5% Down-Non-US Resident Florida Mortgage Lenders

Non-US Resident Florida Mortgage Program

The NEW Non us resident structured financing agreement is a unique opportunity in which a purchase transaction is completed by an FHA-eligible government entity that enters into a lease-to-own and long-term purchase agreement, or structured financing agreement, with qualified Non resident Homebuyers, thereby allowing the Homebuyers to pay off the property in the future.

Non-Resident Florida Mortgage Lenders

FHA No Longer Allows Non-Resident Mortgages – We Have A Solution For You 
 March 26 FHA mortgagee letter, HUD states change is effective May 25  non-permanent U.S. residents will NO longer be eligible for Florida FHA mortgages insured by the Federal Housing Administration (FHA), part of the U.S. Department of Housing and Urban Development (HUD).  But don’t worry we have a solution for you get get the mortgage you need.  Our Nonresident Florida Mortgage Lenders program is outlined below.

Disclosures and Consumer Protections

• The Homebuyer understands the nature of the Non-Resident Homeownership agreement Agreement, and that if they choose not to exercise the purchase option, or do not pay for the Home in full, they may forfeit any payments or purchase credits accrued. Additionally, failure to comply with the Non-Resident Homeownership agreement Agreement terms may result in the loss of the purchase option.
• The Homebuyer is encouraged to seek independent legal and financial advice before entering into this Agreement to fully understand the terms and implications. The Homebuyer has the right to review this Agreement and seek clarification on any terms before signing.
• By signing below, I acknowledge receipt of this disclosure and understand that the Program is a Home
purchase and financing program obtained through companies that are not affiliated with Originator. I
further acknowledge that the Program has terms, conditions, and rights that differ significantly from a
traditional residential mortgage loan and fee simple ownership as more particularly described in the
Non-Resident Homeownership agreement Agreement.

 Frequently Asked Questions

Overview

Can the Homebuyer sell the property that is acquired through the nonresident homebuyer program?
• The Homebuyer may coordinate the property sale with the government entity (TRHEEA), provided all payments have
been timely, the account is in good standing, and the underlying option price is satisfied in full with the property sale.
Otherwise, the Homebuyer must meet all FHA guidelines and assume the FHA mortgage from the government entity, then the Homebuyer can sell the property after the assumption is complete.

Is the Homebuyer listed on the mortgage security instrument or note?
• No, the Homebuyer is not named on either legal document.

Can the Homebuyer refinance the nonresident Florida mortgage loan?
• The Homebuyer must first meet all FHA guidelines and assume the FHA mortgage from the government entity. The Homebuyer can refinance the property after the assumption is completed.

Are seller concessions allowed for the nonresident Florida mortgage program?
• There are no overlays, refer to the HUD Handbook 4000.1.

Are all title companies approved for the nonresident Florida mortgage program?
• No, please refer to the nonresident Florida mortgage-approved Title Company list.

Does the nonresident Florida mortgage program have a restriction on the maximum number of Homebuyers for a transaction?
• Yes, no more than four (4) applications are permitted.

Is a non-occupant Homebuyer permitted?
• Yes, refer to the guidelines for details.

Does the nonresident Florida mortgage program allow exceptions?
• Yes, on a case-by-case basis. Refer to the exception parameters of the guidelines for details and requirements.

Credit & Qualifying

Is a Homebuyer without a credit score acceptable?
• Yes, Homebuyers without a credit score may be acceptable, subject to the requirements of the guidelines.

What are the tradeline requirements for the nonresident Florida mortgage program?
• An eligible credit report must reflect at least one (1) tradeline and provide at least 12 months of credit history. Alternative tradeline history may be acceptable, refer to the guidelines for details.

What credit bureau is used to qualify for the nonresident Florida mortgage program?
• At least one (1) credit score from a major bureau is required to qualify. If the Homebuyer has multiple credit scores, the representative score will be the middle score when three (3) credit agency scores return and the lower score when two (2) credit agency scores return. Homebuyers without a credit score may be acceptable, subject to the requirements of the guidelines

Are Homebuyers with no documented housing history eligible for the nonresident Florida mortgage program?
• Generally, 12 months of documented payment history (in good standing) is required. Homebuyers who live “rent free” may be considered on a case-by-case basis, refer to the guidelines.

If the Homebuyer owns their current residence free and clear, can the nonresident Florida mortgage housing payment history requirements be met with a documented history for other real estate owned by the Homebuyer?
• Yes, housing history for other real estate owned by the Homebuyer will be considered when the primary residence is
owned free and clear, subject to validation of reasonable occupancy for the subject property. Additionally, tax and
insurance payments for the primary residence will be considered to support a consistent housing history.

What is required if the Homebuyer wants to rent their current primary (departure) residence or has an existing rental property?
• One (1) currently owned property (departure residence) may be allowed, subject to all requirements of the guidelines.
Rental income from an existing rental property may be considered on a case-by-case basis, refer to the guidelines for
details.
Do installment debts with less than 10 payments have to be included in the DTI?
• Yes, in some cases. Refer to the guidelines for details.

Can debt be paid off to qualify?
• Yes, the assets used for such payoffs must be documented per the guidelines.

If the Homebuyer has tax liens, collections, and/or judgments, how is the debt treated?
• Generally, a debt payment must be included in the qualifying DTI. Refer to the guidelines for details.

Is it acceptable to exclude self-reported utilities from the DTI?
• Yes. Utility payments are not required to be included in the qualifying DTI.

Can co-signed debt be excluded from the Homebuyer’s qualifying DTI if documentation supports that another party is paying the debt?
• There are no overlays, refer to the HUD Handbook 4000.1.

Income

Is the income for a self-employed Homebuyer without a business license permitted?
• May be acceptable on a case-by-case basis.

Will the loan be acceptable if the Social Security Number is different between the Homebuyer’s W-2 and paystubs?
• Acceptable for ITIN Homebuyers and will be reviewed on a case-by-case basis for all other Homebuyer types.

Can bank statements be used to calculate income for a self-employed Homebuyer?
• The nonresident Florida mortgage program allows Homebuyers to qualify solely with three (3) months of bank statements when the income source can only be documented with bank statements. For all other self-employed Homebuyers, the nonresident Florida mortgage program requires either prior year tax returns (filed with the IRS), OR a YTD P&L and three (3) months of bank statements to document the business cash flow, OR K1s and 1120s.

What is the minimum length of self-employment for self-employed income to be acceptable?
• One (1) year may be acceptable on a case-by-case basis.

Will the income of a self-employed Homebuyer be considered if the tax returns show little to no profit?
• In some cases, yes, as tax returns are not the only source to validate the Homebuyer’s self-employed income. As a
reminder, the nonresident Florida mortgage program requires either prior year tax returns (filed with the IRS), OR a YTD P&L, and three (3) months of bank statements to document the business cash-flow, OR K1s and 1120s. Refer to the guidelines for details.

What is the age of documentation requirement for a Profit and Loss (P&L) Statement?
• The P&L must be completed for the most recent quarter as of the Note Date.

If the Homebuyer has more than a single job, for how long must the Homebuyer have the additional job(s) to allow
the income for qualifying?
• Less than two (2) years of concurrent employment may be considered on a case-by-case basis.

For employment transfers or relocations, what documentation is acceptable to verify future income?
• There are no overlays, refer to the HUD Handbook 4000.1.

Property

Are there property types allowed by FHA that are not permitted in the nonresident Florida mortgage program?
• Yes – the nonresident Florida mortgage program prohibits 3-4 units and cooperative properties.

Is the homeowner’s insurance selected by the Homebuyer?
• In some cases, the Homebuyer may select their own HO-3 insurance policy. However, there are instances in which the government entity will acquire homeowner’s insurance for the subject property and the Homebuyer has the option to obtain renter’s insurance. Refer to the guidelines for details.

Does the home inspection have to be completed by a specific entity?
• No, any licensed home inspector and/or home inspection that meets FHA requirements is acceptable.

Does the nonresident Florida mortgage program allow partial home and/or system inspections?
• No, a full home inspection is required.

Who is responsible for verifying that the repairs required by a home inspection were completed?
• Generally, the appraisal must be completed in accordance with FHA guidelines. If the appraisal was completed “subject to”, a 1004D/Completion Certificate is required to confirm the completion of repairs.

Differences with Traditional Mortgage Finance

As stated above, the Non-Resident Homeownership agreement Agreement is not a traditional mortgage loan. Some, but not all, differences between this Program and a traditional mortgage loan are detailed below. Again, please review the Non-Resident Homeownership agreement Agreement for additional information before deciding to proceed:
1. The Non Resident Homeownership aggreement Agreement is a financing arrangement whereby the Agency will own fee simple title to the Home until the exercise of the Purchase Option or payment in full.
2. Homebuyers own the Home through a ground lease interest created by the Non-Resident Homeownership agreement Agreement. Fee simple title is transferred to Homebuyers upon exercise of the Purchase Option or payment in full.
3. The Homebuyers will be required to sign a release of personal information so the Originator can send that information to the Agency.
4. The Agency may obtain property insurance under a master policy, or the Homebuyers may select the insurance provider. Homebuyers are responsible for insurance costs, which will be part of the monthly payment.
5. The Homebuyers do not receive a Loan Estimate of charges from the Originator. If approved for the Program, Homebuyers will get a summary of the monthly payment obligations and closing charges for the agreement.
6. Homebuyers are restricted from leasing, subletting or financing the Home, even for temporary uses.
7. Purchase or refinance requires payment of all applicable fees under the Non-Resident Homeownership agreement Agreement.
8. The Homebuyers must have a documented housing payment history.
9. Mandatory Non-Resident Homeownership agreement education courses may be required.
10. Delayed closing or occupancy may result in voiding of any Agency Commitment