U.S. Mortgage Programs by Visa Type: TN, L-1, H-1B, E-2, O-1

Not every U.S. work visa is treated equally by mortgage lenders. Your visa classification determines which loan programs you can access, what documentation you need, and how underwriters evaluate your application. The differences are not obvious, and most loan officers at mainstream banks do not understand them.

This guide breaks down mortgage eligibility and optimal program selection for each major work visa category. As a broker licensed on both sides of the border (NMLS #2613311 in the U.S. and Quebec licensed broker in Canada), I match visa-specific situations to the right lending program daily.

The Landscape After FHA's May 2025 Change

Before covering each visa type, an essential update: as of May 25, 2025, FHA loans are no longer available to non-permanent residents. HUD Mortgagee Letter 2025-09 restricted FHA eligibility to U.S. citizens, permanent residents (green card holders), and non-citizen nationals. This eliminated a popular pathway, 3.5% down, lenient credit requirements, that many work visa holders previously relied on.

The practical impact: conventional loans (Fannie Mae/Freddie Mac) are now the primary low-down-payment option for visa holders. Non-QM and foreign national programs remain available as alternatives but require significantly more cash at closing.

Master Comparison Table

* Down payment depends on occupancy, product, AUS decision, and borrower profile. Rate benchmark: Freddie Mac PMMS 30-year average ~6.01% (Feb 19, 2026). Your actual rate depends on credit score, down payment, property type, occupancy, and loan-level pricing adjustments.

TN Visa: NAFTA/CUSMA Professional Workers

The TN visa is the most common classification for Canadian professionals transferring to the United States. It covers over 60 designated professions including engineers, accountants, computer systems analysts, management consultants, and scientific technicians. The visa is issued in 3-year increments and can be renewed indefinitely.

For mortgage purposes, TN visa holders are classified as non-permanent resident aliens with legal work authorization. Fannie Mae and Freddie Mac both accept TN visa borrowers for conventional financing, provided the borrower has a valid SSN, lawful U.S. residency, and can demonstrate a reasonable expectation of continued employment.

The primary underwriting concern with TN visas is the renewal question. Because TN status requires employer sponsorship and periodic renewal, lenders want evidence that employment will continue. A well-crafted employer letter, confirming that the company intends to maintain the employee's role and will support visa renewal, resolves this concern. A poorly drafted letter (or one that says "employment is at-will" without renewal context) can trigger additional conditions or denial.

Best Program Match for TN Visa

If you have a U.S. credit score of 680+: conventional loan, 5% down, rate approximately 6.0% to 6.5%. If you have no U.S. credit but strong Canadian history: non-traditional credit path (Fannie Mae B3-5.4) with manual underwriting, 5% to 10% down. If you need to close immediately with no U.S. credit: non-QM bank statement program, 20% to 25% down, rate 7.0% to 8.5%.

L-1 Visa: Intracompany Transfers

The L-1 visa is designed for employees transferring within the same multinational company, exactly the scenario of a Canadian employee relocating to a U.S. office. L-1A is for managers and executives; L-1B is for specialized knowledge workers. L-1A has an initial validity of up to 3 years (extendable to 7), and L-1B has an initial validity of up to 3 years (extendable to 5).

L-1 holders are among the strongest visa-based mortgage applicants because they typically have large, well-known employers backing their transfer. The employment stability documentation is usually straightforward, a letter from the company's HR or legal department confirming the transfer, role, and anticipated duration.

An important advantage: the L-1 is a dual-intent visa, meaning the holder can pursue permanent residency (green card) while on L-1 status without jeopardizing their visa. Many lenders view pending green card applications favorably, as they indicate the borrower's long-term commitment to remaining in the United States.

Best Program Match for L-1 Visa

With credit score 680+: conventional, 3% to 5% down. Some lenders offer 3% down for L-1 holders with strong employer profiles. Without U.S. credit: non-traditional credit path is particularly well-suited for L-1 transfers, as the strong employer documentation offsets the thin credit file. Lenders who do manual underwriting view L-1 files as lower risk.

H-1B Visa: Specialty Occupation Workers

The H-1B is the most widely recognized U.S. work visa, used for specialty occupations requiring at least a bachelor's degree. It has an initial validity of 3 years (extendable to 6) and is subject to annual caps and a lottery system, though Canadian citizens may access cap-exempt H-1B slots through certain employers.

Like the L-1, the H-1B is a dual-intent visa. This dual-intent status is significant for mortgage qualification because it signals to underwriters that the borrower has both the legal right and the declared intention to remain in the United States long-term. Many H-1B holders are simultaneously in the green card process (I-140 or I-485 pending), which strengthens their mortgage applications further.

The underwriting consideration specific to H-1B: because the visa is employer-specific, changing jobs requires a new H-1B petition. Lenders may ask about job stability and the borrower's relationship with the sponsoring employer. A strong employer letter and documentation of pending permanent residency applications help significantly.

E-2 Visa: Treaty Investors

The E-2 visa is available to nationals of treaty countries (Canada qualifies) who invest a substantial amount in a U.S. business. Unlike TN, L-1, and H-1B, E-2 holders are often self-employed or business owners rather than salaried employees. This changes the mortgage landscape significantly.

Self-employment income on an E-2 visa typically requires 2 years of U.S. tax returns for conventional financing. If the business is newer than 2 years, bank statement programs become the primary option, these use 12 or 24 months of business bank statements to calculate qualifying income instead of tax returns. Down payments on bank statement programs run 15% to 25% depending on the loan amount and the lender's evaluation of the deposit pattern.

E-2 holders buying a primary residence can use either conventional (if they have 2+ years of tax returns and a credit score) or non-QM bank statement programs. E-2 holders buying investment properties should consider DSCR (Debt Service Coverage Ratio) loans, which qualify the property on rental income rather than the borrower's personal income.

O-1 Visa: Extraordinary Ability

The O-1 visa is for individuals with extraordinary ability or achievement in sciences, arts, education, business, or athletics. O-1 holders often have irregular or project-based income, consulting fees, performance contracts, advances, and royalties, rather than steady W-2 paychecks.

For conventional mortgage qualification, Fannie Mae requires a 2-year history of the income used to qualify. If your O-1 income is consistent (full-time employment), this is straightforward. If your income varies significantly year-over-year, the lender will typically average the last 2 years of tax returns and may use the lower of the two years.

Bank statement programs are particularly well-suited for O-1 holders with strong but irregular income. These programs evaluate 12 or 24 months of deposits and apply an expense factor (typically 50% for service-based businesses) to determine qualifying income. If your bank statements show strong deposits even though your tax returns show lower net income due to deductions, a bank statement program may qualify you for a larger loan.

The Decision Tree: Which Program Fits You?

Start with your visa type (TN, L-1, H-1B, E-2, or O-1), all are eligible for conventional financing under GSE guidelines. Then ask three questions. First, do you have a scorable U.S. credit profile and can the file get AUS approval? If yes, conventional is your best execution path, down payment depends on the product and borrower profile. Second, if no credit score yet, can you build one before you need to purchase? If yes, a bridge plan (secured card + authorized user strategy, typically 3 to 6 months) followed by conventional is the strongest approach. Third, if you need to close immediately without a credit score, non-QM at 20% to 25% down with a plan to refinance into conventional once credit is established.

The one exception: E-2 and O-1 holders with self-employment income and fewer than 2 years of U.S. tax returns. Conventional is not available until you have 2 years of filed returns. Bank statement programs fill this gap at 15% to 25% down.