TPS, parole and work permits: which mortgages are open

This guide is for people who live and work in the United States with TPS (Temporary Protected Status), with parole or with a work permit (EAD) and want to buy a home. Here you will see what FHA, Fannie Mae and USDA rules say today, which documents a lender reviews under those rules and how to find one that will lend to you. The topic changes: we review the guide more often, and the date of the last check is at the top.

Since case numbers from this date, FHA does not accept non-permanent residents

May 25, 2025⁵

How long a country's initial TPS designation lasts

6 to 18 months¹

Of parole, at least, to count as a qualified alien for USDA

1 year¹⁴

At least, the number the CFPB recommends contacting

3 lenders²⁰

TPS, parole and work permits: what the law says

These are three different things, and it helps to separate them before you talk to a lender.

TPS. Under the law, a person with TPS may not be removed while their status is in effect, and the government must authorize them to work throughout that period.¹ TPS depends on your country’s designation: the first one lasts 6 to 18 months; before each period ends, the government reviews conditions and publishes its decision in the Federal Register; and if it does not end the designation, it is extended.¹

Parole. Parole lets a person enter the country temporarily, case by case, for urgent humanitarian reasons or significant public benefit. The law says parole is not an admission and that when its purpose is served, the person must return.²

Work permit (EAD). The regulation lists who may work. People with TPS work for the period of their status, with an EAD as evidence. People with parole and people with a pending asylum application, under certain conditions, are among the classes that must apply for one. USCIS sets each permit’s validity.³

With a work permit, Social Security can assign you a Social Security number, because its regulation allows it for anyone with legal authorization to work.⁴ If you have no credit history yet, the credit from zero guide explains how to start.

FHA: closed to non-permanent residents since 2025

The FHA loanFHA loanAn FHA loan is a mortgage made by a private lender and insured by the Federal Housing Administration (FHA), an agency of the U.S. government. That insurance protects the lender if you stop paying, which is why the lender can accept a lower down payment and a less-than-perfect credit history than on a conventional loan. Federal law sets the minimum cash investment at 3.5% of the property's value and caps the loan amount at the FHA limit, which changes by county. In exchange for the insurance you pay a mortgage insurance premium.See the full definitionClose is no longer open to TPS, parole or people who only have a work permit. HUD Mortgagee Letter 2025-09 removed the non-permanent resident section entirely, for case numbers assigned on or after May 25, 2025. Citizens, lawful permanent residents and citizens of Micronesia, the Marshall Islands and Palau remain eligible. HUD adds that a Social Security card is not enough to prove immigration or work status.⁵ FHA’s handbook, revised in August 2026, now lists only those categories.⁶

Before that change, FHA accepted non-permanent residents with a valid Social Security number and a current work permit; if the permit expired within a year and there had been renewals, the lender could assume it would be renewed. That rule is no longer in force.⁷ If someone offers you an FHA loan with your status today, ask in writing under which rule.

Conventional loans: what Fannie Mae says

Fannie Mae’s rule for conventional loansconventional loanA conventional loan is any mortgage that is not insured or guaranteed by the federal government: it is not FHA, VA or USDA. The lender, or the companies that buy the loans (Fannie Mae and Freddie Mac), carry the risk. When the amount is within the conforming loan limit the loan is called "conforming"; above it, it is a "jumbo" loan. It usually asks for a higher credit score than an FHA loan and, if your down payment is less than 20% of the price, you are normally required to buy private mortgage insurance (PMI) until you build enough equity in the home.See the full definitionClose did not change. Fannie Mae buys mortgages made to people who are not citizens but are lawful permanent or non-permanent residents, on the same terms as citizens. It does not set the exact documentation: the lender decides, case by case, with the documentation it deems appropriate, and warrants to Fannie Mae that the borrower is legally present in the country.⁸

That is why the answer changes from one lenderlenderThe lender is the financial institution that lends you the money for your mortgage. The mortgage is the agreement that gives the lender the right to take your home if you do not repay what it lent you. After closing, it is common for another company, the loan servicer, to collect your payments and keep track of the loan; it may be the same company that lent you the money or a different one. On the Loan Estimate, the lender's name appears on the first page, and the last page lists it as "Lender" with its NMLS or license number.See the full definitionClose to another. One may accept your work permit and your TPS document; another may not offer the loan at all. Both answers fit within the same rule.

What each program says, by situation

Temporary protection

TPS

• FHA: no, since case numbers assigned May 25, 2025.⁵
• Fannie Mae: possible if the lender accepts your proof of legal presence.⁸
• USDA: TPS is not among the 'qualified alien' categories the law lists.¹⁴¹²

Temporary entry

Parole

• FHA: no, since case numbers assigned May 25, 2025.⁵
• Fannie Mae: possible if the lender accepts your proof of legal presence.⁸
• USDA: with parole of at least 1 year you count as a qualified alien.¹⁴¹²

Either way, the key question for each lender is which proof of legal presence it accepts.⁸

The documents a lender checks

Fannie Mae’s rules say what the lender has to verify, even though they do not set a closed list of immigration papers:

• Your identity. The lender must confirm each borrower’s identity before extending credit, in line with its federal verification obligations.⁹
• Your number. Each borrower needs a valid Social Security number or an ITIN, in addition to meeting residency and documentation requirements.⁹
• Your legal presence. The lender decides which documents it accepts, based on your case.⁸
• Your income. Income must be stable, have a documented history and be reasonably expected to continue. Noncitizens face the same employment and income verification as citizens, whatever the source of income.¹⁰

How to prepare before you apply

1. 1. Check the dates on your status and your permit

   Before you call

   If you have TPS, look up the most recent Federal Register notice about your country.¹

2. 2. Gather your documents

   The first week

   Work permit, TPS or parole document, SSN or ITIN, ID, pay stubs and bank statements.⁹

   Try it with your numbersDocument checklist

3. 3. Ask each lender before you apply

   On the first call

   Do you lend to people with my status? Under which program? Which documents do you accept? How do you treat my permit's expiration date?⁸

4. 4. Compare at least three offers

   The Loan Estimate arrives no later than 3 business days after you apply

   Everyone uses the same form. Getting it does not mean you were approved.²¹

   Try it with your numbersCompare loans

USDA: one year of parole is on the list

The guaranteed USDA loanUSDA loanA USDA loan is a mortgage from the Rural Housing Service, part of the U.S. Department of Agriculture (USDA). It is meant for low- and moderate-income families buying a home in an area the USDA considers rural, and it can be offered with no down payment. There are two paths: the USDA guarantees a loan made by a private lender, or it lends directly to very-low-income families. To qualify, your income must be within the limit for your area and the home must be in an eligible area, which you can check on the USDA's map.See the full definitionClose requires the applicant to show they are a citizen, a non-citizen national or a “qualified alien.”¹² The USDA regulation takes that definition from federal law, 8 U.S.C. §1641.¹³

That law counts as qualified aliensqualified alien"Qualified alien" is a term in a federal law, 8 U.S.C. 1641, used to decide who may apply for or receive certain federal public benefits. The law defines it with a list of categories. They include lawful permanent residents, people granted asylum, refugees, certain people paroled into the country for at least one year, people whose deportation is being withheld, Cuban and Haitian entrants and, in certain cases, people subjected to battery or extreme cruelty. The same law has exceptions and other conditions, so the definition alone does not say whether a person can receive a benefit.See the full definitionClose people paroled for a period of at least one year, along with permanent residents, asylees, refugees, people whose deportation is being withheld, Cuban and Haitian entrants and other categories.¹⁴ TPS is not among the categories that law lists. If you have TPS plus another status, or do not know how long your parole lasts, ask an accredited representativeDOJ-accredited representativeAn accredited representative is a non-attorney whom the U.S. Department of Justice, through its Recognition and Accreditation Program, authorizes to represent people in immigration matters before DHS and, with full accreditation, before the immigration courts. They may only do so through a recognized organization, which must be a non-profit, federally tax-exempt entity. It is the safe way to get low-cost immigration help: the Department of Justice publishes the official roster by state. Anyone who is not on that roster and is not a lawyer is not authorized to represent you.See the full definitionClose before assuming anything.²⁴

USDA has another important condition: it only guarantees loans in areas it designates as rural.¹⁵

What a lender may ask you

Regulation B allows the lender to ask about your residency and immigration status,¹⁶ and to take it into account along with the information it needs to know how it would collect on the loan.¹⁷ What the law prohibits is discrimination based on race, color, religion, national originnational originNational origin is one of the characteristics the Fair Housing Act protects. According to the Department of Justice, national origin discrimination can be based on the country where you were born or where your ancestors came from. The law prohibits refusing to sell or rent you a home, setting different terms or publishing ads that state a preference based on your national origin. According to the CFPB, the Equal Credit Opportunity Act also prohibits lenders from discriminating against you because of your national origin when you apply for credit, such as a mortgage.See the full definitionClose, sex, marital status or age in any part of the loan.¹⁸

In Illinois, protection is broader. The Department of Human Rights explains that state law prohibits using immigration status to discriminate against someone who rents, buys a home or applies for a mortgage. It mentions people with TPS and deferred action, and gives refusing to rent to someone because their status has an expiration date as an example of discrimination. There it can be reported within one year.¹⁹ The housing discrimination guide explains the steps.

How to compare offers

The CFPB recommends contacting at least three lenders, starting with your local bank or credit union; borrowers who shop around can save thousands of dollars.²⁰ To compare, use the Loan EstimateLoan EstimateThe Loan Estimate is a three-page form you receive from the lender within days of applying for a mortgage. In the same format at every bank, it sums up the terms of the loan being offered: amount, interest rate, whether the payment can change, the estimated monthly payment with taxes and insurance, the itemized closing costs and how much cash you need at closing. Because every lender uses the same form, it lets you compare offers side by side. It commits you to nothing: requesting one is not accepting the loan.See the full definitionClose: the lender must give it to you within three business days of your application, and everyone uses the same form.²¹

Example with real numbers

What it takes to get to closing on a typical home

With the typical US home value, Fannie Mae's HomeReady minimum down payment and Freddie Mac's closing cost range.

Home price (typical US value)

$332,700

HomeReady minimum down payment (3%)

$9,981

Closing costs (2% to 5% of the price)

$6,654 to $16,635

This is an example with national numbers. HomeReady has an income limit and other conditions;¹¹ closing costs vary by place.²² Your real numbers are on your Loan Estimate.

Run it with your numbersClosing costs

A HUD-approved housing counselorHUD-approved housing counselorA HUD-approved housing counselor works at an agency HUD has approved to provide housing counseling: independent, expert advice customized to your situation about buying a home, renting, a missed mortgage payment, a foreclosure or credit problems. The agencies usually charge little or nothing; many serve in Spanish and offer the homebuyer education course several assistance programs require. They are not lenders or real estate agents and sell you nothing. Your county page lists the official agencies with phone numbers.See the full definitionClose can review the offers with you and tell you whether the terms fit your goals, often at little or no cost.²³ If a bank or credit union offers you its own loan, under its own rules, the ITIN mortgages guide explains what to compare. To estimate what you might afford, try how much house can I afford.

If this is you

You arrived recently and have no credit history

Noncitizens face the same employment and income verification as citizens.¹⁰ The credit from zero guide explains how to start.

You are buying with someone who is a resident or citizen

The lender may ask about the status of each person on the application.¹⁶ At Fannie Mae, each borrower needs an SSN or ITIN.⁹

You are a first-time buyer

HomeReady's terms depend on your income and the area.¹¹ A HUD-approved counselor helps you compare.²³

Costly mistakes

• Mistake: Applying for an FHA loan because it used to accept work permits.

  Instead: Since case numbers assigned May 25, 2025, FHA does not accept non-permanent residents.⁵

• Mistake: Stopping at the first 'no.'

  Instead: Fannie Mae lets each lender decide which documents it accepts: ask at least three.⁸²⁰

• Mistake: Applying without checking when your permit or your country's TPS designation ends.

  Instead: Check the dates and the latest Federal Register notice before you call.¹

• Mistake: Assuming USDA is for you because you have parole.

  Instead: Check whether your parole is for at least one year and whether the home is in a USDA rural area.¹⁴¹⁵

• Mistake: Paying a 'notario' to tell you whether the loan affects your case.

  Instead: A notario cannot give legal advice; an accredited representative or a lawyer can.²⁴

What to do this week

1. Write down your work permit’s expiration date and, if you have TPS, look up the latest Federal Register notice about your country.¹
2. Gather your documents with the document checklist.⁹
3. Make a list of at least three lenders and ask them, before you apply, whether they lend with your status and which documents they accept.²⁰⁸
4. Compare the Loan Estimates in the compare loans tool.²¹
5. If you have questions about your immigration case, look for an accredited representative on the Justice Department’s lists, sorted by state.²⁵