Hey,
I've lived and worked in the US for several years now, but am still on an H1B work visa. My employer is a Fortune 500 company that is planning on applying for a green card soon.

I am planning on buying a house, unfortunately I don't have too much to put as a down payment. I'm a first time buyer. I met with a mortgage broker who was recommended to me, and he claimed that since he worked with a lot of immigrants, he knew that declaring that I was a non-citizen and a non-resident alien would mean that I would be asked to put at least 10% down and have to deal with a higher interest rate in light of the mortgage crisis that's happening these days.

He also claimed that if I didn't tell him that I was a non-resident alien, then he would assume that I was a green card holder and all kinds of loans would be available to me. He said that everyone does it, and that its not a problem when you apply for the green card. Doing that is a little unnerving though, cause I don't want to get in trouble.

I talked to several friends who have bought houses in the same situation as me, but they all declared their status, but they also got their loans a few years ago when everyone was getting loans easy.

Here's my questions:
a) Is it true that I would have a harder time getting a decent loan if I a declare my non US citizen, H1B holder status?

b) Is it advisable to not declare my status and go ahead in this case?

c) What's the worst that could happen if someone finds out? Would they just increase my rate?

I'm really confused, but I do want to buy, not sure what I can do.

Thanks.

Hello as:

If you lie to get a loan and all they do is find out about it, they'll just call the loan. However, if you've lied to get the loan, and you default, this time when they find out about it, it's going to be considered bank fraud, and they'll do a lot worse to you than just call your loan.

excon

I agree. Why don't you just wait until you have a green card. It would make more sense in case your financial situation suddenly changes. Don't go rushing into anything simply because you want a house. Rent a house first and see what for headache they really are with the upkeep, things breaking, taxes, etc.

Plus you can't just up and move on a whim after you buy a house as you have to sell the house first and you may not stay here long enough to get your money back or even make a profit due to today's house market going nuts right now.

Well, I've been in the country 5 years and have a stable job. Ive been on a work visa for a while and I know what it takes to maintain a house... which is why I don't want one... lol. I'm looking for condos. I plan to get my GC and stay here for a while, at least 5 years, so I'm not going into this blindly. The green card process takes several years and I know several people who buy a home before they have one, it just doesn't always make sense to wait it out and keep paying rent waiting for your status to come through.

Hello again, a:

This is the legal board. What you'll get here is very fine legal advice. What you won't find, is a whole lot of personal advice.

We're not telling you what to do. We're only telling you what happens IF you do it.

excon

Sounds like you have nothing to hide... you just want to get the best rate you can and under the best conditions, right? I wouldn't lie at all. I'm not an expert in this area, so maybe this guy is right... maybe it gets done all the time and people look past it. I just don't like the feel of it.

Talk to several lenders. We went with the one we were referred to by a friend, but we also checked out three other lenders... and actually used part of an offer from one lender to get a better deal with the first.

Go to your bank, but also go to a local credit union. They might be willing to work with you on terms to get your business, though the issue about the downpayment might be a breaking point... especially at this stage in the lending market.

If these don't work out, you might need to explore alternative financing, such as a house bought on contract through a seller willing to finance you. I know several people who have bought on contract, and one who always sells on contract, and it can be absolutely fine... the problems come when someone misses a payment. You need to terms to be clear and understood.

The market slump might very well push some sellers into being willing to negotiate seller financing. It'll limit your choices, but it might be a way to start home ownership. You can ask the sellers agent if they are open to alternative financing or you can look for lenders who advertise locally.

If none of these work out, then its time to start structuring your budget so you can afford a downpayment.

Like it or not, showing financial discipline by saving money for a downpayment is still a great way to show a lender your commitment.

Thanks KP, that's the best advice yet, exactly what I was looking for. I'll start shopping around myself... im not comfortable lying at all either. Ultimately if I don't buy right away, it won't be the end of the world, its just that it seems like a great time to lock down a low rate.

That mortgage broker is asking you to commit FRAUD, which you should not do.

FNMA, the 800 lb gorilla of the secondary market says: "We will purchase or securitize mortgages made to aliens who are LAWFUL permanent or nonpermanent residents of the United States under the same terms--mortgage product, transaction type, occupancy status, and LTV ratios -- that are available to United States citizens."

There are slight differences in the documentation for permanent and nonpermanent resident alien, but the main thing that needs to be shown is that you are a LEGAL resident of this country.

Good luck.

[QUOTE=asTer0id]Hey,
I've lived and worked in the US for several years now, but am still on an H1B work visa. My employer is a Fortune 500 company that is planning on applying for a green card soon.

I am planning on buying a house, unfortunately I don't have too much to put as a down payment. I'm a first time buyer. I met with a mortgage broker who was recommended to me, and he claimed that since he worked with a lot of immigrants, he knew that declaring that I was a non-citizen and a non-resident alien would mean that I would be asked to put at least 10% down and have to deal with a higher interest rate in light of the mortgage crisis that's happening these days.

He also claimed that if I didn't tell him that I was a non-resident alien, then he would assume that I was a green card holder and all kinds of loans would be available to me. He said that everyone does it, and that its not a problem when you apply for the green card. Doing that is a little unnerving though, cause I don't want to get in trouble.

I talked to several friends who have bought houses in the same situation as me, but they all declared their status, but they also got their loans a few years ago when everyone was getting loans easy.

Here's my questions:
a) Is it true that I would have a harder time getting a decent loan if I a declare my non US citizen, H1B holder status?

b) Is it advisable to not declare my status and go ahead in this case?

c) What's the worst that could happen if someone finds out? Would they just increase my rate?

I'm really confused, but I do want to buy, not sure what I can do.


The minute he said, "Everyone is doing it" I'd have been running for the door. As long as you are in the US legally I don't see a problem getting a mortgage nor do I see anything special because you are not a citizen. I'd shop around.

Glad you are avoiding the shady practices. It is good to keep things honest. You would not want any stigma associated with your new home puchase. You would not want to lose a green card over something like this transaction that you might be considering.

Make your own decision. It's a free country for citizens and everyone else too.

What is the mortgage interest rate for a non status resident living in UK

What is the mortgage interest rate available to a non status resident in UK

What is the mortgage interest rate for a non status resident living in UK

Quote:

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Originally Posted by asTer0id

Hey,
I've lived and worked in the US for several years now, but am still on an H1B work visa. My employer is a Fortune 500 company that is planning on applying for a greencard soon.

I am planning on buying a house, unfortunately I dont have too much to put as a down payment. I'm a first time buyer. I met with a mortgage broker who was recommended to me, and he claimed that since he worked with a lot of immigrants, he knew that declaring that I was a non-citizen and a non-resident alien would mean that i would be asked to put at least 10% down and have to deal with a higher interest rate in light of the mortgage crisis thats happening these days.

He also claimed that if i didn't tell him that I was a non-resident alien, then he would assume that I was a greencard holder and all kinds of loans would be available to me. He said that everyone does it, and that its not a problem when you apply for the greencard. Doing that is a little unnerving though, cause i don't want to get in trouble.

I talked to several friends who have bought houses in the same situation as me, but they all declared their status, but they also got their loans a few years ago when everyone was getting loans easy.

Heres my questions:
a) Is it true that i would have a harder time getting a decent loan if i a declare my non US citizen, H1B holder status?

b) Is it advisable to not declare my status and go ahead in this case?

c) Whats the worst that could happen if someone finds out? Would they just increase my rate?

im really confused, but I do want to buy, not sure what I can do.

thanks.

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As long as the home is owner occupied then it should not affect your down payment.Your status does however effect the rate.Feel free to contact me I'm a mortgage broker in Missouri.At [email protected]