We introduce an immersed meshfree formulation for modeling heterogeneous materials with flexible non-body-fitted discretizations, approximations, and quadrature rules. The interfacial compatibility condition is imposed by a volumetric constraint, which avoids a tedious contour integral for complex material geometry. The proposed immersed approach is formulated under a variational multiscale based formulation, termed the variational multiscale immersed method (VMIM). Under this framework, the solution approximation on either the foreground or the background can be decoupled into coarse-scale and fine-scale in the variational equations, where the fine-scale approximation represents a correction to the residual of the coarse-scale equations. The resulting fine-scale solution leads to a residual-based stabilization in the VMIM discrete equations. The employment of reproducing kernel (RK) approximation for the coarse- and fine-scale variables allows arbitrary order of continuity in the approximation, which is particularly advantageous for modeling heterogeneous materials. The effectiveness of VMIM is demonstrated with several numerical examples, showing accuracy, stability, and discretization efficiency of the proposed method.