The $100K H-1B Fee: Does It Affect Your Mortgage Approval?

Quick answer (updated October 2026): For most borrowers, the $100K H-1B fee has no effect on mortgage approval. The proclamation targeted new petitions for workers outside the US, not extensions, changes of status or people already holding H-1B status, and courts have blocked it as of October 2026. Lenders underwrite your current status, income and credit.

If you're on an H-1B and house hunting, you've seen the headline more times than you'd like: $100,000 per H-1B petition. The natural follow-up question in every group chat is whether lenders will now see H-1B borrowers as riskier, or whether a pre-approval is worth anything.

This guide answers that from the lender's side of the desk. We'll cover who the fee was aimed at, where the litigation stands as of October 2026, what underwriters actually verify, and the narrow situations where it could touch your file.

What the $100K H-1B proclamation covered

On September 19, 2025, a presidential proclamation imposed a $100,000 payment on certain H-1B petitions. Key points, as of October 2026:

• It applied to new petitions for workers outside the US. That is, people who would be entering on a new H-1B.

• It did not apply to extensions, changes of status inside the US, or existing H-1B holders. If you're already here on an H-1B, your next extension wasn't the target.

For a typical homebuyer already working in Dallas, Edison or San Jose on an approved H-1B, the proclamation was never aimed at your status.

Has the H-1B fee been blocked in court?

Yes, as of October 2026. The timeline:

Date	Event
Sept 19, 2025	Proclamation issued imposing $100,000 on certain new H-1B petitions
June 8, 2026	Federal court in Massachusetts (D. Mass.) blocks the fee
July 24, 2026	First Circuit denies a stay, leaving the block in place
Sept 18, 2026	Renewed proclamation issued
Sept 30, 2026	Federal court in Northern California (N.D. Cal.) blocks the renewed proclamation
Now (Oct 2026)	Litigation ongoing

Court cases can shift quickly. Treat this table as a snapshot dated October 2026, and check with your immigration attorney for anything that affects your own petitions.

How lenders treat H-1B fee home buying questions

Mortgage underwriting looks backward and at the present. It doesn't price in policy headlines. Here's what a conventional underwriter checks for an H-1B borrower:

1. Lawful presence today: current I-797 approval notice, I-94, passport.

2. Income and job stability: two years of employment history, paystubs, W-2s, verbal verification of employment shortly before closing.

3. Credit, debt-to-income, assets and reserves: the same tests a citizen faces.

Fannie Mae's Selling Guide (B2-2-02) says non-permanent residents are eligible "under the same terms that are available to U.S. citizens." Freddie Mac's guide takes the same approach. Nothing in either guide references the proclamation, and neither publishes a list of approved visas. Our H-1B mortgage guide for 2026 covers the full documentation path.

Where a lender overlay could show up

Individual lenders can add requirements beyond the agencies, called overlays. After a big immigration headline, some lenders get more cautious, for example asking for extra months on your I-797 or a larger down payment. That isn't a Fannie or Freddie rule. A broker that shops many lenders can usually route around it. See mortgage lender overlays for visa holders for how to tell the difference.

Talk to a loan officer who's seen this before: If a lender told you the H-1B fee news means "wait," get a second opinion. Our two-minute pre-approval check shows which of our 150+ wholesale lenders will look at your file today. Book a call or start your application.

Scenarios: when the $100K H-1B fee might matter to your mortgage

Your situation	Is the proclamation aimed at you?	Mortgage effect
Existing H-1B holder in the US, same employer	No	None at agency level
H-1B holder filing an extension	No (extensions excluded)	None; pending-extension rules apply as usual
Changing employers inside the US under AC21 portability	Not a new petition from abroad; confirm specifics with your attorney	Lenders verify new employment and income
Spouse on H-4 or F-1 planning a future H-1B from inside the US	Change of status was excluded; confirm with attorney	Only current income counts for qualifying
New hire abroad waiting to enter on a new H-1B	Yes, if the fee were in effect	Can't use income you don't yet have; offer-letter rules require being able to start work

The last row is the only one with a real mortgage angle, and it's not about the fee itself. A borrower who isn't yet authorized to work in the US can't count that future salary. If you're already here and starting a new job, the employment-offer rules may help; read mortgage with an offer letter.

A note on pending extensions

If your H-1B extension is pending when you apply, most lenders accept a valid I-797 plus the extension receipt, sometimes with a short employer letter. The proclamation doesn't change that; see H-1B extension pending.

Does the fee affect H-1B mortgage rates?

No. Conventional pricing is based on credit score, loan-to-value, loan type, occupancy and the specific lender's pricing that day, not visa type. For context, the Freddie Mac weekly average for a 30-year fixed was 7.40% and for a 15-year fixed 6.71% on October 15, 2026 (Freddie Mac weekly average, Oct 15, 2026; illustration only, not a quote or offer).

Here's what that looks like on a hypothetical $427,500 loan, the kind we see on a $450,000 purchase with 5% down in suburbs like Cumming or Frisco:

Term	Rate (illustration only)	Principal & interest
30-year fixed	7.40%	$2,959.92/month
15-year fixed	6.71%	$3,773.51/month

Taxes, insurance, mortgage insurance and HOA dues are extra. If anyone tells you visa holders pay a "visa premium" on agency loans, read do visa holders pay higher mortgage rates.

A calm checklist for H-1B buyers right now

• Keep your documents current. I-797, I-94 printout, passport, and EAD where relevant.

• Don't change jobs mid-process unless you must. Portability is allowed, but it adds verification steps.

• Build reserves. Policy noise is a good reason to hold more cash than the minimum, not a reason to stop.

• Get pre-approved by a broker. If one lender gets nervous, another may not.

• Watch the dates. Litigation updates can come fast; your immigration attorney is the right source.

What the rules actually say

• Presidential Proclamation, September 19, 2025: $100,000 payment on certain new H-1B petitions for workers outside the US; did not cover extensions, changes of status or existing holders.

• Court actions (as of October 2026): blocked by D. Mass. (June 8, 2026); First Circuit denied a stay (July 24, 2026); renewed proclamation of Sept 18, 2026 blocked by N.D. Cal. (Sept 30, 2026). Litigation ongoing.

• Fannie Mae Selling Guide B2-2-02: non-permanent residents eligible on the same terms as US citizens; no visa list.

• HUD Mortgagee Letter 2025-09: FHA not available to non-permanent residents (case numbers on or after May 25, 2025), so H-1B buyers use conventional or other non-FHA options.

Frequently Asked Questions

Q: Does the $100K H-1B fee apply to me if I already have an H-1B?
A: Based on the proclamation's terms, no. It targeted new petitions for workers outside the US, not extensions, changes of status or current H-1B holders. It has also been blocked in court as of October 2026. Confirm your specific situation with your immigration attorney.

Q: Will lenders deny H-1B borrowers because of the proclamation?
A: Agency rules haven't changed. Fannie Mae and Freddie Mac still treat non-permanent residents like citizens for eligibility. Some individual lenders may add cautious overlays after policy news, which is why comparing multiple lenders matters more than usual.

Q: Is the H-1B fee still in effect?
A: As of October 2026, courts have blocked both the original and the renewed proclamation, and litigation continues. That could change, so check the latest status with your immigration attorney before making decisions that depend on it.

Q: Can I buy a house on an H-1B extension that's pending?
A: Usually yes. Many lenders accept your current I-797 plus the extension receipt notice, sometimes with an employer letter. Extensions were not covered by the $100K proclamation. Requirements vary by lender, so ask before you lock.

Q: Does the fee change what down payment I need on an H-1B?
A: Not under Fannie Mae or Freddie Mac rules, which apply the same down payment options to visa holders as citizens. Some lenders ask visa holders for more down; that's an overlay, and other lenders may not require it.

Check your pre-approval odds in two minutes

Headlines don't underwrite loans; underwriters do. Our two-minute pre-approval check reviews your current I-797, income and credit profile, then matches you against our 150+ wholesale lenders so a single cautious overlay doesn't decide your timeline. We work with H-1B buyers every week and are licensed nationwide. Have your I-797, last paystub and target price range handy. Book a free 15-minute call at /contact, start your application at /apply, or call 713-366-4668.

Masala Loans is a brand of Matador Lending, LLC (NMLS #2072896). Written by Apurva Sanghavi, President, NMLS #227127. Equal Housing Opportunity. This article is general education, not tax, legal or immigration advice — consult a qualified CPA, attorney or immigration lawyer for your situation. Program availability, rates and terms vary by lender and borrower and are subject to change; not a commitment to lend.