 21 · Where can I find information on programs for first-time home buyers? (reviewed September 13, 2024): 'Many states and local organizations offer programs to help first-time buyers with a down payment or closing costs'; 'look up a HUD-approved housing counseling agency in your area'; 'HOPE™ Hotline, 24 hours a day, seven days a week, at (888) 995-HOPE (4673)' · Checked October 17, 2026

23. The CFPB recommends contacting several lenders, because borrowers who shop around can save thousands of dollars and different lenders can offer different kinds of loans; and it recommends contacting at least three.

    Sources 22 · Contact multiple lenders: 'Contact several different lenders'; 'Borrowers who shop around can save thousands of dollars'; 'Different lenders can also offer different kinds of loans'; 'Contact at least three lenders on your list' · Checked October 17, 2026

24. According to the CFPB, the lender must give you the Loan Estimate within three business days of receiving your application; all lenders must use the same form; and when you receive it, the lender has not yet approved or denied your application.

    Sources 23 · What is a Loan Estimate?: 'The lender must provide you a Loan Estimate within three business days of receiving your application'; 'All lenders are required to use the same standard Loan Estimate form'; 'the lender has not yet approved or denied your loan application' · Checked October 17, 2026

25. Freddie Mac says you should typically be prepared to pay between 2% and 5% of the home purchase price in closing costs.

    Sources 24 · What Are Closing Costs and How Much Will I Pay?: 'Typically, you should be prepared to pay between 2% and 5% of the home purchase price in closing fees' · Checked October 17, 2026

26. HUD-approved housing counselors give independent advice on buying a home and on whether a set of loan terms fits your goals, often at little or no cost.

    Sources 25 · Find a Housing Counselor: 'advice on buying a home, renting, defaults, forbearances, foreclosures, and credit issues'; 'whether a particular set of mortgage loan terms is a good fit based on your objectives and circumstances'; 'often at little or no cost to you' · Checked October 17, 2026

27. According to the Justice Department's Executive Office for Immigration Review (EOIR), only certain people can represent you, including licensed attorneys and accredited representatives; notarios, document preparers, immigration consultants and travel agents are not allowed to practice law or give you legal advice.

    Sources 26 · Can Someone Represent You Before EOIR?: 'Only certain individuals can represent you before EOIR'; 'Those include validly licensed attorneys and accredited representatives'; 'Notarios, document preparers, immigration consultants, and travel agents are not allowed to practice law'; 'They cannot give you legal advice' · Checked October 17, 2026