What is an ITIN? An ITIN is issued to a U.S. Resident Alien or Non-Resident Alient that files a tax return, and is not eligible for a SSN.
Unique loan for individuals who may not have the traditional documents needed to obtain a mortgage. They live and work in the US, have a valid ITIN Number and file US Tax Returns under their ITIN Numbers. Borrowers can be W2 or self-employed.
Most lenders prefer to offer loans to individuals with SSN. Select lenders specialize in, and are able to overcome the hurdles of extra risks associated with ITIN borrowers.
Some of the core components of ITIN home loans will likely include:
- Identification: Alongside your ITIN card, lenders may ask you to provide additional documentation to verify your identity, such as a driver’s license or other identification.
- Credit score: ITIN loans may have more flexible credit score requirements compared to other types of mortgage loans, but some lending institutions may give it greater focus in the application process. If you have a lower credit score, lending institutions may still work with you to obtain the mortgage loan but may require additional information on existing debt and current payments.
- Proof of employment: ITIN home loan applications will need to show a minimum of 2 years of consistent employment history; this can also include self-employment.
- Tax returns: The ITIN home loan application will also require two years of tax returns.
- Other financial documentation: Lenders will want to see any additional financial information that can support the application and prove that you will be able to make your monthly payments, including bank statements and any other relevant assets. Savings in a U.S. bank account may also be included in the application as further proof of finances.
- Down payment: The amount needed for the down payment with ITIN mortgage loans will differ based on what lenders want to see, but it’s usually higher than other types of mortgage loans. A minimum of 20% down payment should be the expectation when applying for ITIN home loans.
Some of the benefits of an ITIN home loan are:
- Social Security cards are not required: For many, documentation like Social Security cards can often present a significant barrier to obtaining mortgage loans. ITIN loans are an alternative if you are not eligible for a Social Security Number that provides the level of identification needed for a mortgage.
- Residency flexibility: For those seeking homeownership but do not have legal residency status in the U.S., lending institutions may work with you to obtain an ITIN home loan instead.
- Credit building: ITIN home loans are also a path toward building and improving credit scores. With each successful repayment of the ITIN home loan installment, you have an opportunity to build credit - that has a domino effect in other areas of life.
- More sustainable to pay back: For those without a Social Security Number, finding suitable loan options can be incredibly difficult. With ITIN loans, homeownership does not have to come with hard money loans and significantly higher interest rates compared to ITIN loans. You can work with your lending institution to identify and apply for an ITIN loan that works for your circumstances long-term.
- Minimum Credit score 600. Some do not require a credit score.
- Down Payment: 15-20%.
- Tax Returns: 2 years.
- Pay stubs: 30 days. If self employed, 12 months bank statements.
- Work history under the ITIN: 2 years.