ITIN Loan

Last Updated: 03/24/2024

Loan Highlights

Borrowers with Individual Taxpayer Identification Numbers (ITINs) instead of Social Security Numbers (SSNs).
Non-U.S. citizens or immigrants without SSNs.
ITIN Loans are designed for individuals who are not eligible for traditional mortgages due to the absence of an SSN.
Suitable for non-U.S. citizens, immigrants, and residents with ITINs who meet lender requirements for creditworthiness and income verification.
Ranges from $50,000 to several million dollars, depending on borrower qualifications and property value.

Federal Fund Rate + 4% Margin

*The mortgage interest rate calculation above is estimated. The subject borrower for that interest rate is as follow:

Interest rates: Fixed or can be ARM.
Loan terms: Typically 15 or 30 years.
Max LTV – 90% for primary residence.
Only for the purchase of primary residence.
Income verification based on alternative documentation, such as tax returns, employment verification, or bank statements.
Higher interest rates or fees may apply due to perceived risk associated with borrowers without SSNs.

Valid Individual Taxpayer Identification Number (ITIN) issued by the IRS.
Established credit history in the U.S., typically requiring credit scores similar to those for traditional mortgages.
Employment History: 2 years for W2 employees and self-employed (the amount of year can sometimes very if you’re in school or self-employed).
Debt-to-income ratio within lender’s guidelines.
Property appraisal to determine market value and loan-to-value ratio.
Documentation:
- Typical Documents: Typically alternative documentation (alt-docs) including tax returns filed using the ITIN, employment verification, rental payment history, and other evidence of creditworthiness.
- Full documentation (full docs) such as bank statements or asset statements may also be required in some cases.

Foreign National Loans: Similar to ITIN Loans, these are tailored for non-U.S. citizens or residents without SSNs who wish to purchase property in the U.S.
Non-Resident Alien Loans: Designed for individuals who are not U.S. citizens or residents but wish to invest in U.S. real estate.

ITIN Loans may be offered by banks, credit unions, or specialized lenders catering to borrowers without SSNs.

Common misunderstandings with ITIN Loans include:
- Higher costs: ITIN Loans may come with higher interest rates or fees compared to traditional mortgages due to the perceived risk associated with borrowers without SSNs.
- Stricter underwriting: While ITIN Loans offer flexibility in income verification, lenders may still have strict requirements for credit history, debt-to-income ratio, and property appraisal.
- Documentation requirements: Borrowers should be prepared to provide extensive documentation of income, credit history, and financial history to meet lender requirements for ITIN Loans.