Mortgage Applications under H1B visa AND AOS

[H1BWildling]

Love this forum and you've all been helpful to my journey. Thank you!

I am trying to obtain a mortgage under a special program with 0% down and no closing costs. The bank however is skeptical about underwriting the mortgage as my H1B expires in December 2022. My wife is a US citizen and applied for my i130 and i485 in December 2019. I received my EAD in March 2020. The bank's concern is that I do not meet the requirement that indicates I can expect to earn income for 3 years.

I've been on a H1B since 2016. My current employer who I started with in 2019 applies for green cards for employees who have been with the company for 3+ years. Technically I will be under the 3 year requirement when my H1B expires. However, once a H1B expires, I've heard that the AOS extends the H1B. Is this true? Has anyone encountered this issue and what ways are there around this? My employer is open to providing a letter stating I have employment for 3+ years to the bank for this application. Help Needed!

[verbose]

I am assuming you have done the due diligence about your locational stability and feel certain that you’ll be able to stay in this home for at least a few years (say 3-5) to justify the costs associated with buying a home (realtor commissions, closing costs, maintenance, insurance etc etc etc.)

With that important part out of the way, now is the issue of getting your first mortgage. Definitely use that letter promised by your employer. Negotiate with the bank about down payment and interest rate if turning either of those knobs helps make it a more attractive loan for them. Remember you will have the option of refinance down the road, so even if upfront costs are a little higher, you’ll start saving on that rent payment and building equity in some time. And once political climate improves, things could start getting easier.

As a reminder, ensure to run through the complete real estate due diligence checklist before you proceed (there used to be a good one from Professor Baron that I searched for but couldn’t find online; send me a PM and I can send it to you)

Good luck and keep us posted!

[verbose]

Also, since your wife is a USC and if she has income, you could consider adding her to the loan as that can help the case.

[H1BWildling]

verbose We tried to add her. She's been in the US since 2013, became a citizen in 2020. She graduated from her masters Dec 2017, but couldn't find a job for a year, so she doesn't meet the 2 year income requirement sadly. Appreciate the help!

[mymyselfandi]

So this is what my bank did... I was(Still) on H1b with about 13 months left on the 6 year extension when i applied for the loan... My wife a USC had another loan for her a house in a differen state so we thought it would be easier to get the loan in just my name. I feel with the economic downturn it might be difficult to get a loan on H1b today... thats why these extra steps..

AFAIK the requirements your bank is talking about a guaranteed income for 3 years is BS...like literally no one can have a guaranteed income.. see if you can try to find another bank/mortgage ?

[verbose]

AFAIK the requirements your bank is talking about a guaranteed income for 3 years is BS...like literally no one can have a guaranteed income..

Agree completely. They can look for a solid work HISTORY (which you have), but I'm not sure this requirement for a stable FUTURE job is even "legal" (whatever that means in the current climate.)
That said, banks do have discretion and I doubt they will write down this specific reason as the reason for denying a loan lest you bring a lawsuit against them for discrimination. However, providing the letter from your employer alongwith a stable income (paystubs) should help. Ofcourse, we are assuming that you have a good credit report.

Sometimes a politely worded insinuation that you plan to summarize via mass-email your experience with the bank in your workplace email lists so others can benefit from the good offers and stellar experience with this bank can give the right mortgage officer the hint and motivation they need to give you this loan (hint hint - a sensible mortgage officer would think about the converse situation as well - denying you a loan on flimsy grounds)

That said, there are a LOT of lenders out there waiting to sign your 30 year commitment to pay them back. So, do shop around.

[Frixiooon]

We used a mortgage broker, so not specifically 1 bank, and got approved for a mortgage last October.
At that point we had a L1 visa valid until february 2020. AOS was just filed and we received a receipt notice but that was it.

We did put 15% down and had our company draft an official letter that the intent was there to employ myself permanently through greencard procedures.

My advice is to shop around.

[Kassadi]

verbose We tried to add her. She's been in the US since 2013, became a citizen in 2020. She graduated from her masters Dec 2017, but couldn't find a job for a year, so she doesn't meet the 2 year income requirement sadly. Appreciate the help!

how did this story end ??

[kippenpox]

Find another lender. I was in a very similar situation (H-1B, married to US citizen) when I applied for a mortgage. Got a lot of problems/questions with big lenders, but it was very easy once I went to a local bank with an underwriter that could call me directly to request documents. You will definitely need to add the USC to the mortgage. If they want it, they will make it happen.

[verbose]

Realise that when applying for mortgage if you have stable income and good credit - you are king. As a general rule, get three quotes - a big bank like Bank of America or Wells Fargo, a local credit union in your city, and an online broker such as owning.com. Good luck.

[Doctor80]

Realise that when applying for mortgage if you have stable income and good credit - you are king. As a general rule, get three quotes - a big bank like Bank of America or Wells Fargo, a local credit union in your city, and an online broker such as owning.com. Good luck.

I agree. I applied for mortgage when I was on H1b visa which was expiring in one year. Got approved with no issues.

[CarolineMay]

I agree with you, the most important thing is a good credit history, upon it depends how good of an interest rate you will be offered and for how long the mortgage will be given, and even the amount of the loan itself depends on it. I have known for a long time that my husband and I will buy a house on a mortgage and have always been very attentive to my credit history, never delayed payment, and when the time came with Mortgage Broker Bristol we chose an excellent mortgage option. Now my husband has bought a vacant part of the land next to us and we plan to make a garden and a playground for children with a swimming pool as soon as we get approved.

[Bablosik]

I hope they can help me here. Who knows a good mortgage broker in Cambridge?

[mellissas]

I advise you to consult with a lender or a lawyer. That way, you can protect yourself and be sure that you will be approved for the mortgage.

[pevehe]

Thank you for sharing how it works! I am originally from the Czech Republic, and I won the Green Card! I have been living in the United States of America for already one year, and I am thinking of getting a mortgage. I wondered if it is possible to take one because I am an immigrant. It is why I love this country, everyone is equal here, and if you're able to pay, you can easily take a mortgage loan. Furthermore, I used the services of a Mortgage Advisor in Derby, and he explained to me all the privileges I have as an immigrant.