J1 Visa Mortgage

The US provides numerous opportunities for professionals to become better in their fields of expertise. This is why many foreigners choose to come here in order to diversify their knowledge. Some might even consider making the US their new home. On that note, in this article, we will focus our attention on getting a J1 visa mortgage. If you are in this situation, you should find answers to most questions you had on the topic.

What Is a J1 Visa?

Before we get into more detail about a J1 visa, we should briefly clarify what a J1 visa is. What are the specifications of this type of visa?

Basically, this program is provided for non-US residents who wish to learn, work, teach or do their research in the US. The main purpose of this visa is facilitating the possibility of making breakthroughs in domains such as science, art, education, and the list may go on.

Visa Holders and Mortgages

As a holder of a J1 visa, you might have your set of doubts whether you can apply for a mortgage or not. And this is for good reason. Typically, you can get a loan as a J1 visa holder.

Meanwhile, buying a home can be difficult, and you might stumble across several obstacles. But that doesn’t mean it is impossible. You can access a mortgage as an L1 visa holder, or as a TN visa holder.

The good thing is that there are specialized lenders in the marketplace that provide loans for each scenario.

That is to say, these are loans specifically designated for non-residents that wish to purchase a home in the US. Notwithstanding, it’s worth noting that usually, a down payment is required. As for the size of the down payment, it usually depends on the lender, as well as the financial circumstances of the applicant.

But we’ll get into more detail about getting a J1 visa mortgage in the paragraphs below.

J1 Visa Mortgage

Now, let’s see how you can qualify for a J1 visa mortgage.

4 Things You Need for a J1 Visa Mortgage

Getting a J1 visa mortgage isn’t as difficult as it may seem. Nevertheless, it comes with a range of requirements, as it is the case with most loan products on the marketplace. Essentially, you are expected to demonstrate your reliability as a borrower – this remains essential for each lender.

Usually, getting a loan as a non-US citizen isn’t so different from getting a loan as a US citizen. Your creditworthiness is normally assessed, as well as the year-to-date income, and credit report. Granted that the documents aren’t in English, you will need to have them translated.

Qualification

In order to qualify for a mortgage, the lender will most likely analyze your income verification history. If it is applicable, you might present tax documents from your country of origin. Usually, lenders source the income of applicants since OFAC (Office of Foreign Assets Control) monitors foreign regimes and countries, terrorists, and the list may go on.

Aside from employment history, which is mandatory, you are expected to supply a 2-year credit history in the US. In some scenarios, the US bank might partner with the bank back home, thus making things easier.

Passport

As you might expect, you should also provide a means of identification. More specifically, having a passport and a second form of ID is usually required. On a different note, you should ensure that your passport is valid prior to filing an application.

Individual Tax Identification Number

Another important aspect when it comes to getting a J1 visa mortgage is having a Social Security Number or Tax Identification Number. Usually, you can acquire an individual Tax Identification Number by working with an accountant.

Getting an ITIN might seem a tad challenging at first, but this step is necessary for getting a mortgage. Just as it is necessary to have an ITIN when you reach the US and you start working. This is also mandatory as you start to pay taxes.

Usually, this number is provided when you claim treaty benefits, or when you file tax returns, so on and so forth. Once you have applied for getting an ITIN, a lender will be open to collaborating with you and providing an offer that addresses your personalized circumstances. Essentially, an ITIN showcases your employment history, among other things.

This is evidently important for the lender as it indicates whether you are financially stable or not. Financial stability is, supposedly, among the most important aspects assessed by a lender during the loan application process.

Proof of Assets

Another requirement is to facilitate proof of your assets. This is important in order to verify your financial situation. Concurrently, this matters as it can showcase that you enjoy financial stability.

As it is the case with US residents that apply for a mortgage, the lender wants to review a comprehensive summary of your financial standing. This is basically the purpose of providing all these documents.

Remember that it doesn’t matter if you don’t own any assets in the US. This won’t stand in the way of you qualifying for a J1 visa mortgage. You should simply demonstrate that you have foreign funds. You should also indicate the possibility of transferring the funds to a bank account. In general, a bank will collaborate with a third party in order to access important foreign bank statements.

How to Use a Personal Loan to Pay the Down Payment on Your Mortgage

One of the main impediments that could stay in your way to getting a J1 visa mortgage would be the requirement to provide a sizeable down payment. Basically, most lenders will require at least 20 percent of the total amount of money you want to borrow – namely the size of your mortgage.

And while this may seem like a lot, and you might feel overwhelmed, providing a down payment means that you will make smaller payments throughout the lifespan of the loan. With that in mind, if you want to purchase a house that is worth $200,000, then you should provide a down payment worth $20,000.

What do you do, though, if you don’t have access to this sum of money? This is actually the case for many US residents as well, so don’t fret it. A solution that is readily available would be getting a personal loan. The good thing about personal loans is that you can use this type of financing for almost anything. This means you can also use the money to supply a down payment for your future house.

Moving on to the loan terms for personal loans, they are generally more lenient when it comes to private lenders. That is to say, private lenders are more prone to customizing the loan terms depending on your financial situation. Make sure you compare different options prior to deciding on something, to ensure that you’ve made the right call.

Best Lenders for Downpayment Loans

Avant (Best for Quick Approval)

Check rate on partner page

on partner page

Avant Personal Personal Loan

4.0

Stilt’s lender ratings reflect the findings and opinions of our editorial staff. Our scoring methodologies consider a wide array of factors and data points for every lender, offering, and financial solution.

Min. credit score

550

Fixed APR

9.95-35.99%

Variable APR

N/A

View details

Overview

• Minimum credit score: 550.
• Fixed APR: 9.95-35.99%.
• Loan amounts: $2,000-$35,000.
• Repayment: 1 to 5 years..

Qualifications

• Strong credit and income may secure lower rates, but not mandatory.
• Must possess a bank account in good standing under your name.
• A valid Social Security number is required.
• Bankruptcy should not be active.
• Minimum credit score of 550; using FICO score version 8 and VantageScore version 3.
• Minimum monthly net income: $1,200 from various sources including employment, alimony, retirement, child support, and Social Security payments.

Pros

• A dedicated mobile app is available for loan management.
• Offers a diverse selection of repayment terms.
• Customer service is accessible seven days a week.

Cons

• An origination fee might be applicable.
• They don’t offer co-signed, joint, or secured loan options.
• Direct payments to creditors aren’t available for debt consolidation loans.

AmOne (Best of Low Credit Score)

Check rate on website

on website

AmOne Personal Loan

4.5

Stilt’s lender ratings reflect the findings and opinions of our editorial staff. Our scoring methodologies consider a wide array of factors and data points for every lender, offering, and financial solution.

Min. credit score

600

Fixed APR

3.99%-35.99%

Variable APR

N/A

View details

Overview

• Minimum credit score: 600.
• Fixed APR: 3.99%-35.99%.
• Loan amounts: $1,000 to $50,000.
• Repayment: 1 to 7 years.

Qualifications

• Must be at least 18 years old.
• Must be a U.S. citizen or permanent resident.
• While there’s no specific income requirement, a consistent source of income is essential for the applicant.

Pros

• Suitable for individuals with lower credit scores.
• No cost for the matching service.
• Attractive loan rates.

Cons

• Acts as an intermediary, not a direct lender.
• Risk of multiple contacts from prospective lenders.
• Lack of clarity on lender details.

Upstart (Best for Fair Credit Score)

Check rate on website

on website

Upstart Personal Loan

4.5

Stilt’s lender ratings reflect the findings and opinions of our editorial staff. Our scoring methodologies consider a wide array of factors and data points for every lender, offering, and financial solution.

Min. credit score

None

Fixed APR

4.60-35.99%

Variable APR

N/A

View details

Overview

• Minimum credit score: None.
• Fixed APR: 4.60-35.99%.
• Loan amounts: $1,000-$50,000.
• Repayment: 3 or 5 years.

Qualifications

• Hold U.S. citizenship or possess permanent residency.
• Be a minimum of 18 years old in the majority of states.
• Provide a valid email address and Social Security number.
• Be currently employed full-time or starting a full-time job within the next six months.
• Maintain an active bank account with a recognizable routing number.
• Not have declared bankruptcy in the past year.
• Ensure no delinquencies are present on their current credit reports.
• Record fewer than six hard credit inquiries in the past six months, excluding inquiries for student, auto, or mortgage loans.

Pros

• Welcomes first-time credit users.
• Provides quick fund disbursement.
• Allows flexibility in adjusting payment due dates.
• Offers pre-qualification through a soft credit inquiry.
• Customer support available seven days a week.

Cons

• Origination fee may apply.
• Does not offer joint, co-signed, or secured loan options.
• Lacks a mobile application for loan management.
• Limited to two loan repayment terms.

OneMain Financial (Best for Good Rates)

Check rate on website

on website

OneMain Financial Personal Loan

4.5

Stilt’s lender ratings reflect the findings and opinions of our editorial staff. Our scoring methodologies consider a wide array of factors and data points for every lender, offering, and financial solution.

Min. credit score

None

Fixed APR

18.00-35.99%

Variable APR

N/A

View details

Overview

• Minimum credit score: None.
• Fixed APR: 18.00-35.99%.
• Loan amounts: $1,500-$20,000.
• Repayment: 2 to 5 years.

Qualifications

• Must possess a Social Security number or individual taxpayer identification number.
• Minimum age: 18 in most states.
• No set minimum credit score, but some credit history is preferable.
• No specific minimum income, but must cover personal expenses and the loan’s monthly payment.

Pros

• Flexibility to select and modify your payment date.
• Offers both joint and secured loan options.
• Provides quick loan disbursement.
• Enables direct payments to creditors for debt consolidation.
• Comes with a seven-day policy for loan cancellation.

Cons

• Interest rates are relatively high compared to competitors.
• An origination fee is applicable.
• Doesn’t offer any rate discounts.
• Offers a restricted range of loan amounts.
• APR is not displayed during pre-qualification.

SoFi (Best for Good Credit Score)

Check rate on partner page

on partner page

SoFi Personal Loan

5.0

Stilt’s lender ratings reflect the findings and opinions of our editorial staff. Our scoring methodologies consider a wide array of factors and data points for every lender, offering, and financial solution.

Min. credit score

600

Fixed APR

8.99-35.99%

Variable APR

N/A

View details

Overview

• Minimum credit score: 660.
• Fixed APR: 8.99-29.99%.
• Loan amounts: $5,000-$100,000.
• Repayment: 2 to 7 years.

Qualifications

• Targets borrowers with good to excellent credit; fair credit may qualify.
• Minimum credit score of 660.
• At least two years of credit history.
• Proof of sufficient income sources or employment offer starting in less than 90 days.
• Must be a U.S. citizen, a permanent resident, or a visa holder (J-1, H-1B, E-2, O-1, or TN).

Pros

• Soft credit check is available for pre-qualification.
• Offers high loan amounts.
• 0.25% rate reduction for auto pay.
• No origination fee.
• No prepayment penalty.

Cons

• Minimum 660 credit score required.
• Minimum $5,000 loan amount.

Conclusion

Getting a mortgage application approved is never easy – not even for US residents. This doesn’t mean that you should be discouraged. There is still hope that you can get the J1 visa mortgage you need for purchasing a home. We hope that the guidelines included in our brief guide will serve as a good starting point in this direction.

Rohit Mittal

Rohit Mittal is the co-founder and CEO of Stilt. Rohit has extensive experience in credit risk analytics and data science. He spent years building credit risk and fraud models for top U.S. banks. In his current role, he defines the overall business strategy, leads debt and capital fundraising efforts, leads product development, and leads other customer-related aspects for the company. Stilt is backed by Y Combinator and has raised a total of $275M in debt and equity funding to date.

See author's posts