H-1B Layoffs Strain U.S. Homeowners Amid Mortgage, Visa Rules

(UNITED STATES) A fresh wave of H-1B layoffs in 2025 is pushing many skilled workers into a financial and legal corner, as job losses trigger a rapid countdown on their visa status while mortgage payments on U.S. homes keep coming due. In tech hubs from Seattle to Austin, H‑1B homeowners say they are being forced to choose between selling at a loss, defaulting on loans, or trying to pay mortgages from abroad after being ordered to leave the country within 60 days of losing their jobs.

How policy and cost changes accelerated layoffs

The crisis has grown sharper since the return of President Trump to the White House and the rollout of tougher immigration rules. A new $100,000 fee on each H‑1B petition, applied to many employers starting this year, has already led to hiring freezes and layoffs at large and mid‑sized tech firms, according to immigration lawyers and company insiders.

VisaVerge.com reports that some employers now see foreign hires as a “luxury risk,” especially when remote work from overseas is possible at lower regulatory cost.

Housing consequences for H‑1B homeowners

For thousands of Indian engineers and other foreign professionals, the problem is not only the loss of a job but the knock‑on effect on housing. Many bought homes during the tech boom, encouraged by high salaries, low interest rates, and years of apparently stable H‑1B extensions.

Now they face a harsh rule: once employment ends, most H‑1B workers have just 60 days to secure a new sponsor, change status, or leave the 🇺🇸 — but their mortgage payments do not stop when the visa does.

“We have a 30‑year mortgage and a 60‑day grace period,” said an Indian software manager in Dallas who was laid off in March. “Those two timelines don’t match.”

HUD decision: FHA loans closed to non‑permanent residents

The pressure has been intensified by a separate housing policy decision. Since May 25, 2025, the Department of Housing and Urban Development (HUD) has barred non‑permanent residents, including H‑1B workers, from using Federal Housing Administration (FHA)‑insured loans.

FHA loans had been a key entry point for first‑time buyers who lacked large down payments or perfect credit histories. According to housing analysts, FHA loans to non‑permanent residents fell from about 6% of originations in early 2024 to nearly zero by mid‑2025, after lenders adjusted to the new rule.

Official FHA guidance on borrower eligibility is published on the HUD portal at HUD portal at hud.gov/program_offices/housing/fhahistory.

Lenders’ response and tighter mortgage rules

Without FHA backing, most affected workers now must rely on conventional mortgages that demand:

• Higher credit scores
• Larger down payments
• Stronger documentation and stricter proof of future employment

Lenders in states with high numbers of H‑1B professionals, such as Texas and Florida, have quietly tightened internal rules for foreign workers, several mortgage brokers say. Some banks now:

• Add rate premiums
• Require bigger cash reserves
• Impose stricter underwriting for H‑1B applicants

These changes are intended to offset perceived risk from sudden H‑1B layoffs and forced departures. As a result, many potential buyers have pulled back from the market, boosting demand for higher‑end rentals and increasing pressure on already tight urban housing supply.

Employment cuts in tech and consequences for H‑1B workers

The employment shock has been most visible at major tech companies. For example:

• Microsoft alone has cut about 9,000 jobs in 2025, with a sizable share held by foreign workers on H‑1B status.
• Amazon, Meta, and Google continue to win the bulk of new H‑1B approvals, but have trimmed teams and cancelled planned hires in response to higher visa costs and tougher compliance reviews.

Smaller technology firms and Indian‑headquartered consultancies—historically heavy H‑1B employers—are scaling back U.S. hiring plans as the $100,000 fee and stricter scrutiny make each sponsored role far more expensive.

Legal timeline and options after a layoff

The legal timeline after a layoff is tight and unforgiving. Once an H‑1B worker’s employment ends, the person generally has up to 60 days (or until the end date on the latest approval notice, whichever is shorter) to:

1. Find a new H‑1B sponsor and file a transfer,
2. Change status to another legal category, or
3. Depart the U.S.

One commonly used path is a move to B‑2 visitor status, which can provide time to sell a home, close accounts, and arrange school transfers for children. This shift is usually requested on Form I‑539, available through U.S. Citizenship and Immigration Services at U.S. Citizenship and Immigration Services at [uscis.gov/i-539].

Immigration lawyers warn that higher filing costs for employers and a rise in Requests for Evidence make new H‑1B job offers harder to secure within the two‑month window.

Practical steps H‑1B workers face after losing a job

• Assess your remaining validity on the latest approval notice.
• Immediately consult an immigration attorney about transfers, status changes, or B‑2 filing.
• Consider housing options: sell, rent out, or arrange mortgage forbearance (if available).
• Prepare financial contingencies for mortgage payments if forced to leave.

Community responses and changing attitudes

Online H‑1B forums and social media groups have filled with warnings about homeownership during temporary worker status. Posts from laid‑off engineers in California and New Jersey describe rushed sales, steep losses, and the prospect of becoming “accidental landlords”—managing U.S. properties from India.

Community advice now frequently includes:

• “Rent until you have a green card.”
• Avoid buying near major campuses until visa permanence is secured.

According to VisaVerge.com, this fear is already reshaping choices of younger workers who might otherwise have bought starter homes near major tech campuses.

Broader market impact and forecasts

Economists say the broader housing market impact is uneven but real. In cities with heavy H‑1B concentrations (parts of California, New York, Texas, and the Washington, D.C. region):

• Fewer foreign buyers can reduce demand for entry‑level and mid‑range homes.
• Richer households may stay in the rental market longer.
• Stricter credit rules and the loss of FHA access may limit distress sales from triggering a widespread price slump.

Analysts expect a gradual shift rather than a crash:

• More professional families renting for years.
• More vacant homes put up for rent when owners are forced to leave.
• A small but growing number of foreclosures tied to vanished work visas rather than local job trends.

Key figures at a glance

Personal stories and final warnings

Behind the numbers are personal stories of risk and regret. A senior data engineer in Florida, who bought a three‑bedroom townhouse in 2022 with an FHA loan, said he now feels “trapped between two systems” after being laid off in January. His family is trying to sell before their grace period ends, but bids so far are below the outstanding loan balance.

“The bank doesn’t care about my visa status. They only care that the mortgage payments arrive,” he said.

Asked what advice he would give to newcomers on H‑1B visas, he answered without pause:

“Rent. No matter how safe your job looks, H-1B layoffs can erase your plan overnight.”