Fannie has expanded its underwriting criteria to include more visa types and expanded ownership opportunities with as little as 5% down.
Many “foreign nationals/immigrants” with valid visas are eligible for FHA or Conventional financing. After that, the details get a little more “murky”!
FHA Eligibility Requirements for
Non-Permanent Resident Borrowers
Many US visas confer a form of US residency, a possibility of home ownership, and a potential comm check for their agents and MLOs.
A “TIN’ is a “ tax identification number” issued by the IRS for individuals who are required to file a US tax return but are not eligible for a Social Security Number (SSN).
Any foreign national with a TIN Number and a valid visa is potentially eligible. Foreign nationals with expired visas or “no” visas are NOT.
Foreign National Lending
“I rob banks because that’s where the money is.”
Willie Sutton – Famous Depression Era Bank Robber. Folk Hero- Prison Escapee
Because of their (alleged) excessive profits, don’t expect much help from them for your client, although institutional lenders are the primary source of home loans for foreign nationals and are unlikely to provide the best information to foreign nationals.
Institutional lenders charge such high interest rates (10%+), require large down payments (40%), and have high loan fees (4 -6 points+) that it’s easy to see why Sutton was a folk hero of his era.
Income and FICO Scoring
Good FICO scores and verifiable income are the two biggest challenges for foreign nationals to get the best interest rate with the lowest down payment (5%).
Obtaining Fast FICO Scores
Foreign Nationals should apply for (at least two) “Secured Credit Cards” to establish FICO scores.
Few banks offer secured credit cards for TIN holders, but many “online money sources offer them to persons regardless of their immigration status. FICO scores will show up after 60 days.
The Latest Fannie Mae Lending Guidelines for Foreign Nationals
Visa Types Eligible Mortgages for Foreign Nationals
Below is a comprehensive list of the many types of visas that Fannie allows and descriptions of what each Visa is used for.
Diplomats, Foreign Government Officials,
Nationals & Foreign Government Employees Visas
•A Visa Series (A-1, A-2, A-3): Diplomats and foreign government officials are typically issued the A Visa Series.
•E Visa Series (E-1, E-2, E-2S, E-3, E-3S (spouse), E- 3D (spouse), E-3R (returning)): Nationals of countries with a commerce treaty with the US who engage in substantial trade are eligible under this visa series.
•G Visa Series (G-1, G-2, G-3, G-4, G-5): These visas are issued to foreign government employees or international organizations in the US.
Temporary Workers & Professional Employees Visas
• H Visa Series (H-1B, H-1B1, H-1C, H-4): Temp workers with specialized knowledge or skills fall under this category. H-4 Visa holders are also eligible, provided the primary visa holder (H-1B or H-1B1) is on the loan.
• L Visa Series (L-1A, L-1B, L-2, L-2S): These are for professional employees working for a non-U.S. company being transferred to an American office or subsidiary, along with their dependents.
• NATO, NAFTA & “Extraordinary Ability” Visas
• NATO Series (NATO 1-7): Representatives, officials, and experts from NATO countries visiting on official business are eligible under this series.
• TN Visa (Canadian and Mexican NAFTA series): NAFTA-specific employees for prearranged official business activities for foreign or US employers fall under this category.
• O Visa Series (O-1A, O-1B, O-2, O-3): Individuals with “extraordinary ability” in specific fields and their spouses or children are categorized under this series.
• J-1 Visa: Holders of this Visa may require a down payment of 20-25% for mortgage approval.
• F-1 Visa: This is a student Visa. While it’s not (specifically) mentioned in the list of eligible visas for mortgage loans, under certain circumstances, F1 visa holders might be able to obtain a mortgage if they have a solid financial background and employment authorization.
• Additional types of visas whose holders qualify for a mortgage in the US: I, IR1, CR1, CR6, J-2, K-3, K-4, P-1A, P-1B, P-2, P-3, R1, S-1/S-2 (also coded as S-5 and S-6), S-7, T-1, T-2, T-3, T-4, U-1, U-2, U-3, U-4.
Copywrite © August, 2018 Daniel Dobbs MHM Mortgage /// All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the publisher, except in the case of brief quotations embodied in critical reviews and certain other noncommercial uses permitted by copyright law. For permission requests, write to the publisher, addressed “Attention: Daniel Dobbs, Author- VP-Broker Mutual Home Mortgage 265 S. Randolph #120 Brea, Ca. 92821 Cell: 949 250-3981 Dandobbs6@gmail.com NMLS #307631 BRE #00986886
