Non-Permanent Residents Mortgage Lending Guidelines

This BLOG On Non-Permanent Residents Mortgage Lending Guidelines Was UPDATED And PUBLISHED On December 1st, 2019

Non-Permanent Residents
Gustan Cho Associates

There are certain guidelines for non-permanent residents who are interested in qualifying for a mortgage loan in the United States.

  • Non-permanent residents with work permits or visas can qualify for Conventional and FHA residential mortgage loans if they are legally here in the United States on work permits
  • Or work visas or Employment Authorization Document, also known as EAD

In this article, we will cover and discuss Qualifying For Mortgage For NON-Permanent Resident Borrowers.

General Mortgage Guidelines For Non-Permanent Resident On Work Visas

What are General Mortgage Guidelines For Non-Permanent Residents On Work Visas

To qualify for a residential mortgage loan for non-permanent residents, they need to provide two years of work history in the United States.

  • This work history requirement can be waived if the non-permanent resident borrower has worked for the same company and has worked outside of the United States for the same company
  • For example, if the employer is a Global corporation and if the borrower was based in the employer’s Canada branch and got transferred to Florida, this will be allowed

Employment History

What are Employment History

The borrower also needs to have a two-year credit history.

  • Canadian credit reports are allowed
  • Fannie Mae and Freddie Mac will purchase mortgage loans that have been made to non-permanent residents who are legally here in the United States with valid work visas
  • Fannie Mae and Freddie Mac treats non-permanent residents no different than regular United States citizens
  • Under Fannie Mae or Freddie Mac lending guidelines, it does not specifically state the mortgage loan documentation the lender needs to get in order to verify that the non-permanent resident is residing in the United States legally
  • Fannie Mae and Freddie Mac leaves the discretion up to the lender to determine whether the borrower is a legal working resident with the proper paperwork and/or permits/visas
  • Typically, mortgage underwriters will require copies of valid work permits or work visas in determining their legal work status

Work Visas

What Non-Permanent Residents mean: Work Visas

Lenders will require a valid work visa from non-permanent residents which is valid for at least one year.

  • If the work visa from non-permanent residents are valid for less than one year, a letter from the employer will be required with the verbiage that the employer is going to retain the employee and that the likelihood of future employment is likely
  • The verbiage in the letter also needs to state that the employer is likely to extend the work visa
  • There are lenders who do have their own overlays where Employer Authorization Document, also known as EAD, is not honored as a valid document in approving a conventional mortgage loan

FHA Guidelines

What are FHA Guidelines

The Federal Housing Administration, FHA, will insure residential mortgage loans from non-permanent residents. This holds true as long as the borrower has the proper paperwork and document to work legally in the United States as evidenced by an EAD, also known as the Employment Authorization Document issued by USCIS.

  • In the event, if the Employment Authorization Document will be expiring in one year or less and a prior residency history status renewals exist, the lender can take that for granted that the continuation of employment will be granted and can approve the mortgage loan
  • In the event, if there are no history of prior renewals, the lender needs to due their own due diligence and determine the likelihood of the renewals based on the facts and information from USCIS
  • Borrowers who are currently United States residents as a refugee or asylee resident status granted by USCIS are granted eligibility to work in the United States and the Employment Authorization Document is not required in these circumstances

FHA Guidelines mandates that the Employment Authorization Document is a requirement.

  • Work permits and/or work visas are not enough

Non-Permanent Residents: Rates And Terms

What are the rates for non-permanent residents?

Non-permanent residents will get the same rates and terms as United States citizens and permanent residents.

  • Lenders do not penalize rates and terms for non-permanent residents
  • For conventional mortgage loan programs and FHA mortgage loan programs, down payment requirements are the same for non-permanent residents as it is for United States citizens as well as permanent residents
  • However, portfolio lenders may require higher down payment requirements for non-resident residents

Gustan Cho Associates offers foreign national mortgage loan programs as well as alternative financing for home buyers. Please contact us at 262-716-8151 or text us for a faster response. Or email us at gcho@gustancho.com. We are available 7 days a week, evenings, weekends, and holidays.

Gustan Cho NMLS ID# 873293

 www.gustancho.com

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