Illegal Residents But Responsible Homeowners

Los Angeles Times (10/06/08); Gorman, Anna
The National Association of Hispanic Real Estate Professionals says mortgages given to illegal immigrants using taxpayer identification numbers had a 1.15-percent delinquency rate in 2006, versus a 3.5-percent rate for mortgages using Social Security numbers. Experts say illegal aliens are being hit hard by the economic downturn, yet they continue to make timely mortgage payments due to fixed mortgage rates, pre-purchase counseling, bigger down payments and "the promise of a better future," according to NAHREP President Tim Sandos. Acorn Housing's Bruce Dorpalen adds that immigrant homeowners tend to have extended families able to help in the event that the borrower becomes unemployed, and they also generally have extensive savings and their own businesses. However, taxpayer identification loans have declined due to the credit crisis, as even borrowers with traditional credit histories find it difficult to obtain financing.