Question Details

Yxl192, Home Buyer in Worcester, MA

Is a H1B worker eligible for a mortgage? No stamp, only I-797.

Asked by Yxl192, Worcester, MA Tue Feb 19, 2013

I'm a H1B worker in US now. Since my employer applied for H1B working visa for me when I was in US, I don't have a physical H1B visa stamped on my passport. Instead, USCIS issued me a I-797 form with a new I-94 form stating my H1B STATUS IN US. Am I eligible for a mortgage? What following category should I fall in?
1. H-1B, H-1C, (temporary, specialty workers) and L-1A, & L-1B (intracompany transferee) visas are acceptable.
2. In lieu of a Visa, an Employment Authorization Document (EAD), a letter from the employer, and I-94 or I-797 form showing eligibility to work in the U.S. (all supporting a 3 year continuance)

I hope a professional mortgage processor with international borrower experience OR an immigration attorney could provide an answer. Great thanks!

Reference:
https://www.allregsloanlibrary.com/merit/mortech/filestreame… COMPARISON\PHH\UNDERWRITING\Conv. Chpt 1 - Eligible Borrowers.01-08-13i.pdf

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Answers

2
Non-Permanent Resident Aliens are underwritten with the same terms as U.S. citizens provided U.S. employment is expected to continue 3 or more years from the date of application.

There may be variations from lender to lender who is willing to do what, however, here is a basic outline of what is available when Mortgage Insurance is not required:
Conforming loans: all occupancy and transaction types are permitted
Non-Conforming loans: limited to Primary Residence Purchase or Rate/Term Refinance transactions only
A full 2-year employment history must be verified, including any period of employment outside of the U.S.
Employment and income can be verified in writing by the employer. Income from self-employment outside of the U.S. cannot be considered.
A Social Security Number or ITIN (acceptable with Conforming only - reference ITIN section below)
Copy of acceptable visa is required. (Refer to Visa Status section for descriptions)H-1B, H-1C, L-1A, & L-1B visas are acceptable
E-1, E-2, G-1 to G-5, I, O-1, P-1 to P-3, & TN visas may be acceptable on a case-by-case basis
In lieu of a Visa, an Employment Authorization Document (EAD), a letter from the employer, and I-94 or I-797 form showing eligibility to work in the U.S. (all supporting a 3 year continuance)
Please note: any borrower that has a temporary protected status, is an asylee, or has diplomatic immunity is not permissible.

Funds for down payment, closing costs, and reserves must be held in a U.S. financial institution. Any funds to close that were transferred from a foreign financial institution will require documentation of source of funds. All supporting documents must be translated by an Underwriting approved translator or a disinterested third party, and be stated in U.S. dollars.

When Mortgage Insurance is required:
Conforming loans only
Must be submitted to the MI provider for review/approval
Primary Residence Purchase transactions only
Maximum 90% LTV/CLTV
1-unit SFD, PUD, condo or co-op
Full documentation only
2-year traditional credit history in the U.S.
2-year employment history in the U.S.
Must have a Social Security Number (ITIN is not permitted)
Copy of acceptable visa is required. (Refer to Visa Status section for descriptions)H-1B, H-1C, L-1A, & L-1B visas are acceptable
E-1, E-2, G-1 to G-4, I, P-1, & TN visas may be acceptable on a case-by-case basis
In lieu of a Visa, an Employment Authorization Document (EAD), a letter from the employer, and I-94 or I-797 form showing eligibility to work in the U.S. (all supporting a 3 year continuance)
Please note: any borrower that has a temporary protected status, is an asylee, or has diplomatic immunity is not permissible.

Funds for down payment, closing costs, and reserves must be held in a U.S. financial institution. Any funds to close that were transferred from a foreign financial institution will require documentation of source of funds. All supporting documents must be translated by an Underwriting approved translator or a disinterested third party, and be stated in U.S. dollars.
1 vote Thank Flag Link Wed Feb 20, 2013
I have a stamped H1B visa with 1 year left. How do I prove "all supporting a 3 year continuance" as you say it. As far as I know, the maximum visa term for H1B is 3 years anyway.
Flag Fri May 29, 2015
Eva,

You answer is very professional. However, what category should I fall in?
Flag Wed Feb 20, 2013
I have exactly same problem. I got I797(valid till 2015), letter from employer, I94. But my visa expired on 2012. I have to go back my country to get a new visa stamped on my passport. Banks are asking for either a valid visa or employment authorization document. Please let me know how u solved this problem?

Thanks,

Hakan
0 votes Thank Flag Link Mon Mar 4, 2013
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