HUD Announces New Eligibility Guidelines for Certain Non-Permanent Residents

Overview

HUD recently announced clarifications to their guidelines for certain Non-Permanent Residents applying for FHA-insured mortgages, including:

• Eligibility of borrowers with H1-B non-immigrant visa status without an EAD,
• Eligibility of citizens from the Federated States of Micronesia, the Republic of the Marshall Islands, and the Republic of Palau without an EAD, and
• Adopting and continuing existing eligibility requirements for Deferred Action for Childhood Arrivals (DACA) recipients previously announced in a temporary waiver.

These changes are effective immediately and apply to new loan submissions as well as pipeline loans.
The following guidelines apply to borrowers who are non-permanent residents:

• Property must be the Borrower’s Principal Residence;
• Borrower has a valid Social Security Number (SSN);
• Borrower is eligible to work in the United States, provided the borrower provides either:
  • Employment Authorization Document (USCIS Form I-766) showing that work authorization status is current;
  • USCIS Form I-94 evidencing H-1B status, and evidence of employment by the authorized H-1B employer for a minimum of one year;
  • Evidence of being granted refugee or asylee status by the USCIS; or
  • Evidence of citizenship of the Federated States of Micronesia, the Republic of the Marshall Islands, or the Republic of Palau; and
• Borrower satisfies the same requirements, terms, and conditions as those for U.S. citizens.

If the Employment Authorization Document (USCIS Form I-766) or evidence of H-1B status 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.
Borrowers residing in the United States by virtue of refugee or asylee status granted by the USCIS must provide the following documentation:

• Employment Authorization Document (USCIS Form I-766) or USCIS Form I-94 indicating refugee or asylum status, or
• USCIS Form I-797 notice indicating approval of a USCIS Form I- 589, Application for Asylum or Withholding of Removal substantiating the refugee or asylee status.

Contacts

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