Qualifying For Mortgage Loan For Non Permanent Residents
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.
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 mortgage loan 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.
The mortgage loan borrower also needs to have a two year credit history. Canadian credit reports are allowed. Fanne Mae and Freddie Mac will purchase mortgage loans that has been made to non permanent residents who are legally here in the United States with valid work visas and 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 mortgage 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 mortgage lender to determine whether the mortgage loan 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.
Non Permanent Residents: Work Visas
Mortgage 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 conventional mortgage lenders who do have their own lender overlays where Employer Authorization Document, also known as EAD, is not honored as a valid document in approving a conventional mortgage loan.
Non Permanent Residents: FHA Guidelines
The Federal Housing Administration, FHA, will insure residential mortgage loans from non permanent residents as long as the mortgage loan 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 issue by USCIS. In the event if the Employment Authorization Document will be expring in one year or leass and a prior residency history status renewals exists, the mortgage 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 mortgage lender needs to due their own due diligence and determined the likelihood of the renewals based on the facts and information from USCIS. Mortgage loan 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 mortgage lending guidelines mandates that the Employment Authoriztion Document is a requirement. Work permits and/or work visas are not enough.
Non Permanent Residents: Rates And Terms
Non permanent residents will get the same rates and terms as United States citizens and permanet residents. Mortgage 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 mortgage lenders may require higher down payment requirements for non resident residents.
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