Aug242021

Year 1 Arrival

• Step by Step Guide to Getting a Mortgage
  • Verify Your Immigration Status
    • There are many home loan programs available, and the qualifying guidelines and documentation requirements depend on what type of residency you have
      • Only the following visas are acceptable for mortgage lending
        • Lawful Permanent Resident
        • E Series (E-1, E-2, E-3): Nationals of countries with a commerce treaty with the United States who are here on business to carry out “substantial trade”
        • G Series (G-1, G-2, G-3, G-4, G-5): Employees of foreign governments or international organizations living in the United States
        • H Series (H-1B, H-1C, H-2, H-3, H-4): Temporary workers with specialized knowledge, agricultural skills or who are enrolled in programs not available in their home country; and their dependents
        • L Series (L-1A, L-1B, L-2): Professional employees who work for a non-U.S company and are being transferred to an American subsidiary, and their dependents
        • NATO Series (NATO 1-6): Representatives, officials, and experts from NATO countries visiting on official business
        • O Series (O-1A, O-1B, O-2, O-3): Individuals with “extraordinary ability” in certain fields and their spouse or children
        • Canadian and Mexican NAFTA Series (TN): NAFTA-specific employees for prearranged official business activities for foreign or U.S employers
          • Immigrants living in the U.S illegally: Some lenders offer tax ID loans for immigrants living in the U.S without legal permission.
            • Typically with an ITIN (Individual Tax Identification Number) instead of a Social Security Number
  • Learn Which Loan Programs you Qualify for Based on your Immigration Status 
    • Lawful permanent residents and many nonpermanent residents are eligible for most standard government and non-government backed mortgage programs
    • Immigrants living here illegally and foreign nationals typically don’t qualify for regular mortgages because they don’t meet legal residency requirements or cannot document income
    • Programs available for each immigration status
      • FHA (Federal Housing Administration) Loans: Insures loans made by FHA-approved lenders with down payments as low as 3.5% and credit scores as low as 580. Permanent and nonpermanent resident immigrant borrowed must have a valid green card visa, a Social Security number, and two years of verifiable income for a loan approval
      • VA Loans: Non-Permanent resident immigrants cannot join the military, so they are not eligible for loans guaranteed by the U.S Department of Veterans Affairs (VA). However, green card holders who are permanent resident immigrants can join and serve. They may also use VA benefits to buy a home with flexible standards and no down payment
      • Conventional Loans: Fannie Mae and Freddie Mac are government-sponsored enterprises that purchase residential mortgages and set guidelines for 3% down homebuyer programs. You are eligible if you are a permanent or nonpermanent resident with a minimum credit score of 620
      • USDA (The U.S Department of Agriculture) Loans: The USDA backs loans for low to moderate-income borrowers with a valid green card, visa, and verifiable income can purchase a home with a no-down payment loan if they qualify
      • Non-QM Loans: Foreign nationals and immigrants may qualify for non-qualified mortgage (QM) programs without legal permission to live in the U.S. These are offered by alternative lenders and non-QM loans are for borrowers that don’t meet rules set by regulators to verify a borrower’s ability to repay a home loan. Those with no Social Security number or verifiable income may qualify for these programs. Expect higher down payments, higher interest rates, and prepayment penalties that involve a fee if you pay off a loan before a set time period
  • Special Lending Requirements to Apply for Mortgage Loans for Immigrants
    • After meeting standard lending requirements for income and credit and down payment, you may have to also verify
      • A Social Security Number: Regular lending programs require a verifiable SSN: ITIN numbers will not be accepted
      • An unexpired green card status: Must have an unexpired green card
      • A valid visa status: Provide a valid visa and in some cases an employment authorization document that shows long-term employment
      • Down Payment Funds in USD: Money for a down payment and closing costs need to be in a U.S account. Lenders will look for a consistent balance for two months before you apply
      • Income in USD: Must show a two to a three-year history of income and prove full-time employment. Must be converted to U.S dollars
      • Documents in English: You will need to provide bank statements and tax returns in English
      • An alternative credit history: New immigrants without a credit score may be eligible for a non-traditional credit report. They may accept
        • 2-3 non-housing related expenses like cell phone bills, car insurance, or life insurance
        • Utility bill for the past 12 months (water bill, electric bill)
        • Rent payment history for the past 12 months verified by bank statements or by a landlord
      • Diplomatic Immunity: Mortgage companies will not lend to those with diplomatic immunity, since it prevents the U.S courts from forcing a payment or judgment in the event of default
      • You are not on the Specially Designated Nationals List: Anyone from a country listed on the Office