Can undocumented immigrants obtain mortgages in the U.S. and how common is it?
Executive summary
Undocumented immigrants can and do own homes in the U.S., and some obtain mortgages through non‑traditional channels — especially "ITIN loans" from private or non‑conforming lenders — but they are generally excluded from federally backed programs such as FHA loans under recent federal policy changes (HUD says non‑permanent residents are ineligible for FHA loans) [1] [2]. Estimates and reporting suggest millions of unauthorized immigrants own homes historically (Migration Policy Institute estimate ~3.4 million in 2014 cited by Credit.com) and advocates and industry sources say ITIN lending has been a viable, if niche, market — though tightening rules and political pressure are reducing its availability [3] [4].
1. Homeownership vs. mortgage access — two different facts
U.S. law does not bar an undocumented person from buying or owning real estate; ownership is separate from access to federally insured financing [5] [3]. Buying with cash or using private, non‑conforming lenders are the most common practical routes when a borrower lacks a Social Security number or lawful permanent status [5] [3]. Sources emphasize that ownership is possible but financing through mainstream channels is constrained [3] [5].
2. The ITIN mortgage market: how it works and why it existed
Lenders developed Individual Taxpayer Identification Number (ITIN) mortgages to serve taxpayers who lack SSNs but file taxes; ITINs became more widely accepted for certain identity‑verification purposes after the early 2000s [4]. Industry reporting and mortgage guides note ITIN loans are offered by some private lenders and community banks and typically require larger down payments and higher rates because such loans are "non‑conforming" and not backed by Fannie/Freddie or, generally, FHA [3] [6].
3. Federal policy changes narrowed federally backed options
HUD and other federal actions in 2025 changed eligibility for FHA‑insured loans so that aliens without permanent resident status would no longer qualify for FHA mortgages; HUD framed the change as tightening enforcement to prioritize citizens and permanent residents [1] [2]. Coverage of the change notes that previously some non‑permanent residents (including certain work‑authorized noncitizens and some DACA recipients) could qualify for FHA loans; the new guidance restricts that access [7] [1].
4. How common is mortgage borrowing by undocumented immigrants?
Precise, current counts are not available in the supplied reporting. Credit.com cites a 2014 Migration Policy Institute figure that roughly 3.4 million undocumented immigrants owned homes then, indicating the practice is nontrivial, but more recent national prevalence of mortgage borrowing by undocumented people is not enumerated in these sources [3]. Trade and local coverage (National Mortgage Professional, Homestead Financial) characterize ITIN lending as a niche but meaningful market that some lenders and community organizations support, while others are retreating due to political and reputational risk [4] [6].
5. Market and political pressures shaping supply of loans
Mortgage industry sources say the decline in availability stems less from an absolute legal ban on private lending and more from political risk, regulatory scrutiny, and lenders’ reputational concerns; industry leaders note very low delinquency rates for some ITIN portfolios but still report tightening due to perceived risks [4]. Advocacy and conservative policy outlets both frame HUD’s action in political terms — HUD/administration asserts program integrity, while commentators note the move aligns with broader immigration priorities [1] [8].
6. Practical consequences for borrowers and local solutions
For undocumented buyers, the practical paths now are cash purchases, private ITIN mortgages (where available), state or local programs that explicitly include noncitizens (examples such as some California initiatives were discussed in local reporting), or acquiring lawful status or employment authorization that makes one eligible for mainstream products [9] [6]. Sources note these options often carry higher costs: bigger down payments, higher rates, and fewer consumer protections tied to federal underwriting [3] [6].
7. What reporting does not settle
Available sources do not provide a current, nationwide count of how many undocumented immigrants hold mortgages today or a rigorous recent delinquency comparison across ITIN portfolios versus mainstream loans; such contemporary national statistics are not in the supplied reporting [3]. They also do not fully quantify how rapidly ITIN lending availability is shrinking across all markets — reporting points to contraction and political headwinds but lacks a comprehensive market‑level dataset [4] [7].
Bottom line: Owning a home is legally possible for undocumented residents, and some have obtained mortgages via ITIN or private loans, but federal changes in 2025 removed eligibility for many non‑permanent residents from FHA insurance and political pressure is constricting ITIN lending — meaning mortgage access for undocumented people has become harder and more localized [1] [4] [3].