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by Amresh Singh
9 min read
If you are a non-permanent resident alien looking to own a property in the USA, then you will be delighted to know you can realize your dream through Fannie Mae non-permanent alien mortgage. This blog is your one-stop shop for understanding the requirements, documentation, and procedures for availing Fannie Mae as a non-permanent resident alien and becoming a proud owner of a home in America. So, if you are ready to learn and earn your dream property, let’s begin!
However, before diving into the details of the loan procedure, let’s first understand the concept of Fannie Mae.
What is Fannie Mae?
Fannie Mae is a government-sponsored entity that helps make homeownership more affordable by providing access to lower interest rates and more flexible mortgage terms. Fannie Mae purchases and guarantees mortgage loans from lenders, which allows those lenders to offer more competitive rates and terms to borrowers. This can make it easier for borrowers to qualify for a mortgage, particularly if they have less-than-perfect credit or a limited down payment. Borrowers may not interact with Fannie Mae directly. Still, they may benefit from the lower rates and better terms made possible by Fannie Mae’s activities in the mortgage market.
Now that you have grasped the idea of Fannie Mae let’s find out if a non-permanent resident alien can get the benefits of a Fannie Mae loan or not.
Can a Non-Permanent Resident Alien get Fannie Mae Loan?
Yes, Non-Permanent Resident Aliens are eligible for a Fannie Mae loan if they meet certain requirements. Fannie Mae’s guidelines state that non-permanent resident aliens must have a valid Social Security Number or Individual Taxpayer Identification Number (ITIN) and must be able to provide evidence of legal residency status in the United States.
In addition, non-permanent resident aliens must meet Fannie Mae’s standard eligibility and underwriting criteria, which include good credit score, debt-to-income ratio, employment history, and other factors.
Borrowers with visas having good credit scores can connect with lenders by reaching out to HomeAbroad. This will not only ease the process but also expedite the loan approval. However, if you lack a US credit history, there is nothing to worry, as HomeAbroad also has a vast network of mortgage lenders to cater the borrowers with thin or no US credit history. So, for a smooth and quick home-buying experience, reach out to HomeAbroad now!
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Eligibility Criteria for a Fannie Mae Non-Permanent Resident Alien Mortgage
As a non-permanent resident alien, you may be eligible to apply for a Fannie Mae loan if you meet the following criteria:
- You have a valid social security number (SSN) or individual taxpayer identification number (ITIN).
- You have a valid and current employment authorization document (EAD) issued by the United States Citizenship and Immigration Services (USCIS) that allows you to work legally in the United States.
- You have a two-year history of residency in the United States. This means that you have lived in the United States for at least two years and have a documented history of residency, such as a lease agreement, utility bills, or bank statements.
- You have a satisfactory credit history and a credit score that meets Fannie Mae’s guidelines. Typically, Fannie Mae requires a minimum credit score of 620.
- You have sufficient income to support the mortgage payments, as determined by your debt-to-income ratio (DTI). Fannie Mae generally requires a DTI of 36% or lower.
- The property you are purchasing is your primary residence and not a second home or investment property.
It’s important to note that lenders may have additional requirements or restrictions for non-permanent resident aliens, so it’s recommended to consult with a mortgage lender who is experienced in working with non-permanent resident aliens to determine your eligibility and options.
Documents Required For Fannie Mae Non-Permanent Resident Alien Mortgage
If you are a non-permanent resident alien looking to apply for a Fannie Mae loan, you will need to provide certain documents to prove your eligibility. Here are some of the documents that may be required:
- Passport or other government-issued identification: This will be used to verify your identity and immigration status.
- Employment Authorization Document (EAD): This document is issued by the US Citizenship and Immigration Services (USCIS) and is used to show that you are authorized to work in the United States.
- Visa documentation: Depending on your visa type, you may need to provide additional documentation to show that you are legally permitted to reside in the US and that your visa is valid.
- Tax returns: You will need to provide copies of your tax returns for the past two years, including all schedules and attachments.
- Credit report: You will need to authorize a credit check to be performed, which will show your credit history and current credit score.
- Rental payment history: If you have been renting a property, you may need to provide documentation of your rental payment history for the past 12 months.
- Employment history: You may be asked to provide documentation of your employment history for the past two years, including your current employer and position, as well as any previous employers.
Find out more about, Getting a mortgage with no US credit history
Find the Best US Lender for Foreigners
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Steps for Non-Permanent Resident Aliens to Apply for a Mortgage
Here are the steps that non-permanent resident aliens can follow to apply for a Fannie Mae loan:
1. Determine eligibility:
Non-permanent resident aliens should first confirm their eligibility for a mortgage loan, which may include meeting specific requirements like a minimum credit score, certain visa type, and income level.
2. Find the Right Property:
Non-permanent resident aliens should shop for the right property and negotiate the price before applying for the loan. HomeAbroad has a vast network of CIPS agents who can help you find the best-suited property.
3. Shop for the right Lender:
It is important to reach out to various mortgage lenders and discuss with them the terms and conditions of the loan type, along with the down payment, interest rate, and closing cost. HomeAbroad can help you connect with the finest and most experienced lenders who have helped many non-permanent resident aliens buy their dream homes in the USA.
Find the Best US Lender for Non-Permanent Residents
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4. Complete the loan application:
Fill out the loan application form with accurate and complete information.
5. Submit the required documents:
Provide the lender with all the necessary documents, such as income statements, identification papers, and visa documents.
6. Pay processing fees:
Pay any required fees for processing your loan application.
7. Wait for pre-approval or approval:
Wait for the lender to review your application and either provide a pre-approval or approval decision.
8. Property processing:
If pre-approved or approved, the lender will begin processing the property papers with a legal check.
9. Underwriting:
The lender will perform a technical check to evaluate the condition of the property and assess its value.
10. Sign the loan agreement:
Once everything is approved and processed, sign the final loan agreement.
It’s always advisable to refer to the specific lender’s requirements for non-permanent resident aliens. It will help you keep the cash for a down payment ready, along with being prepared with installment plans for the future.
Interest Rates of Fannie Mae for Non-Permanent Resident Alien
As a non-permanent resident looking to buy a home, it is important to consider the interest rate through Fannie Mae.
It’s crucial to compare various mortgage options and explore rates before deciding. HomeAbroad can assist you in navigating the mortgage application process as a non-permanent resident by connecting you with the best mortgage lenders.
Find the Best US Lender for Non-Permanent Residents
Get pre-qualified for a US Mortgage with No US credit
What Type of Property Can a Non-Permanent Resident Alien Buy with Fannie Mae?
Fannie Mae offers mortgage loans on primary residences.. A non-permanent resident alien can purchase a single-family home, a condominium, a townhome, or other approved residential property located in the United States.
It’s essential to remember that certain properties may require an additional down payment or have special requirements. Work with a trusted and experienced real estate professional to ensure the property you’re interested in meets all of Fannie Mae’s eligibility requirements. In addition, you can reach out HomeAbroad and connect with experienced Fannie Mae mortgage lenders and expedite your home purchase in the US.
Find the Best US Lender for Non-Permanent Residents
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Alternate Mortgage Options for Non-Permanent Resident Alien
If you wish to purchase a property but do not meet the eligibility criteria for Fannie Mae, you can explore other mortgage options specifically designed for international buyers, such as Foreign national loans and FHA loan
FHA Loan
It is insured by the Federal Housing Administration, a part of the US Department of Housing and Urban Development. To qualify for an FHA loan, you must have a valid Social Security number and provide evidence of legal residency in the US. Typically, a minimum down payment of 3.5% of the home’s purchase price is required.
Non-permanent residents may also be eligible for FHA loans provided they meet the qualifying criteria and have a valid proof of residency for at least one year following the projected loan closing date.
Freddie Mac
Obtaining a Freddie Mac loan is the perfect way for more people to get access to financing for their dream homes. This form of mortgage, purchased by the Federal Home Loan Mortgage Corporation (also known as Freddie Mac), serves an integral role in providing liquidity in the housing market. By purchasing mortgages from lenders, this government-sponsored entity helps make it easier than ever before to secure home loans and move into your future abode!
To become eligible for a Freddie Mac loan, borrowers must meet specific requirements and guidelines. These include having an excellent credit score, stable income, as well as placing down at least 3% of the home’s purchase price. Moreover, the property being purchased needs to comply with certain criteria, including being a single-family house or condominium located in America.
Foreign National Loan (If you have no/thin US credit)
A foreign national loan is a mortgage available to non-permanent resident aliens, foreign nationals without permanent residency status in the United States. These loans are typically provided by private lenders and are not backed by the US government.
Foreign national loans often require a larger down payment and higher interest rates compared to traditional mortgage loans. Foreign national loans may be an option for non-permanent resident aliens who are not eligible for government-backed mortgages or FHA loans and lack US credit history.
HomeAbroad has a vast network of Foreign National Loan mortgage lenders who can finance the purchase of your dream property.
Find the Best US Lender for Foreigners
Get pre-qualified for an US Mortgage with No US credit
Find out more about, Getting a mortgage with no US credit history
Find the Best Lender for Non-Permanent Resident Alien
HomeAbroad can connect you with the best mortgage lenders who can help you meet your objectives and requirements. Having a good US credit score can make it easier to obtain a mortgage, but if you do not have US credit, which is common for most newcomers, we can still help you obtain a mortgage. We can connect you with lenders who evaluate your creditworthiness using alternative methods and offer you a mortgage with no US credit required. Moreover, we can connect you with real estate agents with CIPS (Certified International Property Specialist) designation to help you find and buy the best house in the USA with utmost ease.
Find the best real estate agent and mortgage lender with international expertise.
Connect with a local international real estate agent and mortgage lender
Frequently Asked Questions
Q. Does FHA allow non-permanent resident aliens?
To be eligible for an FHA loan as a non-permanent resident alien, you must have a valid Social Security number and be able to provide documentation of your legal presence in the United States, such as a valid visa or work authorization. You must also demonstrate a history of steady income and employment and meet other financial qualifications such as credit score and debt-to-income ratio.
Q. Can non-permanent resident aliens get a conventional loan?
A non-permanent resident can obtain a conventional loan, but it depends on a variety of factors, including the individual’s immigration status, employment history, credit score, and other financial qualifications.
Q. What are the requirements for non-permanent resident alien mortgages?
The requirements for non-permanent resident alien mortgages vary by lender, but most will require a valid visa or proof of legal residency status in the US, a minimum credit score, and proof of income or employment history. The lender may also require a larger down payment, typically around 20% of the home’s purchase price.
Q.What types of mortgages are available for non-permanent resident aliens?
There are several types of mortgages available for non-permanent resident aliens, including conventional mortgages, conventional loans like Fannie Mae and Freddie Mac, and foreign national loans to FHA loans. Some lenders may also offer specialized programs designed specifically for non-permanent resident aliens. HomeAbroad can connect you with the best mortgage lenders who are highly experienced and reliable.
Q. How can non-permanent resident aliens improve their chances of getting a mortgage?
Non-permanent resident aliens can improve their chances of getting a mortgage by maintaining a good credit score, having a stable employment history, saving for a larger down payment, and working with a lender that has experience working with non-permanent resident aliens.
Q. Can non-permanent resident aliens get a mortgage with a co-signer?
Yes, non-permanent resident aliens may be able to get a mortgage with a co-signer who is a US citizen or permanent resident. The co-signer would be equally responsible for the mortgage payments and would need to meet the lender’s requirements.
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Prior to co-founding HomeAbroad, Amresh has worked for one of
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