Bulletin 2021-057 FHA Documentation Requirements for Non-Permanent Resident Borrowers

FHA Documentation Requirements for Non-Permanent Resident Borrowers

Newrez LLC "newrez" Approved Correspondent Clients: please note, FHA has recently revised some of the guidelines for documenting the eligibility to reside and work in the United States for Non-Permanent Resident borrowers. The guideline changes are specific to Non-Permanent Residents by the type of admission category which includes individuals with Deferred Action for Childhood Arrivals (DACA) status, H1-B visa holders and citizens of the Freely Associated States (FAS) of Micronesia, Marshall Islands and Palau. The following is a summary of the revisions announced in FHA Mortgagee Letter 2021-12 and incorporated in the FHA Single Family Housing Policy Handbook 4000.1


  • FHA reiterates and explains the basis for borrower eligibility of DACA recipients for FHA mortgages that was previously announced in January 2021. DACA recipients must be legally permitted to work in the U.S., as evidenced by an Employment Authorization Document (USCIS Form I-766).
  • Alternatives to documenting work authorization have been added for the following Non-Permanent Resident categories:
    • Citizens of the FAS must provide either:
      • Current Employment Authorization Document (USCIS Form I-766), or
      • A FAS passport evidencing citizenship.
    • Borrowers who are admitted under a H-1B visa must provide:
      • Current Employment Authorization Document (USCIS Form I-766); or
      • A USCIS Form I-94 evidencing H-1B status, and evidence of employment by the authorized H-1B employer for a minimum of one (1) year.
    • Borrowers residing in the United States by virtue of refugee or asylee status must provide:
      • Employment Authorization Document (USCIS Form I-766) or
      • USCIS Form I-94 indicating refugee or asylum status; or
      • USCIS Form I-797 notice indicating approval of a USCIS Form I-589, Application for Asylum or Removal substantiating the refugee or asylee status.


If the Employment Authorization Document or evidence of H-1B status will expire within one (1) year and a prior history of residency status renewals exists, it may be assumed that continued authorization will be granted. If there are no prior renewals, the underwriter must determine the likelihood of renewal based on information from the employer or the USCIS.


The guidelines are effective for FHA applications with Case Number assignment dates on or after July 26, 2021 but can be applied immediately. Newrez associates and clients are reminded that newrez policy requires Social Security Numbers for all borrowers. Please refer to the newrez FHA Underwriting Guide for complete details on borrower eligibility and documentation requirements.


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