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Fannie Mae NON-Citizens Mortgage Guidelines On Conventional Loans

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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

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

  • Per Fannie Mae NON-Citizens Mortgage Guidelines on Conventional Loans, borrowers do not have to be U.S.Citizens to qualify for home loans
  • Fannie Mae NON-Citizens Mortgage Guidelines, non-citizen home buyers can qualify for a home mortgage without being a U.S. Citizen
  • Fannie Mae NON-Citizens 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 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 NON-Citizens Mortgage Guidelines and how non-citizens can qualify for conventional loans.

Fannie Mae And Freddie Mac Mortgage Guidelines

There are two types of traditional home mortgages:

  • Government Loans (FHA, VA, USDA)
  • 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 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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