Living without a greencard

[rebeccajo 14]

I see another post here about homeownership and I thought I should relate what happened with us this week.

It's been one of my biggest rants that most banks or mortgage companies won't lend to you unless you have a greencard. Or if they would they charge you a higher rate of interest.

I used to work in the mortgage business. In fact I kind of still do - my boss is a real estate attorney and we do closings. I digress - the only point that offers up is I know where to go to find information.

I got really annoyed one evening and decided to read the FNMA guidelines about loans to non-citizens. Low and behold it was revealed to me that FNMA has no directives about NOT making loans to people who don't have greencards. In fact they even have a couple of names for us 'blackhole' dwellers. One of which is 'non permanent resident alien'.

So I spoke to a banker friend of mine this week. I explained our predicament. Of course nobody in the 'rest of the world' understands immigration-speak. She came back to me after her first inquiry and said 'all my underwriter wants is your husbands greencard'. I produced a rather heavy sigh, told her this is what we don't have, and re-told my story. I asked if she would mind to have her underwriter search the FNMA guidelines and see for herself if there are any provisions against lending to aliens without a greencard.

After a couple of days, my banker came back to me and said 'my underwriter researched it - she says all she needs is your husband's EAD'.

I thanked her profusely. She thanked me. She said it gave her and her underwriter some new knowledge.

[hanster 0]

this is really interesting and thank you very much for sharing this information with us. I truly appreciate it.

i wonder though if even there are no provisions in FNMA against lending to aliens without a greencard whether that would make them not charge such high interest rates. i mean after all it is still their decision and they can charge as high rates as they want and you can accept it or decline it.

[rebeccajo 14]

FNMA doesn't set the rates. The bankers do. A lot has to do with economics and a lot with marketing.

Loans to foreign nationals is a niche' market. Lenders who cater to people needing these loans get away with charging a higher rate because it's perceived no one else can make the loan.

My banker informed me we would be paying the same rate as anybody else.

Edited February 3, 2007 by rebeccajo

[hanster 0]

FNMA doesn't set the rates. The bankers do. A lot has to do with economics and a lot with marketing.

Loans to foreign nationals is a niche' market. Lenders who cater to people needing these loans get away with charging a higher rate because it's perceived no one else can make the loan.

My banker informed me we would be paying the same rate as anybody else.

in that case would it have mattered if the loan was under both your names or just under your husband's name?

[rebeccajo 14]

FNMA doesn't set the rates. The bankers do. A lot has to do with economics and a lot with marketing.

Loans to foreign nationals is a niche' market. Lenders who cater to people needing these loans get away with charging a higher rate because it's perceived no one else can make the loan.

My banker informed me we would be paying the same rate as anybody else.

in that case would it have mattered if the loan was under both your names or just under your husband's name?

Not that I'm aware of.

I will still be the primary borrower. My husband has a short job history and hardly any credit rating in the US (naturally). So the 'creditworthiness' of the loan will be more strongly on me. But they will still count his income, he will sign the note and deed of trust, he will be on the deed and he will build credit.

It's gonna be difficult for anyone to get a loan on their own with little or no credit history and a short job history. Not just a foreign national.

Edited February 3, 2007 by rebeccajo

[Miranda&James 8]

This is our fear as well. We want to get a house this summer but seeing as James is the primary earner (I'm still in college) only his income can support the mortgage. But, he doesn't have his greencard and no credit history either. This is the only thing that gets me so worried about getting the greencard and frustrated when I see other people fly past - the fact that this house may not be a reality. It isn't even just about the fact of having a house either, we currently live in an apartment with terrible neighbors in both sides who have made our lives a living hell where we can't enjoy being in our own place and it has definitely effected our marriage (and we live in a very nice neighborhood so it isn't a matter of being in a bad area, just got bad luck with bad neighbors). Moving into another apartment (we hate the management here, they've done nothing to remedy our problem) isn't a good option since we are so afraid a new apartment would bring more loud neighbors. I can handle it better than James but I'm definitely afraid to think of what will happen if we are told we can't get a mortgage because of his lack of a greencard but here's hoping it comes before July and that he can build a small amount of credit before then.

[Kez/JWolf 6]

We moved into our Condo just 3 weeks ago.... the mortgage is in joint names but I am the only one working as my USC husband is disabled and have no income.... I have only been in the US almost 2 years, I have only been working for 14 months, but I was able to get a mortgage for $288,000 at 6.2% fixed for 30 years..

Kez

[rebeccajo 14]

We moved into our Condo just 3 weeks ago.... the mortgage is in joint names but I am the only one working as my USC husband is disabled and have no income.... I have only been in the US almost 2 years, I have only been working for 14 months, but I was able to get a mortgage for $288,000 at 6.2% fixed for 30 years..

Kez

14 months job history is not as 'short' as my husbands. And I'm sure your husband has some credit in America which was also used in both of yours favor.

I used to underwrite loans. A good underwriter will pull the 'good' from both borrowers, no matter which one is the principal.

When a person (USC or not) is just starting a new job and has no credit history, it's tough to justify the approval. The size of the down payment does make some difference. The larger the down payment, the more latitude you have to approve.

You've also got your greencard too, Kez. Which was the original point of my post. It can be too tough a nut to crack if you don't have a greencard, and want to borrow money in a new country where you are short on job experience and credit history. That's why I've been dogged determined to find a lender who would work with us to help us not only get into a home, but include my husband in the equation.

Edited February 4, 2007 by rebeccajo

[Kez/JWolf 6]

Rebeccajo I was replying more to Miranda&James more than to your post... Yes Jon's good credit score will have helped us, I also had a good credit score...

I hope you find a lender soon that will be able to help you get the home you are seeking...

Kez

[Killer_Clown_2009 0]

You can easily get a secured credit card through bank of america to start building credit. I already have one and I don't even have an EAD yet.

[Killer_Clown_2009 0]

This has nothing to do with mortgages, but is directed towards those with no credit history looking to build it. The interest rate is not good, but I keep mine paid off, so it doesn't matter.

[munchkins 0]

Becca, thank you for that, it's very interesting to us as we are in the process of being pre-approved for a mortgage, even though we are not there yet but I will be interested to see what the rate is and I will use what you have said if I feel it is way to high.

We are in the position, thankfully, that we may not need one dependent on the house that we want to buy or we may need a small one but only taken out over a maximum of 10 years but with the option of paying off lump sums in between.

The guy who is doing our pre-approval works for one of the big banks in the states and has done mortgages for ex pats before, he is also the brother of the realtor we are using and have been in almost daily contact with for the past year (in fact LisaD put us in touch with him as he works for the same company as her) Also he told us that in our favour is the fact that we do have a large amount to put down and that my UK pension goes directly into my bank account in the states.

Just as an exercise i will get in touch with him to find out the rate as we have not received anything through the post as yet and if it is too high will bring up the FNMA guidelines. In the meantime, knowing that all financial institutions charge different rates, is there an average rate that will give me a guide???

[KarenCee 3]

Becca, I am so happy for you and Wes right now. We also found a mortgage company to work with us too, knowing Joel doesn't have a GC yet. They are looking at me as the primary credit source but they are allowing his income as part of the equation.

It pays to read up and present evidence that you DO know what you're talking about.

[Miranda&James 8]

Becca, I am so happy for you and Wes right now. We also found a mortgage company to work with us too, knowing Joel doesn't have a GC yet. They are looking at me as the primary credit source but they are allowing his income as part of the equation.

It pays to read up and present evidence that you DO know what you're talking about.

I hope it works out like that for us too, as far as I know I have good credit and have a few lines of credit open to help build credit since I am pretty young and don't have a long credit history. But, James is definitely the one with the moolah that would finance that mortgage! After a couple more paychecks we're going to go investigate at banks.

[KarenCee 3]

Becca, I am so happy for you and Wes right now. We also found a mortgage company to work with us too, knowing Joel doesn't have a GC yet. They are looking at me as the primary credit source but they are allowing his income as part of the equation.

It pays to read up and present evidence that you DO know what you're talking about.

I hope it works out like that for us too, as far as I know I have good credit and have a few lines of credit open to help build credit since I am pretty young and don't have a long credit history. But, James is definitely the one with the moolah that would finance that mortgage! After a couple more paychecks we're going to go investigate at banks.

Good Luck!!!!