Can Non-Permanent Resident Aliens Get Asset Depletion Loans?

Although NPRAs are eligible for Asset Depletion, they must adhere to specific overlays designed to mitigate the perceived risk associated with their temporary residency status.

A. Transaction and LTV Restrictions

Non-Permanent Resident Aliens are subject to limitations on loan terms and maximum financing:

• Eligible Transactions: NPRAs are generally eligible for Purchase and Rate-Term Refinance transactions.
• Cash-Out Refinances are often Ineligible: Cash-Out Refinances are explicitly not eligible for Non-Permanent Resident Aliens under several guidelines.
• Maximum LTV Cap: NPRAs are typically restricted to a lower maximum LTV compared to U.S. citizens. For Full Doc/Alt Doc (which includes Asset Depletion), the maximum LTV is often capped at 80%. In the Sharp Premium Alt Doc matrix, NPRAs are capped at Max 75% LTV/CLTV.

B. Asset and Documentation Standards

Asset Depletion relies on calculating qualifying income by dividing Net Qualifying Assets by a fixed term (usually 84 months). NPRAs must ensure their assets are readily verifiable:

• U.S. Based Assets: Eligible assets must be seasoned for at least 90 days and located in a U.S. bank or financial institution. Ineligible assets include unseasoned foreign accounts.
• Asset Seasoning Overlay: For Non-Permanent Resident Alien transactions with a valid Social Security Number (SSN), all funds required for closing (down payment, closing costs, and reserves) must be seasoned for 30 days. If the borrower does not have a valid SSN (i.e., relies on an ITIN or uses foreign assets), 60 days of asset seasoning is required.
• U.S. SSN and Credit History: NPRAs must generally have a valid Social Security Number (SSN) and an established U.S. credit history.
• Employment Documentation: If the visa will expire within six (6) months of the loan application, a letter from the employer documenting the borrower’s continued employment and continued visa renewal sponsorship is required.