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How immigration status determines loan product availability

The loan products that are available to your customer have as much to do with their immigration status as it does their income type and other documentation. Here are the main categories.

U.S. Citizens and Permanent Residents (Green Card holders):

•    Conventional Loans: These are standard mortgage loans available to U.S. citizens and permanent residents with qualifying credit scores and income. They typically require a down payment, and the terms and interest rates vary based on market conditions.

•    FHA Loans: Insured by the Federal Housing Administration (FHA), these loans are available to U.S. citizens and permanent residents with lower down payment requirements and more flexible credit criteria.

Non-Permanent Residents (Visa holders):

•    Non-Permanent Resident FHA Loans: FHA loans may be available to non-permanent residents with valid work visas, provided they meet certain requirements.

•    Non-Permanent Resident Conventional Loans: Some conventional loan programs consider non-permanent residents with valid work visas, as long as they have sufficient credit history and meet income and down payment requirements.

DACA (Deferred Action for Childhood Arrivals) Recipients:

•    FHA Loans: Some FHA lenders may consider DACA recipients for FHA loans, as long as they meet all other FHA loan requirements.

Foreign Nationals (Non-U.S. Citizens without Permanent Residency):

•    Foreign National Loans: These loans are specifically designed for non-U.S. citizens who do not have permanent residency in the United States. Lenders offering foreign national loans consider factors such as credit history, income, employment status, and down payment amount.

Undocumented residents with an Individual Tax Identification Number (ITIN) –

•    These loans are for individuals with no work authorization or other documentable immigration paperwork, but the work and file US taxes under an ITIN number issued by the IRS. These loan products accept borrowers who have W-2 earnings or self-employment earnings, and may be used to purchase either owner-occupied or investment properties.

It’s important to note that loan availability and specific requirements may vary among lenders. It’s recommended to consult with a mortgage broker who specializes in working with clients with different immigration statuses. They can provide guidance on the loan products available to you based on your specific situation and help you navigate the mortgage process.

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