Back to articlesIs It Impossible To Get a Mortgage as an Undocumented Immigrant?
By John Atkins
Published on: 08/25/2016
Published on: 08/25/2016
If asked whether an illegal immigrant can own a home in the United States, most people would quickly answer in the negative.
It seems nonsensical that someone without the legal right of presence could own physical property, much less a house.
In reality, anyone — even a foreigner or illegal immigrant — can buy and own United States property. The universal language of cash and a limited number of mortgage programs make it possible.
In order to qualify for a mortgage as an illegal immigrant, a borrower needs one indispensable piece of information: a taxpayer identification number.
The IRS assigns these numbers to all taxpayers, regardless of residential status. If you have ever paid taxes in the United States through employment or property ownership, you have an ITIN.
These numbers have no bearing on residential status, and the IRS does not share taxpayer information with immigration authorities. In other words, an illegal immigrant with a job can safely pay his or her taxes — and thus receive the vital ITIN — without fear of deportation.
Lenders do not award mortgages lightly; an applicant will need to submit to a credit check, provide ample proof of income and fill out numerous forms. Most banks will gladly help with this process, provided the applicant appears like a good mortgage candidate.
The most important part of a mortgage application is the down payment. For most mortgages, the average down payment represents 20 percent of the total purchase price of the home. For illegal immigrants, lenders may want a higher down payment. Why? Banks assume an additional risk through the possibility of deportation, even in situations where it seems unlikely.
While these are two notable examples, many other lenders — especially those in areas with large immigrant populations — provide mortgages to undocumented immigrants. If the banks do not advertise these services, prospective borrowers need simply make their own inquiries.
It seems nonsensical that someone without the legal right of presence could own physical property, much less a house.
In reality, anyone — even a foreigner or illegal immigrant — can buy and own United States property. The universal language of cash and a limited number of mortgage programs make it possible.
The Indispensable ITIN
In order to qualify for a mortgage as an illegal immigrant, a borrower needs one indispensable piece of information: a taxpayer identification number.
The IRS assigns these numbers to all taxpayers, regardless of residential status. If you have ever paid taxes in the United States through employment or property ownership, you have an ITIN.
These numbers have no bearing on residential status, and the IRS does not share taxpayer information with immigration authorities. In other words, an illegal immigrant with a job can safely pay his or her taxes — and thus receive the vital ITIN — without fear of deportation.
Other Necessary Info
The ITIN essentially takes the place of a Social Security number for undocumented immigrants in the mortgage process. The applicant still needs to provide an assortment of other information, however.Lenders do not award mortgages lightly; an applicant will need to submit to a credit check, provide ample proof of income and fill out numerous forms. Most banks will gladly help with this process, provided the applicant appears like a good mortgage candidate.
The most important part of a mortgage application is the down payment. For most mortgages, the average down payment represents 20 percent of the total purchase price of the home. For illegal immigrants, lenders may want a higher down payment. Why? Banks assume an additional risk through the possibility of deportation, even in situations where it seems unlikely.
Lender Options
Unless you have tens of thousands of dollars in cash, you will need a mortgage to purchase a home. Though the availability of mortgages for undocumented immigrants is still limited, more and more options become available every year. The Venta Financial Group offers mortgages to illegal immigrants in seven states, including Texas, California, Nevada and Florida. Citibank offers mortgages to immigrants in any state through a partnership with the Neighborhood Assistance Corporation.While these are two notable examples, many other lenders — especially those in areas with large immigrant populations — provide mortgages to undocumented immigrants. If the banks do not advertise these services, prospective borrowers need simply make their own inquiries.
About the Author
John Atkins was the community manager for Self.
Written on August 25, 2016
Self is a venture-backed startup that helps people build credit and savings.
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