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Can Undocumented Immigrants Be Homeowners?

Posted On Wednesday, 02 November 2022 16:05
Can Undocumented Immigrants Be Homeowners?

Finally owning a home is one of the biggest dreams that come true for most people. It gives you a sense of accomplishment and entitlement, plus you get to say goodbye to knocks on your day at the end of the month or harassing calls from your landlord whenever your rent is late.

As if purchasing a home isn't complex and hard enough, many immigrants in the U.S. wonder whether they can own a home here, and what the process would be like. Those without proper documentation might even have more to worry about.

This piece seeks to answer whether or not an uncommented immigrant can become a homeowner, and how to go about it if so.

Who Is An Undocumented Immigrant? 

An undocumented immigrant is a person who has entered the United States without receiving prior authorization from the U.S. government. Undocumented immigrants are sometimes referred to as "illegal immigrants."

The majority of undocumented immigrants come to the United States in search of better economic opportunities. Others do so when fleeing violence and persecution in their home countries. Once in the United States, undocumented immigrants often take jobs in the informal economy, working in agriculture, construction, or domestic work.

Challenges Faced By Undocumented Immigrants 

Due to their undocumented status, they are often paid low wages and are not protected by labor laws. This can make them vulnerable to exploitation and abuse. Undocumented immigrants also face challenges in accessing basic services like healthcare and education. They are not eligible for most government assistance programs and often live in fear of being deported.

Deportation can occur even if an undocumented immigrant has lived in the United States for many years and has strong ties to the community. This is all the more reason to consider speaking to an immigration lawyer if you’re looking to immigrate to any country for whatever reason. 

Immigration attorneys can also help you navigate cases such as removal or if you need a relative to join you from abroad. They can also help you in acquiring proper documentation, especially if you’ve resided in the country for many years and have demonstrated resilience in contributing to the local economy.

But how do you go about owning a home as an undocumented immigrant in the US? Keep reading to find out.

The Law on Owning Property for Undocumented Immigrants 

Under the current laws, undocumented immigrants are indeed not prohibited from owning property in the US. This is to say that indeed, you can become a proud homeowner regardless of your undocumented status. However, there are still various things to consider before approaching the market for a house.

Common Documents Needed By Immigrants 

As an immigrant, having certain documents, status, or migratory relief can work to your advantage when it comes to owning property. 

  • Green Card: For instance, being a green card holder can grant you many benefits similar to those enjoyed by an American citizen, which includes a lower requirement for the down payment when purchasing a house.   
  • Work Visa (Valid): If you’re a US immigrant but non-resident and only there for work, having an employment visa can help you apply for a mortgage. You could also gain access to FHA loans.  
  • An Asylee or Refugee Status: If you’re seeking asylum in America, you may also qualify for a mortgage. This is as long as you duly filled Form I-94 and have an employment authorization document that’s lasted at least 3 months. 
  • Employment Contract: If you’re an employee on contract, you may also qualify for a mortgage, but the employer may have to provide proof that you’ll renew your contract toward its expiry.  

Top Ways to Buy a Home as an Undocumented Immigrant 

There are various ways to own a home in America without proper documentation of your residency status. As earlier hinted, these include seeking out a mortgage or buying the home in cash. Let’s briefly take a look at these options to make it easier for you to decide which one is best for you.

1. Buy a Home with Cash 

If you’re in the United States as an undocumented alien, making a cash purchase is arguably the best and fasters way to become a homeowner. As a matter of fact, even foreign investors do purchase property in the US (mostly in cash), so why not someone who is already living there.

Of course, the major downside of this method is that homes do not always come cheap. This is not to mention that you will still need to pay property taxes, which becomes another hurdle to navigate with an illegal alien status.

2. Get an ITIN Number

Many illegal immigrants have also bought properties through a mortgage with the help of something called the ITIN number. An ITIN number is an identification number issued by the Internal Revenue Service (IRS) for tax purposes. It is available to undocumented immigrants who are not eligible for a Social Security number.

An ITIN number allows undocumented immigrants to file their taxes and receive certain tax benefits, such as the Earned Income Tax Credit. With this number, one can also set up bank accounts and even qualify for a mortgage. The process of applying for an ITIN number starts by filling out Form W-7 with the IRS. You may also need several other documents, including your passport, birth certificate, and driver’s license.

3. Get a Mortgage Loan with Your ITIN 

Once you obtain the ITIN number, you can even apply for a mortgage or personal loan with it, which you can then use to fund your home purchase. Many banks and credit societies in the US provide such services but be sure to shop around comparing things such as:

  • Minimum down payment required (for a mortgage)
  • Credit score requirements
  • Interest rates
  • Eligibility requirements

 

Undocumented immigrants can indeed be homeowners. While they may not have all of the same rights and privileges as citizens, they can still own property and live in the United States. Besides having to purchase property in cash, many organizations and programs are there to help undocumented immigrants become homeowners. With the help of these organizations, undocumented immigrants can achieve the American dream.

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