There is heaps of misinformation regarding U.S. citizen’s qualifications for homeownership but nothing holds truer than with undocumented immigrants. Acuity is here to disclose the facts and dismiss the myths.
Without documentation, immigrants don’t have acceptable forms of ID such as a SSN card, unexpired US passport, or US birth certificate required for a mortgage loan. Because of this, most mortgage lenders will claim there is no chance an undocumented immigrant can obtain a mortgage.
However, those lenders are wrong. It is possible for undocumented immigrants to qualify for a mortgage. Not all lending companies grant loans to undocumented immigrants, but it is possible and legal. It depends on the mortgage agency.
The identity of the immigrant is determined by using their taxpayer identification number, which is given out by the Internal Revenue Service to allow immigrants to pay US taxes without a Social Security Number or US citizenship. The next step is a credit check. The standard way of doing this would make things very difficult for someone without citizenship, which is why mortgage firms that lend to undocumented immigrants will often evaluate different areas. Banks inspect insurance, phone bills, and rent payments.
This method appears troublesome, so one might be asking why bother. The answer to that question is simply the amount of undocumented immigrants currently living in the United States. There are over 11,000,000, and many are dreaming of home ownership just like many Americans. Undocumented immigrants are a large untapped market with lots of potential earnings for bank lenders while allowing the opportunity to fulfill the American dream.
The interest rates on loans for undocumented immigrants are often higher than conventional loans due to the lax competition between choices. It’s often 7% rather than the current 3-4%, but many lenders offer a stable 30 year fixed rate.
While it’s true that there aren’t many mortgage lenders offering service to undocumented immigrants, the fact is changing swiftly as more and more lenders are starting to see the vast potential in this often overlooked population.
Acuity National Real Estate Solutions, LLC provides old-fashioned professional excellence with cutting edge technology necessary for optimized processes and smooth, speedy transactions. In today’s market, you need an agile title and closing partner that delivers with honesty and integrity. To learn more about Acuity’s services, contact us at (502) 238-7500.