An ITIN is an Individual Taxpayer Identification Number and is a number that the IRS issues to people who cannot get a social security number, for the purpose of paying taxes to the US Federal Government.
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. If the primary wage earner has 3 credit scores, the minimum tradeline requirement is met.
- Employment – You will need to provide proof of 4 years of consistent employment (not verified). Self employed ok.
- income – The income stream can be from wages or self-employment, all income documentation options are available. Borrowers may or may not have an SSN. Documentation provided to support qualifying income that includes a non-official SSN are not allowed, alternate documentation must be provided.
- Down Payment – Expect to need to put at least 20% down. A minimum of 5% of the down payment must come from occupying borrower’s own funds. Business funds ok.
- Identification –ITIN required, no SS required Must have 2 years of Self Employed U.S. work history. Borrower will not have legal US residency status.
- Income – W-2, Business or Personal Bank Statements, 1099, or CPA
What Kind of Borrower Has An ITIN?
Individual Tax Identification Numbers (ITIN) are given to U.S. Residents who do not have citizenship, but live and work in the United States. These borrowers pay taxes and earn income without a social security number.
ITIN loans are considered Non-QM loans (Non-Qualified Mortgage) and will typically have higher interest rates and other more aggressive terms.
