Getting a mortgage as a non-resident of the US: What immigrant homebuyers should know (2024)

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• Non-US citizens can buy property in the US whether or not they have legal documentation permitting them to be here.
• Non-resident homebuyers will either need to get an ITIN mortgage or pay in cash to buy a home.
• ITIN mortgages are often much more expensive than traditional mortgage options.

You don't necessarily need to be a US resident or citizen to buy a home here. Even individuals without documentation permitting them to live and work in the US are free to buy property and become homeowners.

In fact, according to the Migration Policy Institute, more than 3 million of these individuals living in the US are homeowners. And the Institute on Taxation and Economic Policy reports that this group contributes $3.6 billion in property taxes each year.

I'm a non-resident living in the US. Can I buy a house here?

Non-US citizens are allowed to buy property in the US regardless of whether or not they have legal documentation permitting them to be here. This means that foreign nationals, visa and green-card holders, and even those who have entered the country unlawfully can buy a home in the US.

Nora Aguirre, a Realtor in Nevada and member of the National Association of Hispanic Real Estate Professionals board of directors, says that many of the homebuyers she's worked with who lack legal status in the US are families and first-time homebuyers who are working to establish permanent residency in the country. But getting to that point can take a long time.

"Unfortunately, this process is not a short one, so it may take 10, 15 years. So they've been here for that long," Aguirre says. "And so of course, becoming a homeowner is a big thing for them."

But getting a loan as an immigrant can be challenging depending on your residency status and the type of documentation you have. While permanent and non-permanent residents who are legally authorized to live and work in the US are generally able to use a conforming mortgage to buy a house, immigrants without this documentation usually have to find non-conforming alternatives or pay for the home in cash.

What type of mortgage can those without US residency documentation get?

To get a conforming mortgage, which is what most people think of as a "traditional mortgage," you'll need to have:

• A Social Security number or an Individual Taxpayer Identification Number (ITIN)
• Documentation showing you're authorized to live and work in the US, such as a work visa or green card

Both permanent and non-permanent residents can qualify for a conforming mortgage. But non-residents or those whose residency documentation has expired typically have to utilize a type of non-QM loan called an ITIN mortgage.

ITIN mortgages for individuals without Social Security numbers

ITIN mortgages allow borrowers to use their ITINs to apply for a mortgage. ITINs are given by the Internal Revenue Service and allow those who are ineligible for a Social Security number to file their taxes.

ITIN mortgages offer a path to homeownership for individuals without the documentation to qualify for a conforming mortgage. But the trade-off is that they tend to be pretty expensive for borrowers. Many ITIN lenders require a down payment of at least 20%, and ITIN mortgage rates are often significantly higher compared to rates on conforming mortgages.

"They'll have to come in with more down payment, they'll have to have more savings, and they're usually going to be paying higher interest rates," Aguirre says.

According to Aguirre, a person getting an ITIN mortgage could end up paying as much as $500 more on their monthly mortgage payment than someone getting a comparable conforming mortgage, thanks to the higher rates that come with an ITIN mortgage.

Work with knowledgeable professionals

It you're buying a house in the US as a non-resident, you'll want to team up with pros who have experience working with ITIN borrowers. When searching for a real estate agent, Aguirre advises homebuyers to do a bit of probing when asking if an agent has experience with these types of loans.

"Continue interviewing until you really feel that you have the right professional that really checks off all your boxes, and you can feel that connection with that professional of, 'you know what, this person does know, it sounds like they do understand the journey,'" Aguirre says.

What will happen to my property if I have to leave the US?

If you have to leave the US, either due to deportation or other circ*mstances, you don't have to worry about losing ownership of your home.

"The property will still be yours, and all you need to do is decide what you want to do, you keep it or you sell it," Aguirre says. "And then all of that can be done and arranged from outside of the United States."

If you do have to leave the country, Aguirre says you can hire a property management company to help you sell or rent out your home remotely.

Fair housing laws protect everyone, regardless of immigration status

No matter what your immigration status is, you are protected under fair housing laws, including the Fair Housing Act. This means that a mortgage lendercan't offer you different terms on a loan based on your immigration status, and a real estate agent can't encourage you to buy a home in a certain area based on your national origin.

If you believe you've been a victim of housing discrimination, you can file a complaint with the US Department of Housing and Urban Development or your local or state housing authority. An attorney or local housing nonprofit agency may be able to help you as well.