How immigration status can impact your ability to get credit, loans, or mortgages
Photo by Jakub Żerdzicki on Unsplash
You want a credit card that actually rewards your groceries, a fair-rate car loan, or a mortgage that doesn’t eat your soul. Then the banker asks about your immigration status, and the vibe changes.
Status matters, legally and practically. About 26 million U.S. adults (11%) had no credit history (“credit invisible”), which makes lenders nervous.
Why lenders ask about status
Lenders follow federal rules.
The Equal Credit Opportunity Act (ECOA) forbids discrimination based on national origin, but it does allow a lender to consider immigration status when it needs to assess repayment and its legal remedies.
So a bank can ask whether your visa lets you stay long enough to repay a 30-year mortgage. It cannot use your nationality as a proxy to deny you.
Want more info on asylum pending, TPS, DACA, or mixed-status households? Firms like Spar and Bernstein cover these intersections in plain English and can point you to the next steps.
Credit basics for newcomers
U.S. credit files rarely travel across borders. You can arrive with a perfect record back home and still look “thin file” here.
Lenders now test ways to read nontraditional data (rent, utilities, bank cash-flow), and Fannie Mae/Freddie Mac have moved toward recognizing rent history and alternative scoring models in more cases. It still varies by lender, but you have more paths than before.
How status affects different products
Credit cards and personal loans
Banks tend to require identification, income, and a way to collect if you default. That means they often ask for an SSN or ITIN, proof of legal presence, income documents, and a U.S. address.
You can open with a secured card, then graduate once your history thickens. Guidance from large issuers mirrors that pattern.
Auto loans
Similar story: proof of identity and lawful presence, stable income, and enough remaining authorized stay to cover the term.
If your status expires in 14 months, a 60-month loan will face more scrutiny. That isn’t bias; it’s lenders doing risk math under ECOA’s repayment rule.
Mortgages: The big differences by program
Conventional loans backed by Fannie Mae or Freddie Mac
Good news here. Fannie Mae buys loans to lawful permanent residents and non-permanent residents under the same terms as U.S. citizens (subject to the lender verifying lawful presence).
Freddie Mac says the same in its Seller/Servicer Guide, with the caveat that it won’t buy loans made to people without lawful U.S. residency. You still need income, assets, and credit, but your status alone doesn’t block you from conventional financing.
Thin file? Lenders may document nontraditional credit (rent, utilities, insurance, or cash-flow) if Desktop Underwriter flags that path. Some lenders now require a 12-month rent history when DU calls for nontraditional credit.
FHA loans after the 2025 rule change
This part changed in a big way.
In Mortgagee Letter 2025-09, HUD removed eligibility for non-permanent residents from all FHA Title II programs (forward mortgages and HECM) and aligned proofs of status for permanent residents.
Lenders had to implement the change for case numbers assigned on or after May 25, 2025. Translation: non-permanent residents no longer qualify for FHA-insured loans; permanent residents still can, with proper DHS/USCIS documentation.
Why care? FHA used to help buyers with smaller down payments and earlier-stage credit. If you hold a work or student visa today, you likely need to look at conventional or portfolio options instead of FHA. Multiple trade and legal summaries confirm this shift.
ITIN mortgages
Don’t have an SSN but file taxes with an ITIN? A niche set of lenders writes ITIN mortgages. It’s a small market (roughly 5,000–6,000 loans in 2023), but researchers at the Urban Institute estimate it could reach 73,000–88,000 a year if barriers drop.
Mortgage rates and down payments often run higher, but it’s a real path.
What your specific status usually means
- U.S. citizen / Lawful permanent resident (green card): Access to all mainstream credit products if you meet income/credit requirements. For FHA, you remain eligible (with documentation). For conventional, you stand on equal terms.
- Non-permanent resident (e.g., H-1B, L-1, E-2, O-1, some humanitarian categories with work authorization): Conventional loans remain possible; underwriters verify lawful presence and typically want a status expiration beyond the mortgage horizon or clear continuation evidence. FHA is no longer eligible after May 25, 2025.
- No lawful residency/tourist status only: Freddie Mac won’t buy these loans; most conventional channels won’t fund them. Some banks may offer foreign nationals or portfolio loans with higher down payments and rates
- ITIN filers without SSN: Consider ITIN mortgages and credit-builder products; expect stricter terms and careful documentation of income and reserves.
Bottom line
Your immigration status can shape your credit path, but it doesn’t have to block it.
The law lets lenders consider status only to judge repayment and legal rights, not to discriminate. Conventional mortgages remain open to many non-citizens with lawful presence.
FHA shut its doors to non-permanent residents as of May 25, 2025, so plan around that. If you lack a deep U.S. file, use rent data, build with secured credit, and compare lenders that know ITIN and nontraditional credit programs.
With the right docs and a few months of clean payments, you can turn a “we’re not sure” into an approval that fits your status and your budget.