ITIN stands for “Individual Tax Identification Number” and is a form of ID issued by the IRS to those who don’t have a social security number. So, ITIN loans are a valuable alternative for residents and non-residents who want to buy a home but cannot provide the traditional documentation needed for a conventional loan.
Let’s learn more about this unique loan product and how it can make your dreams of homeownership a reality.
What Is an ITIN Loan?
Most mortgage applications require a social security number. However, with an ITIN loan, borrowers can finance the purchase of a home without a social security number—they can use their ITIN instead.
Some other forms of valid ID are required (see below), but no legal documents are necessary to prove US residency. So, ITIN loans make it possible for non-citizens and the spouses of those individuals to own a home. Unlike some mortgage loans, ITIN borrowers can often use gift funds to help with the down payment on the property. However, lenders will still need to confirm that a borrower has the means to repay the loan, so proving financial creditworthiness is important. Providing tax returns, bank statements, and other financial documents often isn’t necessary, but it can make lenders more willing to work with a borrower.
ITIN Loan Requirements at a Glance
To qualify for an ITIN loan, applicants must meet the following criteria:
Have a valid, non-expired ITIN
Provide additional proof of identification, such as a license or passport
No bankruptcy filings, foreclosures, or short sales within four years
Minimum FICO credit score of 650
Must provide 12 months of income documentation
LTV under 90%
DTI under 55%
Property appraisal
Of course, loan approval varies based on individual situations, and other program requirements might apply. Speak to an experienced mortgage lender to determine if you qualify for an ITIN loan.
ITIN Loan FAQ
What kind of properties can you finance with an ITIN loan?
With an ITIN loan, applicants can apply to finance owner-occupied and second homes, including single-family residences, planned unit developments, 2-to-4-unit buildings, and low-rise condominiums.
What is the interest rate for an ITIN loan?
Interest rates fluctuate daily, so you must ask your loan officer for specific details. While ITIN interest rates are often higher than those for conforming loans, they tend to be less expensive than the interest rates on hard money loans. This makes ITIN loans a valuable option for those without a social security number since they’re easier to pay off.
Who can apply for an ITIN and an ITIN loan?
ITIN loans are generally taken out by non-US citizens or foreign nationals who live and work in the United States but aren’t eligible for or haven’t yet received legal status.
Learn More About Mortgages
ITIN loans are a practical, valuable way for those without a social security number to finance the purchase of a home. Are you currently in the market to buy a property? Whether you wish to apply for an ITIN mortgage loan, a conventional loan, or another kind, we can help.
At the Mortgage Minds Group, we provide experienced, professional, and loyal service to those with whom we work. Check out our blog to learn more about mortgages, apply for a loan now, or reach out with any questions.
We can’t wait to get you into the home of your dreams.
Comments