Can You Get a Mortgage With an Employment Authorization Card?

Individuals holding an Employment Authorization Card (EAC) can secure a mortgage in the United States. The process involves specific considerations compared to U.S. citizens or permanent residents, but various pathways exist for homeownership. Understanding the unique requirements and preparing thoroughly can significantly improve an applicant’s chances of approval. This article guides you through the eligibility criteria, necessary documentation, available loan programs, and procedural steps for applying for a mortgage as an EAC holder.

Understanding Mortgage Eligibility for EAC Holders

Lenders primarily assess the stability and continuity of income for individuals with an Employment Authorization Card (EAC) seeking a mortgage. A valid, unexpired EAC (Form I-766) is foundational evidence of legal work authorization in the U.S. Lenders also evaluate an applicant’s overall financial stability and creditworthiness to determine repayment capacity.

A Social Security Number (SSN) is generally a prerequisite for mortgage applications. Lenders examine an applicant’s employment history, typically requiring at least two years of stable employment to demonstrate consistent income. This history assures lenders the borrower has a reliable source of funds. The applicant’s credit profile is also reviewed, with a good credit history reflecting responsible financial management.

A significant factor for EAC holders is the continuity of their employment authorization. Many lenders prefer the EAC to be valid for at least 12 months, or up to three years, beyond the loan closing. If the EAC expires sooner, lenders may require additional documentation, such as proof of prior renewals or an employer letter confirming continued employment and authorization renewal. This mitigates risk from potential interruptions in legal work status. Lenders also review applicant assets for the down payment and reserves to ensure sufficient funds for the home purchase and unexpected expenses.

Essential Documentation for Your Mortgage Application

Gathering the correct documentation is a significant step when applying for a mortgage with an Employment Authorization Card. The EAC (Form I-766) is a primary document demonstrating legal work authorization in the United States; it must be valid and unexpired. Providing previous EACs can establish a history of continuous legal presence and work authorization.

Proof of legal presence in the U.S. is also required. This includes a valid passport with entry stamps, Form I-94 (Arrival/Departure Record), or other immigration documents verifying your current legal status. A Social Security Number (SSN) is almost universally required for mortgage applications, serving as a key identifier for credit reporting and tax purposes.

For income verification, you need recent pay stubs (typically 30-60 days) and W-2 forms from the past two years. Federal tax returns for the previous two years are essential, especially for self-employed individuals who must also provide business records and profit and loss statements. These documents allow lenders to assess income stability and amount. To verify assets for your down payment and closing costs, bank statements from the last two to three months are necessary. Any large or unusual deposits must be clearly sourced and explained.

Lenders obtain your U.S. credit report to evaluate creditworthiness. If your U.S. credit history is limited, some lenders may consider alternative credit references, such as on-time rent and utility payments, or a foreign credit history. If your EAC nears expiration, an employer letter confirming continued employment and authorization renewal can be a valuable supporting document.

Navigating Loan Programs and Lender Policies

Understanding how different mortgage loan programs view applicants with Employment Authorization Cards is important. Conventional loans, not government-insured, often represent the most viable option for non-permanent residents with valid work authorization. Fannie Mae and Freddie Mac, major secondary mortgage market players, generally allow lawful non-permanent residents to obtain mortgages under similar terms as U.S. citizens, provided they meet all other underwriting criteria. Lenders offering these conventional loans verify legal presence and income continuity.

A significant change affects FHA loans: as of May 25, 2025, non-permanent residents are generally no longer eligible for FHA-insured mortgages. The U.S. Department of Housing and Urban Development (HUD) now requires borrowers to have a clear path to permanent residency for FHA financing. This policy shift affects those who previously relied on their EAC or other temporary statuses for FHA loan eligibility.

For VA loans, eligibility ties primarily to military service, extended to qualifying veterans, active-duty service members, and their spouses, not specific immigration status. While legal presence is required, the EAC does not directly grant VA loan eligibility. However, some DACA recipients might be eligible. USDA loans, designed for rural properties, also have specific eligibility criteria for non-U.S. citizens. As of March 18, 2025, a temporary waiver for broader EAD eligibility terminated; now only certain EAD categories, typically related to refugee or asylee status, are eligible.

While general guidelines exist, individual lenders often impose “overlays,” which are additional, stricter requirements. Not all lenders have the same policies regarding EAC holders. It is crucial to seek financial institutions experienced in working with non-permanent resident borrowers. Engaging with such lenders can provide tailored guidance and potentially more favorable loan options.

The Mortgage Application and Approval Journey

The mortgage application and approval journey begins with pre-approval, once documentation is prepared and eligibility requirements understood. This initial stage involves a lender reviewing your financial information and immigration status to estimate your borrowing capacity. Obtaining a pre-approval letter provides clarity on buying power and is often expected by real estate agents and sellers.

Following pre-approval, you submit your complete document package to the lender, initiating the processing phase and leading to underwriting. During underwriting, a mortgage underwriter meticulously assesses lending risk. The underwriter verifies your credit history, income, assets, and property details, ensuring all submitted information aligns with lender and loan program guidelines. This phase may involve requests for additional information or clarification, which should be provided promptly to avoid delays.

An independent appraisal of the prospective property is ordered to determine its market value. This step confirms the loan amount is appropriate for the collateral. Following the underwriter’s review, your loan may receive conditional approval, meaning most criteria are met but outstanding items or conditions need to be satisfied. Addressing these conditions, such as providing updated documents or explanations for specific transactions, is a step towards final approval.

Once all conditions are met and verified by the underwriter, your loan receives final approval, often called “clear to close.” This signifies the lender is ready to finalize the loan. The final stage is closing, where you sign numerous legal and financial documents, funds are disbursed, and property ownership is officially transferred.