FHA Clarifies Eligibility Requirements for Certain Non-Permanent Residents

Weiner Brodsky Kider PC
Contact

Weiner Brodsky Kider PC

FHA recently published Mortgagee Letter 2021-12 (ML 2021-12), which clarifies the eligibility requirements for Deferred Action for Childhood Arrivals (DACA) recipients and amends the documentation requirements for citizens of the Freely Associated States (FAS) and H-1B nonimmigrants. The new guidelines apply to all FHA Title II Single Family forward mortgage programs.  Mortgagees may implement the guidance from ML 2021-12 immediately, but must implement such guidance for mortgages with FHA case numbers assigned on or after July 26, 2021.

Specifically, ML 2021-12 clarifies and continues existing eligibility requirements for non-permanent residents granted deferred action pursuant to the DACA policy previously addressed in HUD’s January 19, 2021, waiver which waived the provision in the FHA Single Family Housing Handbook 4000.1 (SF Handbook) that states non-U.S. citizens without lawful residency in the United States are not eligible for FHA-insured mortgage loans. WBK previously covered HUD’s waiver here

ML 2021-12 also eliminates the requirement to obtain an Employment Authorization Document, Form I-766 (EAD), for non-permanent residents who are citizens of the FAS and certain individuals maintaining lawful H-1B nonimmigrant status who have demonstrated stable employment. However, applicants must still meet all other pertinent eligibility requirements for FHA-insured financing. FHA states that this policy update is consistent with the respective Compacts of Free Association (CFAs) between the FAS and the United States.

Further, FHA notes that the residency requirements in the SF Handbook are being updated to incorporate the changes made by ML 2021-21.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Weiner Brodsky Kider PC | Attorney Advertising

Written by:

Weiner Brodsky Kider PC
Contact
more
less

Weiner Brodsky Kider PC on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.