Mortgage Blog

A Letter from UK -- How foreigned income will be used for loan qualification

September 25th, 2010 8:32 AM by Eric Fang

Last week, I got a letter from UK:

Dear Mr Fang,
I have been searching the Internet trying to research my current situation and I came across your blog. As I google it, it appears you have written about U.S. Citizen Working Abroad are Eligible for loans Now....  But I can't find the original article in the blog site.
I own a home in the States with my friend, we are trying to refinance the house to get a better rate, but we where just denied by the underwriter because my earnings are 'foreign income' which aren't taxed, (I am living and working in the UK, my friend still lives at the house) so because its not normal income from us so we don't have enough income to qualify.

Here are the guideline from Fannie Mae:

1)Last two years tax returns
2)The borrower should be a us citizen
3)Standard Income Documents with Year To Date income.
All Income should be translated to US Dollars
4)Verification of Employment should be completed within 10 business days.

 For most lenders, the foreign income is ok to qualify a loan(as long as they plan to sell to Fannie Mae). For the above case from the email, since this lender will plan to sell the loan to Freddie Mac, Freddie Mac does not have that guideline yet, that's why the loan was denied by the inderwriter.

Thanks Christian for the email  and I am glad that you could get my blog on the serach engines and the email from UK.

Have a good weekend.

Posted in:General
Posted by Eric Fang on September 25th, 2010 8:32 AM



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