I've lived and worked in the US under a TN Visa for almost 4 years now. I'm trying to buy a home. Although everything else checks out (credit score, down payment, etc.) the underwriter for the loan is telling me that without an EAD (Employment Authorization Document) that they will not approve my loan. An EAD is not issued with a TN visa, nor is one required. With a TN visa, at least from my understanding, my passport with Visa/I-94 in it is sufficient proof of work authorization. That is at least according to the USCIS website. Reading some older forums, people have a apparently successfully purchased homes with an FHA loan under a TN visa. Anyone have any experience with this? Any suggestions?
Trouble getting FHA mortgage with TN visa
- Thread starter ostojo
- Start date
I've heard of TN people having this issue in the past 2 years right about when the US economy started to tank.
Have you shopped around for a mortgage with mortgage corp's as opposed to major banks?
When I got my original mortgage in April 2000 I went through hell and back to get a mortgage, 10 lenders, only 2 of which would do the mortgage only 1 of which would do FHA.
You might want to call FHA directly and ask them if an EAD is now a requirement or if this underwriter is just being overly cautious....
Hell, illegals are getting mortages .....
OttawaSenators
Registered Users (C)
Some credit card companies/banks also require US citizenship or premanent residency for their credit cards. I don't want to mention the name but one of them is a huge well-known bank.
Just move on and find another lender. Also find out if EAD is really required for FHA.
Just move on and find another lender. Also find out if EAD is really required for FHA.
OttawaSenators
Registered Users (C)
Here it is straight from government's site, fhaoutreach.gov FAQ:
"Citizenship of the United States is not required for eligibility. When a mortgage loan applicant indicates on the loan application that he or she holds something other than U.S. citizenship, the lender must determine residency status from the documentation provided by the borrower.
Lawful Permanent Resident Aliens: For those borrowers with lawful permanent resident alien status, FHA will insure the mortgage under the same terms and conditions as U.S. citizens. The lender must document the mortgage file with evidence of permanent residency and indicate on the Uniform Residential Loan Application (URLA) that the borrower is a lawful permanent resident alien. Evidence of lawful permanent residency is issued by the Bureau of Citizenship and Immigration Services (BCIS) (formerly the Immigration and Naturalization Service) within the Department of Homeland Security.
Non-Permanent Resident Aliens: FHA will also insure a mortgage made to a non-permanent resident alien provided that the property will be the borrower's principal residence, the borrower has a valid SSN, and the borrower is eligible to work in the U.S. as evidenced by an Employment Authorization Document (EAD) issued by BCIS. If the authorization for temporary residency status will expire within one year and a prior history of residency status renewals exists, the lender may assume continuation will be granted. If there are no prior renewals, the lender must determine the likelihood of renewal, based on information from the BCIS.
Although social security cards may indicate work status, such as 'not valid for work purposes' an individual's work status may change without the change being reflected on the actual social security card. Therefore, the social security card is not to be used as evidence of work status for non-permanent resident aliens; the BCIS employment authorization document is to be used instead.
Non-U.S. Citizens with no lawful residency in the U.S. are not eligible for FHA-insured mortgages.
Handbook 4155.1: 4.A.3.a-e"
"Citizenship of the United States is not required for eligibility. When a mortgage loan applicant indicates on the loan application that he or she holds something other than U.S. citizenship, the lender must determine residency status from the documentation provided by the borrower.
Lawful Permanent Resident Aliens: For those borrowers with lawful permanent resident alien status, FHA will insure the mortgage under the same terms and conditions as U.S. citizens. The lender must document the mortgage file with evidence of permanent residency and indicate on the Uniform Residential Loan Application (URLA) that the borrower is a lawful permanent resident alien. Evidence of lawful permanent residency is issued by the Bureau of Citizenship and Immigration Services (BCIS) (formerly the Immigration and Naturalization Service) within the Department of Homeland Security.
Non-Permanent Resident Aliens: FHA will also insure a mortgage made to a non-permanent resident alien provided that the property will be the borrower's principal residence, the borrower has a valid SSN, and the borrower is eligible to work in the U.S. as evidenced by an Employment Authorization Document (EAD) issued by BCIS. If the authorization for temporary residency status will expire within one year and a prior history of residency status renewals exists, the lender may assume continuation will be granted. If there are no prior renewals, the lender must determine the likelihood of renewal, based on information from the BCIS.
Although social security cards may indicate work status, such as 'not valid for work purposes' an individual's work status may change without the change being reflected on the actual social security card. Therefore, the social security card is not to be used as evidence of work status for non-permanent resident aliens; the BCIS employment authorization document is to be used instead.
Non-U.S. Citizens with no lawful residency in the U.S. are not eligible for FHA-insured mortgages.
Handbook 4155.1: 4.A.3.a-e"
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OttawaSenators this is great info. thanks
I remember when I got my last mortgage, just before 9/11 there was a quick question by the lender, and he said something quickly about TN not valid, but then quickly ignored it (to my benefit). Have been reluctant to move ever since as expecting a problem. These days, my guess is that they will use that info to give you a high risk, high rate mortgage, rather than a low rate one you should be eligible for (they need to make up for all the defaults somewhere). Anyone else with experience here would be helpful.
I remember when I got my last mortgage, just before 9/11 there was a quick question by the lender, and he said something quickly about TN not valid, but then quickly ignored it (to my benefit). Have been reluctant to move ever since as expecting a problem. These days, my guess is that they will use that info to give you a high risk, high rate mortgage, rather than a low rate one you should be eligible for (they need to make up for all the defaults somewhere). Anyone else with experience here would be helpful.
TheRealCanadian
Volunteer Moderator
That's a good question. For someone who never investigated this, what is the point of getting an FHA mortgage, besides the lower down payment?
Just to clarify, my comments were not directed at an FHA, but just a regular mortgage. Just warning everyone that they will use every chance they get to push you into a higher risk mortgage category so they can charge more -- and this being a "temporary" visa is one certain one.
elanoralph19
New Member
That some nice information regarding the detecting and prevention of the frauds in mortgage loans which can risk your major investment of life. Everyone should go through measures like these before applying for mortgage loans.
Hi
I have read your comment and I just wanted to follow up with you. did you end up buying a house in the united states. I am a TN holder and trying to buy a house