All of Your Questions about ITIN Mortgages Answered

Jul 9, 2024 | Tips | 0 comments

All of Your Questions about ITIN Mortgages Answered:

ITIN mortgages are home loans available to individuals who have an Individual Taxpayer Identification Number (ITIN) instead of a Social Security Number (SSN). Here are answers to some common questions about ITIN mortgages:

What Is an ITIN Mortgage?

An Individual Taxpayer Identification Number (ITIN) is a tax processing number issued by the Internal Revenue Service (IRS). It is a nine-digit number that always begins with the number 9 and has a range of 70-88 in the fourth and fifth digits (e.g., 9XX-70-XXXX). Here are the key points about ITINs:

Purpose of an ITIN

  • Tax Filing: ITINs are used by individuals who need to file a U.S. federal tax return but do not have and are not eligible to obtain a Social Security Number (SSN).
  • Non-Citizens: ITINs are primarily used by non-citizens who are required to file taxes, such as non-resident aliens, resident aliens, dependents or spouses of U.S. citizens/resident aliens, and non-resident alien students, professors, or researchers.

Who Needs an ITIN?

  • Non-Resident Aliens: Required to file a U.S. tax return.
  • Resident Aliens: Who are required to file a U.S. tax return based on the number of days they reside in the U.S.
  • Dependents or Spouses: Of U.S. citizens or resident aliens.
  • Non-Resident Alien Students, Professors, or Researchers: Who need to file a tax return or claim an exception.

How to Apply for an ITIN

  • Form W-7: To apply for an ITIN, you need to complete IRS Form W-7, “Application for IRS Individual Taxpayer Identification Number.”
  • Documentation: You must provide documentation to verify your identity and foreign status. This typically includes a passport, but other documents such as a national ID card, U.S. driver’s license, or birth certificate may also be acceptable.
  • Submission: Submit Form W-7 and the required documentation to the IRS. This can be done by mail, in person at designated IRS Taxpayer Assistance Centers, or through an IRS-authorized Certifying Acceptance Agent.

Benefits of Having an ITIN

  • Compliance: Allows individuals without an SSN to comply with U.S. tax laws.
  • Tax Reporting: Enables individuals to file tax returns and claim tax treaty benefits.
  • Credits and Deductions: ITIN holders may be eligible for certain tax credits and deductions.

Limitations of an ITIN

  • Not for Work: An ITIN does not authorize an individual to work in the U.S. or provide eligibility for Social Security benefits.
  • Not for Identification: It is solely for tax processing and is not intended to serve any other purpose.

Validity and Renewal

  • Expiration: ITINs issued after December 31, 2012, expire after five years. They can be renewed if still needed for tax purposes.
  • Renewal Process: The renewal process involves submitting a new Form W-7 along with the required documentation.

All of Your Questions about ITIN Mortgages Answered

Can You Get a Mortgage with an ITIN?

Yes, you can obtain a mortgage with an ITIN. Although not all lenders offer ITIN mortgages, many specialized lenders and some credit unions do. These lenders understand the unique circumstances of ITIN holders and may offer tailored loan products.

What Are the Requirements for an ITIN Mortgage?

While requirements can vary by lender, common criteria include:

  • Credit History: A credit score is often required. If you lack a traditional credit history, lenders may consider alternative credit sources like utility bills and rental payments.
  • Down Payment: ITIN mortgages typically require a larger down payment, often around 20%.
  • Income Verification: You will need to provide proof of stable income through documents like tax returns, pay stubs, and bank statements.
  • Employment History: A stable employment history can strengthen your application.
  • ITIN Documentation: Proof of your ITIN, usually provided by the IRS.

What Documents Do You Need for an ITIN Mortgage?

Common documentation includes:

  • Valid ITIN
  • Recent tax returns (usually two years)
  • Pay stubs or proof of income
  • Bank statements (usually two to three months)
  • Proof of employment
  • Identification (e.g., passport, consular ID)
  • Proof of residency (e.g., utility bills, lease agreements)

Are ITIN Mortgages More Expensive?

ITIN mortgages often come with higher interest rates and may have more stringent terms compared to conventional loans. This is because lenders perceive a higher risk in lending to individuals without an SSN.

How Does the Application Process Work?

The application process for an ITIN mortgage typically involves the following steps:

  1. Research Lenders: Look for lenders who offer ITIN mortgages.
  2. Pre-Approval: Get pre-approved to understand your borrowing capacity and show sellers you are a serious buyer.
  3. Gather Documentation: Collect and organize all required documentation.
  4. Submit Application: Complete the mortgage application and submit it along with your documentation.
  5. Underwriting: The lender will review your application and documents, which may include a credit check and income verification.
  6. Approval: If approved, you will receive a loan commitment and can proceed with the home purchase process.

What Are the Benefits of an ITIN Mortgage?

  • Homeownership Opportunity: Allows non-citizens and undocumented immigrants to buy homes.
  • Build Credit: Can help build or improve your credit history.
  • Financial Stability: Provides an opportunity to invest in property and build equity.
All of Your Questions about ITIN Mortgages Answered

Ana Roque

What Are the Challenges of an ITIN Mortgage?

  • Higher Costs: Higher interest rates and larger down payments.
  • Limited Availability: Not all lenders offer ITIN mortgages, so options may be limited.
  • Stricter Requirements: More stringent documentation and credit history requirements.

Can ITIN Holders Refinance Their Mortgages?

Yes, ITIN holders can refinance their mortgages. The process and requirements are similar to obtaining the original mortgage, and refinancing can potentially lower your interest rate or change the loan terms to better suit your financial situation.


ITIN mortgages provide a valuable opportunity for non-citizens to purchase homes in the U.S. While they may come with higher costs and stricter requirements, working with specialized lenders can help navigate the process and achieve homeownership.