Can an illegal immigrant buy a house?

Although there are many doubts, the question Can an illegal immigrant buy a house? has a clear answer: yes, an immigrant can buy a house in the United States even without legal status. 

However, the process comes with limitations and additional requirements, so it’s wise to work with an experienced NJ real estate attorney.

Contrary to what many people believe, federal law does not prohibit an undocumented immigrant from owning a home. The real challenge isn’t the purchase itself, but rather how to finance it, obtain a mortgage, or cover the upfront costs.

In the following sections, we explain what you need to start the process, how recent legal changes affect immigrant buyers in 2025, how ITIN mortgages work, and which alternatives exist to traditional financing.

How can an illegal immigrant buy a house? All available options

The reality is yes, an immigrant can buy a house in the United States even without permanent lawful residence. Today, the two most common paths are:

• Cash purchase: A direct and secure option for those who have all the funds available. Read our full guide on buying a house in New Jersey.
• ITIN mortgage (Individual Taxpayer Identification Number): Typically requires at least two years of tax returns filed with an ITIN, a 15%–30% down payment, and often has higher rates than a traditional mortgage.

In short, the doubt Can an illegal immigrant buy a house? is answered clearly: yes, it’s possible. In practice, the real alternatives tend to be limited and usually come down to these two options.

Practical example: In New Jersey, a buyer who has filed taxes with an ITIN for two years could access this loan by providing a 20%–25% down payment.

ITIN mortgages: Requirements, costs, and a realistic example

ITIN mortgages are the main alternative for undocumented immigrants who want to buy a house in the United States. 

They work similarly to conventional mortgages but with stricter requirements and conditions. Availability also depends on the lender and the state where you apply.

For many immigrants, the question “Can an illegal immigrant buy a house?” finds its only practical path through ITIN mortgages.

Basic requirements to apply for an ITIN loan

To qualify for this type of financing, applicants generally must meet minimum conditions that most lenders require:

• A valid ITIN.
• Tax returns for the last 2 years filed under that ITIN.
• Proof of stable income (pay stubs, employer letters, or bank statements).
• At least 2 years of work history in the same role or industry.
• A down payment between 15% and 30% of the property’s value.

Financial terms

Beyond eligibility, ITIN mortgages have features that set them apart from traditional loans. The most common terms to consider include:

• Interest rate: Commonly 1–2 percentage points higher than a traditional mortgage (and sometimes more, depending on the lender).
• Term: Often 30-year fixed-rate.
• Mortgage insurance: Many lenders don’t require it because the higher down payment protects the lender.

ITIN mortgage: a practical example

Suppose an undocumented immigrant wants to buy a $250,000 home:

• Down payment (20%): $50,000.
• Loan amount: $200,000.
• At 8.5% interest (about 2 points above a conventional rate), the monthly payment would be roughly $1,537 for principal and interest.
• With a conventional mortgage at 6.5%, the payment would be about $1,264.

The difference is more than $270 per month, which over 30 years amounts to roughly $97,200 in additional cost.

Advantages of ITIN mortgages

While they require more documentation and cost more, ITIN mortgages offer important benefits for those without legal immigration status in the U.S. Key advantages include:

• They allow undocumented buyers to access homeownership.
• They can help build U.S. credit history if the lender reports payments to the credit bureaus.
• In some cases, they may be used not only for a primary residence but also for a second home or investment (depending on the lender’s policy).

Limitations

Despite being a viable option for many undocumented immigrants, ITIN mortgages have clear downsides you should weigh before committing:

• Stricter financial requirements than conventional mortgages.
• Higher down payments and interest rates.
• Fewer lenders offer them, limiting competition and making the credit more expensive.
• Uneven availability by state, more common in areas with larger immigrant populations such as Texas, California, New Jersey, or Florida.

Requirements to buy a house in the U.S. as a non-U.S. citizen (what lenders ask for)

Beyond the ITIN and financial track record, immigrants who want to purchase a home should be prepared to submit additional documents. Each lender has its own policies, but in practice requirements often align around the following:

When reviewing lender requirements, many ask again: Can an illegal immigrant buy a house? Yes, if you can prove income, solvency, and a valid ITIN.

Common documents lenders request

Typical documentation includes:

• Proof of income: Pay stubs, employer letters, or bank statements.
• Tax returns: Usually at least 2 years filed under the same ITIN.
• Government ID: A valid foreign passport or other acceptable identification.
• International financial records: Some lenders accept statements or proof from your country of origin.
• Alternative credit history: Utility bills, rent receipts, insurance payments, or any evidence of regular payments.
• Reserve funds: Savings sufficient to cover 2–6 months of mortgage payments.

Requirements by immigration status

Financing options to buy a house in the United States are not the same for everyone. Depending on your immigration status, lenders apply different rules that determine which mortgage programs you can access:

• Lawful permanent residents (Green Card holders): May access traditional programs like FHA, Fannie Mae, or Freddie Mac, with down payments from 3%–3.5%.
• Refugees and asylees: With a valid Form I-94 and a valid work permit, they can be eligible for government-backed or conventional loans if they meet financial criteria.
• Undocumented immigrants: Rely primarily on private ITIN mortgages or cash purchases.

Note: Through 2025, some DACA recipients could apply for FHA loans under specific conditions. Recent changes, however, left FHA limited to citizens and those who obtained a Green Card, excluding DACA and other statuses.

Example: María, an undocumented immigrant with an ITIN, wants to buy a $300,000 home. The lender asks for a 25% down payment ($75,000) and a 9% rate. If she had a Green Card, she could consider FHA with a 3.5% down payment and a lower rate.

Types of mortgages in the United States (quick overview)

When buying a home, not all mortgage programs work the same, and not all are available to every immigration profile. The most common options and basic requirements are:

• Conventional (Fannie Mae/Freddie Mac): Require SSN and lawful presence.
• FHA: Available only to U.S. citizens and lawful permanent residents.
• VA/USDA: Reserved for specific profiles (military or rural areas) and require lawful status.
• ITIN (private/credit unions): An option for undocumented buyers, but typically require 15%–30% down and come with higher rates.
• Cash purchase: Always possible and offers stronger negotiating power, though it requires substantial savings.

Many families still wonder, Can an illegal immigrant buy a house? The reality is yes, but the answer always depends on proving income, having an ITIN, and meeting stricter lender conditions.

Other alternatives to buy a house if you’re undocumented

Although ITIN mortgages are the most common path, there are other ways to access homeownership. These options tend to be riskier and always require legal guidance to avoid fraud.

1# Rent-to-own contracts

The immigrant rents the home for 2 to 5 years, and a portion of each monthly payment is credited toward a future purchase.

At the end of the term, they may purchase the property at a pre-agreed price. If they breach the contract, they lose the amounts credited.

2# Private purchase agreements

The agreement is made directly with the seller, without a bank. It can include monthly payments to the owner in lieu of a bank mortgage. Keep in mind:

• It’s essential to record the agreement and have an attorney supervise it, as some sellers take advantage of undocumented buyers.
• If the seller still has a mortgage and stops paying, the bank can foreclose and the buyer could lose the home. Looking for info on how to purchase a foreclosed home in NJ? Check our blog.

Recommendation: Run a property title search in NJ and secure title insurance, especially in states like New Jersey.

3# Community credit unions and alternative lenders

In states like New Jersey, Texas, or California, some credit unions and community lenders offer group or alternative lending.

These may rely more on a history of community contributions than on formal credit. They offer documentation flexibility but often carry higher rates and more risk if unregulated.

Example: Pedro, undocumented in Newark, signs a rent-to-own agreement with his landlord. For 3 years he pays $1,500/month, with $500 credited each month. At the end, he has $18,000 applied to the purchase price.

How immigration status impacts buying a home in the U.S.

Immigration status shapes whether and how an immigrant can buy a house in the U.S., because it affects available financing options and the requirements each lender will impose.

Since May 2025, key changes have affected federal housing programs and the requirements to buy a house in the U.S. as a noncitizen:

• FHA loans: Limited to U.S. citizens and lawful permanent residents.
• Conventional (Fannie Mae/Freddie Mac): Require lawful presence and status verification. See more in mortgage requirements in New Jersey.
• VA and USDA: Still reserved for specific profiles (military or rural) and require lawful status.
• ITIN mortgages: Remain available from private lenders and credit unions, but typically with higher down payments and added controls. When budgeting, also review closing costs in New Jersey.

In practice, undocumented immigrants today have two realistic paths: a cash purchase or an ITIN mortgage, where lenders are willing.

Here’s how each status is typically affected:

Lawful permanent residents (Green Card holders)

• Can access the same loans as citizens: Conventional, FHA, VA, and USDA.
• Standard requirements: Strong credit and verifiable income.
• Benefit: Down payments from 3%–3.5%.

Refugees and asylees

• May qualify for conventional mortgages if lawfully present and they present Form I-94 plus a valid Employment Authorization Document (EAD).
• Since May 2025, they no longer qualify for FHA unless they become lawful permanent residents.
• After one year in approved status, they may apply for a Green Card, broadening their options.

DACA recipients

• They previously could access FHA in some scenarios, but since May 2025 they no longer qualify.
• They may access some conventional loans if they meet credit and income requirements, although availability is more limited.

Work or student visa holders

• With visas like H-1B or L-1, they may access conventional loans if they prove valid status and stable employment contracts.
• Those with temporary visas such as H-2A or H-2B face tighter restrictions due to concerns about long-term presence.
• Since 2025, they do not qualify for FHA.

Undocumented immigrants

They do not have access to federal programs like FHA, VA, or USDA. Their realistic options include:

• ITIN mortgages with 15%–30% down and higher rates.
• Cash purchases that remove lender scrutiny but require substantial savings.

Between 2024 and 2025, several banks tightened policies, reducing ITIN offerings and adding extra checks to verify identity and source of funds.

Practical examples

• Marta (lawful permanent resident): Gets an FHA mortgage with 3.5% down for her home in Elizabeth, NJ.
• Juan (DACA): Obtains a conventional loan with 10% down and a 6.5% rate after presenting a valid EAD.
• Carlos (undocumented): Qualifies only for an ITIN mortgage at 8.5% interest with 20% down.

Why can undocumented immigrants own a home in the U.S.?

In the United States, the right to own real estate does not depend on immigration status. There is no federal law that prohibits an undocumented immigrant from buying a house.

Legal foundations

• State property laws allow any person (regardless of nationality or status) to hold title to real estate.
• Recording offices require identification of the buyer and proper recording of the transaction, not proof of citizenship or residency.

Bottom line: Undocumented immigrants can own homes in the U.S.; the real limitation is financing, which tends to be costlier and less available.

Is it possible to get a mortgage without U.S. credit history?

Some lenders accept alternative credit (rent, utilities, bank accounts). Another path is an ITIN mortgage.

Most common ways to acquire a home

• Cash purchase: Popular among undocumented buyers because it avoids lender scrutiny. Reduces rejection risk, but requires substantial savings.
• ITIN mortgage: Available through some credit unions and community banks. Requires a valid ITIN, tax returns, work history, and a higher down payment.
• Owner financing agreements Direct deal with the seller, without a bank. Risky if not reviewed by an attorney because there may be hidden liens or debts; if the seller defaults on their own loan, the bank could foreclose.

Benefits of owning even if you’re undocumented

• Build equity: The property may appreciate over time.
• Family stability: Fewer moves and more security.
• Long-term investment: In markets like New Jersey or New York, an ITIN mortgage can be comparable to, or cheaper than, rent.
• Inflation hedge: Owning U.S. dollar-denominated real estate can help preserve value versus instability back home.

Important: Owning a home does not grant immigration status or benefits; it only provides asset security.

Example: Alejandra, an undocumented immigrant from Mexico, bought a home in New Jersey with family savings. Although she has no legal status, she was able to record the deed in the county, and today she rents part of the house to generate extra income.

What precautions should I take with private contracts?

As a rule of thumb, you should:

• Verify the property title,
• Record the agreement and work with an attorney to avoid abusive clauses or hidden debts.

Are there support programs if I have low income?

Some states offer assistance and, in rural areas, USDA programs may consider lower incomes (for eligible applicants with lawful presence).

Can you buy a house in the United States without a Green Card?

Yes, you can buy a house in the United States without a Green Card. Not having lawful permanent residency does not prevent you from owning property, but it does limit your financing options.

Recent restrictions (2024–2025)

Recent measures tightened access to mortgage programs backed by federal agencies:

• FHA: Now limited to U.S. citizens and lawful permanent residents.
• Conventional (Fannie Mae and Freddie Mac): Still available but require proof of lawful presence, which excludes undocumented immigrants.
• Practical consequence: Undocumented immigrants have very limited paths—cash purchases or ITIN mortgages, whose availability depends on the state and lender.

Example: Carlos, a DACA recipient, bought a house in New Jersey with a conventional loan. He needed a larger down payment and an employer letter confirming his job. Meanwhile, José, who is undocumented, could only purchase with cash.

Fair Housing Act: What it protects and what it doesn’t

The Fair Housing Act prohibits discrimination in the purchase, sale, rental, or financing of housing on the basis of race, color, religion, sex, national origin, disability, or familial status.

Limits of this protection:

• A real estate agent can’t refuse to sell a home for cash solely because of a buyer’s national origin.
• A bank can deny a mortgage if a borrower fails to meet financial criteria (valid SSN or ITIN, credit/income verification) and that is not discrimination under the Act.

Quick example: An undocumented immigrant decides to purchase in cash: an agent cannot reject the offer due to the buyer being foreign. But if that buyer applies for a loan without SSN or ITIN, the bank may deny the application for failing financial criteria, this is not discrimination under the law.

What to do if you face discrimination

• Contact a Fair Housing Center in your state.
• File a complaint with HUD within the legal deadline.
• Consider state or federal court action with legal counsel.

In these cases, it’s important to work with a landlord-tenant lawyer in New Jersey.

FAQs on how an illegal immigrant can buy a house

Does buying a house give me legal status or prevent deportation?

No. Ownership does not change immigration status or protect you from removal proceedings.

What happens to my house if I’m deported?

The property is not automatically lost. You can sell it, transfer it to a family member, or manage it from abroad, as long as payments and taxes remain current.

Does buying a house increase my risk of deportation?

No. Homeownership is not an immigration violation and does not by itself increase the risk of deportation.

Can I inherit or transfer a home without legal status?

Yes, it’s possible to inherit or transfer real estate, but you should do so with legal guidance to avoid fraud or disputes. A common option is a quitclaim deed in New Jersey.

New Jersey attorneys who help immigrants buy homes in the U.S.

Buying a house in the United States as an undocumented immigrant is possible, but the process is full of legal, financial, and immigration challenges.

From securing an ITIN and proving income to facing higher down payments and rates, every step requires careful preparation.

If you’re still asking Can an illegal immigrant buy a house? our New Jersey team can assess your finances and immigration situation and outline the safest path forward.

At Curbelo Law, we understand that homeownership is more than an investment, it means security, stability, and a future for your family. Our attorney, Carolina T. Curbelo, brings over 10 years of combined experience in immigration and New Jersey real estate, allowing us to offer comprehensive guidance.

We can assist you with:

• ITIN mortgage applications and immigrant-friendly financing alternatives.
• Negotiation and review of purchase agreements in New Jersey.
• Protection of your rights in housing discrimination cases.
• Legal strategies that align home purchases with potential immigration benefits (when permitted by law).

If you’re considering buying a house in the U.S. while undocumented, don’t do it alone. Contact us today for a confidential consultation. Our team will review your financial and immigration situation to help you choose the safest path.