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Residents with green cards and work visas may be able to meet the requirements to get an FHA or conventional home loan in the U.S. whether or not they are U.S. citizens. The first step to qualifying is confirming the type of resident you are in the U.S.

If you are a person with a green card and social security number you are Permanent Resident Alien.

On the other hand if you are living in the U.S. without a green card but you were given a Social Security Number mainly for employment you are a Non-permanent Resident Alien.

The employment or position in the U.S. could continue for many years. Some non-permanent residents desire to buy a home in the U.S. for a number of reasons.

Depending on your residency status of either permanent or non-permanent residency, the lender will need to review different documentation from you.

Mortgage for Permanent Residents

These borrowers will need to give the lender a copy of their unexpired green card (Form I-551) and Social Security card. Outside of these specific documents, getting approved for a home loan in the U.S. is quite similar to the process for American citizens.

Mortgage Condition for Non-Permanent Residents with a Work Visa

Non-permanent resident aliens may be approved for a home loan only if the purpose of the home is as a primary residence. These borrowers also need to have a valid Social Security Number and a work permit.

Many non-permanent residents have a special visa given to them by a sponsoring employer.
Government backed and conventional lenders will allow the following kinds of visas as verification of U.S. residency for the loan process:

• H-1B and various H series visas which include H-1C, H-2, H-3 and H-4
• E series
• G series
• L series
• NATO series
• NAFTA series (Canada & Mexico)
• O series

All documents used as a work permit have to show the borrower’s is able to live and work in the United States for a minimum of three years. Every lender is going to request documentation according to their own unique guidelines and the applicant’s scenario.

FHA Loans

Many non-citizens will select the widely used FHA loan as their preference. A big reason is the down payment is minimal at 3.5% and it has more flexible credit rules versus a conventional loan.

The lender will require that the work visa needs to have an expiration date that goes beyond one year after the planned closing date of the loan. If not, there needs to be proof the document was successfully renewed earlier or the lender must accept the responsibility of obtaining an authentic employment eligible document from the U.S. Citizenship and Immigration Services (USCIS).

Conventional Mortgages

When it comes to Fannie Mae and Freddie Mac who back the lion share of conventional loans, the lender has to confirm the applicant’s legal residency.

Similar to FHA guidelines, the non-U.S. citizen must have a valid Social Security Number and proof of residency and income for at least the next three years.

Credit Scores

Among the biggest barriers to qualifying is the lack of meeting the minimum credit score, number and length of U.S. credit accounts. The solution for any borrower to get a U.S. credit score is you need to have a social security number with sufficient credit usage.

Without minimum number of credit accounts or length they were open, some lenders will allow alternate credit by using the payment history from common utility bills like electric, gas, cell phone, water, and cable or live streaming TV accounts.

Borrowers must have a 12 month minimum history in two or more accounts for a credit score to be created. As a result, new residents permanent or non-permanent generally hold off one year or more prior to applying for a home loan.

Additional questions regarding income and assets should be addressed by an NMLS licensed loan originator. Inquire with one at 1st NWM.