I apologize in advance for this slightly off-the-topic question but I require some urgent inputs.

I have been in the US for the past 9 years out of which 6 years have been on an H1B visa. I am due to close on a home in teh first week of August. I just received condititional approval for a 30 yr FHA loan from Provident Bank and one of the conditions is that they have asked for an "EAD card". An EAD card is basically a work authorization document that is given at a certain stage in the green card process. I am in the green card process and will receive this EAD somewhere down the line in the process. However, I dont really require this EAD since I am already authorized to work on an H1B (have been doing to for several years and will continue to until I get my employment based green card).

In summary - I would appreciate any feedback from borrowers or realtors who have worked with clients with a background similar to mine i,e. trying to get an FHA loan while on an H1B visa. I know of hundreds of folks who have obtained a conventional 30yr loan while on a H1B  but FHA + H1B cases are scarce. I spoke to the FHA contact line and they admitted it is a grey area and hinted that H1B should be OK but wouldnt clarify beyond that.

Any inputs will be greatly appreciated.

I am on H1-B and got my 30 Yr FHA loan last month. You should be okay. All you need is a letter from your employer stating that you currently have a valid work permit and that your petition for green card is under process. You don't need EAD for the loan.

Employment Based Immigrant 

A copy of an USCIS I-94 card or un-expired foreign passport with one of the following visa classifications:

H-1B, H-1C, E-1, E-2, E-3, L-1A, L-1B, P-1, R-1, TN, G-1 thru G-4, or

amohan1980 -  Could you please let me know if you able to get FHA ? I am also on H1B but my lender is saying you need EAD or GC to get FHA Loan.

Thanks!

Although you are in the US leagally your status is considered temporary. An H1B Visa allows U.S. employers to temporarily employ foreign workers in specialty occupations. If a foreign worker in H-1B status quits or is dismissed from the sponsoring employer, the worker can find another employer, apply for a change of status to another non-immigrant status, or must leave the US. Although if you were fired or quit you are allowed to attempt to find another employer, that employer must be willing to sponsor you in order for you to stay in the US. Therefore the question the underwriter asks themselves is what if the borrower cannot find another employer willing to do this? The answer is they get deported back to the country the came from and chances are the home gets foreclosed on. I am not saying you would do this, it is just the way underwriters think. To keep it simple your stay in the US is considered temporary and that alone is enough reason for a lender not to have the motivation to lend you the money. I am a loan officer and have been an underwriter and have run into this situation on numerous occasions and the temporary status of an H1B is almost impossible to overcome. That is, it is without committing loan fraud. Whoever you spoke with at the FHA contact line did not give you accurate information, all government loans (FHA, RDA, VA) have the same guidelines when it comes to an immigrant in the country on an H1B Visa and that is, it is not allowable. Fannie Mae and Freddie Mac (Conventional GSEs) will probably allow it with a significant down payment but FHA, RDA and VA will not. If you know someone that has pulled it off chances are they did not disclose that the borrower was not a US citizen. There is one question on the loan application: Is the Borrower an US Citizen? If it is answered as "Yes" in most cases it will not be questioned. I would imagine that most of the folks you know that have gotten mortgages and are in the same situation did exactly this. Whether they knew it or not.

Hello.  werwe you able to get your loan?  And were you able to obtain the minimum FHA down payment amount?  I have a file very similar to yours and am having some issues with the underwriter on this file.

Thanks.

Hi, I am in the same situation. The underwriter is saying that the letter from the employer is not sufficient. Were you able to get FHA on H1B with GC application in process ? If yes then through which bank / mortgage company ? If not then what are the other options do I have ? I will appreciate a quick response.

Why go FHA if the route is bumpy.  With 95% and MI you have more options. Which State are you and what is your Zip code.

Jacob

http://www.bestcalons.com

I am in NJ 08902, I am buying a townhouse with 5% down. I tried for conventional loan but most of the places they ask for a minimum of 10% down and sometimes 20% down. So I thought FHA is more suitable for me. I need to close the house in 2 weeks so need to take quick decision. If you have any suggestion for me /

I posted this question initially and got a variety of responses (most of them WRONG). So I just thought I would clarify.

Firstly, I got my FHA loan approved last year without any issues after clarifying the relevant visa-specific issues.

(to one of the previous posters who referred to the FHA route being bumpy..well if there is confusion related to visa status.. the route would be bumpy for ANY type of home loan, not just FHA).

Anyways, I spoke with several agencies (FHA, HUD, IRS etc.) regarding this last year when my lender was having questions about my visa status and this is the bottom line - any US resident (remember for tax purposes, you are a resident even though on HIB) including an H1B work visa holder qualifies for any type of mortgage....no exclusions. The confusion is only due to the generic visa/resident status document requirement on the FHA or other applications. The application refer to an "EAD" (those folks who are visa holders know what it refers to).. but basically if you are on a work visa.. just a copy of your I797 approval and a latest I-94 should take care of whatever documentation the lender needs to prove your legal status in the US. My application was approved smoothly once this was explained and provided to the under-writer.

The system in the US is simply great - in allowing anyone who dreams to own a home (citizen, visa holder alike).. to actually allow them to do that. It doesnt help when people, who do not know intricate details of the visa subject, give out wrong information.

Btw.. thanks a ton to "stuffresearch" and Bob Hill for their accurate and encouraging response on this subject that helped me a lot last year.