Loan Modification

Immigrant Home Ownership Rates Lower; FHA Offers Foreign National Financing

By Gina Pogol

Immigrants: Real Estate Market Saviors?

A study of home ownership in mid-size American cities conducted by the University of Southern California’s Lusk Center for Real Estate found that immigrants have a lower home ownership rate than native-born Americans with the same income and education levels.  The results suggested that areas with declining home values could see prices stabilize thanks to a wave of first-time home buyers who speak English as a second language, if local governments made a point of supporting immigrant communities and real estate companies and mortgage lenders brought in representatives of those groups as employees.

Where the Immigrants Are Moving

The data also showed an increasing number of newly-arrived Americans prefer to purchase homes outside the major gateway cities.  Reduced  competition for jobs combined with neighborhoods of fellow immigrants are drawing these folks, and the trend could help builders and local governments by shoring up real estate values.  Analysts say that immigrants and their descendants will represent 82% of U.S. population growth over the next 40 years.

FHA Mortgages Allow Low Down Payment Financing for Foreign Nationals

As long as you’re in the country legally, you may be able to buy a home in the US with an FHA foreign national home loan.

1. You aren’t required to be a US citizen. If you hold something other than U.S. citizenship, the lender must ask for and examine additional documentation and determine your residency status.

2. If you enjoy lawful permanent resident alien status, FHA will insure your mortgage. You need evidence of lawful permanent residency issued by the Bureau of Citizenship and Immigration Services within the Department of Homeland Security.

3. Non-Permanent Resident Aliens on work assignments in the US can buy homes too. The property must be the your primary residence, you must have a valid Social Security number, a satisfactory 2-year credit history, and an Employment Authorization Document issued by BCIS showing that you are eligible to work in the U.S. If your authorization is set to expire within one year and a prior history of residency status renewal exists, the lender is allowed to assume that continuation will be granted. If this is your first year here and there are no prior renewals, the lender will have to determine the likelihood of renewal based on information from the BCIS.

Full post as published by FHA Mortgage Guide on March 16, 2010 (boomark / email).