Is a lender allowed to consider a borrower's immigration status when approving a loan?

The assertion that a lender can consider a borrower's immigration status as a factor in approving a loan is based on the understanding that lenders must assess a borrower's ability to repay a mortgage. This includes evaluating the borrower's overall financial situation, which may involve their immigration status in relation to work authorization and the ability to earn income legally within the country.

Lenders often have policies in place regarding the assessment of non-citizen applicants. For instance, they may take into account whether a borrower has a valid work visa, is a permanent resident, or holds other legal documentation. This can, depending on the policies of the specific lender and applicable laws, impact the decision-making process when determining the risk associated with lending to that individual.

While anti-discrimination laws protect many applicants, specific regulations allow lenders to take immigration status into account when it pertains to the borrower's legal ability to reside and conduct business in the country. Thus, lenders evaluate the financial qualifications of all borrowers, including their immigration status, as part of their due diligence.