Non-Permanent Resident Alien Mortgage Options Vs Permanent Resident
Non-permanent resident aliens and permanent residents are eligible for traditional mortgages. Interest rates, down payment options, and closing costs are more competitive when a non-permanent resident alien has:
- A Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN); and
- Verified status, which can be documented or documentation type showing immigration status (green card, acceptable work visa, entry stamps, employment authorization document, I-551 stamps etc.).
ITIN loans without verified status are still possible through non-qualified mortgage lending. The type of loan depends on the type of citizenship.
Three Types of Citizenship
U.S. Citizen and Permanent Resident Alien can take the traditional route with:
- Copy of photo ID or green card.
- Valid social security number.
- Loan documents for underwriting and processing.
Non-permanent resident alien – are people living in the United States without a green card but have a social security number. Many wish to purchase a home in the U.S. while they have a non-permanent employer position that lasts a number of years.
Residents with Green Card Mortgage and U.S. Citizen
If you have already applied for a green card and received your permanent resident card, the application process and underwriting guidelines are similar to being a U.S. citizen. Although some lenders may have tougher guidelines when it come to qualifying for a mortgage.
Working with a lender that has no overlays, will increase the chances of a mortgage approval that will often save time and money.
Acceptable Non-permanent Resident Alien Work Visa Mortgage
Some eligible work VISA classes are as follows:
- A-1 and A-2 dependents.
- A-1 and A-2 foreign diplomatic personnel.
- A-3 personal employees of A-1 and A-2.
- E-1 treaty trader.
- E-2 treaty investor.
- E-3 temporary worker in a specialty occupation.
- F-1 students.
- G-1, G2, G3, and G-4 representatives to and employees of internal organizations.
- G-5 personal employee of G-1, G2, G3, and G-4.
- H-1A temporary worker performing services as a registered nurse.
- H-1B temporary Worker in a specialty occupation H-1B2, H-1B3, and H-1C.
- H-1B1 free trade agreement worker (Chile/Singapore)
- IR-1 immigrant VISA for a spouse of a U.S. Citizen.
- K-1 fiancé/fiancée of U.S Citizen.
- K-3 spouse of U.S. citizen Life Act.
- K-4 child of K-3.
- L-1 intra-company transferee.
- NATO 1-5 and NATO-7.
- O-1 and O-2 workers of extraordinary ability.
- P-1 athlete.
- P- 2 and P-3 artist or entertainer.
- S-5 and S-6.
- TD dependents of TN VISA holder.
- TN professionals under NAFTA.
- U-1, U-2, and U-4.
- V-1, V-2, and V-3.
There is documentation requirements for each work VISA – a Mortgage Loan Originator can help put together a list of documentation required during the pre-approval process. If you have a work VISA that is not on this list, there are alternative options through wholesale non-qualified mortgage lending.
U.S. Credit Score Vs No Credit Score – Conventional
The minimum down payment for a conventional loan is 3% with an Automated Underwriting System approval with credit scores.
Credit is required to be pulled on all transactions, but when there are no scores, a borrower can still be eligible. An Automated Underwriting System will analyze credit, capacity, and collateral and determine if a borrower is eligible for a mortgage loan.
When there are no credit scores the following requirements apply:
- 1-unit primary residences only with a fixed rate.
- Maximum debt-to-income is determined by the Automated Underwriting System.
- 80% maximum loan-to-value.
Non-traditional credit history must be documented for each borrower without a score. There must be two non-traditional payment references in the U.S. or tradelines not appearing on the credit report. The payments must have existed for the most recent 12 months – one must include rental housing payment history as a source.
FHA Requirements with Acceptable Work VISA
A non-permanent residence may still be eligible for an FHA mortgage satisfying all FHA underwriting guidelines and the following:
- Must be a principal residence.
- Have a valid Social Security Number (except if you are employed by the World Bank, foreign embassy, or equivalent employer identified by HUD).
Prove that you are eligible to work in the U.S. by providing acceptable documentation listed in the Single Family Housing Policy Handbook 4000.1.
ITIN Mortgage Program with No Social Security Number
There are alternative options when it comes to mortgage lending when a borrower does not have a valid work VISA or social security number. Credit is still pulled with the ITIN number and the down payment starts at 10% down. The ITIN mortgage program allows:
- No work VISA.
- No Social Security Number.
- Non-permanent aliens.
- Only ITIN numbers.