How can illegal immigrants buy a house?
Below are some of the main steps that undocumented immigrants need to take in order to buy a home in the United States.
Apply for an ITIN number
An ITIN is similar to a social security number, including its format, but can only be used for tax purposes; ITIN numbers cannot be used for identification outside the tax system, as the holder cannot apply for a social security number.
To apply for an ITIN, you must download and complete form W-7 or “Application for IRS Individual Taxpayer Identification Number”. This form can be easily downloaded from the IRS website and is also available in Spanish. You will need to provide the applicant’s name, address, country of citizenship, date and place of birth and signature. Once all this is completed, it should be sent directly to the IRS ITIN Operations Center in Austin, Texas, along with a completed tax return. You should receive your 9-digit ITIN code within 6 weeks.
Save a deposit and prepare your documents
Once you have your ITIN number, you can apply for an ITIN loan. These loans are available to undocumented immigrants and can be obtained from businesses and banks throughout the United States.
Because of the added risk, most ITIN loans require an above average cash down payment. The down payment is usually between 15 and 20%, and can be as high as 30%. Borrowers may also be required to provide additional documentation, such as
- Proof of income from the previous month, such as pay slips.
- Work history in the same position within the last two years.
- The same ITIN tax return for two years.
Applying for an ITIN home loan
ITIN mortgages are a lesser known type of mortgage that many undocumented immigrants use to buy a home. In reality, an ITIN mortgage is very similar to a standard mortgage. You agree to take out the loan at a certain interest rate and make monthly payments. As the loan is secured by the value of your house, the lender has the possibility to repossess your house if you do not make the payments.
Several mortgage companies offer ITIN loans throughout the United States. You can easily find these companies by doing an Internet search.
Another good option might be a small local bank or credit union. Banks and credit unions
Conclusion.
There are many benefits to home ownership – and undocumented migrants can enjoy them too. It is not always easy, and there are legal and financial barriers to overcome. However, owning a home helps to promote stability and long-term wealth creation. It is also one way in which illegal immigrants can contribute to local budgets and economies.
