Can Non-Citizens Still Get Mortgages?
There is much concern about non-citizens getting mortgages in the current political environment.
But – not much has changed.
1. Non-US Citizens With Valid Social Security Numbers (3.5% to 5% Down)
Non-citizens with social security numbers include: (1) Permanent Resident Aliens (Green Card Holders); (2) Non-Permanent Resident Aliens (Visa holders such H-1B, L1, TN, etc., and Employment Authorization Document – EAD – holders); and (3) DACA Recipients (people who were brought to the U.S. illegally as kids and who have since built lives here).
FHA is no longer a viable option for many of these people (with the exception of Green Card holders), but they are still eligible for almost all other Fannie Mae and Freddie Mac mortgages.
2. Non-US Citizens With ITIN (Individual Taxpayer Identification Number) and No SSN (15% Down)
These people can still get mortgages as well. But they will need at least 15% down, and they will be limited to the Non-QM (non-standard mortgage) space.
JVM has a very informative webpage devoted to ITIN BORROWERS.
NOTE: Non-citizen borrowers with social security numbers and/or ITINs still need credit and work histories (usually 2 years) just like most other borrowers.
3. Non-Citizens With No ITIN or SSN (25% Down)
These borrowers are known as “Foreign Nationals,” with little to no footprints in the U.S. They can qualify for mortgages too, but they typically need at least 25% down, proof of assets, and some sort of credit report – even if it is from another country.
Why Oil Is Up, But Rates PLUMMETED!
Oil prices – which have been sparking inflation fears and driving rates higher – rose again over the weekend.
But rates fell sharply today in the face of rising oil prices.
Rates fell because the prospect of a weaker economy outweighed inflation concerns.
The University of Michigan Consumer Sentiment Index came in very weak, particularly regarding employment concerns; 61% of participants expected unemployment to increase over the next 12 months.
Remember again that the bond market (that controls rates) focuses on two things: (1) inflation expectations, and (2) growth expectations.
Slower growth expectations trumped inflation concerns because slow growth and recessions can be deflationary, offsetting inflation.
