# PERM Freeze Mortgage 2026: Can You Still Buy or Refi?

> PERM freeze mortgage guide for October 2026: what the DOL suspension means for H-1B buyers and refinancers, and what underwriters really check. Read first.

Canonical: https://www.masalaloans.com/blog/perm-freeze-2026-mortgage
Author: Apurva Sanghavi
Published: 2026-10-17T17:23:44.650Z
Tags: mortgage, immigration, h1b, green card, refinance

**Quick answer (updated October 2026):** Yes, in most cases. The PERM freeze mortgage question comes down to this: a paused labor certification does not change your current H-1B status, and Fannie Mae and Freddie Mac do not require a pending green card to lend. Underwriters check your lawful presence, income and job continuity today. Some lenders add overlays, so shop more than one.

On October 8, 2026, the Department of Labor suspended PERM processing for Microsoft, Adobe, Infosys, TCS, Wipro, HCL and Capgemini, with Cognizant already paused since early September. If you work at one of them, your WhatsApp groups lit up within the hour: half said "don't buy anything," half said "nothing changes."

The truth sits in the middle. This guide covers what the suspension touches, what an underwriter actually asks for, how refinancing plays out, and where lender overlays (not the agencies) cause trouble.

## What the PERM suspension actually changes (and what it doesn't)

PERM is the labor certification step, the first stage of most employment-based green cards. As of October 2026, DOL describes the pause as tied to an investigation, with an initial suspension of up to 180 days.

Here is what stays the same:

- **Your H-1B status is not affected.** The suspension pauses green card paperwork at DOL. It does not revoke, shorten or modify your current I-797.

- **I-140s at USCIS are not suspended.** If your employer already has a certified PERM and filed the I-140, that petition moves on its own track.

- **An I-140 approved for 180 days or more generally keeps its priority date**, even if something later goes wrong with the employer.

- **An approved I-140 still supports three-year H-1B extensions** beyond the six-year cap.

What changes is the timeline for people whose PERM is still sitting at DOL, or who haven't filed yet. That can matter for long-term planning. It rarely matters to a loan approval, because conventional lending was never conditioned on a green card case in the first place.

## Does a PERM freeze affect a mortgage approval?

Start with the agency rule. 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." There is no visa list, no minimum remaining validity and no requirement that a green card be in process. Freddie Mac's guide takes the same approach. We break this down in [why Fannie Mae has no approved visa list](https://www.masalaloans.com/blog/fannie-mae-no-approved-visa-list).

So when an underwriter reviews an H-1B file during the PERM freeze, the core questions are:

1. **Are you legally present today?** Valid I-797 approval notice plus I-94, passport, and EAD where relevant.

2. **Is your income stable and likely to continue?** Two-year employment history, recent paystubs, W-2s, a verbal verification of employment before closing.

3. **Do the numbers work?** Credit, debt-to-income, down payment, reserves.

A PERM case number does not appear on that list.

### Where lender overlays come in

Lenders can add stricter rules on top of Fannie and Freddie: minimum time left on the H-1B, proof of a pending extension, a bigger down payment. During a high-profile freeze, a nervous lender might tighten informally. That is an overlay, not the rule, and it is the reason you shop. Our guide on [mortgage lender overlays for visa holders](https://www.masalaloans.com/blog/mortgage-lender-overlays-visa-holders) shows how to spot them.

## PERM freeze home loan scenarios: where do you stand?

| **Your situation (as of Oct 2026)** | **Effect on H-1B status** | **Effect on conventional approval** | **What to have ready** |
| --- | --- | --- | --- |
| PERM filed, pending at DOL, employer on the suspended list | None | None at the agency level; possible overlay questions | Current I-797, I-94, 2 years W-2s, recent paystubs, offer/HR letter if helpful |
| PERM certified, I-140 pending at USCIS | None | None | Same as above; I-140 receipt optional |
| I-140 approved 180+ days ago | None | None; often reassures overlay-heavy lenders | I-140 approval notice (see [how an approved I-140 helps](https://www.masalaloans.com/blog/approved-i140-mortgage-advantage)) |
| No PERM filed yet | None | None | Standard visa-holder file |
| Near your six-year H-1B limit, no approved I-140 | Extension options narrower | Agency rule unchanged; some lenders may want proof of extension path | Talk to your immigration attorney first, then your loan officer |

The last row is the one to take seriously. If you are in year five or six with no approved I-140, the freeze can squeeze your extension options. That is an immigration question first. Your mortgage plan should follow your attorney's read, not the other way around.

**Talk to a loan officer who's seen this before:** If your employer is on the DOL list and you're mid-search, we'll run a free visa-readiness review and tell you which lenders in our 150+ wholesale network accept your file as it stands today. [Book a call](https://www.masalaloans.com/contact) or [start an application](https://www.masalaloans.com/apply).

## Refinancing during the PERM freeze

The Freddie Mac weekly average for a 30-year fixed was **7.40%** on October 15, 2026, up from **6.95%** on September 17 (Freddie Mac weekly average, Oct 15, 2026; illustration only, not a quote or offer).

A refinance is underwritten like a purchase on the status side. The lender verifies lawful presence, income and employment. Practical points:

- **Rate-and-term refinance:** The PERM freeze is not a factor at the agency level. The same overlay risk applies.

- **Cash-out refinance:** Lenders tend to be more conservative here for every borrower. Expect more questions, not necessarily a no.

- **ARM resets:** If your adjustable rate resets in the next 12 to 18 months, don't wait for the freeze to clear before getting a quote. Status in hand today is what counts.

### Illustration: what a rate change costs

Say Arjun, a hypothetical Infosys engineer in Plano, owes $450,000 on a 30-year loan.

| **Rate (30-yr, illustration only)** | **Principal & interest per month** |
| --- | --- |
| 6.95% (Freddie Mac avg, Sept 17, 2026) | **$2,978.77** |
| 7.40% (Freddie Mac avg, Oct 15, 2026) | **$3,115.71** |
| Difference | **$136.94/month** |

Taxes, insurance and any PMI are extra.

## Should you wait to buy until PERM resumes?

Ask yourself:

- **How secure is the job itself?** The freeze is about DOL processing, not layoffs. But if your team is also cutting heads, that is a separate risk.

- **How long do you plan to stay in this metro?** Buying and selling within two or three years usually costs more than renting once you count closing costs and commissions.

- **Do you have reserves?** Six months of payments in a US account is a sensible personal target for visa holders, even when the lender requires less.

- **What does your immigration attorney say about your timeline?** Especially if you are close to year six.

We cover the broader decision in [buy now or wait for a green card](https://www.masalaloans.com/blog/buy-now-or-wait-for-green-card). The short version: a green card makes some lenders more comfortable, but it is not required, and waiting has its own cost. If an extension is in flight, our guide to [getting a mortgage with an H-1B extension pending](https://www.masalaloans.com/blog/h1b-extension-pending-mortgage) covers the receipt-notice route.

## What the rules actually say

- **Fannie Mae Selling Guide B2-2-02** (07/28/2015): non-permanent residents are eligible on the same terms as US citizens; the lender decides documentation and warrants the borrower is legally present.

- **Freddie Mac Guide 5103.2:** a non-citizen lawfully residing in the US as a permanent or non-permanent resident is eligible on the same terms as a US citizen.

- **DOL PERM suspension, October 8, 2026:** processing paused for named employers pending investigation, initial pause up to 180 days; H-1B status and USCIS I-140 processing are not suspended (as of October 2026).

- **HUD Mortgagee Letter 2025-09:** FHA is not available to non-permanent residents for case numbers on or after May 25, 2025, so conventional financing is the main path for H-1B buyers.

## Frequently Asked Questions

**Q: Can I still get a mortgage if my PERM is paused?**<br />A: Yes, typically. Fannie Mae and Freddie Mac do not require a PERM, I-140 or pending green card for a conventional loan. Lenders verify that you are legally present now and that your income is stable. A specific lender might be more cautious during the freeze, which is an overlay. A broker can route your file to a lender without that restriction.

**Q: Does the PERM suspension affect my H-1B status?**<br />A: As of October 2026, no. The DOL suspension pauses labor certification processing for named employers. It does not change an approved H-1B petition, your I-94 or your ability to work. Confirm your case with your immigration attorney.

**Q: Will the lender ask about my green card process?**<br />A: Some loan officers ask, and the loan application asks about citizenship and residency status. But a green card case is not an agency requirement. If a lender says it needs an approved I-140 to proceed, that is its own overlay, and other lenders may not require it.

**Q: Can I refinance during the PERM freeze?**<br />A: Usually yes. A refinance verifies your current status, income and credit the same way a purchase does. Cash-out refinances tend to get more scrutiny for all borrowers. Get quotes now if you have an ARM reset coming, since your status today is what's underwritten.

**Q: How long will the PERM freeze last?**<br />A: DOL described an initial pause of up to 180 days tied to an investigation, as of October 2026. It could be shorter, extended or modified. Plan around your current documents rather than a predicted end date, and check with your immigration attorney for updates.

## Get your PERM-freeze game plan in 15 minutes

If your employer is on the DOL list, you don't need a pep talk; you need to know whether your file closes. Our free visa-readiness review checks your I-797 and I-94 dates, income documentation and down payment trail, then matches you against lenders from our 150+ wholesale relationships so one lender's nervous overlay isn't the final word. We work with H-1B borrowers every week and are licensed nationwide. Have your I-797, last paystub and a rough price range ready. 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.*