Subject:                                     Residency requirements -  tip of the day

 

Good Morning.

Today is FRIDAY!!!  January 6, 2012

All wholesale staff is available.

Turn times are 48 hours.

 

Tip of the day – Residency requirements

 

FHA-

4155.1 4.A.3.a Residency Requirements

U.S. Citizenship is not required for mortgage eligibility.

The lender must determine the residency status of the borrower, based on

information provided on the loan application, and

 

other applicable documentation.

4155.1 4.A.3.b Lawful Permanent Resident Aliens

FHA insures mortgages for borrowers with lawful permanent resident alien status, using the same terms and conditions as those for U.S. citizens.

The mortgage file must

include evidence of the permanent residency, and

 

indicate that the borrower is a lawful permanent resident alien on the Uniform Residential Loan Application (URLA).

Note: The U.S. Citizenship and Immigration Services (USCIS) within the Department of Homeland Security provides evidence of lawful, permanent residency status.

4155.1 4.A.3.c Non-Permanent Resident Aliens

FHA insures mortgages made to non-permanent resident aliens provided that the

property will be the borrower's principal residence

 

borrower has a valid Social Security Number (SSN), and

 

borrower is eligible to work in the United States, as evidenced by an Employment Authorization Document (EAD) issued by the USCIS.

Note: The Social Security card cannot be used as evidence of work status.

Reference: For more information on the requirement to use the EAD as evidence of work status, see HUD 4155.1 4.A.3.d.

4155.1 4.A.3.d EAD Required as Evidence of Work Status

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. For this reason, the Social Security card must not be used as evidence of work status, and the EAD must be used instead.

If the EAD will expire within one year and a prior history of residency status renewals exists, the lender may assume that continuation will be granted. If there are no prior renewals, the lender must determine the likelihood of renewal, based on information from the USCIS.

Note: Borrowers residing in the U.S. by virtue of refugee or asylee status granted by USCIS are automatically eligible to work in this country. An EAD is not required.

4155.1 4.A.3.e Non-Lawful Residency

Non-U.S. citizens who do not have lawful residency in the U.S. are not eligible for FHA-insured mortgages.

 

Conventional -

Non–U.S. Citizen Borrower Eligibility Requirements

Fannie Mae purchases and securitizes mortgages made to non–U.S. citizens who are lawful permanent or non-permanent residents of the United States under the same terms that are available to U.S. citizens. Fannie Mae does not specify the precise documentation the lender must obtain to verify that a non–U.S. citizen borrower is legally present in the United States. The lender must make a determination of the non–U.S. citizen’s status based on the circumstances of the individual case, using documentation it deems appropriate. By delivering the mortgage to Fannie Mae, the lender represents and warrants that the non–U.S. citizen borrower is legally present in this country.

 

Thank You!

 

Neil Johnson

Gateway Mortgage Group

National TPO Operations Manager

4201 N. State Hwy 161

Irving, TX 75038

neil.johnson@gatewayloan.com

Office: 972-908-3390  ext. 118

fax# 918-858-8392