Fannie Mae NON-Citizens Mortgage Guidelines On Conventional Loans


This BLOG On Fannie Mae NON-Citizens Mortgage Guidelines On Conventional Loans Was PUBLISHED On April 29th, 2019

What are the Fannie Mae NON-Citizens Mortgage Guidelines On Conventional Loans

Recently Fannie Mae added clarity to Fannie Mae NON-Citizens Mortgage Guidelines.

  • Per Fannie Mae Guidelines on Conventional Loans, borrowers do not have to be U.S.Citizens to qualify for home loans
  • Fannie Mae Guidelines, non-citizen home buyers can qualify for a home mortgage without being a U.S. Citizen
  • Fannie Mae Mortgage Guidelines is not a new rule but many mortgage underwriters had issues interpreting the guidelines
  • What this translates to is that many non-citizen borrowers were often turned down on conventional loans they qualified
  • This was for due to the clarity on Freddie Mac and Fannie Mae Mortgage Guidelines on non-citizens mortgage borrowers

In this blog, we will discuss Fannie Mae Mortgage Guidelines and how non-citizens can qualify for conventional loans.

Fannie Mae And Freddie Mac Mortgage Guidelines

What are the Fannie Mae And Freddie Mac Mortgage Guidelines

There are two types of traditional home mortgages:

  • Government Loans (FHA, VA, USDA)
  • Conventional Loans

Government Versus Conventional Loans

Government Loans are insured and partially guaranteed by a government agency. FHA, VA, USDA Loans are the three government loans in today’s market.

  • FHA, VA, USDA does not originate, process, underwrite, nor funds government loans
  • Private lenders are the institutions that originate and fund government loans
  • However, if the lender followed agency guidelines on government loans, the government agency will partially insure lenders in the event borrowers default and the loan forecloses
  • Conventional Loans are not backed by any government agency
  • Conventional loans are often called conforming loans
  • This is because conforming loans need to conform to Fannie Mae and/or Freddie Mac Guidelines
  • Conventional lenders want to re-sell the conventional loans they originate and fund to relieve their warehouse lines of credit
  • This is the main reason why lenders need conventional loans to conform to Fannie Mae and Freddie Mac Guidelines

If the conventional loans do not conform to Fannie/Freddie Guidelines, then Fannie/Freddie will not purchase the loans.

Freddie Mac And Fannie Mae NON-Citizens Guidelines

What are the Freddie Mac And Fannie Mae NON-Citizens Mortgage Guidelines

Freddie Mac and Fannie Mae NON-Citizens Mortgage Guidelines allow borrowers who are legally present in the U.S. to qualify for conventional mortgages. Borrowers who do not meet Fannie Mae NON-Citizens Mortgage Guidelines, Gustan Cho Associates has other alternative financing loan programs for foreign nationals. To be eligible for Fannie Mae NON-Citizens Mortgage, the borrower need to meet the following eligibility requirements:

The borrower needs a valid Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). The borrower must have current, verified status, which may be documented by a valid employment authorization document (EAD), OR other documentation showing immigration status is current (such as a Green Card, work visa, etc). Non-citizen borrowers who are “legally present” must meet all other underwriting guidelines and lenders may review situations differently.  Per Fannie Mae, if a borrower can provide documentation of 3-year income continuity, the fact that their status is renewed every two years is not a factor as long as they are legally present and have met income requirements.

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