24
Mar
By Fred Gruber
Financial Reports

What’s Ahead For Mortgage Rates This Week – March 24th, 2025

The previous week had the Federal Reserve making their first rate decision since the Trump administration had taken office. With many uncertainties about the current direction of things, the Federal Reserve had decided there would not be any change necessary to the current rates. Stating that the current inflation and economic conditions have largely been a result of the Trump administration’s policies on tariffs. Chairman Powell has been strongly dovish at this point, stating they would need to “see how things actually work out.” There were a slew of other minor data releases but none were far reaching in their impact on the economy and current direction of things.

FOMC Rate Decision

Faced with pressing concerns over the impact tariffs will have on a slowing economy, the rate-setting Federal Open Market Committee kept its key borrowing rate targeted in a range between 4.25%-4.5%, where it has been since December. Markets had been pricing in virtually zero chance of a move at this week’s two-day policy meeting.

Primary Mortgage Market Survey Index

• 15-Yr FRM rates saw an increase of 0.03% with the current rate at 5.83%
• 30-Yr FRM rates saw an increase of 0.02% with the current rate at 6.67%

MND Rate Index

• 30-Yr FHA rates saw a decrease of -0.13% for this week. Current rates at 6.15%
• 30-Yr VA rates saw a decrease of -0.13% for this week. Current rates at 6.17%

Jobless Claims

Initial Claims were reported to be 223,000 compared to the expected claims of 225,000. The prior week landed at 221,000.

What’s Ahead

Next week should feature a slew of data releases, most notably the GDP Estimates, S&P Global US Manufacturing / Services PMI estimates, Consumer Confidence, Consumer Sentiment (Univ. of Michigan), and Personal Income & Spending.

21
Mar
By Fred Gruber
Mortgage Tips

Mortgage Options for Non-U.S. Citizens

Purchasing a home in the U.S. as a non-U.S. citizen is entirely possible, but the process comes with unique requirements and considerations. Whether you are a permanent resident, temporary visa holder, or foreign national, understanding the available mortgage options can help you navigate the path to homeownership successfully.

Can Non-U.S. Citizens Qualify for a Mortgage?

Yes, many lenders offer mortgage options for non-U.S. citizens. However, eligibility is influenced by factors such as residency status, credit history, and income verification. The type of residency you hold will determine the loan programs available to you and the specific documentation required.

Mortgage Options Based on Residency Status

1. Permanent Residents (Green Card Holders – LPRs)

  • Eligible for conventional, FHA, VA, and USDA loans
  • Must provide a valid green card (Form I-551) and proof of income
  • Access to similar loan terms and interest rates as U.S. citizens

2. Non-Permanent Residents (Visa Holders – Work & Study Visas)

  • Eligible for conventional and FHA loans with a valid work visa (H-1B, L-1, O-1, TN, etc.)
  • Must demonstrate continuity of employment and residency
  • Typically require a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN)

3. Foreign Nationals (Non-Residents with No U.S. Visa)

  • Must apply for foreign national mortgage programs
  • Typically require a larger down payment (20-30%)
  • Some lenders accept alternative credit verification in the absence of a U.S. credit history

Key Mortgage Requirements for Non-Citizens

  • Credit Score: While a U.S. credit history is preferred, some lenders accept foreign credit reports or alternative proof of creditworthiness.
  • Down Payment: Non-U.S. citizens are often required to provide a higher down payment, typically ranging from 10-30%.
  • Income & Employment Verification: Lenders require proof of steady income, such as U.S. tax returns, pay stubs, or international financial statements.
  • ITIN or SSN: Most loan programs require a Social Security Number (SSN), but some programs allow the use of an Individual Taxpayer Identification Number (ITIN).

Best Loan Options for Non-U.S. Citizens

  • Conventional Loans: Suitable for permanent and non-permanent residents with a strong credit and employment history.
  • FHA Loans: Offer low down payment options for green card and work visa holders.
  • Foreign National Loans: Designed specifically for non-residents and typically require higher down payments and alternative credit verification.
  • Portfolio Loans: Offered by private lenders with flexible requirements but often come with higher interest rates.

Additional Considerations

  • Interest Rates: Rates may vary depending on residency status and credit profile.
  • Documentation: Proper documentation, including visa status, income verification, and bank statements, is essential.
  • Lender Selection: Working with a lender experienced in serving non-U.S. citizens can streamline the process.

Non-U.S. citizens can successfully achieve homeownership in the U.S. with the right mortgage strategy. By understanding your loan options, gathering the necessary documentation, and partnering with a knowledgeable lender, you can make the home-buying process smoother and more accessible.

If you need expert guidance on your mortgage options, reach out today!

20
Mar
By Fred Gruber
Mortgage

Understanding Mortgage Payment Deferral Programs

For homeowners facing temporary financial hardship, mortgage payment deferral programs can provide much-needed relief. These programs allow borrowers to pause or reduce their monthly mortgage payments for a specific period, helping them avoid foreclosure while stabilizing their finances.

What is a Mortgage Payment Deferral?

A mortgage payment deferral allows borrowers to temporarily postpone their monthly mortgage payments. The deferred payments are not forgiven but are typically added to the end of the loan term or repaid through a repayment plan.

Who Qualifies for a Mortgage Deferral Program?

Eligibility criteria vary by lender and loan type, but common factors include:

  • Experiencing financial hardship due to job loss, illness, or natural disasters.
  • Being current on mortgage payments or having a history of timely payments.
  • Providing documentation to support the hardship claim.

How Does the Deferral Process Work?

  1. Application: Homeowners must contact their lender to request a deferral and provide evidence of financial hardship.
  2. Approval and Terms: The lender evaluates the request and outlines the terms of the deferral, including the length of the deferral period and repayment options.
  3. Repayment Plan: Once the deferral period ends, the borrower may need to make lump sum payments, extend the loan term, or increase future payments to cover the deferred amount.

Key Benefits of Mortgage Payment Deferral

  • Temporary Financial Relief: Helps homeowners manage temporary financial challenges without the risk of foreclosure.
  • Protection of Credit Score: Many programs are designed to prevent negative credit reporting during the deferral period.
  • Flexible Repayment Options: Lenders offer various repayment strategies to accommodate the borrower’s financial situation.

Important Considerations

  • Interest Accrual: Interest may continue to accrue on the deferred balance.
  • Impact on Loan Term: Adding deferred payments to the end of the loan may extend the repayment period.
  • Lender Communication: Regular communication with the lender is essential to understand the program’s terms and avoid penalties.

How to Apply for a Mortgage Payment Deferral

  1. Contact your lender or loan servicer.
  2. Explain your financial situation and request information on available deferral programs.
  3. Submit the required documentation.
  4. Review and agree to the terms provided by the lender.

Mortgage payment deferral programs can be a lifeline for homeowners facing temporary financial difficulties. Understanding the eligibility criteria, process, and potential impact on your loan can help you make informed decisions and protect your financial stability.