One of the questions foreign nationals in the United States ask themselves is whether they can secure a mortgage using their EADs (Employment Authorization Documents). The answer to this is a big yes! You only need to fulfill a few requirements to get a home loan using your EAD. Keep reading this guide to learn more about EAD mortgages.
Understanding the Employment Authorization Document
An employment Authorization Document or EAD is issued by USCIS (United States Citizenship and Immigration Service) to allow foreigners to work legally in the US. This document usually has a validity period of two years, but it is renewable.
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Why is EAD Necessary When Applying for a Mortgage?
An EAD helps lenders assess your financial stability and ability to repay your loan. If you are a green card holder, the chances of becoming eligible for a home loan are relatively high.
Can Visa Holders Obtain EAD Home Loans
Yes! It is possible for a visa holder to obtain EAD home loans. However, the requirements for securing these loans depend on the Visa holder’s residency status.
- If you are residency status is non-permanent Resident Alien, these are the requirements you must meet to obtain an EAD mortgage:
- You should have an Employment Authorization Document and a Social Security Number.
- Your visa should fall under any of the following categories: H series, E series, O series, L series, G series, L series, and NATO series.
Meanwhile, foreigners with permanent residency status must provide their Social Security Card and Form 1-551, which proves their green card validity, to be considered for an EAD mortgage.
Can Visa Holders With EAD Acquire American Homes?
Yes! A visa holder with an EAD can purchase a home in the US on the condition that they use the property as their primary residence, not rent it.
What Are the Qualifications for Obtaining a Home Loan With Employment Authorization Card?
- You need to have an employment history of at least two years in the United States to secure a federal loan.
- To obtain a federally backed loan, a credit history of at least two years is required. It is worth mentioning that if your country adopts the same credit reporting guidelines as the United States, an American lender can assess your credit history from your home country to consider you for a mortgage.
Home Loans You Can Obtain With EAD
Foreign National Mortgage
A foreign national mortgage is offered by private and government lenders. If you apply for this loan with a government lender, you will be required to submit documents showing your employment history, credit history, tax returns, and pay stubs. Private lenders, on the other hand, do not request a lot of documents. In most cases, they usually assess your credit rating in your home country.
If you have lived legally in the United States for at least two years, you can consider applying for the Federal Housing Administration loan. Your credit history will be considered during the loan approval process. The biggest downside of FHA loans is that they can delay the home-buying process by even two years.
So long as you can prove that you have an income source and the capacity to make loan repayments, securing a conventional loan is easy.
A Guide to Securing Mortgage With EAD
Find your ideal home: You can seek the guidance of a real estate agent to help you locate your perfect home.
Calculate your budget: By doing this, you will be able to determine the type of loan that suits you and how much you can afford to pay as a down payment.
Research loan options and find the right lender: When researching the available mortgage options, consider aspects like loan terms and interest rates. Once you find the right option, look for a reputable lender and check if you meet their requirements.
Apply for the loan and submit the necessary documents: After confirming that you meet the lender’s requirements, submit both your loan application and the required documents.
Receive a loan approval letter: Once the lender verifies the accuracy of the submitted documents, they will approve your loan application and issue you an approval letter.
Upon receiving this letter, you can finalize the home-buying process with the property seller to become a new owner of an American home.