June 5, 2015
FHA home loan rules include guidance for participating lenders who are handling FHA loan applications submitted by non-U.S. citizens. Did you know that according to FHA loan rules, it is not required to be a U.S. citizen in order to apply? However, certain restrictions do apply.
According to HUD 4155.1 Chapter Four, Section A, “U.S. citizenship is not required for mortgage eligibility”. However, all applicants must have a valid Social Security Numberr (SSN). That is according to the FHA/HUD official site FAQ section, which states:
“For all borrowers, including US citizens, the lender is required to document a valid Social Security Number (SSN) for each borrower, co-borrower, and co-signer on the mortgage. All individuals eligible for legal employment in the US must have a SSN. Each borrower must provide the lender with evidence of his or her own valid SSN as issued by the Social Security Administration (SSA). This applies to purchase money loans and all refinances, including streamline refinances. While the actual social security card is not required, the lender is required to validate the SSN.”
Your loan officer is required to validate the SSN submitted on FHA loan application documents. This is often done by, “examining the borrower’s pay stubs, passport, valid tax returns, and may use those service providers having direct access to the SSA. The lender is also required to resolve any inconsistencies or multiple SSNs for individual borrowers that are revealed during loan processing and underwriting.”
What are the FHA loan rules for non-U.S. citizens applying for an FHA mortgage? According to Chapter Four, the applicant must be a permanent, non-resident alien. “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).”
FHA loan rules add that U.S. Citizenship and Immigration Services (USCIS) within the Department of Homeland Security “provides evidence of lawful, permanent residency status”. Borrowers who need more information on how to proceed in these cases should discuss their needs with a loan officer.
Do you have questions about FHA home loans? Ask us in the comments section.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
Browse by Date: