What are the mortgage rules for asylum seekers planning to buy a home?

Here's a comprehensive list of acceptable visas for non-permanent residents looking to buy a home using a conventional mortgage. Fannie Mae: Non–U.S. citizen conventional mortgage eligibility requirements Freddie Mac: Nonpermanent resident aliens FHA: U.S. Department of Housing and Urban Development, Refugee or asylee status

How to get a mortgage with pending asylum status

Q: What does 'pending asylum' mean?

'Pending asylum' status refers to people who have applied for asylum in the United States. It means they seek refuge from persecution or fear of persecution in their home country and are waiting to know whether they will be granted asylum and allowed to remain in the U.S. The process of obtaining asylum is lengthy and complex. The outcome depends on various factors, including the specific circumstances and the country's asylum laws and policies. 2,097,244 people have applied for asylum in the U.S. with an average wait time of over 762 days. Miami: 201,936 Orlando: 131,384 Chicago: 96,840 Memphis: 70,504 Acceptable visas for non-permanent residents

Q: Why do mortgage lenders deny homebuyers with pending asylum status?

Whether someone with pending asylum status can be approved for a mortgage to buy a home depends on several factors, including the lender's policies and the requirements of the mortgage program. Lenders require a stable source of income and a stable residency status to ensure you can repay the loan. Your immigration status will change depending on your asylum case's outcome. The change may affect your employment, income, and ability to repay the mortgage. Therefore, most mortgage lenders will deny your loan when your asylum application is pending with the USICS.

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How to get a mortgage with pending asylum status

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In this article, I'll explain how to get approved for a mortgage to buy a home while waiting for the United States Citizenship and Immigration Services (USCIS) to decide on your asylum application.

What does "pending asylum" mean?

"Pending asylum" status refers to people who have applied for asylum in the United States.

It means they seek refuge from persecution or fear of persecution in their home country and are waiting to know whether they will be granted asylum and allowed to remain in the U.S.

The process of obtaining asylum is lengthy and complex. The outcome depends on various factors, including the specific circumstances and the country's asylum laws and policies.

3,717,387 people have pending immigration cases in U.S. courts as of November 2024.

Florida: 562,836

Illinois: 275,873

Tennessee: 139,762

Immigration Court Backlog Tool

Acceptable visas for non-permanent residents

Why mortgage lenders deny homebuyers with pending asylum status

Homebuyers with pending asylum status often face challenges when applying for a mortgage. Approval depends on the lender's rules and the loan program's requirements.

Mortgage lenders require borrowers to have a steady income. Pending asylum status means your immigration status is temporary and may change. This change can affect your job, income, and ability to repay the loan. Because of this uncertainty, many lenders deny mortgage applications from asylum seekers.

However, NewCastle Home Loans offers mortgages to qualified asylum seekers buying or refinancing homes in Florida, Illinois, Indiana, and Tennessee. These loans have the same terms and rates as those for U.S. citizens, making homeownership possible.

Alex wanted to buy a new townhome for $305,000. He planned to make a $30,500 10% down payment and take out a $274,500 mortgage.

He felt confident applying for the mortgage at Bank of America, where he has a checking account. However, the bank turned him down because of his residency status. He was a non-permanent resident of the U.S. with an asylum application pending with the USCIS.

Alex applied for the same type of mortgage with NewCastle Home Loans on March 22, and three weeks later, he purchased his first home with a lower interest rate than the big bank was offering.

Read Alex's Google review.

Schedule some time to talk with a mortgage expert at NewCastle Home Loans. Ask questions, get straight answers, and find out how to start on your home loan.

How to get approved for a mortgage with "pending asylum" status

NewCastle Home Loans offers mortgages to homebuyers living in the U.S. with pending asylum status granted by the USCIS under certain conditions.

First, you need a good credit history, a stable source of income, and a solid financial profile, just like any U.S. citizen.

Next, you must meet the following criteria:

The home will be your primary residence in Florida, Illinois, Indiana, or Tennessee.
You have a valid Social Security Number.
You can verify that you’re eligible to work in the U.S. by providing one of the following documents: 1) an unexpired Employment Authorization Document (EAD card); or 2) Form I-797.

Then, you may qualify for a mortgage to buy a home under the same terms available to U.S. citizens, including:

Down payment of only 3% of the purchase price
Credit score of 620 or higher
Low interest rate and affordable monthly payments

After that, get pre-approved for a mortgage so you feel confident about buying a home.

Mortgage rules for asylum seekers planning to buy a home

Here's a comprehensive list of acceptable visas for non-permanent residents looking to buy a home using a conventional mortgage. NewCastle Home Loans lends in Florida, Illinois, Indiana, and Tennessee.