The first thing you’re asked for when you apply for anything these days is your social security number, it seems. But many people in the U.S. don’t have a social security number because they have come here from another country. These people work, earn salaries, and live full-time in the United States, but sometimes it is hard for them to get credit or loans because they don’t have that social security number. The Individual Tax Identification Number (ITIN) is what some people have in order to earn money and pay taxes, and many lender can approve and fund a mortgage loan using that number. ITIN mortgage loans provide an opportunity at home ownership for undocumented immigrants. Neither citizenship or a social security number are required. To apply for an ITIN loan, you may do so using your ITIN number (individual tax identification number).
ITIN Loan Requirements
The exact loan requirements will depend on the lender. You should expect to be required to provide the following with any ITIN mortgage lender:
- Credit – Consider the nature of ITIN loans, there are flexible credit requirements. Many lenders will consider using alternative forms of credit documentation, such as utility and phone bills.
- Employment – You will need to provide proof of 2 years of consistent employment.
- Tax Returns – Your lender will want to see the last 2 years of tax returns (W-2 or 1099).
- Identification – A copy of your ITIN card, as well as a drivers license or passport will likely be required by any lender.
- Bank Statements – Expect to need to provide between 2-6 bank statements. The exact number of bank statements you will need to provide will depend on the specific lender you apply with.
Would you like to see if you qualify for an ITIN loan ?
Top ITIN Mortgage Lenders of 2017-2018
Below is a list of the best ITIN mortgage lenders for 2017-2018.
FNBA – First National Bank of America has a ITIN program available in all 50 states.
United Mortgage – United Mortgage Corporation of America offers an ITIN program that allows 90% LTV for first time home buyers. However, they only offer loans in CA and WA.
Prime 1 Bancorp – Prime 1 Bancorp often will allow a down payment of only 10%. The downside to this lender is they are only available in: AK, CA, CO, FL, and IL.
ACC Mortgage – ACC Mortgage offers an ITIN loan product, but generally their rates are not that competitive. They require a 20% down payment (which can be gifted). They only offer financing in: AZ, CA, CO, CT, DC, DE, FL, GA, IL, MD, NV, NJ, NC, PA, SC, TX, VA, and WA.
Go Alterra – Go Alterra provides ITIN loans with a 20% down payment to qualifying applicants. They offer ITIN loans in: AL, AZ, CA, CO, CT, DC, FL, GA, IL, IN, IA, KS, MD, MN, NE, NV, NH, NJ, NM, NC, OK, OR, PA, RI, SC, TN, TX, VA, and WA.
Below are some of the advantages and disadvantages of an ITIN loan. You may want to closely consider if this type of program is right for you.
- Available to non-citizens.
- No social security is required. Only a passport, drivers license, or other form of identification.
- The flexible credit requirements allow you to use non-traditional sources of credit.
- Rates are usually higher than on conventional loans.
- Larger down payment required (most ITIN mortgage lenders will require a 10-30% down payment)
In most ways, an ITIN loan is similar to other conventional mortgage loans. The only major differences being what is outlined above. If you qualify, and are able to place the required down payment, and can comfortably afford the mortgage payment, an ITIN loan may be your best (and only) choice for a mortgage.
Frequently Asked Questions
What types of properties are eligible for these loans?
ITIN loans may be used on single family homes, condos, and PUDS.
Can an ITIN loan be used for an investment property?
No, ITIN loans only may be used for a home that is owner occupied (primary residence).
Are ITIN loans available through the FHA?
No, the FHA does not offer any ITIN programs.
Are there any laws against mortgages being issued to borrowers without a SSN?
There are no laws that exist that restrict mortgage loans being offered to non-citizens. It is just that most lending institutions have a preference to only offer loans to borrowers with a social security number. Additionally, neither Fannie Mae, Freddie Mac, or the FHA back these types of loans creating difficulties pertaining to the secondary mortgage market. Thus, only unique types of lenders, namely “portfolio lenders” offer these types of loans.