Can I Get a Home Loan with a Work Permit? EAD Mortgage

Yes, you can get a home loan with a work permit, even without US credit history.

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The answer is Yes! Getting a mortgage with an Employment Authorization Document (EAD) is possible and simple. All you need are a few qualifications and the correct information about the appropriate loan options and procedures. Many Employment Authorization Card holders benefit from the various mortgage options every year. You can also own property by getting a mortgage based on your EAD soon!

This article presents you with the best mortgage options available on an EAD in the USA. But before that, for the benefit of the unversed, let’s brush up on the concept of the Employment Authorization Card before discussing the mortgage.

What Is the Employment Authorization Document (EAD)?

An EAD, or Employment Authorization Document, is issued by the United States Citizenship and Immigration Services (USCIS), allowing a non-citizen to work legally in the USA. It permits non-citizens to obtain employment in most professional fields. An Employment Authorization Card is typically valid for two years but can be renewed indefinitely.

To be eligible for an EAD, the non-citizen must fall into one of these categories to have a permit from USCIS to work in the US.

Categories for EAD: Can I get a mortgage with an Employment Authorization Card?
Source:www.uscis.gov

To learn more about EAD, refer to, How to get an EAD (Employment Authorization Document)- Complete Guide

Why Do You Need EAD to Apply for a Mortgage?

Some visa holders have work permits included in their visas, while other types of visas may not have such privileges attached to them. In such cases, seeking an employment authorization card to apply for a mortgage is essential. In addition, it helps the lender assess the borrower’s financial stability and loan repayment capacity.

For example, if you are in the US with a student visa, you may not qualify for some mortgages because lenders consider it an unstable income source. At the same time, holders of H-1 or green cards may be eligible for most loan programs. However, if you get an Employment Authorization Card on your F1 Visa, lenders will be willing to provide you with the mortgage.

Can Visa Holders Get EAD Mortgages?

Yes, visa holders can obtain an EAD mortgage. However, depending on their residency status, the requirements may vary.

1. Work Visa Mortgage For Non-Permanent Resident Alien

  • They should also have a Social Security Number, and Employment Authorization Document (EAD), also known as a “work permit.”
  • If a non-permanent resident does not have an Employment Authorization Card, they must have a special visa obtained by their sponsoring employer, based on which they can apply for Fannie Mae, FHA, and Freddie Mac mortgages.
  • The following visas are acceptable by lenders as proof of residency,
  • H series
  • G series
  • E series
  • O series
  • L series
  • NATO series
  • Canadian and Mexican (NAFTA-TN Visa )

EAD Mortgage with No US Credit
It’s typical to have no US or thin US credit, if you recently moved to the US. However, this can not be the reason to stop you from getting a home. You have the option of foreign national mortgages, which you can get with no US credit to buy your home in the US.

2. Green Card Mortgage for Permanent Resident Alien

For borrowers with a green card, the mortgage process is very similar to that of US citizens. The only extra documents they need to provide the lender with is Form 1-551 to prove the validity of their green card and Social Security Card.

Note: It is important to note here that the work permit document must indicate the applicant’s eligibility for working in the US for at least two years to get approved for the mortgage. 

EAD Mortgage with Established US Credit
If you are in the US for a decent time and you have a good credit score, then you can easily qualify for conventional loans along with the foreign national mortgages.

HomeAbroad specializes in providing US mortgages for foreign nationals, including expats, newcomers, and non-resident investors buying primary residences, second homes, or investment property. Get a quote today!

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Can Visa Holders on EAD Buy Homes?

Visa holders on EAD can buy homes on the condition that the home will be used as their primary residence. The borrowers who are visa holders on Employment Authorization Card can buy homes, such as single-family residences, condominiums, cooperative housing, etc., to live in and not earn an income. Therefore, they must have enough budget to make monthly repayments post approval of the mortgage and for the initial down payment and closing costs.

Can I Get a Home Loan with a Work Permit?

The answer is yes – getting a home loan with an Employment Authorization Card (EAD) is possible. An Employment Authorization Card card issued by US Citizenship and Immigration Services (USCIS) gives a foreign national the right to work in the United States for up to two years.

To qualify for this type of loan, you must meet the exact basic requirements of someone with US citizenship or permanent residency status. This means that you will need a steady source of income and financial stability to sustain the mortgage’s principal and interest rates.

It is important to note that lenders may have different rules and requirements regarding mortgages for foreign nationals. Therefore, it is best to talk to a mortgage specialist who can help you understand the process and find the best loan option.

HomeAbroad provides foreign national mortgage programs with no US credit history, and you can contact us for a quick quote and preapproval.

Qualifications for Getting a Mortgage With an Employment Authorization Card

  • An employment history of a minimum of two years in the US is usually required to qualify for federal loans. It will still be considered under your employment history if you have been working for a US-born company from a foreign country.
  • A credit history of 2 years will help you get federally backed loans.
  • In cases where the borrower belongs to a country with similar credit reporting guidelines, their foreign credit history can also be considered by lenders for approving the loan.
  • If you are a spouse of an H1B holder or a Student on an F1/M1 visa and have recently earned your Employment Authorization Card, you can apply for a loan with the help of a co-signer who has been working in the US for a substantial time and has a credit history.

Also Read: H1B Visa: Buying House and Obtaining a Mortgage Home Loan

Knowing about qualification criteria is the first step towards getting a mortgage with an employment authorization document. The next step is picking the right mortgage plan to help you achieve your investment goals within a given time frame with utmost convenience and ease.

Home Loan Programs to Get a Mortgage With Employment Authorization Document

Let’s now look at the various loan types you can get approved with the help of an EAD number or Individual Tax Identification Number (ITIN ).

Foreign National Mortgage:

This loan is offered both by the government and private lenders. The difference between the two is that government-backed loans will scrutinize your credit history, employment history, pay stubs, tax returns, etc. At the same time, private lenders are open to more flexible working methods and often forgo stringent scrutiny, making the process way more convenient and faster. Private lenders primarily consider your capability of repaying a loan by taking into account your credit score in your home country or the credit score of your co-borrower.

To learn more about Foreign National Loans, refer Guide to Foreign National Mortgage Loans with No US Credit

DSCR Loans:

If you are looking to buy an investment property through a mortgage with an employment authorization document, then DSCR is a great option, as this loan purely operates on positive cash flow generated by the property. DSCR stands for Debt Service Coverage Ratio and analyzes a property’s income performance and ability to pay the loan.

The cash available after paying all expenses, debts, and taxes divided by annual debt service must be more than 1.25 for you to qualify for getting this loan. So to get approved for DSCR, you need a promising property and enough cash for the down payment and closing costs.

FHA Loans:

The Federal Housing Administration (FHA) is a division of the US Department of Housing and Urban Development (HUD). FHA loan is a government-backed loan and considers the borrower’s credit history for approving the loan, which delays the home-buying process minimum by two years.

These loans are available to citizens, non-citizens with eligibility under US laws, and holders of EADs. As a non-citizen, you can qualify as long as you’ve been a legal resident in the US (with an EAD) for at least two years and have a valid work permit.

They often come with a long list of requirements like bank statements, income proof, tax returns, etc., which makes the home-buying process lengthy and cumbersome.

Conventional Loans:

A conventional loan is a mortgage backed by Freddie Mac and Fannie Mae. You may qualify for this loan if you fulfil specific criteria like having an income source, proof of employment, earning enough money to pay off your debts, etc.

No matter which type of mortgage you choose, make sure to do your due diligence before settling on one. This will help you make an informed decision and get the most out of your mortgage.

The next step towards getting a mortgage is getting the required documents.

Documents Required to Get an EAD Mortgage

Following are the documents required for getting a mortgage with an employment authorization document.

•Signed copy of Employment Authorization Document (EAD) 

This document is issued by the US Citizenship and Immigration Services (USCIS) that verifies your eligibility to work in the United States.

•Proof of Income 

This includes documents like pay stubs, bank statements showing regular deposits, etc. The lender will scrutinize these to verify your ability to repay this loan.

•Proof of Residency

You should have documents proving that you have been living in the United States for at least two years.

•Employment Verification 

The lender will contact your employer to confirm your work status and income.

• Driver’s License with Photocopy

Your driver’s license will be used to verify your identity.

•Social Security Number

You must provide your social security number for the lender to conduct a credit check.

•Credit Report

Your credit report will be used to assess your creditworthiness and determine the interest rate you will receive.

•Two years of US Tax Returns

Your lender will review your tax returns to verify that you have been filing taxes in the US for at least two years.

Once all the above documents are ready, you can proceed with the mortgage application process. The lenders will evaluate all these documents and assess your creditworthiness before approving or denying your loan request. If approved, you will need to complete the associated paperwork and eventually provide the down payment and closing cost.

Once your documents are sorted, it’s time to kick-start the process and inching closer to obtaining the ownership of your dream property.

Step-By-Step Guide to Getting an EAD Mortgage

Following are the steps to obtaining an EAD mortgage.

Step-1: Find the Right Property:

The first step is to find the right property. Then, evaluate different properties and decide on the one best suits your needs. You can seek help from friends and family or rely on the knowledge and experience of a real estate agent. HomeAbroad has a vast network of CIPS agents who are well-versed in the home requirements of non-permanent residents. You can connect with them through HomeAbroad for free!

Find the best real estate agent with international expertise

Connect with a HomeAbroad real estate agent in your area.

Step-2: Calculate Your Budget:

The next step is to figure out how much you can afford. Calculating your budget will help you decide on the type of loan and lender best suits you. While calculating your budget, cater for the down payment, which is usually around 20% of the price of the property, closing cost, repairs works that you may like to undertake, insurance charges, interest, and monthly repayments.

Step-3: Research Mortgage Options:

Now that you have a budget, it’s time to research different mortgage options. First, consider the interest rates, loan terms, and other related costs. Compare these with your budget, match them with your investment goals and profitability, and then choose accordingly.

Step-4: Find a Reputable Lender:

Finding a reputable lender specializing in non-permanent resident mortgages is recommended. Do some online research and read the reviews to ensure the lender is reliable and trustworthy and can offer you a mortgage that meets your requirements.

Step-5: Gather Necessary Documents:

Now it’s time to gather all the necessary documents the lender requires for evaluation. These include an Employment Authorization Card, bank statements, and pay stubs, two years’ tax returns in the US, proof of residency, and any other document that proves your financial stability.

Once you have collected all these documents, please submit them to your lender for approval.

Step-6: Finalize the Loan:

Your lender will verify the accuracy of all the information provided and assess your creditworthiness with the help of your credit report. If everything is in order, they will finalize the loan terms and conditions, and you will receive an approval letter.

After that, you can begin closing the deal on your dream property by getting a home inspection done, followed by Underwriting and closing. To know more about the home buying procedure, click on,

How can foreigners buy property in the USA – A Complete Guide

How to Get a Down Payment Loan for Your Mortgage While on an EAD?

Trying to get a mortgage with an Employment Authorization Card (EAD) can be difficult for many people due to a few restrictions that come with this type of card. Fortunately, you can benefit from down payment assistance programs available for purchasing a home with an EAD.

Down payment assistance programs often provide loans or grants to lower-income people. However, these are government-backed programs and usually have a long waiting period. Several national and state-level loan programs are available, so it’s essential to do some research to determine which ones may be right for you.

Some lenders may work with you on a case-by-case basis. Therefore, reaching out to different lenders is essential, as some may be more flexible than others. It’s also important to research what documents you may need to provide to qualify for the loan.

Conclusion

Getting a mortgage with an EAD is simple if you know the right procedure and lenders. Having a clear timeline and investment goals in mind is essential before opting for a loan type.

If you wish to skirt the time-consuming loan processes and the hassle of extended paperwork, reach out to HomeAbroad and get the process of home buying started with the right real estate CIPS agents and mortgage lenders.

Frequently Asked Questions

Do lenders check immigration status?

Yes, lenders will check your immigration status before approving a loan. The documents you provide will be used to verify that you have the required documentation, such as an EAD or green card. This helps them gauge the period, the risk involved, and the mortgage amount associated with the approval.

2. Can I get a mortgage without a Social Security Number?

Yes, you can get a mortgage without a Social Security Number. However, you will need an Individual taxpayer identification number to become a property owner.

3. What can stop you from getting approved for a mortgage?

Several factors can stop you from getting approved for a mortgage. These include poor credit scores, insufficient income to support the loan repayment, lack of down payment, or inadequate cash reserves. Additionally, if your immigration status is in question or you are self-employed without proper paperwork and documents, this may prevent you from getting approved for a mortgage.

4. Do I need to be a permanent resident to get a mortgage?

No, you need not be a permanent resident to get a mortgage. However, lenders will typically require proof of legal residency or citizenship (such as an Employment Authorization Card) to approve a loan application.

5. Does employment status affect a mortgage application?

Yes, employment status does affect mortgage application. It bears a direct impact on the loan type you can choose. Lenders will typically require proof of income and steady employment to approve a loan application. However, in case you are currently unemployed or do not have the stable job history required by some lenders, you may still be able to get approved for a loan if you can provide other proof of income (such as investment or rental income).

6. Can you get a mortgage with an employment authorization card?

Yes, you can get a mortgage with an employment authorization card. Several options are available, such as Foreign national loans, DSCR loans, or working with lenders on a case-by-case basis. Additionally, it is important to research what types of documents you may need to provide in order to qualify for the loan.

7. How to find down payment assistance programs?

The first step to finding down payment assistance programs is to research local, state and federal programs. Then, you can contact your local housing authority or do an online search for mortgage assistance programs in your area. Additionally, you may also speak with your lender about the program.

8. How long does it take to get a green card after EAD?

The processing time for a green card after an EAD can vary. It typically takes 5 to 43 months, depending on your eligibility status. 

9. Can I get an FHA loan with an EAD card?

Yes, you can get an FHA loan with an EAD card. However, it would help if you met certain criteria to qualify for the loan. This includes meeting income guidelines and having a minimum credit score of 580. Additionally, if your immigration status is in question or you are self-employed without proper paperwork and documents, this may prevent you from getting approved for an FHA loan. 

10. How can I improve my chances of getting a mortgage?

The best way to improve your chances of getting a mortgage is by improving your credit score and saving for a down payment. Additionally, it would be best if you considered pre-approval from several lenders to compare rates and terms. You may also seek advice from a professional mortgage broker or financial advisor who can guide you through the loan application process.

About the author:
Amresh is the Founder & CEO of HomeAbroad. With over 14 years of mortgage industry experience, he specializes in foreign national mortgages and Non-QM mortgages. He is also a licensed mortgage originator (NMLS # 2549148).

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