Published on January 21, 2021
Written by The Servion Group
No, there is no citizenship requirement to obtain financing! In general, borrowers will fall into one of three citizenship categories, each with slightly different requirements. Here’s a brief explanation:
Please note, if the answer to question 3.1 or 3.2 is “No,” then the person is not eligible for financing.
Borrowers with non-permanent resident status will need to show additional documentation during the loan process. When you’re answering questions 3.1 and 3.2, acceptable documents include various visas, such as E-1, E-2, EB, H1, I, L-1, and O-1. Be sure to review these visas to make sure they aren’t expired and have a strong likelihood of renewal.
If the borrower doesn’t have one of these visas, then answer the questions using a combination of form I-797, an Employment Authorization Document (EAD), and an I-94.
Let’s briefly touch on the things you should pay attention to for different types of loans when your borrower is a non-permanent resident.
Conventional loans
Obtain the documentation to positively answer the three questions in the blue section at the beginning of this article.
FHA loans
If the documentation reflects that the EAD will expire within one year, verify a history of the EAD being renewed. If that is verified, it is acceptable.
VA loans
If a Certificate of Eligibility is issued, the borrower is acceptable. No additional documentation is required.
USDA loans
Obtain the documentation to positively answer the three questions above. Documentation must be submitted to the USDA to be run through the SAVE system to confirm eligibility. The SAVE system must verify that the borrower is eligible. GUS will reflect eligibility once the SAVE system has reviewed.
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