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catopa 03-04-2009 11:44 AM

Home financing denied while on EAD
 
Not sure if anyone else has faced this so wanted to put this out: I own a home and have a loan on it since 2003 (I was on H1 when i took the loan), now that the ARM is about to adjust i am in the market for refinance.

There is however a question on all the loans underwritten by freddy/fanny asking for immigration status and if the answer is EAD the loan is denied. They even sent me an explanation of denial.....:confused:

h1b_forever 03-04-2009 11:57 AM

This is getting ridiculous
 
I can understand rejecting loans for H1 since it is supposed to be temporary employment, but it does not make sense to reject for people on EAD.
I am in the process of refinancing, but I provided my H1 papers instead of EAD and my application was approved.

It is possible each company has a different policy. I went through Wells Fargo this time.

gapala 03-04-2009 12:01 PM

EAD is not a valid status
 
First of all EAD is not a status. You need to provide them details on whether you are on H1B or AOS / Parolee (if used AP to travel or EAD to work).

Hope this helps.

va_dude 03-04-2009 12:06 PM

I don't think this is a pattern, its probably specific just to the lender you were working with.

Frankly speaking the lender has the right to deny you the loan for whatever reason they feel is risky. So no point arguing with them.
Try another lender and hope it works.

-va_dude

amit_sp 03-04-2009 12:18 PM

In my case; I was offered a refinancing rate that was 0.5% more than what I would pay if I were a GC holder. The reasoning is the short term validity of H1. Ironically I wasn't discriminated 3 years ago when I bought my house. At that time; I even didn't have my labor cert cleared. Now 3 years down the line; I have cleared first 2 stages and applied to I-485; bank charges me more :) Weird!!!!

validIV 03-04-2009 01:08 PM

Just refinanced with Chase. I have a pending I-485 and am on EAD. They just asked for all the paper work and it was a non issue. I think you just have a crappy lender.

sledge_hammer 03-04-2009 01:46 PM

What is your rate and who is your lender?

Quote:

Originally Posted by amit_sp (Post 322967)
In my case; I was offered a refinancing rate that was 0.5% more than what I would pay if I were a GC holder. The reasoning is the short term validity of H1. Ironically I wasn't discriminated 3 years ago when I bought my house. At that time; I even didn't have my labor cert cleared. Now 3 years down the line; I have cleared first 2 stages and applied to I-485; bank charges me more :) Weird!!!!


hindu_king 03-04-2009 01:56 PM

They didnt ask me any immigration documents
 
Thats ridiculous. I recently bought a home and got FHA loan from Chevy Chase Bank. To my surprise, they did not ask me a single immigration related document or any proof of legal presence. All they ever asked was a valid ID during closing, and I showed them my drivers license.

validIV 03-04-2009 01:58 PM

Quote:

Thats ridiculous. I recently bought a home and got FHA loan from Chevy Chase Bank. They did not ask me a single immigration related document or any proof of legal presence. All they ever asked was a valid ID during closing, and I showed them my drivers license.
LOL. I think you meant JP Morgan Chase :) CHEVY CHASE is an actor.

hindu_king 03-04-2009 02:04 PM

Come on man!
 
Quote:

Originally Posted by validIV (Post 323010)
LOL. I think you meant JP Morgan Chase :) CHEVY CHASE is an actor.

Try www.google.com

sledge_hammer 03-04-2009 02:05 PM

Chevy Chase is a bank in this part of the world! :)

I like the actor too btw...

Quote:

Originally Posted by validIV (Post 323010)
LOL. I think you meant JP Morgan Chase :) CHEVY CHASE is an actor.


jung.lee 03-04-2009 02:28 PM

Just FYI, on Form 1003 - Uniform Residential Loan Application:

https://www.efanniemae.com/sf/formsd...trans/1003.pdf

It asks on page 4 of Section VIII. Declarations, questions (j) and (k) - are you a citizen or permanent resident?

hindu_king 03-04-2009 02:49 PM

I dont recall signing this
 
Quote:

Originally Posted by jung.lee (Post 323028)
Just out of curiousity, did you or your mortgage broker fill out Form 1003 - Uniform Residential Loan Application (or a similar form)?

https://www.efanniemae.com/sf/formsd...trans/1003.pdf

If so, what did you answer (since you must have signed the document) on page 4 of Section VIII. Declarations, questions (j) and (k) - are you a citizen or permanent resident?

I dont recall signing this but I've to go back and check.

BECsufferer 03-04-2009 02:55 PM

Loan denial ...
 
Quote:

Originally Posted by catopa (Post 322951)
Not sure if anyone else has faced this so wanted to put this out: I own a home and have a loan on it since 2003 (I was on H1 when i took the loan), now that the ARM is about to adjust i am in the market for refinance.

There is however a question on all the loans underwritten by freddy/fanny asking for immigration status and if the answer is EAD the loan is denied. They even sent me an explanation of denial.....:confused:

A loan application can be denied for any reason and as amatter of fact due to current financial mess, lenders are very wary. So don't be surprised by denial. Try another place.

I secured loan after 2.5 months of constant battle. My lender tried all possible means to discourage me and only after I fired-back with technical arguments did they clear my loan. But than I was also asking for 5% down, which nowdays is no more entertained by lenders.

Try different sources and atleast you have the house in possesion. You will get a new lender, don't worry!

uumapathi 03-04-2009 03:17 PM

I got an approval from DCU
 
I have a refi approval from DCU for a 15yr 5% 0pts and I am in AOS status. They did not have any issues with that.

hpandey 03-04-2009 03:41 PM

Refinanced this week
 
I am on H1 and AOS and I refinanced my house at 5% . There were no issues and no questions. Just all the usual documents - W2 , paystubs etc etc . It was with a local bank too and not with any high profile institution.

dummgelauft 03-04-2009 04:07 PM

Loan
 
(1)EAD is NOT a status. Your status should be AOS, or H1B, L1, TN or whatever.
(2) I personally know more than a dozen people (including myself) who hgot mortgages, and this was not even an issue.
(3) You have a horse's ass for a lender. Just go to another bank. Countrywide is quite good, in my opinion. Go directly to them, not through a broker.

sledge_hammer 03-04-2009 04:17 PM

1. Did you pay for points?
2. When did you lock?
3. Who is your lender?

Quote:

Originally Posted by hpandey (Post 323075)
I am on H1 and AOS and I refinanced my house at 5% . There were no issues and no questions. Just all the usual documents - W2 , paystubs etc etc . It was with a local bank too and not with any high profile institution.


insbaby 03-04-2009 04:33 PM

Mixed Results
 
I have seen my friends refinancing, received mixed results.

Few say, can not approve loan because of temproary status (They have no answer for why they allowed last year when purchasing the home).

Same guys were able to get it done thru other banks.

EAD - is not popular as H1B in the financial area. They don't understand. You have to give this as a supporting document along with your H1B Visa and I-797.

hpandey 03-04-2009 05:52 PM

No
 
Quote:

Originally Posted by sledge_hammer (Post 323093)
1. Did you pay for points?
2. When did you lock?
3. Who is your lender?

I didn't pay any points. I locked in two weeks back and closed this week. Lender is a local bank in Mass.

mbawa2574 03-04-2009 07:16 PM

Yeah that's Obama style justice
 
Quote:

Originally Posted by catopa (Post 322951)
Not sure if anyone else has faced this so wanted to put this out: I own a home and have a loan on it since 2003 (I was on H1 when i took the loan), now that the ARM is about to adjust i am in the market for refinance.

There is however a question on all the loans underwritten by freddy/fanny asking for immigration status and if the answer is EAD the loan is denied. They even sent me an explanation of denial.....:confused:

Obama is ready to give out a home loan to a drug dealer on the street but a hardworking,tax paying , wealth creator skilled immigrant won't get it.

So this is a new feature of Obama Nation:mad:

Liberals shame on you for electing this inexperienced socialist communist to the white house.

sledge_hammer 03-04-2009 07:31 PM

One last question, if you don't mind.

I assume yours is a conventional loan, how much equity do you have on your home, and how much down payment did you make on your home purchase first time?

Quote:

Originally Posted by hpandey (Post 323135)
I didn't pay any points. I locked in two weeks back and closed this week. Lender is a local bank in Mass.


hpandey 03-04-2009 07:42 PM

Almost
 
Quote:

Originally Posted by sledge_hammer (Post 323187)
One last question, if you don't mind.

I assume yours is a conventional loan, how much equity do you have on your home, and how much down payment did you make on your home purchase first time?

I have a 30 Year fixed loan. I made more than 20% downpayment and since I bought my house only few months back not much change in equity yet.

GCSeekerCT 03-04-2009 09:30 PM

try another bank
 
They can deny for whatever reason they think is risky. Banks are looking for reasons to NOT loan right now, as opposed to 2 years ago when everyone waling in were offered free money.

I suggest you go to a reputed FCU or small, regional bank. IMO, they are much better to work with. I recently refinanced a loan with an FCU, originally extended to me by our local bank.

Terms and paperwork is VERY easy, you get to talk to the same people through your application as opposed to a big bank where your papers are pushed around the country every week (my experience with BoA).

HTH

GCSeekerCT 03-04-2009 09:34 PM

High profile
 
Quote:

Originally Posted by hpandey (Post 323075)
I am on H1 and AOS and I refinanced my house at 5% . There were no issues and no questions. Just all the usual documents - W2 , paystubs etc etc . It was with a local bank too and not with any high profile institution.

You mean Fancy, big building institution, I think. There are no high-profile banks left anymore. They lost their integrity in screwing people and are not to be trusted.

ramkigr@hotmail.com 04-17-2009 11:58 AM

Refinance denied while on EAD
 
HSBC denied my refinance application because of EAD status. They said EAD is not one of the statuses they accept. They needed either H1B or GC status. I lost my $325 rate locking fee, not sure what else my real estate attorney is going to charge me because of this denial. I am in the process of talking to other banks.

Hope this helps someone not to loose money.

h1techSlave 04-17-2009 12:02 PM

H4 and EAD what is the status
 
What is the visa or immigration status of a person who has H4 visa and 485 pending (has EAD also)?

It seems banks do not understand anything other than Citizenship, GC or H status.

Quote:

Originally Posted by dummgelauft (Post 323089)
(1)EAD is NOT a status. Your status should be AOS, or H1B, L1, TN or whatever.
(2) I personally know more than a dozen people (including myself) who hgot mortgages, and this was not even an issue.
(3) You have a horse's ass for a lender. Just go to another bank. Countrywide is quite good, in my opinion. Go directly to them, not through a broker.


validIV 04-17-2009 12:19 PM

Quote:

Originally Posted by h1techSlave (Post 335239)
What is the visa or immigration status of a person who has H4 visa and 485 pending (has EAD also)?

Can be either H4 or AOS

sledge_hammer 04-17-2009 12:21 PM

EAD is not a visa status. It is an employment authorization document. Of course they will not accept it in lieu of H-1B.

What you need to do is show them the receipt of your I-485 application with the A#.

In my case too he asked me if I was on EAD and I said yes. He said that I should then give him a copy of I-485 receipt. However, since I also maintain H-1B visa, I just gave him that.

Quote:

Originally Posted by ramkigr@hotmail.com (Post 335231)
HSBC denied my refinance application because of EAD status. They said EAD is not one of the statuses they accept. They needed either H1B or GC status. I lost my $325 rate locking fee, not sure what else my real estate attorney is going to charge me because of this denial. I am in the process of talking to other banks.

Hope this helps someone not to loose money.


YesGC_NoGC 04-17-2009 12:26 PM

Try Wells Fargo
 
Quote:

Originally Posted by catopa (Post 322951)
Not sure if anyone else has faced this so wanted to put this out: I own a home and have a loan on it since 2003 (I was on H1 when i took the loan), now that the ARM is about to adjust i am in the market for refinance.

There is however a question on all the loans underwritten by freddy/fanny asking for immigration status and if the answer is EAD the loan is denied. They even sent me an explanation of denial.....:confused:


I have refinanced with Wells Fargo without any issues. If you need more details, please PM me.

h1techSlave 04-17-2009 12:37 PM

what about H4 + 485 pending?
 
Thank you Mr. Hammer.

My question was about H4 + 485 pending? Then what is the status? I have earlier given EAD, but they did not accept that. I am submitting 485 receipt with A#. Let me see how it goes.


Quote:

Originally Posted by sledge_hammer (Post 335247)
EAD is not a visa status. It is an employment authorization document. Of course they will not accept it in lieu of H-1B.

What you need to do is show them the receipt of your I-485 application with the A#.

In my case too he asked me if I was on EAD and I said yes. He said that I should then give him a copy of I-485 receipt. However, since I also maintain H-1B visa, I just gave him that.


radhay 04-17-2009 03:59 PM

I have closed on two mortgage loans recently and found that Loan Underwriters don't understand EAD/ AOS applications. For my original loan with Pulte Mortgage I explained them that AOS is a period authroized stay by Attorney General until Green card is approved. When they still didn't understand I had to bump my down payment to 20% which apparently puts less resrtictions (By Fannie Mae guidelines).

When I refinanced this week with PFCU (pentagan federal CU) I sent them EAD copies and they were OK with it.

sledge_hammer 04-17-2009 04:20 PM

H4+ I-485 pending still is a valid status. Now what rules they have regarding approving the loan to someone who is not working (because of H4 status) is something I am unaware of and not immigration related, I guess.

But if you are going to send them a copy of your I-485 application, that should mean SOMETHING in their eyes.

Do let us know how it goes. It will also be helpful to others in your situation. Good luck!

Quote:

Originally Posted by h1techSlave (Post 335249)
Thank you Mr. Hammer.

My question was about H4 + 485 pending? Then what is the status? I have earlier given EAD, but they did not accept that. I am submitting 485 receipt with A#. Let me see how it goes.


h1techSlave 04-17-2009 09:58 PM

485 does mean something
 
After I have submitted the 485 receipt, my loan guy went to a meeting. I will hear back from him in a couple of days.

485 does mean some thing to them. But they seem to avoid that so that they can charge more interest rate.

Right now, there is huge demand for loans. So they are bringing in many artificial road blocks to increase interest rates.


Quote:

Originally Posted by sledge_hammer (Post 335325)
H4+ I-485 pending still is a valid status. Now what rules they have regarding approving the loan to someone who is not working (because of H4 status) is something I am unaware of and not immigration related, I guess.

But if you are going to send them a copy of your I-485 application, that should mean SOMETHING in their eyes.

Do let us know how it goes. It will also be helpful to others in your situation. Good luck!


phugar 05-09-2009 07:44 PM

can you please let me know what all immigration documents they asked for. My loan with WellsFargo is approved and is currently being underwritten

enthu999 05-09-2009 09:41 PM

Refinancing issues while on EAD
 
I had similar issue when trying to refinance
My loan was Jumbo and to bring it to confirmation limits to get better rate the lender
tried doing home equity loan, at the end when we thought every thing was ok
they back and told they cannot give home equity loan because my Green card has not been aproved though I provided the AOS reciept and EAD.
The underwriter is FannieMae.
This for sure is a discrimination, in the current situation we cannot really make any benefit out of low mortgage rates..and the when the ARM is close to expire...god knows how
the interest rates would be.

ramkigr@hotmail.com 05-10-2009 07:27 PM

refinance on AOS
 
HSBC has rejected my refinance application because neither I hold a valid H1B nor a GC. They are rejecting, if you are in AOS not have one of the above docs. BEWARE. Don't loose time and money trying with this bank, if you are in this situation. I heard some success stories, with other banks though. Good luck.

bpratap 05-15-2009 07:08 PM

Visa Docs for Home Finance
 
I am working with a bank for my new Mortgage. The bank is asking for 3 year continuous VISA (forward) as a requirement.

My situation is H1 + 485 (I-140 Approved)

my current H1 will expire in December 2009, I cannot apply for extension until June 09 (180 days )

but Bank guys are asking for 3 yr VISA, they are not even looking on my H1b Approval letter as there is a line mentioned in there as "This form is not a visa nor may it be used in place of a VISA"

Anybody have similar experience ? and any suggestions of how to approach / explain this to bank guys ?

Appreciate ur views n comments

radhay 05-15-2009 07:19 PM

bpratap, faced similar issue since they don't understand. Even if they do they are worried it may cause trouble when they sell the loan to some one else.

I have refinanced with Penfed and they don't have this requirement. It helps to put 20% down payment as some banks waive this 3 year rule with that.

Can you post the name of the bank so others don't waste time and money with those banks.

amit_sp 05-15-2009 07:21 PM

I would recommend to shop around more. There are some banks who ask quetions such as visa status and other documentation and then there are some which don't. In my case; Citibank quoted for 0.5 additional rate due to my visa status but ING didn't.


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