Yes, a TPS holder can buy a house in the United States. Property ownership itself carries no citizenship requirement, and conventional mortgages through Fannie Mae and Freddie Mac remain open to non-permanent residents who can document lawful presence and steady income. The bigger change came in May 2025, when FHA financing — long the easiest government-backed route — closed to everyone without permanent residency. That reshaped the path, but it didn’t block it.
The 2025 FHA Change You Need to Know First
HUD issued Mortgagee Letter 2025-09 eliminating FHA mortgage eligibility for all non-permanent resident borrowers. The rule became mandatory for FHA case numbers assigned on or after May 25, 2025. Only U.S. citizens, lawful permanent residents, and citizens of the Federated States of Micronesia, the Marshall Islands, or Palau remain eligible.1U.S. Department of Housing and Urban Development (HUD). Mortgagee Letter 2025-09 – Revisions to Residency Requirements TPS holders, DACA recipients, and others with temporary authorized status are excluded regardless of how long they’ve lived and worked here.
This matters because FHA loans allowed down payments as low as 3.5 percent and accepted lower credit scores than conventional products. Any guide still listing FHA as an option for TPS holders is out of date. If a loan officer suggests applying for one, confirm they’re aware of the policy change before you spend time on the paperwork.
Conventional Loans Are Now the Main Path
Fannie Mae’s selling guide states plainly that it “purchases and securitizes mortgages made to non–U.S. citizens who are lawful permanent or non-permanent residents of the United States under the same terms that are available to U.S. citizens.”2Fannie Mae. Non-U.S. Citizen Borrower Eligibility Requirements Freddie Mac takes a similar position for non-permanent residents with acceptable documentation. In practice, that means a TPS holder with clean credit, verifiable income, and valid work authorization can get essentially the same loan a citizen neighbor would.
A few specifics shape what you’ll qualify for:
- Non-permanent residents are generally restricted to purchasing a primary residence. Investment properties and second homes carry added restrictions or may not be available.
- Down payments start at 3 percent for a primary residence, but anything under 20 percent triggers private mortgage insurance.
- Most lenders want a credit score of at least 620, though some programs will look at slightly lower scores when other factors are strong.
- The lender must determine you are legally present based on documentation. Fannie Mae doesn’t dictate which documents — that judgment is left to the lender.2Fannie Mae. Non-U.S. Citizen Borrower Eligibility Requirements
Underwriters look closely at the expiration date on your EAD and at your renewal history. A pattern of on-time TPS renewals over several years works in your favor because it shows continuity of residence and income. If your current authorization is close to expiring, expect questions about the renewal timeline.
Debt-to-Income Limits
Your debt-to-income ratio compares your monthly debt payments, including the new mortgage, against your gross monthly income. Loans underwritten through Fannie Mae’s Desktop Underwriter can go as high as 50 percent. Manually underwritten loans cap at 36 percent, stretching to 45 percent for borrowers with strong credit and cash reserves.3Fannie Mae. Debt-to-Income Ratios Staying well under the ceiling gets you a better rate and a smoother approval.
ITIN Loans If Conventional Doesn’t Work
Some community banks, credit unions, and portfolio lenders offer mortgages built around an Individual Taxpayer Identification Number instead of a Social Security Number. These can fit TPS holders who struggle to qualify conventionally. The cost is real: down payments typically run 10 to 20 percent, and interest rates sit above Fannie or Freddie pricing. Some ITIN lenders will accept nontraditional credit history — rent receipts, utility payment records — in place of a formal credit score, which helps borrowers still building their U.S. credit profile.
Documents You’ll Need Ready
Gathering paperwork before you approach a lender saves weeks of back-and-forth. TPS applicants need everything a citizen would provide, plus documents proving lawful presence.
Immigration Documents
Your Employment Authorization Document is the centerpiece. TPS beneficiaries hold EADs with a category code of A12 (granted TPS) or C19 (pending TPS application).4U.S. Citizenship and Immigration Services. Temporary Protected Status and Deferred Enforced Departure Lenders use those codes to confirm your specific category.
If the printed expiration on your EAD has already passed, you may still be work-authorized under an automatic extension. USCIS publishes Federal Register notices that extend EAD validity for specific TPS-designated countries. Bring a copy of the relevant notice so your lender can see that your authorization is current despite the date on the card.5USCIS. 5.3 Automatic EAD Extensions for Temporary Protected Status (TPS) Beneficiaries Check the USCIS TPS page for your country’s current extension status before applying.
Financial Documents
Lenders evaluate ability to repay through standard income and asset paperwork:
- Social Security Number, needed for conventional loans so the lender can pull credit and verify tax records.
- Two years of signed federal tax returns, reviewed for income consistency.
- Recent W-2s or pay stubs to confirm current employment and match your returns.
- Employment history. Fannie Mae recommends a two-year track record, though income received for at least 12 months may qualify when other factors are strong.6Fannie Mae. Standards for Employment-Related Income
- Two to three months of bank statements showing the funds you’ll use for down payment and closing costs.
If Your Down Payment Is Sitting Overseas
You can use foreign funds, but the documentation bar is higher. Fannie Mae requires foreign assets to be converted to U.S. dollars and deposited into a U.S. or state-regulated financial institution, with verification completed before closing.7Fannie Mae. Foreign Assets Any statements from foreign banks must be in English or come with a complete, accurate translation.
Move the money well in advance. Lenders scrutinize large deposits and need a clean paper trail showing where the funds came from. A wire that arrives two days before closing without supporting documentation will delay or derail the loan. Transferring several months early and keeping records at every step is the simplest way to avoid trouble.
What the Process Looks Like
Once your documents are together, the flow follows the standard homebuying steps with a few extra checkpoints. After you submit a formal application, an underwriter reviews your credit, income, and immigration documents, verifies your EAD and work authorization, and confirms your employment. Expect follow-up requests, especially if your EAD relies on an automatic extension or if there are gaps between TPS renewals.
The lender also orders an appraisal to confirm the property’s market value. When the appraisal supports the price and the underwriter clears the file, you get a “clear to close” notice, meaning all conditions are satisfied and funding is ready. At closing, you sign the mortgage documents and pay the down payment plus closing costs, which typically run 2 to 5 percent of the purchase price and cover items like the appraisal, title insurance, lender fees, and prepaid taxes and insurance. Once the deed and mortgage are recorded with the county, the home is yours.
Build Credit Before You Apply
Thin credit files sink more TPS mortgage applications than any other single factor. Start early. A secured credit card, backed by a small cash deposit, is the simplest way to begin building a score. Use it for a few recurring charges and pay it off in full each month.
If you’ve been paying rent, utilities, or insurance on time, ask lenders whether they accept nontraditional credit. Fannie Mae and Freddie Mac have both moved toward incorporating rent and utility data into their scoring models, which helps borrowers without traditional credit card or installment history. Not every lender uses those tools yet, so shop around. A mortgage broker who works regularly with non-citizen borrowers will know which ones are most flexible.
Give yourself 12 to 24 months of runway. A score in the mid-600s or higher opens the full range of conventional options and gets you meaningfully better interest rates than a borderline file.
If Your TPS Ends After You’ve Bought
Losing TPS does not mean losing your house. Ownership is a legal right that doesn’t depend on immigration status. You stay on the title, and your ownership continues regardless of what happens to your TPS designation.
Your mortgage obligation continues on the same terms. Standard residential mortgage contracts let lenders accelerate the loan (demand full repayment) in specific situations, mainly missed payments or unauthorized transfers of the property. A change in immigration status, by itself, is not a standard acceleration trigger. As long as you keep making payments, the lender has no contractual basis to call the loan due.
The practical risks are different from the legal ones. If you lose work authorization, keeping income steady enough to cover the mortgage gets harder. Selling remains an option at any point, though FIRPTA withholding will apply if you’ve become a nonresident alien by the time you sell (see below). If your TPS country designation is under review or facing termination, building a reserve that covers several months of mortgage payments gives you room to plan while you explore other options.
Taxes as a TPS Homeowner
Most TPS holders living and working full-time in the U.S. qualify as resident aliens for federal tax purposes under the substantial presence test. You meet the test if you’ve been physically present at least 183 days over a three-year period, counting every day this year, one-third of each day last year, and one-sixth of each day two years back.8eCFR. 26 CFR 301.7701(b)-1 – Resident Alien Anyone who has held TPS for more than a year will almost certainly pass.
As a resident alien, you file Form 1040 and claim the same homeowner deductions a citizen would: mortgage interest, property taxes (subject to the $10,000 SALT cap), and the capital gains exclusion of up to $250,000 ($500,000 for joint filers) when you sell a home you’ve used as your primary residence for at least two of the previous five years.
FIRPTA If You Sell as a Nonresident
If your TPS ends and you’ve become a nonresident alien by the time you sell, FIRPTA applies. The buyer or their closing agent must withhold 15 percent of the sale price and remit it to the IRS at closing. An exemption removes withholding if the buyer intends to use the property as a residence and the sale price is $300,000 or less.9Internal Revenue Service. FIRPTA Withholding
The withholding is not a separate tax. It’s a prepayment against any capital gains tax owed. You file a U.S. return for the year of the sale to reconcile actual gain against the amount withheld, and a refund is possible if the withholding exceeded your true liability. Under 26 U.S.C. § 897, any gain a nonresident alien realizes from selling U.S. real property is taxed as if effectively connected to a U.S. trade or business.10Office of the Law Revision Counsel. 26 USC 897 – Disposition of Investment in United States Real Property