Home financing denied while on EAD

[bpratap]

Does any one face this ?

Bank asking 3yr VISA from the date of closing ?

trying to understand, if this Bank only is insisting for it.

[VivekAhuja]

Getting a bank loan is only dependent on showing that you will be able to pay it back. NO IMMIGRATION STATUS documents are required as long as you have SSN card. If SSN card says "Only with INS Authroization", then bank may ask further questions but if you are clear, the loan will be cleared. There are no legal restrictions.

[bpratap]

I was also under the impression that Bank need not ask for Immigration Docs as long as I have good credit history and PayStub to prove I can re-pay the loan, but they (GMAC) is asking for 3yr continuous VISA from the date of closing.

The Loan Processing officer dont have any clue on VISA / Immigration procedure.

please share ur experiences or advice on how to handle this situation

Originally Posted by VivekAhuja

Getting a bank loan is only dependent on showing that you will be able to pay it back. NO IMMIGRATION STATUS documents are required as long as you have SSN card. If SSN card says "Only with INS Authroization", then bank may ask further questions but if you are clear, the loan will be cleared. There are no legal restrictions.

[PBECVictim]

Jumbo loans are not getting approved for EAD status. Banks are rejecting Jumbo loans (> 417K) if your immigration status is EAD or AOS. I don't have any idea about normal loans (< 417K). But banks are giving Jumbo loans if the status is H-1B.

But noone is rejecting loan, if your down payment is 20% of the value of the home.

[bpratap]

My Loan is not Jumbo loan, its under 400K

I don't have 20% down. But I was speaking to the Loan officer, he was telling, it doesn't matter if you put more down or not, 3yr forward continuous visa is req. I never heard this earlier.

Originally Posted by PBECVictim

Jumbo loans are not getting approved for EAD status. Banks are rejecting Jumbo loans (> 417K) if your immigration status is EAD or AOS. I don't have any idea about normal loans (< 417K). But banks are giving Jumbo loans if the status is H-1B.

But noone is rejecting loan, if your down payment is 20% of the value of the home.

[bpratap]

Originally Posted by bpratap

My Loan is not Jumbo loan, its under 400K

I don't have 20% down. But I was speaking to the Loan officer, he was telling, it doesn't matter if you put more down or not, 3yr forward continuous visa is req. I never heard this earlier.

I finally got the Loan Approved !

The underwriters was OK with my H1B + I-140 Approval + I-485 Reciept.

Thank you all for the tips and leads.

After a long 60 day wait, I m finally getting the house on Monday.

[sledge_hammer]

Less than 20% huh? FHA or Conventional?

Originally Posted by bpratap

I finally got the Loan Approved !

The underwriters was OK with my H1B + I-140 Approval + I-485 Reciept.

Thank you all for the tips and leads.

After a long 60 day wait, I m finally getting the house on Monday.

[JunRN]

Originally Posted by bpratap

I finally got the Loan Approved !

The underwriters was OK with my H1B + I-140 Approval + I-485 Reciept.

Thank you all for the tips and leads.

After a long 60 day wait, I m finally getting the house on Monday.

Congratulations!

I never had a problem with my immigration status in regards to getting a home loan. In fact, I got approval from 3 banks and I chose the one with lowest interest.

[bpratap]

Fha

[bpratap]

Originally Posted by JunRN

Congratulations!

I never had a problem with my immigration status in regards to getting a home loan. In fact, I got approval from 3 banks and I chose the one with lowest interest.

U got lucky as they didnt ask the Immigration status.

For me also they didnt ask me until they are about to approve the loan.

Gave me a scare, but finally all worked out

[JunRN]

Actually, they asked for it because I only have 1.5 years of US experience. I arrived here in the US on June 2007 and applied for I-140/I-485 on July 2007 under Schedule A (LC exempt).

I showed my EAD valid until 2010 and USCIS FAQ showing I can renew it until I get my GC. I also showed I-485 receipt notice.

Anyway, I also got FHA loan at 4.5% fixed for 30 years.

[hiralal]

if your loan is denied while on EAD ..count yourself as lucky !!!
my advice ..be careful before you take a plunge when on EAD or on temporary visa (H1).
-----------------
MONDAY, MAY 25, 2009
OTHER VOICES
The Housing Hurricane Will Howl Again
By MIKE MORGAN | MORE ARTICLES BY AUTHOR
This is only a lull in the housing hurricane.

WE'RE OUT OF THE EYE OF THE HURRICANE, but here comes the back half of the storm. A lot of people think that we've seen the worst of the housing crisis. They're talking about green shoots and glimmers of hope, when they should be back in the storm shelter, preparing for a flood of inventory that will overwhelm the markets and produce another round of falling prices

For the past few months there has been a semi-moratorium on foreclosures. Most institutions with delinquent mortgages didn't foreclose. The signs that blanket many neighborhoods have been posted by a fraction of the lenders. Now the rest of the banks are rushing to get their properties on the market.
[ov]
Christoph Hitz for Barron's
We're still supporting misguided programs that only add to inventory woes. They encourage builders to put up more homes and penalize anyone else trying to sell a home.

As a Florida real-estate broker who works with bank asset managers to dispose of foreclosed properties, I get a good view of this market. From December 2008 through mid-March 2009, the number of asset managers calling to discuss REO (real estate owned) properties on their client banks' books dropped by more than 80% from the level at which it previously had been running. In the past two months, however, asset managers have been busy, with most interested in how many properties we could handle at once.

Law firms for banks are once again lining up to file foreclosures and to process evictions. The asset managers we work with have warned us to expect a flood of properties, beginning in early June. This will hit as the number of potential buyers continues to dwindle. Builders, traditional sellers and investors who entered too early are already loaded with REO properties.

ALL OF THE OBAMA administration's attempts to revive, resuscitate and shock the housing markets into recovery have failed. Potential buyers can't purchase homes when they are losing their jobs, regardless of how attractive the credits and mortgages are. The price of homes will continue to fall until the properties are affordable for potential buyers.

If an investor could purchase a home and rent it out for close to breakeven, we might be getting close to a bottom. But we are nowhere close to that level in most critical markets. Until it is approached, prices will continue to fall. In fact, the negative cash flow now evident, along with the flood of properties coming into the inventory pool, warn of lower prices.

There's no light at the end of the tunnel yet. We're still supporting builders through misguided programs that are only adding to the inventory woes. California decided to offer a $10,000 credit to buyers of new homes, on top of the $8,000 federal credit. But California made the $10,000 available only for new homes purchased directly from builders. That shows the power of the builders' lobby, but it only adds to California's housing-industry problem. It encourages builders to construct dwellings we don't need, and it penalizes anyone else trying to sell a home.

Housing inventory soon will flood a market in which more than 500,000 homes are being built each year, even though the annual sales pace for new homes is closer to 300,000. We must also deal with a system clogged with impossible short sales, a surge of second and vacation homes being dumped, and third-wave flippers realizing that they entered the market too soon.

FOR THE BANKS, the back half of the hurricane will destroy balance sheets, unless the Obama administration comes up with another plan to mythically mark these assets on the books. Or we might see some chimerical plan to write down mortgage payments, or move toxic mortgages into a dark pool, or create some new illusion that glosses over the problem.

Our experience with banks' selling REOs is they realize about 50%-75% of what they initially think they will get. Moreover, their expenses to bring these properties to market and manage them are growing. Court systems bogged down with foreclosures are raising fees so that they can hire additional staff. More and more homeowners being evicted are stripping homes to the bone, removing appliances, fixtures, carpet, cabinets, air handlers, motorized garage-door openers and anything else that they can carry off or sell.

Unemployment presents a two-pronged problem. If homeowners lose their jobs, they have difficulty meeting mortgage payments. And a high jobless rate forces more people to put their homes on the market.

During the housing bubble, many second homes were purchased with the mythical equity from primary residences. These second homes are coming onto the market at an alarming rate, as many middle- and upper-class sellers need to raise cash. In some very exclusive private communities in Florida, where home prices are in the seven figures, more than 50% of the homes are on the market. (For more on the vacation-home market, see Cover Story.)

Unfortunately, there are no signs of recovery, despite the hype and the twisting of numbers in many media reports. The end of the unofficial moratorium on foreclosures, combined with rising unemployment, signals that the back half of this housing hurricane is only just beginning.

[JunRN]

Well, so far so good for me. As per Zillow estimate, my home value is now 10k more than my purchase price. It depends on where you're buying.

I guess that when the economy starts climbing up and people starts buying houses, interest rate will also climb up to 6%. At 6%, I need to pay $400 more per month.

[bhatt]

Originally Posted by bpratap

Does any one face this ?

Bank asking 3yr VISA from the date of closing ?

trying to understand, if this Bank only is insisting for it.

Try FHA loans!. Also need to pay 3% down payment

[suavesandeep]

Originally Posted by JunRN

Well, so far so good for me. As per Zillow estimate, my home value is now 10k more than my purchase price. It depends on where you're buying.

I guess that when the economy starts climbing up and people starts buying houses, interest rate will also climb up to 6%. At 6%, I need to pay $400 more per month.

If you check interest rate trends for the last 50 years, You will notice that during every economic downturn which is every 5-7 years the interest rates do come down. Although this time the down is a bit more due to severe recession, If you notice even in the last downturn around 2002 was in the 5% range. So only buying a house on the basis of low interest rate may not be prudent.
http://mortgage-x.com/trends.htm

One month is a small time span to check the value. If lets say one year from now your house loses value by 6%, The money you would save by taking a 6% loan on a lower principal will be higher than the lower interest rate on a 6% higher principal you pay now. You can always refinance again during the next downturn when the rates may again go down. But you cannot change the original principal at what you bought the home.

So My point is the original principal you pay to buy the home should be a more important factor in buying a home than the low interest rate.


I think you must have considered everything and made a smart choice, and this is not pointing at you. This is just a data point for others who haven't bought yet to consider.