Buying a home in the U.S. while on an H1B visa is no easy feat. I experienced that firsthand when I began my journey to homeownership, only to face rejection from the builder’s lender. As someone with a strong credit score of 730 and a steady job in the tech sector, I was disappointed and confused. That’s when I discovered Dream Home Mortgage, and they changed everything.
With their help, I secured a conventional loan with a 5% down payment on a $1,050,000 property. Not only was the process smooth and timely, but I also learned so much about the difference between loan options like FHA vs Conventional loans and even jumbo vs conventional loans. Here’s my full experience, and everything I wish I had known from the beginning.
1. The Initial Roadblock: Rejected by the Builder’s Lender
As an H1B visa holder, I always knew buying property would require extra care and planning. However, I didn’t anticipate being rejected after providing all the necessary documentation. The builder’s lender claimed that my visa status made things “too complicated,” even with my 730-credit score and 5% down payment ready.
It felt like the American dream was slipping away. However, that was until I contacted Dream Home Mortgage.
2. Finding a Lifeline: Dream Home Mortgage
From the first consultation session, the team at Dream Home Mortgage made me feel heard and valued. They understood the urgency of my situation and assured me that my profile was a good fit for a conventional loan. They explained everything clearly, from the conventional loan requirements to why it was a better fit than an FHA loan in my case.
They reviewed my income, assets, and immigration status and quickly developed a loan strategy. Within days, we had a solid approval in motion which was approved within 2 weeks.
3. FHA vs Conventional Loan: Why I Chose the Latter
During our consultation, the mortgage advisor walked me through the difference between FHA and conventional loans. Here’s a simplified version of what I learned:
- FHA Loans are often better for first-time buyers with lower credit scores or minimal savings. However, they come with higher mortgage insurance premiums.
- Conventional Loans, on the other hand, work well for those with stronger credit and more flexibility in income sources like me.
For someone with a 730-credit score, the conventional loan vs FHA loan comparison made the decision obvious. Not only would I pay lower mortgage insurance, but I’d also have more favorable interest rates and fewer long-term costs.
4. Understanding Conventional Loan Requirements
Before this experience, I didn’t know much about what conventional loans required. Here’s what Dream Home Mortgage helped me understand:
- Credit Score: Generally, 620 and above. At 730, I easily qualified.
- Debt-to-Income Ratio: They preferred it under 49.9%. Luckily, my stable job helped me meet this.
- Down Payment: While 20% is ideal to avoid private mortgage insurance (PMI), 3% to 5% is often enough with good credit—just like in my case.
- Employment Verification: As an H1B visa holder, I needed to show consistent employment and legal work status.
Their guidance ensured that I met every criterion without confusion or stress.
5. My 5% Conventional Loan Down Payment: A Game-Changer
I always assumed that buying a million-dollar home would require hundreds of thousands in upfront cash. Dream Home Mortgage shattered that myth.
With a conventional loan down payment of just 5% on a $1,050,000 home, I was able to hold onto my emergency savings and still move forward with the purchase. The team helped me structure the loan smartly, ensuring I wouldn’t overpay in PMI or interest over time.
This low-down payment made homeownership accessible without financial strain.
6. Jumbo vs Conventional Loans: What You Need to Know
Given the home price, which is $1,050,000, I was initially concerned I’d need a jumbo loan, which usually means stricter underwriting and higher rates. But the Dream Home Mortgage team structured the loan creatively.
They suggested splitting the loan into two parts to stay within conventional loan limits, thereby avoiding jumbo loan conditions altogether. This not only reduced my financial burden but also streamlined the approval process.
If you’re stuck comparing jumbo vs conventional loans, ask your lender about a piggyback structure or other creative solutions. It made a huge difference for me.
7. Closing Process: Smooth and Timely
One of my biggest concerns was timing. Would this delay affect my contract with the builder? Would I lose my deposit?
Thankfully, none of that happened. Dream Home Mortgage got the loan approved and closed on time, coordinating flawlessly with the title company and builder’s agents. I was constantly updated throughout the process, and there were no last-minute surprises.
For someone on an H1B visa, this kind of efficiency and communication was invaluable.
8. Homeownership Realized—With Minimal Stress
Thanks to Dream Home Mortgage, I now own a beautiful home I thought I might lose. The mortgage rate is fair, the down payment didn’t drain my savings, and the process was far more transparent than I ever expected.
Their deep understanding of loan products and visa challenges made all the difference. If you’re trying to understand FHA vs conventional loan options or are unsure about conventional loan requirements, I highly recommend reaching out to them.
Why I Recommend Dream Home Mortgage?
If you’re on an H1B visa and feeling discouraged, don’t give up. There are solutions such as conventional loans and people who care. Dream Home Mortgage didn’t just approve my conventional loan, they gave me confidence, knowledge, and a place to call home. With over 27 years of experience under the capable leadership of Mr. Hussein Panjwani, the team at Dream Home Mortgage has helped many H1B visa holders call America their home. Thanks to their one-on-one 30-minute free consultation session, I was able to achieve homeownership with confidence!
