Can you get a home loan? Illegal immigrants can

Enough! This is too much. Acording to all the DU polls we have had in the last few weeks DU is equally divide on the immigration issue. What does everyone think of this
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One result of that effort is the ITIN home loan. This loan makes it possible for someone who does not have a Social Security number to obtain a home loan. A Social Security number is usually required for any financial transaction in the United States for tax reasons. But many people who live here, particularly illegal immigrants, do not have such a number. Opinions vary about illegal immigrants, but there are more than ten million of them and they need a place to live. An ITIN loan will allow them to find and purchase a house.
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http://www.homeequityhelp.net/itin_home_loans.htm
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Javier and Araceli Garcia, illegal immigrants from Mexico, never imagined that the U.S. government would help them realize their dream of owning a home.
But last year, the couple secured a $54,600 mortgage to buy the gray, 1,158-square-foot bungalow that they had been renting for eight months. The Wisconsin housing authority financed the loan. The Internal Revenue Service gave them an identification number that enabled them to apply for it at local Mitchell Bank, which was happy to take their business.
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http://www.post-gazette.com/pg/05189/535094.stm
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If you are considering providing ITIN home loans, remember that you will be going back to a time when the underwriting process was completed manually and two-week turnarounds were nonexistent. That is the downside. The upside is that once you have completed one ITIN loan, the word will quickly spread throughout the undocumented-immigrant community, and a never-ending number of prospective homebuyers will contact you to apply for an ITIN loan.
Regardless of how the ITIN home loan is viewed, it could be the saving grace for millions of undocumented immigrants wanting to purchase a home. It could also be the catalyst needed to address the needs of millions of potential homebuyers.
The ITIN home loan may be a boon or a bust, but one thing is certain: It will highlight the need for changes in the mortgage industry that will have an effect on millions of nontraditional borrowers.
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http://www.scotsmanguide.com/default.asp?ID=1180&part=2more…..

More articles
http://money.cnn.com/2005/08/08/news/economy/illegal_immigrants
http://www.chron.com/disp/story.mpl/business/3844981.html/

And the bank does not have to determine people's immigration status first. It wouldn't know how.

The only people responsible for enforcing the immigration laws are the ones that work for ICE. ICE, ICE and only ICE can detain persons suspected of being deportable aliens.

Employers have to help a little bit by doing I-9s. Otherwise, the rest of society is free to leave enforcement of the immigration laws to ICE.

You become a guest worker for five years.

You earn under minimum wage.

You pay into Social Security.

You get a home loan.

You make your payments on your mortgage.

Five years later... buy-bye! Thanks for paying into the trust fund and sorry about your home.

Deporting Guest Workers out of their homes will have an interesting impact on the housing market.

Especially once Realtors start paying-off the cops to target the ones in desirable neighborhoods.

"Sorry, Pedro... I pulled you over for a busted tail-light, and now it seems I've found some contraband in your car. You have the right to remain silent... while my brother Bubba calls his realator..."

in tacked. It amazes me how few DUers do not see the forest through the trees. I have two more to post on another thread...Follow my links

From your link to "The Scotsman Guide: The Leading Resource for Mortgage Originators" (Those radicals!)

...with the advent of the ITIN mortgage, undocumented immigrants now have a better chance of securing home loans. First, they must file a federal income tax return. They can then apply for the ITIN (using form W-7) from the IRS if they are not eligible for a Social Security number.

Along with their ITIN, they must also be able to verify income for the previous two years, to produce documents from companies that they have paid on a regular basis (e.g., rent, utilities, insurance, telecommunications, etc.) and to verify any other outstanding debts. Gathering all this information means a lot of paperwork for the borrower, the lender and the underwriter, which results in a slow loan-approval process....

There are also social and political ramifications to be considered if thousands of undocumented immigrants purchase homes. Some organizations and individuals will affirm that the ITIN home loan is a great way to help these immigrants become part of the fabric of American society.

I suppose the new "Know Nothings" xenophobes will accuse them of "stealing" our houses now.

Although renters do pay them indirectly. And they will become solid(er) members of the society.

The Lenders are not doing this out of the goodness of their hearts. They loan the money because they believe they'll get it back. Plus interest, of course.

prospective immigrant home buyers is a small - but concrete - reminder that they are here to stay, assimilate, and be a part of the country. Along the way, folks may not like it, but the sheer numbers are the reality. It is what it is.

Ask Alberto Gonzales, the US Attorney General. Yesterday on Blitzer's CNN show he said his family wasn't sure if three of his grandparents - Mexican immigrants to Texas - were legal or not.

(ed for clarity)

Maybe this will help you remember, Senior Gonzales?

aliens buy homes every day.

Foreigners buy vacation homes in the USA on a frequent basis. My dad was looking into property in FL and even NC at one point (before things happened - personal). He would have probably paid cash but I guess he could have borrowed money from the bank. If all he needed was documentation and a taxpayer ID, then that would have been simple enough to provide.

Oh, and if the "undocumented immigrant" were to be deported then if they got any sense they could rent out the property - hey presto! Mortgage payments made for them!

Mark.

First off, they have a higher interest rate than normal thirty year fixed loans, anywhere from 0.5 to 4 percentage points higher. Also, they require much more substantial down payments than your normal mortage. And as somebody pointed out earlier, the banks automatically get the house when the person is deported.

Sounds like just another great American financial scam to me, preying off of peoples' weakness and vunerablity.

skills. DUers hate the Corpocracy but have no problem with the banks preying on illegals that will have no recourse if they are forced to leave the country. Doesn't that tell someone that the US governement wants them here for slave wages and a way to suppress wages all over the country. This used to be a problem for a dozen states, not any more