The deposit you need depends almost entirely on which loan program you choose — and, if you are a foreign national, on your immigration status as well. Minimum down payments range from 0% for eligible VA borrowers to 40% or more for non-resident alien portfolio loans. Understanding where you sit before you make an offer is the difference between a smooth closing and a painful fall-through.

Why Deposit Requirements Matter More in 2026

The US mortgage market has gone through significant repricing over the past three years. While rates have moderated slightly from their 2023 peaks, lenders have tightened their credit overlays — the additional standards they layer on top of federal guidelines — particularly for borrowers they consider higher-risk. Foreign nationals and recent immigrants are frequently placed in that category, not because of financial weakness, but because their documentation and credit histories look unfamiliar to automated underwriting systems.

At the same time, home values in major immigrant-destination metros remain elevated. A 20% deposit on a $650,000 home in the Dallas suburbs or a $900,000 property near San Jose represents $130,000 to $180,000 in liquid capital that must be planned for well in advance — sourced, seasoned, documented, and ready to move across borders if necessary.

The good news is that the mortgage landscape for foreign nationals has quietly improved. More portfolio lenders actively market foreign national loan programs, private banks compete for high-asset international buyers, and digital documentation tools have made cross-border asset verification more manageable. But you still need to know the rules for each loan type before you start.

If you are in the very early stages of your US property journey — including understanding whether buying even makes sense given your visa timeline — the broader guide on how immigrants can buy a house in the US is a useful starting point. This article drills into the specific numbers.

The Main Loan Types and Their Deposit Requirements

FHA Loans

Federal Housing Administration loans are the classic entry point for first-time buyers with limited savings. The FHA insures the loan against default, which allows lenders to offer lower deposit thresholds.

  • Minimum deposit: 3.5% (credit score 580+)
  • Minimum deposit: 10% (credit score 500–579)
  • Mortgage insurance: Required for the life of the loan if your deposit is below 10%; for at least 11 years if 10% or more
  • Immigration eligibility: Lawful permanent residents (green card holders) are treated the same as US citizens. Certain non-immigrant visa holders can qualify if they can demonstrate an intention to remain in the US for at least the term of the loan. Non-resident aliens are not eligible for FHA loans.

FHA loans are administered by private lenders but must meet HUD guidelines. The actual deposit percentage you need is calculated on the purchase price or appraised value, whichever is lower — a distinction that matters in competitive markets where buyers sometimes bid above appraisal.

For a worked example of broader FHA eligibility requirements, see our first-time buyer mortgage requirements explained guide.

Conventional Loans (Conforming)

Conventional loans conform to the purchase guidelines set by Fannie Mae and Freddie Mac. They are not government-insured, which means lenders carry more risk — but they also offer more flexibility for borrowers with strong profiles.

  • Minimum deposit: 3% — available only through specific programs (Fannie Mae HomeReady, Freddie Mac Home Possible), which have income caps
  • Standard minimum: 5% for most borrowers
  • Deposit to avoid PMI: 20%
  • Immigration eligibility: Lawful permanent residents qualify under the same terms as US citizens. Non-immigrant visa holders (H-1B, L-1, O-1, E-2, and similar) can often qualify, but the lender must verify that the visa will not expire before the first year of the mortgage term — or that it is renewable. Some lenders impose stricter overlays.

Conventional conforming loan limits are adjusted annually. In 2026, the baseline conforming limit sits above $760,000 in most counties, with higher limits in designated high-cost areas. If your purchase price exceeds the applicable limit, you move into jumbo territory.

For details on how private mortgage insurance interacts with your deposit size — and how to calculate exactly when it falls off — read our mortgage insurance and PMI explained guide.

VA Loans

VA loans are backed by the Department of Veterans Affairs and represent the most generous deposit terms available in the US residential mortgage market.

  • Minimum deposit: 0% for eligible borrowers up to the full VA entitlement
  • Funding fee: A one-time fee (currently ranging from roughly 1.25% to 3.3% of the loan amount, depending on service history and whether it is a first use) replaces PMI. This can be rolled into the loan.
  • Immigration eligibility: VA loans are restricted to qualifying veterans, active-duty service members, National Guard members, reservists, and certain surviving spouses. US citizenship is not an absolute requirement — lawful permanent residents who served in the US military may qualify — but immigration status must be carefully reviewed with a VA-approved lender and potentially a licensed immigration attorney.

For most foreign nationals arriving in the US for work or business, VA loans will not be available. However, if your immigration journey to the US began through military service, this program deserves serious investigation.

USDA Loans

USDA loans are backed by the US Department of Agriculture and target moderate-income buyers purchasing in eligible rural and certain suburban areas.

  • Minimum deposit: 0%
  • Guarantee fee: An upfront fee (currently 1% of the loan amount) plus an annual fee (currently 0.35% of the outstanding balance) replaces PMI.
  • Income limits: Must not exceed 115% of the area median income for your household size.
  • Property location: Must be in a USDA-eligible area (check the USDA eligibility map at usda.gov).
  • Immigration eligibility: Restricted to US citizens, US non-citizen nationals, and "qualified aliens" — a legal term that includes lawful permanent residents. Temporary visa holders generally do not qualify.

USDA loans are rarely used by immigrant business owners targeting urban markets, but they can be a strong option for green card holders buying in commuter towns or rural communities.

Jumbo Loans

Jumbo loans exceed the conforming loan limits and are not backed by Fannie Mae or Freddie Mac. Each lender sets its own guidelines.

  • Minimum deposit: typically 10%–20% for US citizen / LPR borrowers with strong credit
  • Common deposit for foreign nationals: 25%–35%
  • Documentation requirements: Significantly more intensive than conforming loans; often require 12–24 months of bank statements, full asset documentation, and a US credit history spanning at least 2 years
  • Immigration eligibility: Varies by lender, but many jumbo lenders will work with non-immigrant visa holders and some non-resident aliens if the asset picture is compelling

Jumbo loans are where private banking relationships become particularly valuable. High-asset international buyers often find that a private bank is willing to underwrite a large mortgage in part because of the broader wealth management relationship. If you are in this category, the guide to private banks for high net worth new US residents explains how these arrangements typically work.

Foreign National Loans (Portfolio Products)

For buyers who hold no US visa — or who have very recently arrived and have no US credit footprint — foreign national loan programs are the primary pathway.

  • Minimum deposit: 25%–40% (illustrative range; individual lenders vary)
  • Interest rates: Typically 0.5% to 2% above comparable conventional rates, though this gap has narrowed as competition among portfolio lenders has increased
  • Documentation: Foreign bank statements (often 12–24 months), foreign credit report or reference letter, proof of income (employment contract, business financials), and full passport/visa documentation
  • No SSN required: Many programs accept an ITIN for tax identification purposes
  • Property types: Often limited to primary residences and investment properties in major metropolitan areas; rural properties may not be eligible

Foreign national loans are held on the lender's own balance sheet rather than sold to the secondary market — which is why they are called "portfolio" loans. This gives lenders more flexibility but also means rates and terms vary enormously. Shopping among three to five lenders before committing is essential.

Deposit Requirements at a Glance

Loan Type Minimum Deposit PMI/Insurance Green Card Holders Visa Holders Non-Resident Aliens
FHA 3.5% (580+ score) Yes (MIP) ✅ Eligible ⚠️ Case by case ❌ Not eligible
Conventional (conforming) 3%–5% If <20% deposit ✅ Eligible ⚠️ Visa must not expire soon ⚠️ Difficult
VA 0% No PMI (funding fee) ⚠️ Military service required ❌ Generally not eligible ❌ Not eligible
USDA 0% No PMI (guarantee fee) ✅ Eligible ❌ Generally not eligible ❌ Not eligible
Jumbo (conventional) 10%–20% Varies ✅ Eligible ⚠️ Stricter overlays ⚠️ Very limited
Foreign national / Portfolio 25%–40% Varies ✅ Eligible ✅ Eligible ✅ Primary option

Table reflects illustrative market norms as of 2026. Individual lender overlays may differ. Figures are not guarantees.

How Your Immigration Status Changes the Math

Your visa category is not just a compliance checkbox — it directly affects which loan programs are open to you and, within those programs, how much deposit you will need. Here is a simplified framework:

Lawful permanent residents (green card holders): Treated essentially the same as US citizens for FHA, conventional, VA (if service-eligible), and USDA loans. Standard deposit minimums apply. Focus your energy on building or importing your credit profile.

Non-immigrant visa holders (H-1B, L-1, O-1, TN, E-2, and similar): Eligible for conventional loans if you have at least two years of US credit history and your visa has a reasonable remaining term or is demonstrably renewable. FHA may be available depending on lender overlays. Foreign national programs are a backup if conventional lending does not work.

Non-resident aliens (no US visa; ITIN holders): Foreign national portfolio loans are typically your only mainstream option. Budget for 25%–35% down. Consider whether bringing a co-borrower with a US credit history (a business partner, spouse, or relative who is a US person) makes sense — though this has legal and financial implications that warrant advice from a CPA or attorney.

Building a US credit history as early as possible accelerates your access to better programs. For practical steps, the article on getting a mortgage with a thin credit file covers strategies used by immigrants who have been through this process.

Sourcing and Documenting Your Deposit

Regardless of loan type, lenders will scrutinise where your deposit comes from. The process is governed by anti-money-laundering rules and secondary market requirements, which means there is little room for informal or undocumented transfers.

What lenders look for:

  • Bank statements covering the most recent 60–90 days, showing the funds have been present (this is called "seasoning")
  • A clear paper trail for any large deposits within that window
  • Wire transfer documentation for international funds
  • Gift letters (with specific required language) if any portion of the deposit is a gift

For cross-border transfers: If your deposit savings are held outside the US — which is common for recent arrivals — you will need to move the money in a documented, traceable way. Exchange rate costs and transfer fees matter here; a $200,000 transfer converted at the wrong time or through the wrong channel can cost thousands of dollars. Understanding your cheapest, most traceable options is worth reading about separately in our guide to the cheapest ways to move money between countries.

Once the funds arrive in the US, they should sit in a US bank account for at least two to three months before your mortgage application goes in. Opening that account early — ideally as soon as you arrive — is a foundational step. See opening a bank account as a new arrival in the US for the practical how-to.

Worked Illustrative Examples

These examples are illustrative only. They use round numbers for clarity and do not represent actual products, rates, or guaranteed outcomes.

Example 1: LPR Buyer, FHA Loan

Profile: Maria arrived from Brazil on a work visa four years ago, obtained her green card 18 months ago, and has built a US credit score of 695. She earns $95,000 per year as a software engineer and wants to buy a $380,000 townhouse in the Atlanta suburbs.

Loan choice: FHA loan at 3.5% down.

  • Deposit: $380,000 × 3.5% = $13,300
  • Upfront MIP: 1.75% of loan amount = $6,377.50 (typically rolled into loan)
  • Annual MIP: 0.55% of outstanding balance per year (illustrative; varies by loan term and LTV)
  • Estimated closing costs: $7,000–$10,000 (separate from deposit)

Maria needs approximately $20,000–$24,000 in total liquid funds at closing (deposit + closing costs). Her green card status means she is treated identically to a US citizen for FHA purposes.

Example 2: H-1B Visa Holder, Conventional Loan

Profile: Raj arrived from India on an H-1B visa seven years ago. He has a US credit score of 740, earns $155,000 annually, and wants to buy a $620,000 home in the Dallas-Fort Worth area. His visa was renewed recently and has four years remaining.

Loan choice: Conventional conforming loan at 10% down (to stay under the conforming limit and avoid a jumbo product).

  • Deposit: $620,000 × 10% = $62,000
  • PMI: Required until LTV reaches 80% (~$124,000 in equity). At an illustrative PMI rate of 0.5% annually, that is approximately $2,790/year on the initial loan balance, decreasing as the loan amortises.
  • Estimated closing costs: $12,000–$15,000

Raj's four-year visa remaining term satisfies most lenders' "will not expire in year one" test. His lender may ask for evidence that the visa is renewable, typically satisfied by an employer letter and prior renewal stamps in his passport.

Example 3: Non-Resident Alien, Foreign National Portfolio Loan

Profile: Chen is a Chinese national who owns a business in the US on an investor visa but spends significant time between both countries. He has an ITIN but no US credit score. He wants to purchase a $1.1 million condominium in Miami as a US base.

Loan choice: Foreign national portfolio loan at 30% down.

  • Deposit: $1,100,000 × 30% = $330,000
  • Interest rate: Illustratively 1.25% above a comparable conventional 30-year rate (portfolio lender premium)
  • Documentation required: 18 months of Chinese and US bank statements, business financials, ITIN, passport, visa documentation, English-translated records
  • Funds sourcing: Chen holds capital in a Hong Kong brokerage account and will wire funds to a US account 90 days before closing, with full documentation of the transfer

Chen's higher deposit requirement reflects the lender's additional risk: no US credit history, international income that is harder to verify, and a property type (condo) that carries its own underwriting scrutiny.

5 Common Deposit Mistakes — and How to Avoid Them

  1. Assuming the deposit is the only upfront cost. Solution: Budget for closing costs (typically 2%–5% of the purchase price), prepaid items (homeowner's insurance, property tax escrow, prepaid interest), and a home inspection. Your total cash-to-close can be 7%–10% of the purchase price even on a 3.5% FHA loan.

  2. Moving deposit funds to a US account too late. Solution: Transfer international funds at least 90 days before your anticipated closing date. Lenders typically want 60 days of US bank statements, and unexpected compliance holds on large international wires can delay things further. Earlier is always safer.

  3. Accepting a gift from family without a formal gift letter. Solution: If any part of your deposit is a gift, your lender needs a signed letter stating the amount, the relationship between donor and borrower, and that the funds are a gift — not a loan. Using borrowed funds as a "gift" is mortgage fraud; never do it.

  4. Not shopping foreign national loan products. Solution: Deposit requirements and rates for portfolio loans are not standardised. A deposit requirement of 25% from one lender may be 35% from another for an identical borrower profile. Get quotes from at least three lenders, including specialist foreign national mortgage brokers who work across multiple portfolio lenders.

  5. Assuming your foreign credit history is invisible. Solution: Some US lenders accept international credit reports through services that convert them into a US-equivalent format. If you have a strong credit history in Canada, the UK, Australia, India, or Mexico, ask your lender whether they use third-party international credit verification. This can reduce your required deposit or open conventional programs that would otherwise be closed to you.

Buy-to-Let and Investment Property Deposits

If you are buying a US property for rental income rather than as your primary residence, deposit requirements are higher across the board — and the foreign national premium stacks on top.

  • Conventional investment property: Minimum 15%–25%, depending on whether the property is single-family or multi-unit
  • Foreign national investment property: 30%–40% is common
  • FHA and VA: Not available for pure investment properties (FHA requires owner-occupancy)

For a full breakdown of the investment property landscape for non-residents, including how rental income is treated in mortgage qualification calculations, see our buy to let mortgages for non-residents guide.

Building Toward a Lower Deposit Requirement

The most effective thing a foreign national can do over a 12–24 month horizon to reduce their required deposit is to build a verifiable US financial footprint. Practically, that means:

  • Opening a US bank account and maintaining consistent, well-documented balances
  • Obtaining a secured credit card or credit-builder loan to establish a US credit history
  • Filing US tax returns using your SSN or ITIN to create an income trail that US lenders can verify
  • Maintaining clean, well-documented records of international income (employment contracts, foreign tax returns, business financials)

Investors who hold assets in brokerage accounts — including foreign nationals with US-based investment accounts — may find that demonstrating substantial reserves (often 6–12 months of projected mortgage payments in liquid assets) partially compensates for a thinner credit file. For those exploring US investment accounts as part of their broader financial setup, the overview of best brokerage accounts for non-resident aliens 2026 is worth reading alongside this guide.

A Note on Deposit Requirements and Tax Obligations

A frequent question is whether moving a large deposit from abroad triggers tax reporting obligations in the US. This article cannot and does not provide tax advice — the interaction between large international transfers, FBAR filing requirements, FATCA, and your specific tax residency status is a question for a licensed CPA with international tax experience. What we can say is that documented, legitimate funds are always preferable to undocumented ones, and that your mortgage lender's documentation requirements and the IRS's reporting requirements are separate processes that both need to be managed correctly.

Final Checklist Before You Apply

  • ✅ Confirm which loan programs your immigration status makes you eligible for
  • ✅ Check your US credit score (or investigate international credit verification options)
  • ✅ Calculate your full cash-to-close, not just the deposit percentage
  • ✅ Begin seasoning your US deposit funds at least 90 days out
  • ✅ Gather 12–24 months of foreign and US bank statements
  • ✅ Document any gifts with a proper gift letter
  • ✅ Get quotes from at least three lenders, including at least one specialist in foreign national mortgages
  • ✅ Consult a CPA about the tax implications of large international transfers before moving funds
  • ✅ If your immigration status is complex, confirm your eligibility with a licensed immigration attorney before committing to a purchase contract

Understanding deposit requirements by loan type is the foundation of a realistic US mortgage plan. The numbers above are starting points — your specific lender, property type, metro area, and immigration status will all move the final figure. Go in informed, and the process becomes considerably more predictable.